
Hydrogen Energy Storage Market By Technology (Compression, Liquefaction, and Material Based), By Form (Solid, Liquid, and Gas), By End-Use (Industrial, Commercial, and Other), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032
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July 2023
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This report was compiled by Shreyas Rokade Shreyas Rokade is a seasoned Research Analyst with CMFE, bringing extensive expertise in market research and consulting, with a strong background in Chemical Engineering. Correspondence Team Lead-CMFE Linkedin | Detailed Market research Methodology Our methodology involves a mix of primary research, including interviews with leading mental health experts, and secondary research from reputable medical journals and databases. View Detailed Methodology Page
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Report Overview
Hydrogen Energy Storage Market size is expected to be worth around USD 30.1 Bn by 2032 from USD 16.3 Bn in 2022, growing at a CAGR of 6.5% during the forecast period from 2023 to 2032.
Hydrogen Energy Storage Market refers to the process of converting and storing energy in the form of hydrogen gas, which can be later utilized for various applications, including power generation, transportation, and industrial processes. Hydrogen has gained significant attention as a potential energy carrier and storage medium due to its high energy content and versatility. Hydrogen Energy Storage Market can help stabilize the electricity grid by balancing supply and demand.
Excess renewable energy generated during periods of low demand can be used to produce hydrogen through electrolysis. The stored hydrogen can then be converted back into electricity during peak demand periods or when renewable energy production is low. Hydrogen fuel cell buses, cars, trucks, and trains are being developed and deployed in various parts of the world. Many industrial sectors require large amounts of heat or hydrogen as a feedstock.
The market is expanding as a result of the rising acceptance of alternative forms of energy, along with increasing government initiatives for development of hydrogen energy. Moreover, increasing demand for hydrogen in stationary and mobile power applications, as well as high commercialization of power to-gas technologies, are likely to propel the Hydrogen Energy Storage Market growth during the projection period.
Driving factors
Hydrogen in industrial applications
Over the recent decades, across many countries around the globe, the demand for hydrogen in industrial applications has significantly increased. Many industrial processes require hydrogen as a feedstock or reactant. For example, hydrogen is used in the production of ammonia, which is a key component in fertilizers. It is also used in the refining of petroleum and the production of chemicals like methanol and hydrochloric acid. As these industries expand and develop, the demand for hydrogen as a raw material increases.
Industries that require large amounts of heat or power, such as steelmaking, glass production, and cement manufacturing, are exploring the use of hydrogen as a direct source of heat or as a fuel for power generation. By using hydrogen, these industries can reduce their reliance on fossil fuels and decrease their carbon emissions. Also, hydrogen fuel cell vehicles (FCVs) are gaining traction as an alternative to traditional internal combustion engine vehicles. FCVs emit only water vapor, offering a clean transportation solution.
Moreover, as the demand for zero-emission vehicles grows, so does the demand for hydrogen fuelling infrastructure to support these vehicles. Therefore, the rising demand for hydrogen in industrial applications is expected to stimulate the growth of the Hydrogen Energy Storage Market during the estimated time period.
Hydrogen in stationary and mobile power applications
The demand for hydrogen in stationary and mobile power applications is on the rise to a significant extent. As renewable energy sources such as solar and wind power become more prevalent, the need for efficient energy storage and power balancing solutions arises. Hydrogen can be produced through electrolysis using excess renewable energy, stored, and later used to generate electricity when renewable sources are not available. This makes hydrogen an attractive option for stationary power applications, providing grid stability and enabling smooth integration of intermittent renewable energy sources.
Also, hydrogen can play a role in decentralized power generation systems, where electricity is produced close to the point of consumption. Through fuel cells, hydrogen can be converted into electricity on-site, providing clean and reliable power for remote areas, off-grid locations, and critical infrastructure such as hospitals, data centers, and telecommunications facilities. Thus, increasing demand for hydrogen in stationary and mobile power applications is likely to fuel the market growth during the forecast period.
Restraining Factors
Safety concerns associated with hydrogen energy storage
Hydrogen has some safety concerns associated with its storage and handling. It is a highly flammable gas that can ignite or explode when exposed to air or other ignition sources. Special precautions and safety measures need to be implemented to ensure safe storage, transport, and use of hydrogen. While extensive safety protocols exist, public perception of hydrogen safety can still be a barrier to its widespread adoption. Thus, safety concerns associated with Hydrogen Energy Storage Market may limit the market growth during the projected time period.
High cost of hydrogen energy storage systems
Hydrogen Energy Storage Market systems can be costly to implement and operate. The costs associated with the production, compression, transportation, and storage of hydrogen can be substantial. Additionally, the infrastructure required to support hydrogen storage and distribution networks needs significant investment. Although costs are expected to decrease with technological advancements and increased deployment, Hydrogen Energy Storage Market currently tends to be more expensive than other storage options. Therefore, the high cost of hydrogen energy storage systems may limit their usage and affect the market growth during the estimated time period.
