Global Hydrogen Energy Storage Market Segmentation, By Technology (Physical Based, Material Based, Liquid Hydrogen, Metal Hydrides, Carbon Absorption, and Underground Salt Caverns), Physical State (Solid, Liquid, and Gas), Application (Stationary Power, Transportation, Portable Power, Power Generation, Chemicals, Metal Workings, Utility, and Others), End Use (Commercial, Industrial, and Residential), Storage Type (Stationary Storage, Physical Storage, and Chemical Storage) - Industry Trends and Forecast to 2031
Hydrogen Energy Storage Market Analysis
The hydrogen energy storage market is poised for significant expansion, driven by the urgent need for sustainable energy solutions and the growing emphasis on integrating renewable energy sources. Hydrogen, recognized for its potential as a clean energy carrier, offers an effective means of storing excess energy generated from renewables like solar and wind. Recent developments in storage technologies, including compressed hydrogen, liquid hydrogen, and metal hydrides, have enhanced the feasibility and safety of hydrogen storage systems. For instance, Linde and Air Products have been investing in advanced liquefaction technologies to efficiently store hydrogen at cryogenic temperatures, enabling higher energy density and more efficient transportation. Furthermore, the increasing deployment of fuel cell technologies in various sectors, such as transportation and industrial applications, is creating a robust demand for reliable hydrogen storage solutions. Governments worldwide are also implementing supportive policies and investing in hydrogen infrastructure to promote a shift toward a hydrogen economy.
Hydrogen Energy Storage Market Size
The global hydrogen energy storage market size was valued at USD 20.84 billion in 2023 and is projected to reach USD 84.44 billion by 2031, with a CAGR of 19.11% during the forecast period of 2024 to 2031. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include import export analysis, production capacity overview, production consumption analysis, price trend analysis, climate change scenario, supply chain analysis, value chain analysis, raw material/consumables overview, vendor selection criteria, PESTLE Analysis, Porter Analysis, and regulatory framework.
Hydrogen Energy Storage Market Trends
“Growing Development of Hydrogen Storage Technologies”
The global hydrogen energy storage market is witnessing significant growth, driven by the increasing demand for renewable energy integration and sustainable storage solutions. One prominent trend is the development of hydrogen storage technologies, such as compressed hydrogen, liquid hydrogen, and metal hydrides, which enhance the efficiency and safety of storing hydrogen for various applications. For instance, companies such as Air Products are investing in advanced liquefaction technologies that allow for the storage of hydrogen in liquid form at cryogenic temperatures, maximizing density and facilitating transport. Additionally, the rising adoption of fuel cell technologies across industries, from transportation to power generation, is further propelling the need for efficient hydrogen storage solutions. As governments worldwide promote hydrogen as a clean energy source to achieve carbon neutrality, the market is expected to expand.
Report Scope and Hydrogen Energy Storage Market Segmentation
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Attributes
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Hydrogen Energy Storage Key Market Insights
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Segments Covered
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Countries Covered
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U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E., South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America
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Key Market Players
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Siemens Energy (Germany), Linde PLC (Ireland), ENGIE (France), Air Liquide (France), Air Products and Chemicals, Inc. (U.S.), Nel ASA (Norway), Chart Industries (U.S.), GenH2 (U.S.), Hexagon Purus (Norway), FuelCell Energy, Inc. (U.S.), ITM Power PLC (U.K.), McPhy Energy S.A. (France), Hydrogenious LOHC Technologies (Germany), HYGEAR (Netherlands), Cockerill Jingli Hydrogen (China), Pragma Industries (France), Plug Power Inc. (U.S.), INOX India Limited (India), Home Power Solutions (Germany), and Hydrogen In Motion Inc. (Canada)
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Market Opportunities
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Value Added Data Infosets
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In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include import export analysis, production capacity overview, production consumption analysis, price trend analysis, climate change scenario, supply chain analysis, value chain analysis, raw material/consumables overview, vendor selection criteria, PESTLE Analysis, Porter Analysis, and regulatory framework.
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Hydrogen Energy Storage Market Definition
Hydrogen energy storage refers to the process of storing hydrogen gas for use as a clean energy carrier. It involves generating hydrogen through methods such as electrolysis, where water is split into hydrogen and oxygen using electricity, often derived from renewable sources. The stored hydrogen can then be converted back into electricity or used as fuel. This storage method helps to balance energy supply and demand, enhances grid stability, and reduces reliance on fossil fuels, contributing to a more sustainable energy ecosystem.
