According to a new market research report titled, ‘Hydrogen Storage Market by Storage Solution (Tanks, Cylinders), Storage Type (Physical Storage, Material-based Storage), Application (Fuel Cell, Chemical Production, Manufacturing, Oil & Gas), and Geography—Global Forecast to 2031‘ the hydrogen storage market is projected to reach $38.3 billion by 2031, at a CAGR of 8.3% during the forecast period.
Hydrogen storage refers to securely storing hydrogen in various states, including gas, liquid, and solid forms, for industrial applications. Hydrogen is a light and highly flammable gas requiring efficient and safe storage. Hydrogen storage methods include physical storage and material storage. Physical hydrogen storage utilizes cylinders, tanks, and portable containers tailored to specific applications. The stored hydrogen finds application in fuel cells, chemical production, manufacturing, oil & gas, and power generation.
The growth of this market is driven by the increasing use of hydrogen storage tanks for transportation and the growing adoption of hydrogen storage facilities as an energy source for power generation. However, the high capital costs of hydrogen storage facilities restrain the growth of this market.
Furthermore, the rising government support for hydrogen production and the increasing demand for hydrogen-based fuel cells for vehicles is expected to create market growth opportunities. However, the high flammability of hydrogen makes storage a major challenge for market players. The latest trends in the hydrogen storage market are the rising use of renewable energy sources for hydrogen production and the increasing use of hydrogen in oil refineries and chemical industries.
The hydrogen storage market is segmented by storage solution (tanks, cylinders, portable storage, and other storage solutions), storage type (physical storage [liquid, gas], material-based storage [adsorbent, metallic hydrides, complex hydrides, chemical hydrogen]), Application (fuel cell [fuel cell electric vehicles, power generation, boats and submarines, and aviation], chemical production, manufacturing, oil & gas, aerospace & defense, and other applications), and geography. The study also evaluates industry competitors and analyses the market at the regional and country levels.
Based on storage solution, in 2024, the cylinders segment is expected to account for the largest share of 65% of hydrogen storage market. The large market share of this segment is attributed to the high-pressure storage capacity and cost-effectiveness of cylinders and the rising demand for zero-emission mobility solutions and associated infrastructure. However, the portable storage segment is projected to register the highest CAGR during the forecast period due to the increasing need to transport hydrogen transportation across diverse locations and applications, particularly in areas lacking extensive pipeline infrastructure.
Based on storage type, in 2024, the physical storage segment is expected to account for the largest share of the hydrogen storage market. The large market share of this segment is attributed to the advantages provided by physical storage, including high energy density, the benefit of leveraging existing infrastructure for transportation and storage, and quick refueling times. Moreover, this segment is projected to register the highest CAGR during the forecast period.
Based on application, in 2024, the fuel cell segment is expected to account for the largest share of 39.4% of the hydrogen storage market. The large market share of this segment is attributed to the rising utilization of fuel cells in E-mobility to mitigate greenhouse gas emissions, reduce oil dependence, and lower air pollutants. Moreover, this segment is projected to register the highest CAGR during the forecast period.
Based on geography, in 2024, North America is expected to account for the largest share of 40% of the hydrogen storage market. The North America hydrogen storage market is projected to be worth USD 8.7 billion in 2024. North America’s significant market share is attributed to the growing adoption of fuel-cell electric vehicles, the growing utilization of renewable sources for hydrogen, the increasing initiatives aimed at reducing greenhouse gas emissions, and technological advances in hydrogen storage facilities.
The Asia-Pacific hydrogen storage market is projected to register the highest CAGR during the forecast period. The growth of this market is driven by the growing potential to produce carbon-free hydrogen in the region, the growing focus of Australia to generate hydrogen using Carbon Capture, Usage and Storage (CCUS) technology, and the growing focus of China to generate hydrogen using renewable energy, natural gas, and coal resources.
Countries in the Asia-Pacific region, including China, Australia, New Zealand, South Korea, and Japan, are directing their efforts toward the production of low-carbon and carbon-free hydrogen. Notably, India, Australia, and parts of Southeast Asia boast significant solar energy potential. At the same time, New Zealand possesses substantial offshore and onshore wind resources that can be harnessed for the production of carbon-free hydrogen. This focus on utilizing renewable energy sources aligns with the growing emphasis on hydrogen storage technologies in the region.
The key players operating in the hydrogen storage market include L’Air Liquide S.A. (France), Chart Industries, Inc. (U.S.), Linde GmbH (Germany) (A subsidiary of Linde plc), Matheson Tri-Gas, Inc. (U.S.) (A subsidiary of Nippon Sanso Holdings Corporation), Hexagon Purus ASA (Norway), Luxfer Gas Cylinders (England) (A subsidiary of Luxfer Holdings PLC), Merck KGaA (Germany), Hanwha Corporation (South Korea), Eutectix LLC (U.S.), HBank Technologies Inc. (Taiwan), SPG Hydrogen Co., Ltd. (South Korea), FIBA Technologies, Inc. (U.S.), American Elements (U.S.), NPROXX B.V. (Netherlands), Steelhead Composites, Inc. (U.S.), CALVERA HYDROGEN, S.A. (Spain), and Pragma Industries (France).