By Technology Analysis
Compression technology is the leading segment
The compression segment dominated the Hydrogen Energy Storage Market in 2022 with the largest revenue share of 42%. Compression allows for the efficient storage of hydrogen by reducing its volume and increasing its energy density. Hydrogen, being a light and low-density gas, requires compression to occupy less space and enable practical storage. By compressing hydrogen to high pressures, it becomes more compact, allowing for efficient storage in tanks or pipelines. Thus, efficient storage provided by compression technology is a major factor driving the segment growth during the projection period.
On the other hand, the material-based segment is expected to witness high growth during the estimated time period. Material-based storage technologies have the potential to store hydrogen at higher densities compared to compressed or liquid hydrogen storage methods. This allows for a higher storage capacity within a given volume or weight, enabling more efficient use of space and resources. Higher storage capacities contribute to the practicality and commercial viability of hydrogen energy storage systems. Therefore, increased storage capacity provided by material-based storage technology is a key factor driving the segment growth during the estimated time period.
By Form Analysis
Solid form dominates the Hydrogen Energy Storage Market
The solid segment leads the form segment by accounting for a revenue share of 48% in 2022. Solid hydrogen storage materials have the potential for long-term storage of hydrogen with minimal losses. They can retain hydrogen for extended periods without significant degradation, allowing for efficient storage over time. This makes solid hydrogen storage suitable for applications that require long-duration storage, such as seasonal energy storage or backup power systems. Therefore, long-term storage offered by solid hydrogen storage materials is expected to fuel its demand during the estimated time period.
The liquid segment is expected to witness significant growth over the forecasted time period. Liquid hydrogen can be used in a wide range of applications, including power generation, transportation, and industrial processes. It can be directly used in fuel cells to produce electricity or as a feedstock for various chemical reactions. The versatility of liquid hydrogen makes it a valuable energy carrier for different sectors, enabling its use in multiple applications. Thus, the wide-ranging use of liquid hydrogen in several applications is anticipated to drive the segment growth during the projection period.
By End-Use
Industrial segment accounts for the largest share
The industrial segment is likely to lead the end-use segment during the estimated time period with a revenue share of 44%. Many industrial processes require large amounts of energy, and hydrogen can serve as a versatile and efficient energy carrier. Hydrogen Energy Storage Market provide a way to store excess energy, especially from intermittent renewable sources, and utilize it when needed. Industries can use hydrogen for power generation, heat production, or as a feedstock for various chemical reactions, ensuring a reliable and sustainable energy supply. Thus, the high utilization of hydrogen energy storage systems in several energy-intensive industrial processes is expected to stimulate segment growth during the forecast period.
Moreover, the commercial segment is anticipated to experience high growth over the projected time period. Commercial establishments require reliable and uninterrupted power to operate smoothly. Hydrogen energy storage systems offer a viable solution for backup power and energy resilience. By storing excess energy during periods of low demand or from renewable sources, commercial establishments can ensure a continuous power supply during grid outages or disruptions. Hydrogen Energy Storage Market provides a reliable backup power option that can be quickly deployed and utilized when needed. Thus, high energy resilience and backup power offered by hydrogen energy storage systems are key advantages contributing to the segment's revenue growth during the forecast period.
Key Market Segments
Technology
- Compression
- Liquefaction
- Material Based
Form
- Solid
- Liquid
- Gas
End-Use
- Industrial
- Commercial
- Other End-Uses
Growth Opportunity
Growing commercialization of power-to-gas technologies
As power-to-gas technologies continue to mature and become commercially viable, they are expected to play a significant role in the energy transition and drive the demand for Hydrogen Energy Storage Market solutions. Power-to-gas provides a solution for effectively integrating renewable energy sources into the grid. As renewable energy generation is often intermittent, surplus electricity generated during periods of high production can be used to produce hydrogen through electrolysis.
This hydrogen can be stored and later converted back into electricity or used as a feedstock for other applications. By utilizing power-to-gas technologies, renewable energy can be harnessed and stored for use during periods of low generation, enhancing grid flexibility and stability. Thus, the growing commercialization of power-to-gas technologies is anticipated to fuel the demand for hydrogen energy storage systems and open many opportunities for the Hydrogen Energy Storage Market in the coming years.
Latest Trends
Key technological advancements and strategic investments
There is a growing focus on developing advanced hydrogen storage technologies to enhance the efficiency and safety of hydrogen energy storage systems. Innovations include high-pressure hydrogen storage tanks, solid-state hydrogen storage materials, and underground hydrogen storage facilities. Additionally, investments are being made to expand hydrogen infrastructure, such as hydrogen refuelling stations for fuel cell vehicles and hydrogen pipelines for industrial use. Also, the integration of Hydrogen Energy Storage Market with other storage technologies is gaining traction.
Hybrid energy systems combine multiple energy storage technologies, such as batteries and hydrogen storage, to leverage their complementary strengths. This approach enables optimized energy management and improved system resilience, allowing for efficient utilization of renewable energy and addressing the intermittency challenge. Such key technological advancements and strategic investments are promising trend which is expected to fuel the demand for hydrogen energy storage systems, and positively impact market growth in the upcoming years.
