Hydrogen Energy Storage Market Size - Global Industry, Share, Analysis, Trends and Forecast 2023 - 2032

The Global Hydrogen Energy Storage Market Size accounted for USD 15.4 Billion in 2022 and is projected to achieve a market size of USD 27.6 Billion by 2032 growing at a CAGR of 6.1% from 2023 to 2032.

Hydrogen Energy Storage Market Key Highlights

• Global hydrogen energy storage market revenue is expected to increase by USD 27.6 Billion by 2032, with a 6.1% CAGR from 2023 to 2032
• Asia-Pacific region led with more than 35% of hydrogen energy storage market share in 2022
• Governments around the world are investing in hydrogen energy storage, with the European Union aiming to have 40 gigawatts of electrolyzer capacity installed by 2030
• According to the International Energy Agency, hydrogen might provide up to 24% of the world's energy demands by 2050, with the potential to reduce annual CO2 emissions by up to 6 gigatonnes
• The European Union has set a target of producing 40 gigawatts of renewable hydrogen by 2030, which would require an investment of around €180 billion
• One of the most common applications for hydrogen storage is transportation. As of 2021, there were more than 10,000 FCEVs on the road worldwide, with most of them in the United States, Japan, and Europe
• Growing demand for hydrogen as a fuel for transportation and industrial applications, drives the hydrogen energy storage market value

Hydrogen energy storage is the process of storing energy by converting electricity into hydrogen, which can then be stored in a tank or pipeline for later use. When the stored hydrogen is needed, it can be converted back into electricity through a fuel cell or combustion process, providing a source of clean and efficient energy. This technology has the potential to play a critical role in the transition to a more sustainable energy system, by enabling the integration of renewable energy sources such as solar and wind power into the grid.

The market for hydrogen energy storage has been experiencing significant growth in recent years, driven by a range of factors including increasing demand for clean energy, government incentives and subsidies, and technological advancements. While the market for hydrogen energy storage is still in its early stages, there are signs that it is poised for significant growth in the coming years. As the world continues to shift towards a more sustainable energy system, hydrogen energy storage is likely to play an increasingly important role, providing a versatile and scalable solution for storing renewable energy and reducing carbon emissions.

Global Hydrogen Energy Storage Market Trends

Market Drivers

• Growing demand for clean and sustainable energy sources
• Government initiatives and incentives to promote hydrogen energy storage
• Increasing adoption of renewable energy sources such as solar and wind power
• Need for energy storage solutions to address intermittent energy supply
• Growing demand for fuel-cell electric vehicles

Market Restraints

• High capital costs associated with hydrogen energy storage systems
• Limited availability of hydrogen fueling infrastructure

Market Opportunities

• Growing demand for hydrogen as a fuel for transportation and industrial applications
• Expansion of hydrogen fueling infrastructure to support the adoption of fuel cell vehicles

Hydrogen Energy Storage Market Report Coverage

Hydrogen is considered to be a critical energy storage vector for fully utilizing the benefits of renewable and sustainable energy. Hydrogen-related technologies have advanced rapidly in recent decades. Hydrogen energy storage systems provide numerous opportunities for improving the resilience and economics of energy supply systems such as the electric grid, gas pipeline systems, and transportation fuels. This is especially true when considering specific social goals and market drivers such as lowering carbon emissions, increasing supply reliability, and reducing consumption of traditional petroleum fuels.

Hydrogen Energy: Fuel of the Future

Hydrogen and energy have a long history together, dating back over 200 years to the first internal combustion engines and continuing to become a critical component of today's refining industry. It is lightweight, storable, and energy-dense, with no direct pollutant or greenhouse gas emissions. Hydrogen must be adopted in sectors where it is currently almost non-existent, such as transportation, buildings, and power generation, to make a significant contribution to clean energy transitions. When hydrogen is combusted with oxygen, it becomes an energy carrier that can be used in internal combustion engines or fuel cells while emitting almost no greenhouse gases. Water vapor is the only significant emission. Furthermore, hydrogen is a versatile energy carrier that can be produced from a variety of energy sources and provides numerous opportunities for long-term energy storage.

Hydrogen Energy Storage Market Segmentation

The global hydrogen energy storage market segmentation is based on state, storage technology, end-user, and geography.

Hydrogen Energy Storage Market By State

• Liquid
• Solid
• Gas

Based on the state, hydrogen is stored into either a gas or a liquid form. The gas-type hydrogen energy storage segment presently holds a significant market share and is expected to hold its dominant position over the forecast period as it is the easiest and most cost-effective method compared with the liquefaction of hydrogen. However, the storage of hydrogen as a gas typically necessitates the use of high-pressure tanks with tank pressures ranging from 350–700 bar [5,000–10,000 psi].

Hydrogen Energy Storage Market By Storage Technology

• Compression
• Liquefaction
• Material Based

Based on the storage technology, the compression segment is the most preferred technology for storing hydrogen. The main advantage of using a compressed hydrogen storage system is the ability to quickly refuel vehicles in 3–5 minutes. In recent, 35 and 70 MPa nominal working-pressure compressed gas vessels are used for onboard automotive hydrogen storage. Given that the density of hydrogen deviates from ideal behavior at high pressures and increases much more slowly than the pressure, strong pressure vessels are required to withstand the higher pressures. Government agencies regulate the design and implementation of cylinders, which necessitates specific design standards and certifications.

Hydrogen Energy Storage Market By End-user

• Industrial
• Commercial
• Utility

According to the hydrogen energy storage market forecast, the utility segment is expected to grow significantly during the forecasting years. Due to hydrogen, utilities could use excess renewable energy that could be stored long-term for seasonal use or sold to other industries to generate new revenue streams. Furthermore, hydrogen is currently used in a variety of industries, ranging from chemical and refining to metallurgical, glass, and electronics. The primary application of hydrogen is as a reactant. However, it is also used as a fuel in space applications, as an O2 scavenger in metal heat treatment, and for its low viscosity and density.

Hydrogen Energy Storage Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)