Hydrogen Energy Storage Market Size was valued at USD 18.53 billion in 2023. The Hydrogen Energy Storage market industry is projected to grow from USD 19.9 Billion in 2024 to USD 35.21 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.50% during the forecast period (2024 - 2032). Growing research and development spending and a growing need for energy efficiency are the key market drivers enhancing the Hydrogen Energy Storage growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
April 2024: VRV S.P.A has announced the launch of a new series of high-pressure hydrogen storage tanks designed for both industrial and automotive applications. These tanks are aimed at improving efficiency and safety in hydrogen storage and transportation.
The key driver of market development is expected to be the rise of the hydrogen energy storage sector, which uses extra electrical energy. Due to the market's usage of excess electrical energy, hydrogen energy storage is expensive. This is so that the market uses any extra electrical energy for hydrogen energy storage. The increased usage of hydrogen storage as an alternative to fossil fuels by several end-users will be one of the key reasons to propel the market's growth. This is because hydrogen storage has several benefits that fossil fuel does not. This will be the main factor influenced by a rise in the use of hydrogen storage as a replacement for fossil fuels. For instance, a power-to-gas plant employing the Markham hydrogen energy storage facility in Ontario, Canada, was inaugurated in July 2018 by Hydrogenics and Enbridge Gas Distribution, a natural gas distributor in Canada. Additionally, the increased popularity of sustainable energy services will fuel the hydrogen energy storage market revenue.
Figure 1: Renewable Energy Development (1975-2025)
Demand from Consumers for Environmentally Friendly Power Sources is Growing. The development of the Hydrogen Energy Storage industry will also be fueled by the rise in the visibility of services related to sustainable energy. This is due to the rising popularity of alternative energy. Hydrogen energy may eventually help the electricity grid and the transportation sector. The Hydrogen Energy Storage market is expected to expand during the projected period due to the increased focus that governments worldwide are giving to environmentally friendly electricity generation. This is because governments all over the globe are aggressively trying to reduce their carbon dioxide emissions, which have a negative influence on the environment. This is only one of several things considerably accelerating the market CAGR.
One of the main goals set forward by the government is the development and building of cost-effective and energy-efficient hydrogen stations around the nation. These elements are anticipated to accelerate the Hydrogen Energy Storage market expansion in the United States. It is anticipated that increased hydrogen applications across several sectors would fuel the Hydrogen Energy Storage market growth. For instance, hydrogen can be stored as a cryogenic liquid, compressed gas, or loosely bound hydride chemical complex and is employed for industrial purposes in oil refineries, stationary fuel cells, and fuel cell automobiles.
The International Renewable Energy Agency (IRENA) asserts that renewable hydrogen must be produced and cost less than USD 2.5 per kilogram to be competitive with hydrogen produced from fossil fuels. Numerous variables affect the price, such as the manufacturing site, market sector, renewable energy power tariffs, upcoming electrolyzer investments, and others. More energy storage devices will be installed due to the cheap cost of producing hydrogen. The industry's players have a strong forward integration. Hydrogen Energy Storage Market participants are compelled to integrate their facilities with the end-use sectors due to the need for stored hydrogen in various end-use applications, such as fuel cell cars, grid services, and telecommunications.
Significant Investment as well as Government Support. For instance, the energy storage tax incentive and deployment act were sponsored by the Energy Storage Organisation, the national trade association for the energy storage sector in the United States. This measure aims to promote the adoption of energy storage technology. The authors of this legislation intended to encourage and expand access to energy storage technology.
Based on technology, the Hydrogen Energy Storage Market segmentation includes liquid hydrogen, metal hydrides, carbon absorption, and underground salt caverns. During the projection period, liquid hydrogen is expected to expand faster in the hydrogen energy storage market revenue. According to projections, the market for liquid hydrogen will increase from USD 33.72 billion in 2019 to USD 50.18 billion in 2027, growing at a pace of 5.5%. Because NASA and aircraft are using it more frequently, the market is seeing greater demand. Additionally, the demand for Hydrogen Energy Storage is driven by the rising application in the electronics sector.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The world's first liquid hydrogen ship premiered at a Japanese shipyard in December 2019. Kawasaki Heavy Industries Ltd gave tanker Suiso Frontier its name. The ship represents a modest step toward utilizing hydrogen's promise as a carbon-free energy source. The fuel will be transported from Australia to Japan via the ship to create a global network of hydrogen energy suppliers. In the late 2020s, the construction is anticipated to be finished.
