HYDROGEN ENERGY STORAGE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

The major challenge faced by the global hydrogen energy storage market is the high cost associated with hydrogen production and storage. Producing hydrogen through electrolysis of water requires large amounts of electricity. Currently, most of the electricity used for hydrogen production comes from fossil fuels, which increases the overall costs. Storing hydrogen safely and efficiently is also quite challenging and expensive due to its low density and volatile nature. Transporting hydrogen demands specialized tanks or trailers with advanced insulation, further escalating costs. These infrastructure and technology challenges have prevented hydrogen from widespread commercialization. Additionally, the lack of economies of scale in the market has resulted in the high capital costs of production plants. Overcoming the cost barriers through improved and innovative electrolyzer technologies, storage solutions and large-scale projects will be critical for the market to realize its full potential.

Market Opportunity - Growth in renewable energy sector

The growing focus on developing renewable sources of energy like solar and wind globally presents a massive opportunity for the hydrogen energy storage market. As the integration of variable renewable energy increases, long-term and large-scale storage solutions will be crucial to ensure grid reliability and stabilize power supply. Hydrogen energy storage has strong potential to facilitate the large-scale adoption of renewable energy by enabling seasonally-based energy storage. The opportunity for hydrogen lies in utilizing excess renewable electricity generated during periods of low demand to produce hydrogen through electrolysis. This hydrogen can be stored and transformed back into electricity during high demand periods through fuel cells. Leveraging the synergies between renewable energy growth and hydrogen-based energy storage could significantly boost the prospects of the hydrogen economy worldwide in the coming years.

Additionally, growing investment in renewable energy sector is expected to drive the market. For instance, according to data by International Energy Agency, in 2020, global investment in solar energy reached US$ 148.6 billion, demonstrating the sector's attractiveness to investors. The cost of solar PV modules has decreased by over 90% since 2010, making solar energy more accessible and affordable for consumers and businesses.