Hydrogen storage market

Market Size and Trends

The global hydrogen storage market is estimated to be valued at USD 1.6 Bn in 2024 and is expected to reach USD 6.8 Bn by 2031, growing at a compound annual growth rate (CAGR) of 23% from 2024 to 2031.

The market is expected to witness positive growth over the forecast period. The growing demand for clean energy to reduce greenhouse gas emissions is expected to drive the demand for hydrogen storage systems. The increasing preference for fuel cells in transport applications such as buses, cars, and trucks will boost the adoption of hydrogen storage systems. Also, the development of novel on-board hydrogen storage technologies with higher storage capacity is further expected to support the market growth. However, high costs associated with hydrogen infrastructure development may hinder the growth of the market during the forecast period.

Growing Demand from Transportation Sector

The transportation sector has seen a rapid increase in the focus on developing zero-emission vehicles over the past decade. As consumers and government alike push for greener transportation solutions, hydrogen fuel cells have emerged as a promising technology to power vehicles such as cars, buses and trucks. Fuel cell vehicles use hydrogen as a fuel which is converted into electricity through a fuel cell, with water and heat being the only byproducts. For instance, several major automakers like Toyota, Hyundai and Honda have already launched fuel cell vehicles and built hydrogen refueling infrastructure. Many countries are investing heavily to expand this infrastructure network as it is seen as critical for widespread adoption of this technology. With fuel cell technology proving its capabilities, more automakers are expected to introduce fuel cell models in their lineup. This rise in fuel cell vehicles will substantially drive up the demand for hydrogen as a transportation fuel. Public and private sector investments into building hydrogen refueling stations will further fuel commercialization. Together, the growing consumer and governmental support for zero-emission vehicles is a major driver propelling the global hydrogen storage market.

Market Concentration and Competitive Landscape

Increased Focus on Decarbonization of Industries

There is significant global focus today on reducing industrial carbon emissions and transitioning to cleaner sources of energy. Industries like chemicals, refining and steel which involve high temperature heat processes have been reliant on fossil fuels. However, hydrogen is now emerging as a viable alternative in these hard-to-abate sectors. It can be used as a feedstock as well as engine fuel, enabling industries to lower their carbon footprint. Several countries have embarked on initiatives to facilitate ‘green hydrogen’ production from renewable energy and its use across various applications and invest in this projects. For instance, on March 6, 2023, according to the National Portal of India, the National Green Hydrogen Mission was approved by the Union Cabinet on January 4, 2022, with the intended objectives of India a leading producer and supplier of Green Hydrogen in the world. Additionally, private companies are investing in developing technologies to produce and utilize ‘blue hydrogen’ from natural gas with carbon capture. With stringent emission norms and an available infrastructure, industries will be motivated to switch to hydrogen. This growing focus on decarbonizing carbon-intensive industries through increased hydrogen consumption is expected to significantly drive its storage, transportation and utilization worldwide.

Market Challenges: Technological Challenges

The global hydrogen storage market faces many technological challenges. Currently, no method exists for storing hydrogen safely and affordably on a large scale. Pressurized tanks carry risks of leakage and explosions. Liquid hydrogen requires very low temperatures that consume lots of energy to maintain. Other materials-based storage methods lack the capacity, kinetics, or cycles required by vehicles and the grid. The cost and size of current storage technologies prohibit widespread hydrogen integration and infrastructure expansion. However, researchers are making progress improving existing technologies.

Market Opportunity: Increasing Adoption of Renewable Energy

The market also presents opportunities. As renewable energy adoption increases globally, demand will grow for sustainable ways to store and transport energy over long distances and periods of time. Successful hydrogen storage solutions could enable applications from transportation to backup power and more. Countries and private industries have significantly increased funding for relevant research. Advancements may open new applications and multi-Bn dollar markets in diverse sectors.

Insights, By Form: Physical Attributes Drive Adoption

Among form, the physical storage segment accounted for 61.4% of the market share in the global hydrogen market. Hydrogen's gaseous state at standard temperature and pressure makes physical containment an essential first step in the handling process. Compared to material-based options, which rely on absorption or adsorption to confined hydrogen within a secondary substrate, physical storage provides a more direct interaction with the fuel. This translucency allows for straightforward monitoring of inventory levels and presents operators with a paradigm already adopted across gas cylinder applications. The visibility and tactility of physical tanks, tubes and related vessels assures end users with a system that resembles familiar fossil fuel infrastructure. Not requiring a transformation of hydrogen's physical state prior to use also simplifies dispensing and integration with downstream equipment. The ease of handling associated with physical storage has accelerated its implementation across early market adopter industries where hydrogen plays a support role rather than leading application such as in fuel cell vehicles.