Based on End-user, the Hydrogen Energy Storage Market segmentation includes power generation, transportation, chemicals, metal working, and others. The hydrogen energy storage market data in transportation had the fastest rising share in 2021, with a CAGR of 63.7%. The application segment is driving the need for hydrogen energy storage in the next years as there is an increasing focus on decarbonizing the transportation industry.
By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North America Hydrogen Energy Storage market accounted for USD 6.9 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. The market for hydrogen energy storage in North America is expanding as a result of reasons like rising demand for hydrogen across various sectors, strict governmental restrictions, and a rising desire for green energy. Additionally, the government of industrialized nations like the United States and Canada is heavily investing in development projects, fueling market expansion. Further, the US Hydrogen Energy Storage market held the largest market share, and the Canada Hydrogen Energy Storage market was the fastest-growing market in the Region.
Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the U.K., Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: Hydrogen Energy Storage Market Share By Region 2021 (%)
Over the projection period, the Asia Pacific energy storage market had the second-largest revenue share. Major nations, including China, Japan, South Korea, India, Australia, and other Southeast Asian nations, make up the Asia Pacific market. Due to a lack of electricity, several areas in the Asia-Pacific region are concentrating on the development of suitable energy supplies. As a result, hydrogen energy storage has been seen as the ideal remedy for these problems. This is assisting in the market's expansion in the Asia-Pacific region.
The market demand is rising as large-scale hydrogen energy storage facilities are constructed throughout Europe. The European hydrogen energy storage market comprises large nations like Russia, Spain, Germany, Italy, the U.K., and smaller Eastern and Central European nations. Several end users, including industrial and commercial organizations, have a huge need for hydrogen generation, which is to blame. For instance, the Danish company Orsted intends to produce sustainable hydrogen energy by electrolysis and sell it to significant commercial consumers using extra power generated by wind farms in the North Sea. Further, the Germany Hydrogen Energy Storage market held the largest market share, and the U.K. Hydrogen Energy Storage market was the fastest-growing market in the European Region.
Major market players are investing a lot of money in R&D to expand their product portfolios, which will spur further market growth for Hydrogen Energy Storage. With significant industry changes, including new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market developments are also undertaking various strategic activities to expand their global presence. To grow and remain in a market that is becoming more competitive, competitors must provide affordable products for hydrogen energy storage.
Manufacturing locally to cut operational costs is one of the main business tactics used by Hydrogen Energy Storage manufacturers to serve customers and increase the hydrogen energy storage industry. The hydrogen energy storage tank industry has recently given medicine some of the most important advantages. The hydrogen energy storage major player such as VRV S.P.A, Hbank Technologies Inc., Inoxcva, Mcphy Energy S.A, Luxfer Holdings PLC, Worthington Industries Inc., Praxair Inc, Linde AG., Air Liquide, and others are working on expanding the market demand by investing in research and development activities.
A multinational chemical corporation with its headquarters in the U.K. and an Irish domicile since 2018, Linde plc was formed in Germany. According to market share and revenue, Linde is the biggest industrial gas firm in the world. With Yara, Linde plc entered into a contract in January 2022 to build and deploy a 24 M.W. green hydrogen plant.
The French multinational firm Air Liquide S.A. provides industrial gases and services to various sectors, including those that produce goods for the pharmaceutical, chemical, and electronic industries. It was established in 1902 and now, based on sales, is the second-largest provider of industrial gases, with activities spread over more than 80 nations. Toyota, Air Liquide, and Caetano Bus team up to improve hydrogen mobility in Europe in May 2022.
