April 20, 2024
Hydrogen Storage Market

Hydrogen Storage Market is Witnessing Growing Demand Through Fuel Cell Vehicles Deployment

Hydrogen storage plays a pivotal role for utilization of hydrogen as an alternate energy source. Hydrogen can be stored in physical or chemical form for applications ranging from transportation to industrial processes. Key storage methods include compressed gas, liquefied hydrogen, solid-state materials based storage and chemical hydrogen storage. Hydrogen possesses advantages such as abundance, renewablenature and zero emissions. The growing focus on developing a hydrogen economy and deployment of fuel cell vehicles is driving the demand for efficient and safe hydrogen storage systems.

Hydrogen storage tanks based on compressed gas method continues to dominate the market owing to its simplicity and cost effectiveness. However, compressed storage tanks suffer from cryogenic challenges related to large physical size and weight. Materials based hydrogen storage systems offer higher gravimetric and volumetric densities compared to compressed gas method.

The Global Hydrogen Storage Market Demand is estimated to be valued at US$ 6.8 Bn in 2024 and is expected to exhibit a CAGR of 21.% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the Hydrogen Storage are Air Liquide, Air Products and Chemicals, Inc., Hexagon Purus, Worthington Industries, Inc., Linde plc, Luxfer Holdings PLC, Chart Industries , INOXCVA, HBank Technologies Inc., Pragma Industries.

The growing demand for fuel cell vehicles and zero emission energy sources is propelling the deployment of hydrogen infrastructure including storage, production and distribution. Government initiatives and investments promoting hydrogen economy will further accelerate the demand. Asia Pacific region is witnessing significant increase in fuel cell commercial vehicles adoption and government led hydrogen infrastructure development projects.

Global expansion of hydrogen production facilities especially for green hydrogen derived from water electrolysis is expected to drive the need for large capacity and safe hydrogen storage. Material based storage holds promise for stationary and mobile hydrogen storage applications requiring higher storage densities. Nanoporous carbon, metal hydrides and chemical hydrogen storage materials are witnessing ongoing research and development.

Market Key Trends

Developments in hydrogen storage materials with higher storage capacities compared to compressed gas method is a key trend. Nanoporous carbon and metal hydride based storage tanks are able to achieve gravimetric and volumetric densities 2-3 times higher than compressed gas tanks. The higher storage densities allows for smaller tank sizes and reduced costs for mobile applications like vehicles. Ongoing research is exploring new chemical storage compounds and nanoengineering of materials to overcome bottlenecks like energy input required for hydrogen adsorption/desorption.

Porter’s Analysis

Threat of new entrants: High capital requirement and economies of scale given the nascent stage of the industry pose barriers for new players.

Bargaining power of buyers: Buyers have moderate bargaining power given the alternative options available especially for captive applications.

Bargaining power of suppliers: Suppliers have high bargaining power given the dependence on a few suppliers for key components like materials and storage vessels.

Threat of new substitutes: Threat of substitution is moderate at present given limited large scale alternatives for hydrogen storage and transportation.

Competitive rivalry: Intense with focus on technology innovation and expansion across application segments.

Geographical regions

North America accounts for over 35% of the global market value owing to presence of large refineries, oil & gas industry and growing fuel cell adoption.

Asia Pacific is witnessing the fastest growth on account of hydrogen fuel initiatives by countries like Japan, South Korea and China along with increasing natural gas pipelines and growing refining capacity.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it