Regional Analysis
Asia Pacific leads the market by holding a major revenue share in the account
The Asia Pacific region is anticipated to hold the largest share of 40% in the market during the estimated time period. The Asia Pacific region is witnessing significant advancements in hydrogen technologies, including electrolysis, fuel cells, and hydrogen storage materials. Research and development efforts, government support, and collaborations between industry players and academic institutions are driving innovation in the Hydrogen Energy Storage Market sector in the region. These advancements contribute to the commercial viability and attractiveness of hydrogen energy storage systems.
Governments in the Asia Pacific region are implementing supportive policies, regulations, and incentives to promote the development and adoption of hydrogen energy storage systems. These measures include funding programs, subsidies, tax incentives, and the establishment of hydrogen infrastructure. The strong government support creates a favorable environment for the growth of the hydrogen energy storage market. Thus, key technological advancements and supportive government policies are expected to fuel the market growth in the region during the projection period.
Also, North America region is likely to witness high growth during the forecast period. North America has a strong research and development ecosystem focused on advancing hydrogen technologies. This includes innovations in electrolysis, fuel cells, and hydrogen storage materials. Ongoing R&D efforts drive improvements in the efficiency, cost-effectiveness, and safety of hydrogen energy storage systems, making them more attractive and commercially viable. Thus, major R&D efforts are likely to stimulate market growth in the region during the estimated time period.
Key Regions and Countries
North America
- US
- Canada
- Mexico
Western Europe
- Germany
- France
- The UK
- Spain
- Italy
- Portugal
- Ireland
- Austria
- Switzerland
- Benelux
- Nordic
- Rest of Western Europe
Eastern Europe
- Russia
- Poland
- The Czech Republic
- Greece
- Rest of Eastern Europe
APAC
- China
- Japan
- South Korea
- India
- Australia & New Zealand
- Indonesia
- Malaysia
- Philippines
- Singapore
- Thailand
- Vietnam
- Rest of APAC
Latin America
- Brazil
- Colombia
- Chile
- Argentina
- Costa Rica
- Rest of Latin America
Middle East & Africa
- Algeria
- Egypt
- Israel
- Kuwait
- Nigeria
- Saudi Arabia
- South Africa
- Turkey
- United Arab Emirates
- Rest of MEA
Key Players Analysis
The global hydrogen energy storage market is moderately competitive and fragmented. The market is growing at a significant rate due to rising demand for renewable energy power supply. Additionally, new strategic agreements, key research and development activities, collaborations, mergers, and acquisitions by key market players are likely to have a positive impact on market growth during the upcoming time period.
Top Key Players in Hydrogen Energy Storage Market
- Linde plc
- Engie
- Air Products Inc.
- Nedstack Fuel Cell Technology BV
- Cummins Inc.
- Siemens Energy
- ITM Power
- Steelhead Composites Inc.
- Air Liquide
- Hygear
- PlugPower Inc.
- Other Key Players
Recent Development
- In June 2020, a deal was inked between Cummins Inc. and NPROXX to establish a joint venture for hydrogen storage tanks. The joint venture, under the name NPROXX, will continue to operate. Its customers will receive storage solutions for hydrogen and compressed natural gas for both on-road and rail applications.
- In January 2020, the Los Angeles (LA) Department of Water and Power stated that it would contribute to the formation of the Green Hydrogen Coalition, an institute dedicated to the emergence of a carbon-free energy future and advancing green energy production.
Report Scope:
Report Features Description Market Value (2022) USD 16.3 Bn Forecast Revenue (2032) USD 30.1 Bn CAGR (2023-2032) 6.5% Base Year for Estimation 2022 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Technology- Compression, Liquefaction, and Material Based, By Form- Solid, Liquid, and Gas, By End-Use- Industrial, Commercial, and Other End-Uses Regional Analysis North America – The US, Canada, & Mexico; Western Europe – Germany, France, The UK, Spain, Italy, Portugal, Ireland, Austria, Switzerland, Benelux, Nordic, & Rest of Western Europe; Eastern Europe – Russia, Poland, The Czech Republic, Greece, & Rest of Eastern Europe; APAC – China, Japan, South Korea, India, Australia & New Zealand, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, & Rest of APAC; Latin America – Brazil, Colombia, Chile, Argentina, Costa Rica, & Rest of Latin America; Middle East & Africa – Algeria, Egypt, Israel, Kuwait, Nigeria, Saudi Arabia, South Africa, Turkey, United Arab Emirates, & Rest of MEA Competitive Landscape Linde plc, Engie, Air Products Inc., Nedstack Fuel Cell Technology BV, Cummins Inc., Siemens Energy, ITM Power, Steelhead Composites Inc., Air Liquide, Hygear, PlugPower Inc., and Other Key Players Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) -
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- Linde plc
- Engie
- Air Products Inc.
- Nedstack Fuel Cell Technology BV
- Cummins Inc.
- Siemens Energy
- ITM Power
- Steelhead Composites Inc.
- Air Liquide
- Hygear
- PlugPower Inc.
- Other Key Players