Hydrogen Energy Storage Market Size to Hit USD 25.05 Billion By 2033

According to latest study, the global hydrogen energy storage market size was estimated at USD 15.98 billion in 2023 and is projected to hit around USD 25.05 billion by 2033, growing at a CAGR of 4.6% during the forecast period from 2024 to 2033.The supportive developments and policy support from countries around the world will boost the growth of the market in the near future.

Over the forecast period, growing applications of fuel cell technologies such as transportation, portable electricity, and stationary power are expected to bolster the expanding need for hydrogen energy storage. Through renewable-powered electrolysis, an excess amount of wasted renewable energy is used to produce green hydrogen. Forward integration is used by market actors in numerous countries when selling hydrogen produced on-site from renewable sources to major industrial users.

The increased deployment of hydrogen energy storage in the utility, commercial, and residential sectors is driving the industry. The sector is predicted to grow due to high industrial demand for hydrogen in metal treatment, petroleum refining, and food processing. Potential opportunity for the market lies in increasing the commercialization of power-to-gas technology. In this technology, hydrogen can be converted back to electricity and used for powering the electric grid during peak hours.

Industry participants are entering into partnerships with the research organizations in order to construct full-scale hydrogen energy storage projects. For instance, U.S. utility provider 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. COVID-19 affected the growth of the market for hydrogen energy storage owing to factors such as reducing operational costs by end users, coupled with disruption in spare parts availability due to delays in manufacturing and logistics issues.

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Hydrogen Energy Storage Market Report Highlights

• Asia Pacific region held the largest revenue share of over 38.0% in 2023.

• The compression storage technology segment accounted for the largest revenue share of over 40.0% in 2023
• The solid segment held the largest revenue share of around 51.0% in 2023. The storage of hydrogen in solid form, i.e., stored in another material, is one of the emerging areas in the market
• The market is competitive with key participants involved in R&D and constant innovations by vendors, which has become one of the most important factors for companies to perform in this industry
• Supporting factors in the form of policies, plans, and regulations from various governments have boosted the growth of the market globally. This is expected to boost innovation in the field of hydrogen generation and storage technologies in the forecast period.

Hydrogen Energy Storage Market Dynamics

Various government policies are ongoing to support hydrogen as a fuel. The European Commission announced its strategy for the development of green hydrogen. The European Commission has approved green hydrogen production, which reforms H2 from natural gas and captures carbon dioxide emissions through carbon capture and storage. In 2020, Engie successfully refueled its first renewable hydrogen passenger train for a pilot test in the Netherlands. Hydrogen-fueled train is expected to be introduced by 2024, wherein Engie and Alstom are expected to collaborate to develop hydrogen-fueled trains across the Netherlands. With this success, the company is likely to expand its solution further across other countries, wherein hydrogen trains can be deployed, leading to a high demand for hydrogen energy and its storage.

However, the slow development of distribution channels for transporting hydrogen in developing countries is a major hindrance to market growth. Merchant distribution channels are yet to witness growth in developing regions including Africa and parts of the Middle East. Scarce availability of hydrogen distributors in these regions has impacted the expansion of industries significantly, thereby, limiting packaging and supply of industrial gases. Irregular and uncertain supply of hydrogen deeply impacts industries dependent on it, thereby hampering numerous end-use industries.

Hydrogen Energy Storage Market Trends

• Renewable Energy Integration: The intermittency of renewable energy sources like wind and solar power creates a need for energy storage solutions to balance supply and demand. Hydrogen, particularly when produced through electrolysis using renewable electricity, serves as a promising energy storage medium to store excess energy generated during peak production periods for later use.
• Decarbonization Initiatives: Governments and industries worldwide were increasingly focused on reducing carbon emissions to mitigate climate change. Hydrogen, especially when produced from renewable sources, is considered a clean energy carrier as its combustion or use in fuel cells produces only water vapor, making it a key component of decarbonization strategies.
• Investments and Funding: Significant investments were being made in hydrogen-related projects, including production, storage, and distribution infrastructure. Governments and private sector players were allocating funds to research, development, and deployment of hydrogen technologies, fostering innovation and market growth.
• Technological Advancements: Advances in electrolysis technologies, such as proton exchange membrane (PEM) electrolysis and solid oxide electrolysis cells (SOEC), were improving the efficiency and scalability of hydrogen production. Additionally, innovations in hydrogen storage methods, including compressed hydrogen storage, liquid organic hydrogen carriers (LOHC), and solid-state hydrogen storage materials, were enhancing the viability and safety of hydrogen energy storage systems.
• Industrial Applications: Hydrogen was increasingly being utilized in various industrial sectors, including transportation, power generation, and manufacturing, as a cleaner alternative to fossil fuels. The transportation sector, in particular, was witnessing growing interest in hydrogen fuel cell electric vehicles (FCEVs) due to their long range and quick refueling capabilities.
• Policy Support: Governments were implementing supportive policies and regulations to promote the adoption of hydrogen technologies. This included incentives such as grants, tax credits, and subsidies for hydrogen production, storage, and utilization projects, as well as setting long-term targets for hydrogen deployment and carbon reduction.
• International Collaboration: Collaborative efforts between governments, research institutions, and industry stakeholders were facilitating knowledge sharing, technology transfer, and standardization of hydrogen-related processes and infrastructure, contributing to the global expansion of the hydrogen economy.

