Hydrogen Energy Storage Market Forecasts to 2028 – Global Analysis By State (Solid, Liquid, Gas), Storage Type (Physical Storage, Chemical Storage, Stationary Storage), Technology (Compression, Liquefaction) and By Geography
According to Stratistics MRC, the Global Hydrogen Energy Storage Market is accounted for $15.45 billion in 2021 and is expected to reach $26.13 billion by 2028 growing at a CAGR of 7.8% during the forecast period. Hydrogen energy storage is the process in which the surplus of energy created by renewables during low energy demand periods is used to power electrolysis. It is a process through which the electricity so converted into hydrogen, can be stored and eventually can be re-electrified. It presents an opportunity to increase the flexibility and resiliency of sustainable energy supply systems while potentially reducing overall energy costs on account of system integration and better utilization of renewable.
Environment friendly technique
Hydrogen is energy storage medium. Energy, stored as hydrogen in the form of a gas or a liquid, will never dissipate until it is used, making it a good application for emergency generators and other mission critical energy applications. Compared to other energy storage types like batteries and capacitors which lose the energy stored in them over time and need to be periodically recharged even without use, hydrogen energy storage is more desirable. These are cleaner and more efficient and can also be used in mobile applications to power vehicles and mobile power packs.
Need for large investment
Hydrogen energy is chiefly used to power most hybrid vehicles. A lot of research and innovation is required to discover cheap and sustainable ways to harness this form of energy. Until then, hydrogen energy would remain exclusively for the rich. One of hydrogen properties is that it has a lower density. This means that it has to be compressed to liquid state and stored the same way at lower temperatures to guarantee its effectiveness and efficiency as an energy source. This reason also explains why hydrogen must at all times be stored and transported under high pressure, which is why transportation and common use is far from feasible.
Increasing government initiatives for promoting usage of hydrogen storage technologies
Hydrogen is seen by many of the energy industry experts as a mean of storing the surplus renewable energy from sources such as wind, solar, wave, and tide for later use. It is also seen to have a market potential for vehicle fueling in both urban and remote rural areas. In addition, stringent emission regulations in China, South Korea, Japan, and India and the increasing the demand for ammonia and methanol are expected to further augment the growth of the market. Hence, with the increasing government initiatives for promoting usage of hydrogen storage technologies, the hydrogen storage market holds a strong potential of growth during the forecast period.
Low turn-around efficiency
Despite of the benefits and potential that hydrogen energy storage presents, the low turn-around efficiency (i.e., electricity to hydrogen stored then back to electricity) is major threat to the market. Significant efforts are being made by industry to address cost and efficiency concerns. Additionally, many countries have started the process of publishing draft guidelines for the use of hydrogen energy storage technologies. To contribute to the effective and wider implementation of the hydrogen technology, appropriate financial mechanisms and effective modeling techniques are developed.
The gas segment is expected to be the largest during the forecast period
Gas is the most common physical state in which hydrogen finds its majority of application. Moreover, increasing commercialization of power-to-gas technology is expected to further propel the growth of the segment. The gas segment of hydrogen energy storage market is expected to be the largest market during the forecast period. Storing hydrogen as a gas via compression is the easiest and cost-effective method compared with liquefaction of hydrogen, which is the reason for its high demand in the hydrogen energy storage market globally. Multiple methods are available to store hydrogen as a compressed gas such as pressure tanks, underground storage, and line packing.
The compression segment is expected to have the highest CAGR during the forecast period
The compression segment is growing at a faster rate owing to the increasing number of applications of compressed hydrogen across various sectors. The applications include on-site stationary power generation, hydrogen refueling stations, and vehicles used in road transportation. Compression is the most preferred technology for storing hydrogen. Hydrogen in the compressed mode is widely used in onboard mobile applications such as vehicles for road transportation, stationary application for dispensing hydrogen at refueling stations, and at sites for stationary power generation. This growth is attributed as compressed hydrogen gas storage is the simplest solution because only compressor and a pressure vessel equipment is required to store it and hence its demand is increasing in the hydrogen energy storage market globally.
Region with largest share:
North America is projected to hold the largest market share owing to the rise in fuel cell applications, tight regulations about emission control, and use of cleaner fuels. US is the largest market in North America for hydrogen energy storage as the demand for hydrogen increases in oil refineries and chemical industries. The U.S. Department of Energy (US DOE) had set specific targets for the respective market participants in the automotive industry to focus on research and development with a goal of boosting successful hydrogen storage technical research. The US DOE encouraged the scientific fraternity by establishing the National Hydrogen Storage Project in the U.S., which would concentrate on hydrogen storage as one of its priorities, in order to meet the relevant long-term objectives.
Region with highest CAGR:
Asia Pacific is projected to have the highest CAGR due to the declining costs of renewable electricity and electrolysis. The increased hydrogen production has led to growing demand for its storage across the residential, industrial, and commercial sectors. In China, declining oil prices have led domestic crude oil producers to lower their investments and production leading to increased imports, escalating the need for effective alternative source. Hydrogen offers Asia a practical option to cut carbon emissions as well as reduce dependence on fossil fuel imports. China is taking a fast-track route in pursuing hydrogen and fuel cell development. The country is currently focusing mainly on the use of hydrogen in transportation but it has eyes on other applications too, such as heating of buildings.
Key players in the market
Some of the key players profiled in the Hydrogen Energy Storage Market include Air Liquide, Linde, Hexagon Composites, Worthington Industries, Nel Hydrogen, Pragma Industries, Air Products and Chemicals, Mcphy Energy, Fuelcell Energy, Hydrogenious Lohc Technologies, Plug Power, Chart Industries, Hydrogenics, ITN Power, Grz Technologies, and Inoxcva.
In March 2020: Nel Hydrogen partnered with the global EPC company Kværner AS. The companies will collaborate on specific green hydrogen projects and standardisation of solutions for large scale hydrogen production plants. This is a long-term commitment, and Kvaerner is excited to enter into collaboration with a partner like Nel.
In March 2020: Inoxcva partnered with Memorandum of Understanding (MoU) with Shell Energy India Pvt Ltd for developing the market for LNG supply by Road from Shell's LNG Terminal. This will help in increasing the penetration and consumption of clean, reliable and cost-efficient LNG to commercial and industrial (C&I) users all over the country. The MoU also covers the cooperation in developing a larger market for LNG as a transport fuel for long-haul heavy-duty trucks and buses.
In August 2019: Linde partnered with CarbonCureto to deploy CarbonCure’s carbon capture and utilisation technology to the concrete industry in Europe, Southeast Asia and Oceania. Taking captured waste CO2 from the flue gas of cement factories, CarbonCure’s technology injects it into concrete, creating a nanomaterial within the concrete that reduces the overall carbon footprint of its production and use while improving production efficiency.
Storage Types Covered:
• Physical Storage
• Chemical Storage
• Stationary Storage
• Material Based
• Carbon Absorption
• Underground Salt Caverns
• Liquid Hydrogen
End Users Covered:
• Utilities/Power Generation
• North America
o Rest of Europe
• Asia Pacific
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o South Africa
o Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
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