Hydrogen Energy Storage Market To Generate Revenue Worth $304,108 Million by 2030

The global hydrogen energy storage market size is projected to reach $304,108 million by 2030, advancing at a CAGR of 46.80% during 2022–2030. This can be ascribed to the strong government support, the increasing focus on alternative energy sources, the rising electricity demand, and the surging investments in hydrogen and fuel cell technologies.

Rising Use of Hydrogen Storage Tanks in the Transportation Sector

Hydrogen is preferred as a transportation fuel to power clean energy vehicles, such as electric and fuel cell vehicles, due to its high storage performance and is economically viable as compared to other sources. According to the World Nuclear Association, the need for hydrogen energy in the production of transport fuels from crude oil is likely to rise at a rapid pace during the forecast period. The volatile oil price is another factor that would result in the widespread adoption of hydrogen as a transport fuel. Thus, these factors are expected to spike the requirement for hydrogen storage solutions in the upcoming years.

In addition, physical storage is the largest category in the market, on account of the growing consumption of hydrogen, due to its commercial availability at low production volumes, stringent government regulations for reducing emission levels, and increasing demand for hydrogen from refineries.

Increasing Investments in Hydrogen Storage Technologies

The hydrogen energy storage market outlook is expected to attract huge investments during the forecast period, on account of the increasing advancements in fuel cells and hydrogen technologies, and the implementation of favorable government initiatives such as new Funding Opportunity Announcements (FOA), to boost the adoption of hydrogen storage technologies across the world.

In July 2016, the U.S. Department of Energy (DOE) extended funds of over $10 million toward the advancement of hydrogen and fuel cell technologies, thereby accelerating the performance and durability of hydrogen storage and fuel cell technologies. Similarly, in October 2016, the DOE announced its plans to invest about $30 million to meet the targets set by its Fuel Cell Technologies Office (FCTO). Additionally, in 2016, the Australian Capital Territory (ACT) government also invested around $150 million in renewable energy-to-hydrogen energy storage technology in Australia. These investments are likely to create huge market opportunities in the coming years.

Geographical Scenario

The Middle East and Africa accounted for a modest share in the global market in 2022. This is attributed to the increasing government initiatives toward reducing carbon emission levels, thereby reducing the heavy dependence on oil and gas. Moreover, the increasing demand for hydrogen in applications, such as airports, data centers, grocery centers, utilities, office buildings, and hospitals, is expected to propel the industry growth in the region in the next few years. Additionally, Saudi Arabia is the largest contributor to the regional market, as hydrogen storage solutions are widely deployed in end-use industries, including oil and gas and refineries.

The European hydrogen energy storage market is projected to register a significant growth rate during the forecast period. Developed countries, such as Germany, the U.K., and France, constitute a larger industry share in the region. This can be attributed to the increasing awareness in terms of electricity generation through renewable sources to reduce carbon footprint and the rising applications of hydrogen as a fuel in the transportation sector. In recent years, the European Union has received government backing for hydrogen fuel station projects to encourage the use of hydrogen-powered vehicles in the region.

The demand for hydrogen storage solutions is also expected to rise significantly in Europe in the future, due to the favorable government initiatives focusing on the promotion of hydrogen storage technologies in electric and fuel cell vehicles, and the increasing penetration of hydrogen refueling stations in countries such as Germany. Moreover, Germany leads the regional market, followed by the U.K. and France. This is attributed to the increasing fuel cell applications in the transportation sector, comprising buses, ships, boats, unmanned vehicles, and bicycles, which are expected to boost the demand for these solutions in the country in the future.

Major players operating in the market include L’AIR LIQUIDE S.A., Linde plc, Nel ASA, Engie, Air Products and Chemicals Inc., ITM Power PLC, Chart Industries Inc., FuelCell Energy Inc., Hexagon Purus ASA, and Siemens Energy.