CAGR: 6.77%Current Market Size: USD 15.98 billionFastest Growing Region: North America
Largest Market: EuropeProjection Time: 2022-2029Base Year: 2021
The global hydrogen energy storage market is expected to grow from USD 15.98 billion in 2021 to USD 26.97 billion by 2029, at a CAGR of 6.77% during the Projection period 2022-2029. This growth of the hydrogen energy storage market is significantly driven by the rising use of hydrogen in different end-user industries. Hydrogen is increasingly used as a replacement for fossil fuels and can be used in combustion engines. There is a huge need for the utilization of electrical energy which is promoting the use of sustainable energy. Industrialization in developing countries has led to the increasing use of hydrogen energy storage. Further, stringent regulations regarding curbing pollution and decarbonization initiatives by industries have led to the growth of the renewable energy sector.
Hydrogen is one of the key compounds which can be used as a renewable energy source on a large scale. However, the storage of hydrogen is necessary in order to use it for multiple purposes. Hydrogen energy storage is a procedure in which renewable energy surpluses are utilized to power electrolysis, a process in which an electrical current is carried through a chemical solution to separate hydrogen, during periods of low energy demand. After electrolysis, hydrogen can be utilized in stationary fuel cells for power generation, as fuel for fuel cell automobiles, injected into natural gas pipelines to reduce carbon intensity, or even stored as a cryogenic liquid, compressed gas, or a variety of hydride compounds for future usage. The gas can then be used as fuel in a combustion engine or a fuel cell to release the energy.
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Market Dynamics:
Drivers:
The increase in demand for hydrogen storage can be attributed to the use of hydrogen among the end-user industries. Hydrogen acts as a sustainable fuel in place of conventional fuels. Hydrogen energy storage is one of the widely used chemical storage. Hydrogen acts as a crucial compound in the renewable energy sector; however, it needs to be efficiently stored for future uses. Hydrogen has been stored for multiple uses including transportation, stationary power, and portable power. Hydrogen energy storage is the enabling technology that allows the advancement of fuel cell technology. The conversion of hydrogen can only be done using storage technology.
Restraints:
Hydrogen energy storage are costly to install, and many middle and small-scale users are unable to afford them. Hydrogen energy storage has too many features, which makes them more expensive. In addition, the cost of upkeep is factored into the total cost. The total costs are influenced by the raw material prices components connected with the development of hydrogen energy storage. Maintenance of hydrogen energy storage is equally important and it requires the deployment of funds from time to time.
Opportunities:
Several end-user industries are opting for the use of renewable energy. Fossil fuels are depleting at an alarming rate. Conventional fuels have been used for a longer period of time in different end-user industries. The rising increase in consumption of oil has led to increasing in pollutants. However, the imposition of stringent regulations has led to the limited use of conventional fuels. Therefore, newer alternatives are used to a large extent which are environmentally friendly. The International Renewable Energy Agency, states that renewable energy should be generated at a specific price.
Challenges
The hydrogen energy storage requires the passing of stringent regulations in order to be launched in the market. This system helps in the delivery of hydrogen as a fuel, which can be further used in the application of power generation and transportation. Thus, the approval of hydrogen energy storage requires the passing of several stages in order to be proved safe for the required applications. Hydrogen energy storage requires extensive research and development processes in order to be launched in the market.
Segmentation Analysis:
The global hydrogen energy storage market has been segmented based on physical state, technology, application, end-users, and regions.
By Physical State
The physical state segment includes gas, liquid and solid. The solid segment led the hydrogen energy storage market with a market share of around 46.74% in 2021. Hydrogen has been stored in solid form for a longer period of time. It is stored with other materials in storage tanks. Solid form hydrogen manufacturing includes adsorption and absorption mechanism. Solid form hydrogen is ought to be used for a longer period.
By Technology
The technology segment includes material-based, compression, and liquefaction. The compression segment led the hydrogen energy storage market with a market share of around 41.06% in 2021. Compression storage technologies are generally utilized on the site including hydrogen filling stations, power generation, etc. The compression technique is found to be effective in the storage of hydrogen. Compression techniques help to store more amount of hydrogen as compared to other techniques.
By Application
The application segment includes transportation, stationary power, and chemical manufacturing. The transportation segment led the hydrogen energy storage market with a market share of around 39.11% in 2021. Hydrogen energy storage is crucial in the use of transportation applications. The transportation sector contributes the maximum in carbon emissions of any country. Thus, it is essential to deploy alternative sources of energy such as hydrogen energy storage.
By End-users
The end-users segment includes commercial, industrial, and electric utilities. The industrial segment led the hydrogen energy storage market with a market share of around 41.10% in 2021. Hydrogen energy storage is majorly used by the end-users of industrial manufacturing for limiting emissions and maximizing output. Thus, the industrial end-users usually buy the product in bulk quantity, as it is used as a replacement for conventional fuels. Hydrogen storage has proved to be beneficial for industrial manufacturers as it saves the time of producing hydrogen on demand.
By Regional Analysis:
The regions analyzed for the hydrogen energy storage market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The Europe region dominated the hydrogen energy storage market and held the 39.12% share of the market revenue in 2021.
Global Hydrogen Energy Storage Market- Country Analysis:
Germany is the largest hydrogen energy storage market across the globe with an estimated market share of 31.90% across the Europe region by 2022. There are many manufacturers in the country and also there are multiple investments by concerned authorities. The stringent pollution control rules are a key factor attracting investments in the hydrogen storage energy market.
