June 16, 2024
Hydrogen Storage Market

The Hydrogen Storage Market is Estimated to Witness High Growth Owing to Increasing Demand for Clean Energy Solutions

The hydrogen storage market comprises of products such as physical forms of storage like compressed gas, liquid hydrogen and solid-state materials. Hydrogen as an energy carrier offers advantages like higher efficiency and reduced emissions as compared to conventional fuels. It is considered to have a critical role to play in realizing a carbon neutral economy. The growth of fuel cell electric vehicles (FCEVs) and initiatives supporting clean hydrogen production and usage are driving demand for efficient hydrogen storage technologies.

The global hydrogen storage market is estimated to be valued at US$ 1.6 Bn in 2024 and is expected to exhibit a CAGR of 23% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the Hydrogen Storage Market Growth are Air Liquide, Air Products and Chemicals, Inc., Hexagon Purus, Worthington Industries, Inc., Linde plc, Luxfer Holdings PLC, Chart Industries, INOXCVA, HBank Technologies Inc., Pragma Industries.

The market provides opportunities for growth in sectors like transportation, power generation, chemicals, and industrial application areas. Various regional governments are supporting hydrogen infrastructure development which is encouraging global expansions of market participants.

Over $170 billion commitments have been made globally for production of clean hydrogen and developing related storage, transportation and distribution facilities. This will help establish hydrogen economy and drive market adoption.

Market Drivers

The increasing demand for clean energy solutions due to stringent environmental regulations coupled with supportive government policies and investments for hydrogen economy are expected to be the major drivers for the hydrogen storage market during the forecast period. Initiatives promoting usage of FCEVs and investment in hydrogen refueling infrastructure are other factors accelerating the demand. Ongoing technological advancement for efficient hydrogen storage approaches like using solid-state materials and innovative designs will fuel the hydrogen storage market growth.

PEST Analysis

Political: The stability of government policies and regulations in regions where hydrogen infrastructure is being developed will impact the growth of the hydrogen storage market. Regulations promoting clean energy usage can positively influence the market.

Economic: Investments made by governments and private organizations in developing hydrogen-based transportation networks and building hydrogen refueling stations will drive the demand for hydrogen storage systems. Factors like GDP growth and disposable income levels in regions also impact market growth.

Social: Increasing awareness about the benefits of using hydrogen as an alternative clean energy carrier is encouraging its adoption. Concerns around sustainability and focus on reducing carbon footprint are driving the demand for green hydrogen production and storage solutions.

Technological: Advancements in material science and nanotechnology are leading to more efficient, compact and affordable hydrogen storage systems. Investments in R&D are leading to innovative storage technologies like metal hydrides, chemical hydrogen storage etc being commercialized.

Geographical concentration

Currently in terms of value, the hydrogen storage market witnesses the highest concentration in regions like North America, Western Europe and Asia Pacific owing to large presence of fuel cell vehicle manufacturers, industrial gas suppliers and ongoing infrastructure development projects to promote the hydrogen economy in countries like US, Germany, Japan etc.

Fastest growing region

Asia Pacific region is poised to witness the fastest growth in the hydrogen storage market during the forecast period. This is owing to government initiatives and investments promoting clean energy adoption in densely populated countries like China and India. Growing manufacturing industry and expanding transportation sector are other factors driving increased hydrogen demand and corresponding storage requirements in Asia Pacific.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it