Hydrogen Energy Storage Market Dynamics
Drivers
- Increasing Demand for Energy Storage Solutions
The increasing demand for energy storage solutions is significantly boosting the hydrogen energy storage market, driven by the need for enhanced grid stability and reliable backup power systems. According to a report by the International Energy Agency (IEA), global electricity demand is expected to rise by nearly 30% by 2030, necessitating advanced energy storage solutions to manage fluctuations in supply and demand. Hydrogen's unique characteristics make it an ideal candidate for addressing these challenges; it can store energy for extended periods, allowing it to be used during peak demand or when renewable energy generation is low. For instance, the use of hydrogen in energy storage can provide multi-day to multi-month storage capabilities, which traditional batteries cannot match. Additionally, projects like the Hydrogen Energy Supply Chain (HESC) in Australia aim to demonstrate hydrogen's viability as a long-term storage solution by converting excess renewable energy into hydrogen for later use. This versatility and potential for scalability position hydrogen as a key player in the future of energy storage, particularly as countries move toward decarbonisation and increased reliance on renewable energy sources, thereby driving the market growth.
- Increasing Transition Towards Renewable Energy
The transition to renewable energy is a crucial component of global efforts to meet climate goals, and efficient energy storage solutions are essential for maximizing the potential of sources like wind and solar power. Hydrogen energy storage plays a pivotal role in this transition by enabling the capture and storage of excess energy generated during peak production periods. For instance, the International Renewable Energy Agency (IRENA) projects that by 2050, renewable energy could account for up to 86% of global electricity generation, highlighting the need for robust storage systems to manage variability. Hydrogen can be produced using surplus renewable energy through electrolysis, allowing for the conversion of excess power into hydrogen, which can be stored and later converted back to electricity when needed. This capability is exemplified by initiatives like the Power-to-Gas (P2G) projects in Germany, where surplus wind energy is converted into hydrogen to stabilize the grid and provide power during low renewable generation periods. As countries increasingly commit to decarbonisation, hydrogen energy storage will become an indispensable tool in balancing supply and demand while ensuring a reliable energy supply, consequently driving the overall growth of the hydrogen energy storage market.
Opportunities
- Growing International Collaborations
International collaboration in the hydrogen energy storage sector is a significant market opportunity, as joint efforts between countries can drive the establishment of a robust global hydrogen economy. Such collaborations facilitate knowledge sharing and technology transfer, allowing nations to leverage each other’s strengths in research, development, and implementation of hydrogen technologies. For example, partnerships between countries like Germany and Japan have focused on developing hydrogen infrastructure and technologies, including hydrogen production and storage systems. These initiatives enhance innovation and foster the creation of supply chains that can deliver hydrogen solutions at scale. As a result, businesses involved in hydrogen energy storage can access new markets and customer bases, ultimately contributing to the growth of the sector.
- Rising Investments in Research and Development (R&D)
Increased investments in research and development (R&D) are crucial for driving innovation in hydrogen storage materials and systems, ultimately enhancing performance and promoting broader adoption of hydrogen as an energy carrier. Significant funding enables researchers to explore advanced materials, such as metal-organic frameworks (MOFs) and nanostructured materials, which can significantly improve hydrogen storage capacity and efficiency. For instance, a team at Lawrence Berkeley National Laboratory has developed a MOF that can absorb hydrogen at high densities under moderate temperatures and pressures, potentially transforming the feasibility of hydrogen storage for transportation applications. Such breakthroughs improve safety and reduce costs associated with hydrogen storage and address critical challenges like weight and volume constraints in vehicles and industrial applications. Furthermore, collaborations between public and private sectors, such as partnerships between national laboratories and industry leaders, can accelerate the commercialization of these innovations, paving the way for more efficient hydrogen storage solutions that facilitate the transition to a hydrogen economy. As a result, increased R&D investments are essential to unlocking the full potential of hydrogen storage technologies and supporting the growth of the hydrogen energy market, thus broadening opportunities in the market.
Restraints/Challenges
- Infrastructure Limitations Impeding Growth
Infrastructure limitations present a considerable hurdle to the growth of the hydrogen energy storage market, primarily due to the insufficient network of storage facilities, transport pipelines, and refueling stations. For instance, while countries like Japan and Germany have made strides in developing hydrogen infrastructure, many regions, particularly in North America and parts of Europe, still lack comprehensive systems to support widespread hydrogen adoption. As of 2021, the U.S. had fewer than 50 hydrogen refueling stations nationwide, a contrast to the thousands of electric vehicle charging stations available. This inadequacy restricts the ability of hydrogen fuel cell vehicles to operate effectively and limits the feasibility of hydrogen as a viable alternative energy source for industries and transportation. Furthermore, the absence of a robust hydrogen pipeline network complicates the logistics of transporting hydrogen from production sites to end-users, making it challenging for companies to invest in hydrogen solutions, thereby hampering the overall growth of the market.