A strategic cooperation between Air Liquide and Lotte Chemical was established in May 2022 to establish the hydrogen supply chain in South Korea. The French government granted financing to Air Liquide in March 2022 for its 200 MW electrolyze project in Normandy, fostering the expansion of Hydrogen Energy Storage in Europe.
February 2024- Uniper Energy Storage proposes to build salt caverns for the large-volume storage of hydrogen in northwest Germany. The primarily envisioned storage capacity will be 250 to 600 GWh, which should be accessible to the market before the end of 2030. To this end, present sites and probable new sites along the intended hydrogen core network are being analyzed in detail.
Holger Kreetz, Uniper's COO, said that investments in the development of hydrogen storage facilities need a regulatory and funding framework to accomplish workable business models. He further said that by proposing the development of hydrogen storage plants in the order of nearly 600 GWh by 2030, the company Uniper is making progressed investments. Whether and how the storage developments can be understood will rely mainly on the framework conditions and economic viability. On the other hand, the company has concrete proposals that guarantee stability between the required hedging of investment dangers and a competitive market model on the one hand and security of supply via storage on the other.
The norms of contracts for conflict should be applied to attain the aims in a cost-efficient and effective manner. The Managing Director of Uniper Energy Storage, Doug Waters, said that in the future, the company wishes to play an even better part in boosting the energy transition in Europe while guaranteeing the security of supply. He further added that they have a complete of more than 80 TWh of underground gas storage capacity for natural gas in the UK, Germany, and Austria. This makes Uniper one of the biggest storage operators in Europe. As a fraction of the hydrogen ramp-up, the company wishes to repurpose some of its storage capacities and build new storage facilities.
May 2022- A Joint Development Agreement for a Hydrogen-Based Ammonia Production Facility on a Global Scale in Oman is signed by Air Products, OQ, and ACWA Power.
May 2022- At the Advanced Clean Transportation Expo in Long Beach, California, Eric Guter, Global Vice President of Hydrogen for Mobility at Air Products, will talk on Hydrogen Fuel Supply and Fueling Strategies.
December 2021: Howden and Chart Industries worked together to develop an advanced hydrogen solution, and Howden's gas compression technology was included in Chart's hydrogen products.
February 2021: To provide experience in PEM (Proton Exchange Membrane) electrolysis technology and create a large-scale electrolyzer for hydrogen generation, Siemen Energy teamed up with Air Liquide.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 18.53 billion |
| Market Size 2024 | USD 19.9 billion |
| Market Size 2032 | USD 35.21 billion |
| Compound Annual Growth Rate (CAGR) | 8.50% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018 & 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Product Type, Operating Platforms, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, the U.K., Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | VRV S.P.A, Hbank Technologies Inc., Inoxcva, Mcphy Energy S.A, Luxfer Holdings PLC, Worthington Industries Inc., Praxair Inc, Linde AG., Air Liquide. |
| Key Market Opportunities | Growing investments in research and development |
| Key Market Dynamics | Growing investments in research and development Increasing need for energy conservation Reducing consumption of conventional petroleum fuels |
Hydrogen Energy Storage Market Highlights:
Frequently Asked Questions (FAQ) :
The Hydrogen Energy Storage Market size was valued at USD 18.53 Billion in 2023.
The global market is projected to grow at a CAGR of 8.50% during the forecast period, 2024-2032.
North America had the largest share of the Hydrogen Energy Storage Market.
The key players in the market are VRV S.P.A, Hbank Technologies Inc., Inoxcva, Mcphy Energy S.A, Luxfer Holdings PLC, Worthington Industries Inc., Praxair Inc, Linde AG., and Air Liquide.
The Liquid Hydrogen Energy Storage category dominated the market in 2021.
Transportation had the largest share in the Hydrogen Energy Storage Market.
Senior Research Analyst With an experience of over five years in market research industry (chemicals & materials domain), i gather and analyze market data from diverse sources to produce results, which are then presented back to a client. also, provide recommendations based on the findings. as a senior research analyst, i perform quality checks (qc) for market estimations, qc for reports, and handle queries and work extensively on client customizations. also, handle the responsibilities of client proposals, report planning, report finalization, and execution
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