Hydrogen Energy Storage Market

Hydrogen Energy Storage Market Overview:

The global hydrogen energy storage market was valued at USD 12.72 billion in 2022 and is likely to reach USD 18.23 billion by 2030, at a CAGR of 5.3%. Global Hydrogen energy storage market is a type of chemical energy storage, which is primarily used to store electric power in the form of hydrogen. Hydrogen is mainly produced via electrolysis of water and the gas is stored in large- or medium-sized containers as per the requirements. The gas can be easily converted into energy in fuel cell combustion engine or in. Usually, hydrogen energy is stored in three form, namely solid, liquid, and gaseous form. In order to store hydrogen in gaseous form, it requires high-pressure tanks, which are stored in liquid form only under cryogenic temperature. Hydrogen storage is extensively used in fuel cell technologies for stationary power and transport applications. Growth in demand for hydrogen energy storage, by using excess electric energy, is likely to bolster the industry growth. Rising application of hydrogen storage as a replacement of fossil fuel in varied end users is further drives the product demand. 

Hydrogen Energy Storage Market Segmentation:

By technology, the global hydrogen energy storage market is classified into compression, liquefaction, and material based. The compression segment garnered a significant market share of almost 41% in 2022. This is mainly attributed to rising number of applications of compressed hydrogen from different end-users. The applications include hydrogen refueling stations, on-site stationary power generation, and vehicles used in road transportation. The liquefaction segment is projected to grow at a healthy CAGR during the forecast timeline. Storing hydrogen in liquid form has one major benefit of energy density when compared to the compression storage technology. Liquid tanks have increased energy density thereby storing more hydrogen in a given volume. However, the boil-off losses due to high energy requirement for liquifying hydrogen, impact the cost efficiency and safety of the storage technology.

On the basis of physical state, the global hydrogen energy storage market has been divided into solid, liquid, and gas. The gas segment is likely to grow at the highest CAGR of around 9% by the end of 2030 owing to non-complexity and cost-effectiveness of compressed gas technology. Gas is the most common physical form in which hydrogen finds its majority of usage. Also, rising commercialization of power-to-gas technology is likely to augment the segment growth. The liquid segment was valued at USD 4.7 billion in 2021. The segment is expected to grow during the forecast period owing to liquid hydrogen witnessing demand in applications that require high purity levels of hydrogen, such as the chip industry. Even though liquid hydrogen has a higher energy density than its gaseous form, it involves an additional economic cost.

Based on Application, the global hydrogen energy storage market has been segmented into residential, commercial, and industrial. The industrial segment witnessed the highest market share of almost 41% in 2022. Hydrogen is widely in industrial sectors including food processing, petroleum refining, and metal treatment industries. Petroleum refineries depend on significant amounts of hydrogen for reducing the sulfur content in fuels. The residential segment is projected to register a CAGR of around 6.1% over the coming years. This growth is attributed to the increasing number of residential applications such as direct flame combustion boilers, fueling catalytic boilers, fuel cell micro Combined Heat and Power (CHP), and gas-powered heat pumps.

Hydrogen Energy Storage Market Dynamics and Factors:

Rising demand for producing hydrogen from electrolysis using extra renewable power is likely to boost the global hydrogen energy storage market industry growth. Expanding application of hydrogen across different sectors further propel the global hydrogen energy storage market growth. For instance, hydrogen generated from electrolysis are widely used for power generation, in stationary fuel cells, to lower carbon intensity in gas pipelines, stored as a cryogenic liquid, compressed gas, as a fuel in fuel cell vehicles, or as loosely bonded hydride chemical-compound products. In addition, rising importance of sustainable energy services will propel the global hydrogen energy storage market growth. Hydrogen energy are primarily used for grid energy services and for transportation sectors. As governments across the globe are focusing more on sustainable power sources, which boosts the global hydrogen energy storage market product demand. Furthermore, favorable incentive schemes from government as well as high investment from industry players may slowly improve the global hydrogen energy storage market growth.

However, the hydrogen energy are primarily used in fuel cell is low to cater the energy demand of commercial & residential buildings. Additionally, liquid hydrogen energy storage involves high investment cost, due to high insulation cost to avoid vaporization.

Hydrogen Energy Storage Market Geographical Analysis:

The North America market garnered the highest market share in 2022 mainly due to widespread presence of key players in the U.S. and Canada. In addition, presence of regulatory bodies, such as promoting application of hydrogen energy and energy storage association, will propel the industry growth. The Asia Pacific market register the highest growing CAGR during the forecast period, due to the impact of productivity improvements. Also, the developing countries in Asia-Pacific are adopting different foreign equipment; thus, enhancing the production efficiency.

Hydrogen Energy Storage Market Report Scope

Key Market Segmentation

Hydrogen Energy Storage Market- By Technology 

o   Compression

o   Liquefaction

o   Material Based

Hydrogen Energy Storage Market- By Physical State 

o   Residential

o   Commercial

o   Industrial

Hydrogen Energy Storage Market- By Region

North America

US

o   Canada

o   Mexico

Europe

o   Germany

o   UK

o   France

o   Italy

o   Spain

o   Russia

o   Benelux

o   Nordics

Rest of Europe

Asia-Pacific

o   China

o   India

o   Japan

o   South Korea

Rest of Asia-Pacific

Middle East and Africa

South America