- High Production and Storage Costs
High production and storage costs pose significant challenges for the hydrogen energy market, particularly for green hydrogen, which is generated through electrolysis using renewable energy sources. For instance, the current expense of producing green hydrogen can be considerably higher than that of conventional hydrogen production methods, such as steam methane reforming, which can yield hydrogen at a much lower cost. This stark price difference renders green hydrogen less competitive, particularly in industries that depend heavily on cost-effective energy sources. Additionally, establishing the necessary pipeline networks and storage facilities requires substantial investments, which can reach into the millions of dollars, consequently hindering the market growth.
Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays
Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions. Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.
Expected Impact of Economic Slowdown on the Pricing and Availability of Products
When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.
Hydrogen Energy Storage Market Scope
The market is segmented on the basis of technology, physical state, application, and end use. The growth amongst these segments will help you analyse meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Technology
- Physical Based
- Material Based
- Liquid Hydrogen
- Metal Hydrides
- Carbon Absorption
- Underground Salt Caverns
Physical State
- Solid
- Liquid
- Gas
Application
- Stationary Power
- Transportation
- Portable Power
- Power Generation
- Chemicals
- Metal Workings
- Utility
- Others
End Use
- Commercial
- Industrial
- Residential
Storage Type
- Stationary Storage
- Physical Storage
- Chemical Storage
Hydrogen Energy Storage Market Regional Analysis
The market is analysed and market size insights and trends are provided by country, technology, physical state, application, and end use as referenced above.
The countries covered in the market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E., South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.
North America is poised to lead the hydrogen storage market, primarily driven by the growing demand for hydrogen fuel cells, particularly in fueling stations across the region. This surge in interest is further fueled by an increase in the demand for refined hydrogen, which is essential for various applications, including transportation and industrial processes. Additionally, favorable government policies and investments in hydrogen infrastructure are significantly bolstering market growth, positioning North America as a key player in the hydrogen economy.
Asia-Pacific region is anticipated to experience substantial growth in the hydrogen storage market from 2024 to 2031, primarily driven by significant productivity enhancements. Emerging countries within this region are increasingly integrating advanced foreign technologies into their hydrogen storage solutions, resulting in improved production efficiency. Additionally, the rising applications of hydrogen in stationary power, transportation, and portable power systems are further propelling market expansion, as demand for cleaner energy alternatives continues to rise across the region.
The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Hydrogen Energy Storage Market Share
The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.
Hydrogen Energy Storage Market Leaders Operating in the Market Are:
- Siemens Energy (Germany)
- Linde PLC (Ireland)
- ENGIE (France)
- Air Liquide (France)
- Air Products and Chemicals, Inc. (U.S.)
- Nel ASA (Norway)
- Chart Industries (U.S.)
- GenH2 (U.S.)
- Hexagon Purus (Norway)
- FuelCell Energy, Inc. (U.S.)
- ITM Power PLC (U.K.)
- McPhy Energy S.A. (France)
- Hydrogenious LOHC Technologies (Germany)
- HYGEAR (Netherlands)
- Cockerill Jingli Hydrogen (China)
- Pragma Industries (France)
- Plug Power Inc. (U.S.)
- INOX India Limited (India)
- Home Power Solutions (Germany)
- Hydrogen In Motion Inc. (Canada)
Latest Developments in Hydrogen Energy Storage Market
- In August 2024, Linde has announced a long-term agreement to supply clean hydrogen to Dow's Fort Saskatchewan Path2Zero Project. The company plans to invest over $2 billion to construct, own, and operate a large-scale integrated facility for clean hydrogen and atmospheric gases in Alberta, Canada
- In November 2021, Iwatani Corporation of America, a subsidiary of Iwatani Corporation, teamed up with ITM Power, a company specializing in energy storage and clean fuel solutions, to implement multi-megawatt electrolyzer-based hydrogen energy systems throughout North America. This collaboration is focused on deploying advanced electrolyzer technology to generate clean hydrogen at scale, addressing the growing demand for sustainable energy sources
- In October 2021, Plug Power Inc. announced the acquisition of Applied Cryo Technologies, Inc. (ACT), a move that significantly enhances its capabilities and expertise in the hydrogen sector. This acquisition enables Plug Power to broaden its technological offerings and strengthen its position within the green hydrogen ecosystem
- In August 2021, Linde plc secured a long-term agreement with Infineon Technologies to facilitate the on-site production and storage of high-purity green hydrogen. This partnership is designed to enhance the supply chain for green hydrogen, ensuring that Infineon has access to the high-quality hydrogen needed for its semiconductor manufacturing processes
- In January 2021, ENGIE and Total formalized a cooperation agreement to collaboratively develop, construct, and operate the Masshylia project, which is set to become France's largest renewable hydrogen production facility located in Châteauneuf-les-Martigues. This ambitious project aims to implement innovative management strategies to oversee the hydrogen production and storage processes effectively
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