According to the U.S. Department of Energy, hydrogen storage can be described as a key enabling technology for the advancement of hydrogen and fuel cell technologies in applications such as stationary power, portable power and transportation. Hydrogen can be stored either in solid, liquid or gaseous form. For storing hydrogen in gaseous form, high-pressure tanks having 350–700 bar tank pressure is required; whereas for liquid form, storage of hydrogen requires cryogenic temperatures, as the boiling point of hydrogen at one atmosphere pressure is −252.8°C. Hydrogen storage market showcases widespread adoption among the manufacturers due to the low ambient temperatures of hydrogen that result in a low energy per unit volume. This makes them suitable for various applications such as hydrogen production sites, on-board vehicles, hydrogen refueling stations and stationary power sites.
GLOBAL HYDROGEN STORAGE MARKET SPLIT, BY APPLICATION (2016)
The global market for hydrogen storage is expected to witness a CAGR of 7.6% during the forecast period due to the increasing focus of key players to produce alternative renewable energy from fuel cells, hydrogen and oxygen. Additionally, increasing consumption of hydrogen in various end-use sectors including power, energy, transportation, fueling stations, and electronics are expected to bolster the market for hydrogen storage during the forecast period. Based on form of storage, physical storage is expected to be the largest segment in the global hydrogen storage market during the forecast period. Stationary power emanated the largest demand in the global hydrogen storage market. Additionally, the segment is expected to witness the highest demand in the global market for hydrogen storage during the forecast period.
The key trend observed in the global hydrogen storage market is the increasing focus on R&D for the development of hydrogen storage technology. In the recent years, the U.S., the U.K., and India have been increasingly focusing on R&D activities that would help in technological advancements in hydrogen and fuel cell technologies. This has ensured the development of adequate hydrogen storage for onboard light-duty vehicle, material-handling equipment and portable power applications that would help in fulfilling the targets set by the U.S. Department of Energy.
Another trend observed in the global hydrogen storage market is the increasing adoption of hydrogen storage in solid form. The hydrogen storage market is expected to attract huge investments during the forecast period on account of increasing advancements in the fuel cells and hydrogen technologies, and implementation of favorable government initiatives such as new Funding Opportunity (FOA) to increase the adoption of hydrogen storage technologies across the globe.
The factors driving the growth of hydrogen storage market are growing demand for low emission fuels and increasing consumption of ammonia and methanol worldwide. The increasing shift towards lower emission fuels in China, India and South East Asia is likely to drive the growth of hydrogen storage during the forecast period. The increasing implementation of stricter emission standards in countries such as the U.S. and the U.K. would help in creating awareness among consumers towards the significance of clean energy and low emission fuels. Additionally, the increasing demand for hydrogen-powered vehicles in North America and Europe is expected to have a positive impact on the growth of hydrogen storage market during the forecast period on account of easy availability of hydrogen filling infrastructure and stringent government regulations for the use of low emission generating vehicles.
The stringent emission regulations in China, South Korea, Japan and India and the increasing demand for ammonia and methanol would further create demand opportunities in the global hydrogen storage market during the forecast period. North America and Europe are focusing on generating zero-emission hydrogen vehicles for which countries such as the U.S. and the U.K. have launched government funds and programs to encourage more businesses/companies to switch towards hydrogen-fueled vehicles. During May 10, 2016, the U.K. government invested USD2.21 million to bring up an additional 100 hydrogen fuel cell cars and vans in the next few years. This would create growth opportunities for the global hydrogen storage market during the forecast period.
The major factor hindering the growth of the global hydrogen storage market include higher initial costs. The higher costs associated with hydrogen storage systems are a major hindrance to the growth of hydrogen storage market in the long run. The processes associated with the extraction of hydrogen are extremely expensive thus, making the gas costly. Therefore, end-use industries prefer alternate solutions over hydrogen energy storage, which are expected to hamper the market growth to a significant level during the forecast period; however, the increase in government investments and the growing persistent advances in research and development (R&D) efforts are expected to reduce the impact on the market in the long run.
The limited availability of hydrogen refueling stations is expected to have a negative impact on the growth of global hydrogen storage market as they are not yet implemented in developing nations. The hydrogen refueling infrastructure in developing nations has still not progressed over the past years due to the high capital costs associated with the setting up of these stations, as the hardware required is more complex than that used with conventional fuels. This is expected to hinder the overall growth of hydrogen storage market during the forecast period.
The global hydrogen storage market is dominated by four major players that account for the majority of the share in the market. Some of the key players in the global market for hydrogen energy storage include Air Liquide SA, Linde AG, Praxair, Inc., Worthington Industries Inc., Mcphy Energy S.A., HBank Technologies Inc., Hexagon Composites ASA, VRV S.p.A. and Inoxcva.
Scope for Customization
P&S Market Research offers customization as per specific business requirements of clients. Illustrative customization within the scope of this report includes:
Period of Analysis – Increase in the study period, including historic and forecast years
Geographical Analysis – Increase in country coverage
Company Profiles – Wider company coverage in terms of detailed analysis or additional company profiles
New custom report – A completely customized report can be provided on the market, specific to a region/ country/ segment