Segments Insights:

Technology Insights

The compression storage technology segment accounted for the largest revenue share of over 40.0% in 2023. This can be attributed to the wide applications of compressed hydrogen in various sectors. Compressed hydrogen is utilized in on-site stationary power generation, hydrogen filling stations, and road transportation fuel cell vehicles. Furthermore, the compression technique is utilized to store hydrogen in cylinders for industrial applications in manufacturing and chemical industries.

Bulk industrial gas suppliers such as Linde, Air Liquide, and Air Products & Chemicals Inc. prefer liquefaction technology to deliver hydrogen in bulk to industrial end-users such as oil and gas and chemical industries. Liquefaction technology is used by industrial end-users who demand bulk hydrogen in their processes. Over the projection period, material-based storage technology segment is predicted to increase at a high rate. In comparison to other storage technologies, this technology includes hydride storage systems, liquid hydrogen carriers, and surface storage systems, all of which have a high volumetric storage density.

Physical State Insights

The solid segment held the largest revenue share of around 51.0% in 2023. Storage of hydrogen in solid form, i.e., stored in another material, is one of the emerging areas in the market. Methods for storing hydrogen in solid form include techniques involving absorption or adsorption mechanisms of hydrogen by a material.

Currently, storage of hydrogen in liquid form is being reserved for certain special applications, i.e., in high-tech areas such as space travel and for bulk storage applications at industrial levels. For example, tanks on the Ariane launcher, which are designed and manufactured by Air Liquide, contain 28 tons of liquid hydrogen, which provides fuel to the central engine.

Application Insights

The industrial application segment held the largest revenue share of over 40.0% in 2023. The use of hydrogen energy storage for residential applications is limited around the world. Countries such as Japan, Germany, France, and Belgium are strengthening their legislative frameworks, which are likely to catalyze the utilization of fuel cells in the residential applications for micro combined heat and power. For instance, Japan’s ENE-FARM program has fueled the adoption of fuel cell-based systems for use as fuel cell micro-cogeneration in residential sector.

The commercial application segment includes hydrogen refueling stations and micro-CHP fuel cell-based installation for commercial applications. A total number of hydrogen refueling stations around the world has more than doubled in the last five years from 181 in 2014 to more than 540 as of 2020. Continuous growth in deployment is led by the European and Asian regions.

Regional Insights

Asia Pacific region held the largest revenue share of over 38.0% in 2023. Asia Pacific market consists of major countries such as China, Japan, South Korea, India, Australia, and other Southeast Asian countries. Major countries such as Russia, Spain, Germany, Italy, UK, and smaller Eastern and Central European countries make up the European hydrogen energy storage industry. Enormous demand for hydrogen generation from a variety of end users, including industrial and commercial institutions, is to blame.

Large-scale hydrogen energy storage projects are being built across Europe, which is increasing market demand. For example, Orsted, a Danish corporation, plans to use excess wind farm electricity in the North Sea to manufacture renewable hydrogen energy via electrolysis and sell it to large commercial users. Due to rigorous pollution control rules, the use of cleaner fuels, and an increase in fuel cell applications, the market in North America is predicted to rise at a high rate.

Some of the prominent players in the Hydrogen energy storage market include:

• Air Liquide
• Air Products Inc.
• Cummins Inc.
• Engie
• ITM Power
• Iwatani Corporation
• Linde plc
• Nedstack Fuel Cell Technology BV
• Nel ASA
• Steelhead Composites Inc.

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the global hydrogen energy storage market.

Technology

• Compression
• Liquefaction
• Material Based

Physical State

• Solid
• Liquid
• Gas

Application

• Residential
• Commercial
• Industrial

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)

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Key Benefits for Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the Hydrogen Energy Storage Market analysis from 2021 to 2033 to identify the prevailing Hydrogen Energy Storage Market opportunities.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the cancer supportive care drugs industry segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global Hydrogen Energy Storage Market trends, key players, market segments, application areas, and market growth strategies.

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