Global hydrogen storage market was worth USD 12.5 billion in 2019. It is expected to grow at a compound annual rate (CAGR of 5.1%) between 2020 and 2027. The market is expected to grow due to the growing demand for hydrogen production from electrolysis with surplus renewable power in the next few years. Market growth is expected to be driven by increasing hydrogen applications in many sectors. Hydrogen generated by electrolysis can be used to power plants, reduce carbon intensity in gas pipelines, and in stationary fuel cells . It can also be stored as a cryogenic liquid or compressed gas, or loosely bonded hydroide chemical-compounds.
The U.S. market is expected to grow at a rapid pace due to ongoing research, development, and construction of large-scale storage projects. Magnum Developer and Mitsubishi Hitachi Power Systems, for example, announced in 2019 that they plan to build a 1GW energy storage facility. This will provide power from renewable hydrogen, large-scale flow batteries, solid oxygen fuel cells, and compressed helium energy storage.
The market for hydrogen storage will be boosted by the expected decrease in the cost of solar and wind power. The International Renewable Energy Agency (IRENA) states that renewable hydrogen must be produced at less than USD 2.5 per kilogram in order to compete with fossil fuel-produced hydrogen. Price depends on many factors, including production location, market segment and renewable energy power tariffs. Future electrolyzer investments will also impact the price. Lower hydrogen production costs will result in higher energy storage system deployment.
The market players in hydrogen energy storage are highly integrated. Market players are integrating their facilities with other end-use sectors to meet the hydrogen demand stored in a variety of end-use applications, including fuel cell vehicles, grid service, and telecommunications.
Due to the large number of applications for compressed hydrogen in various sectors, the compression storage technology segment held a dominant share of 40.0% in 2019. These applications include stationary power generation on site, hydrogen refueling stations and vehicles used for road transport.
In 2019, the liquefaction segment was worth USD 3.8 billion. One major advantage of hydrogen storage in liquid form is its energy density. This is a significant improvement over compression storage technology. Liquid tanks are more energy dense than compression storage technology, allowing for greater hydrogen storage in a smaller volume. The storage technology's safety and cost efficiency are affected by boil-off losses from the high energy required to liquefy hydrogen.
The CAGR for material-based storage technology is 5.1% during the forecast period. Technology that includes hydride storage systems and liquid hydrogen carriers has a higher volumetric storage density than other storage technologies. Palladium absorbs hydrogen gas at a volume of approximately 1000 times its own.
The 40.5% market share held by the industrial segment was the largest in 2019, with 40.5%. This segment is expected to hold a significant share of the hydrogen storage market by 2027. Hydrogen is used in many industrial segments, including petroleum refining and food processing. For reducing the sulfur content of fuels, petroleum refiners need large quantities of hydrogen. Market growth is expected to be boosted by the increasing number of industrial applications.
Over the forecast period, residential sales are expected to rise at 6.1% CAGR. This growth can be attributed primarily to the increasing number of residential applications, such as powering direct flame combustion boilers, gas powered heat pumps, and fuel cell micro Combined Heat and Power.
In 2019, the solid segment accounted for 50.0% of the market. CAGRs of 8.7% are expected to be experienced by the gas segment during the forecast period. Compressed gas technology's simplicity and cost-effectiveness are responsible for the significant growth in this segment. The most common physical form in which hydrogen can be found is gas. The segment's growth will be further accelerated by the commercialization of power to gas technology.
In 2019, the liquid segment was worth USD 4.7 billion. This segment was valued at USD 4.7 billion in 2019. It is expected to continue growing due to demand for liquid hydrogen in high-purity applications such as the chip sector. Although liquid hydrogen is more energy dense than the gaseous version, it comes at an additional cost. Segment growth will be impeded by heavy insulation in the liquid tanks and required Liquifaction at -253 Celsius.
Asia Pacific was responsible for 33.0% of the total revenue in 2019. The rapid production of hydrogen has been made possible by the falling costs of electrolyzers and renewable electricity. The increasing hydrogen production has resulted in a growing demand for hydrogen storages in the commercial, industrial, residential and institutional sectors.
North American market is expected to grow significantly due to strict regulations on emission control, greener fuels and increased fuel cell applications. Due to the growing demand for hydrogen in chemical industries and oil refineries, the U.S. holds the largest market share.
The market is growing across Europe thanks to the construction of large-scale storage facilities for hydrogen energy. Orsted, a Danish company, plans to make renewable hydrogen energy from the North Sea wind energy. It will then electrolyse it and sell it to large commercial customers.
The industry's competitiveness is driven by a higher level of forward integration and strong research and development. The following are some of the major players in the hydrogen storage market:
Hydrogenics
Chemicals and Air Products
Linde
Nel Hydrogen
Air Liquide
FuelCell Energy
ITM Power
Worthington Industries
Up Market Research published a new report titled “Hydrogen Energy Storage Market research report which is segmented by Physical State (Solid, Liquid, Gas), by Technology (Compression, Liquefaction, Material Based), By Players/Companies FuelCell Energy, Hydrogenics, Air Liquide, Air Products and Chemicals, ITM Power, Linde, Worthington Industries, Nel Hydrogen”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.
Report Attributes | Report Details |
Report Title | Hydrogen Energy Storage Market Research Report |
By Physical State | Solid, Liquid, Gas |
By Technology | Compression, Liquefaction, Material Based |
By Companies | FuelCell Energy, Hydrogenics, Air Liquide, Air Products and Chemicals, ITM Power, Linde, Worthington Industries, Nel Hydrogen |
Regions Covered | North America, Europe, APAC, Latin America, MEA |
Base Year | 2020 |
Historical Year | 2018 to 2019 (Data from 2010 can be provided as per availability) |
Forecast Year | 2028 |
Number of Pages | 220 |
Number of Tables & Figures | 154 |
Customization Available | Yes, the report can be customized as per your need. |
The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.
The market is segmented by Physical State (Solid, Liquid, Gas), by Technology (Compression, Liquefaction, Material Based).
Hydrogen Energy Storage Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.
Key Benefits for Industry Participants & Stakeholders:
Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.
We have studied the Hydrogen Energy Storage Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.
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