Insights, By Type: Transport Orientation Dominates

In terms of type, the cylinder segment contributes the highest share valued at 35.6% of the market owing to their predominance in logistics and delivery applications. Being reliably portable and reusable units, cylinders allow hydrogen to be efficiently transported between production facilities and points of use. Whether feeding hydrogen into central tube trailers for bulk deliveries or outfitting individual forklifts and material handling vehicles, standardized cylinder formatting has eliminated early supply chain complications. The cylindrical enclosure’s symmetrical shape packs efficiently into tight vehicle spaces and shipping containers while maintaining structural integrity under vibration. Well-established manufacturing and certification processes further reduce risks for early infrastructure builders.

Insights, By Application: Industrial Consumption Leads Adoption

In terms of application, the chemicals segment contributes the highest share of 28.9% of the market owing to hydrogen’s well-established role as an industrial feedstock and reluctant. Vast quantities of hydrogen are consumed each year in petroleum refining, ammonia production and various metal treatment functions. Familiarity with handling gas fuels at large volumes and pressures allows chemical producers to integrate hydrogen with relative ease. As environmental requirements continue tightening globally, hydrogen capitalizes on its renewable potential and ability to displace fossil carbon at the source. Additional applications are finding spaces within industrial parks and specialized production facilities, building momentum towards hydrogen’s scaling. 

Regional Insights

North America holds 39.6% of the market share in the global hydrogen storage market. The large presence of major gas companies along with strong government support for hydrogen infrastructure development has enabled North America to take clear leadership. With U.S. being one of the top consumers of hydrogen globally, production and storage facilities are well developed to cater to extensive domestic needs. Presence of international hydrogen storage technology developers and system integrators in the region has strengthened the North American market. Countries like the U.S. and Canada offer favorable business environment and have attracted substantial investments for setting up large scale production-linked storage facilities near hydrogen consuming industrial clusters.

Asia Pacific region is witnessing the fastest growth and has started to emerge as the new hotspot for the global hydrogen storage market. Rapid economic development and growth in energy intensive industries across nations like China and India has fuelled the demand for cleaner energy sources including hydrogen. Both China and Japan are now focusing heavily on developing a hydrogen-based economy to achieve their environment protection goals. This has opened up massive opportunities for hydrogen storage players. Countries in the Southeast Asian nations are also promoting hydrogen as a transport fuel which will further aid the market expansion. Developing storage infrastructure near ports for facilitating hydrogen imports is a key focus area. The extensive research landscape for hydrogen storage technologies coupled with relatively lower capital costs have made Asia Pacific region an automaker's preferred destination for setting up manufacturing plants with built-in hydrogen storage facilities.

Germany has solidified its position as the European hub for hydrogen storage sector. Strong presence of automotive and industrial majors with aggressive target to switch to hydrogen has boosted infrastructure development. Government initiatives and formation of hydrogen valley clusters to encourage innovation and commercialization has attracted investments from global players. The ambitious hydrogen strategy and policies have created conducive business environment. However, lack of cross border hydrogen transportation network remains a challenge, which if addressed can further accelerate regional market growth.

Market Report Scope

Key Developments

• In August 2021, Auguste Cryogenics, a company that specializes in the manufacturing of cryogenic storage equipment, delivered the company’s second jumbo liquid hydrogen storage tank
• In May 2022, Air Liquide and Lotte Chemical entered into a strategic alliance for the development of the hydrogen supply chain in South Korea. Additionally, the companies will co-invest through the joint venture in a new generation of large scale hydrogen filling centers in Daesan and Ulsan.
• In February 2021, Linde, a chemical company and Hyosung announced a partnership to develop extensive new liquid hydrogen infrastructure in South Korea
• In July 2021, Luxfer Holdings PLC, a leading manufacturer of high-pressure composite and aluminum cylinders worldwide, announced a partnership with Octopus Hydrogen to make heavy goods transportation and the aviation industries cleaner and greener.

*Definition: The global hydrogen storage market consists of companies involved in the production and storage of hydrogen gas for various applications. Hydrogen is stored in gaseous, liquid, or solid-state form for use in industries such as chemical processing, oil refining, transport, power generation, and other applications. Various storage technologies, like compressed gas, liquefied hydrogen, metal hydrides and chemical hydrogen storage are used. The global hydrogen storage market has seen rising demand due to the growing need for clean energy and focus on developing a hydrogen

Market Segmentation

•  Form Insights (Revenue, USD Bn, 2019 - 2031)
• • Physical Storage
  • Material-based Storage
•  Type Insights (Revenue, USD Bn, 2019 - 2031)
• • Cylinder
  • Merchant/Bulk
  • Onsite
  • On-Board
•  Application Insights (Revenue, USD Bn, 2019 - 2031)
• • Oil Refineries
  • Chemicals
  • Industrial
  • Automotive & Transportation
  • Others (Metalworking, etc.)
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
• • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • 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