In the North American region, the USA is the largest market shareholder in the hydrogen energy storage market with an estimated market share of around 41.02% by the end of 2022. The industrial manufacturing regulations are anticipated to drive the market growth of hydrogen energy storage in the USA.
Key Industry Players Analysis:
To increase their market position in the global hydrogen energy storage business, top companies are focusing on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, and partnerships, joint ventures, etc.
Latest Development:
In June 2020, a well-known player, Cummins Inc. had signed an association in order to form the joint venture for hydrogen tanks with another company named, NPROXX.
Report Attribute
Report Metric |
Information |
Study Period |
2018-2029 |
Base Year |
2021 |
Projection Period |
2022-2029 |
Market Share Unit |
USD Billion |
Segments Covered |
Physical State, Technology, Application, and End-users |
Regions Covered |
North America, Europe, Asia-Pacific, South America and Middle-East and Africa |
Major Players |
Cummins Inc, Taiyo Nippon Sanso Corporation, Nel ASA, Iwatani Corporation, Steelhead Composites Inc., Linde Plc, Air Products Inc., Air Liquide, Nedstack Fuel Cell Technology BV, ITM Power, GKN Sinter Metals Engineering GmbH, Engie, Hygear, PlugPower Inc., among others |
Scope of the Report
Global Hydrogen Energy Storage Market by Physical State:
Global Hydrogen Energy Storage Market by Technology:
Global Hydrogen Energy Storage Market by End-use:
Global Hydrogen Energy Storage Market by End-Users:
Global Hydrogen Energy Storage Market by Region:
Global hydrogen energy storage market is expected to reach USD 26.97 billion by 2029, at a CAGR of 6.77% from 2022 to 2029.
Several end-user industries are opting for the use of renewable energy. Fossil fuels are depleting at an alarming rate. Conventional fuels have been used for a longer period of time in different end-user industries. The rising increase in consumption of oil has led to increasing in pollutants. However, the imposition of stringent regulations has led to the limited use of conventional fuels. Therefore, newer alternatives are used to a large extent which are environmentally friendly. The International Renewable Energy Agency, states that renewable energy should be generated at a specific price.
Leading market players active in the global hydrogen energy storage market are Cummins Inc, Taiyo Nippon Sanso Corporation, Nel ASA, Iwatani Corporation, Steelhead Composites Inc., Linde Plc, Air Products Inc., Air Liquide, Nedstack Fuel Cell Technology BV, ITM Power, GKN Sinter Metals Engineering GmbH, Engie, Hygear, PlugPower Inc., among others.
The regions analyzed for the hydrogen energy storage market include North America, Europe, South America, Asia Pacific, and the Middle East, and Africa.
The global hydrogen energy storage market has been segmented based on physical state, technology, application, end-users, and regions.
Hydrogen energy storage is costly to install, and many middle and small-scale users are unable to afford them. Hydrogen energy storage has too many features, which makes them more expensive. In addition, the cost of upkeep is factored into the total cost. The total costs are influenced by the raw material prices components connected with the development of hydrogen energy storage. Maintenance of hydrogen energy storage is equally important and it requires the deployment of funds from time to time.
Political Factors- The hydrogen energy storage requires the passing of stringent regulations in order to be launched in the market. This system helps in the delivery of hydrogen as a fuel, which can be further used in the application of power generation and transportation. Thus, the approval of hydrogen energy storage requires the passing of several stages in order to be proved safe for the required applications. The hydrogen energy storage requires extensive research and development processes in order to be launched in the market. The presence of regulatory bodies is promoting the use of hydrogen energy storage among regional countries in North America.
Economical Factors- Hydrogen energy storage is costly to install, and many middle and small-scale users are unable to afford them. Hydrogen energy storage has too many features, which makes them more expensive. In addition, the cost of upkeep is factored into the total cost. The total costs are influenced by the raw material prices components connected with the development of hydrogen energy storage. Maintenance of hydrogen energy storage is equally important and it requires the deployment of funds from time to time.
Social Factor- The increasing emission of carbon has led to rising in demand for hydrogen energy storage. The countries such as Germany, France, and Spain are the major end-users of hydrogen energy storage. The region invests hugely in the renewable energy sector and thus the number of hydrogens storing projects is rising tremendously. Further, the presence of multiple manufacturers in the regional countries have increased the supply of product.
Technological Factors- The increase in demand for hydrogen storage can be attributed to the use of hydrogen among the end-user industries. Hydrogen acts as a sustainable fuel in place of conventional fuels. Hydrogen energy storage is one of the widely used chemical storage. Hydrogen acts as a crucial compound in the renewable energy sector; however, it needs to be efficiently stored for future uses. Hydrogen has been stored for multiple uses including transportation, stationary power, and portable power. Hydrogen energy storage is the enabling technology that allows the advancement of fuel cell technology. The conversion of hydrogen can only be done using storage technology.
Environmental Factors- Hydrogen is increasingly used as a replacement for fossil fuels and can be used in combustion engines. There is a huge need for the utilization of electrical energy which is promoting the use of sustainable energy. Industrialization in developing countries has led to the increasing use of hydrogen energy storage. Further, stringent regulations regarding curbing pollution and decarbonization initiatives by industries have led to the growth of the renewable energy sector. For instance, stringent pollution control rules are a key factor attracting investments in the hydrogen storage energy market in Germany.
Legal Factors- In June 2020, a well-known player, Cummins Inc. had signed an association in order to form the joint venture for hydrogen tanks with another company named, NPROXX. Xcel Energy partnered with National Renewable Energy Laboratory (NREL) to construct a 110 kW capacity project that would utilize surplus wind energy to produce hydrogen through electrolysis and store it for later use.
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