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

Hydrogen Storage Market Size and Trends

The global hydrogen storage market is estimated to be valued at USD 1.6 Bn in 2024 and is expected to reach USD 6.8 Bn by 2031, growing at a compound annual growth rate (CAGR) of 23% from 2024 to 2031.

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The market is expected to witness positive growth over the forecast period. The growing demand for clean energy to reduce greenhouse gas emissions is expected to drive the demand for hydrogen storage systems. The increasing preference for fuel cells in transport applications such as buses, cars, and trucks will boost the adoption of hydrogen storage systems. Also, the development of novel on-board hydrogen storage technologies with higher storage capacity is further expected to support the market growth. However, high costs associated with hydrogen infrastructure development may hinder the growth of the market during the forecast period.

Growing Demand from Transportation Sector

The transportation sector has seen a rapid increase in the focus on developing zero-emission vehicles over the past decade. As consumers and government alike push for greener transportation solutions, hydrogen fuel cells have emerged as a promising technology to power vehicles such as cars, buses and trucks. Fuel cell vehicles use hydrogen as a fuel which is converted into electricity through a fuel cell, with water and heat being the only byproducts. For instance, several major automakers like Toyota, Hyundai and Honda have already launched fuel cell vehicles and built hydrogen refueling infrastructure. Many countries are investing heavily to expand this infrastructure network as it is seen as critical for widespread adoption of this technology. With fuel cell technology proving its capabilities, more automakers are expected to introduce fuel cell models in their lineup. This rise in fuel cell vehicles will substantially drive up the demand for hydrogen as a transportation fuel. Public and private sector investments into building hydrogen refueling stations will further fuel commercialization. Together, the growing consumer and governmental support for zero-emission vehicles is a major driver propelling the global hydrogen storage market.

There is significant global focus today on reducing industrial carbon emissions and transitioning to cleaner sources of energy. Industries like chemicals, refining and steel which involve high temperature heat processes have been reliant on fossil fuels. However, hydrogen is now emerging as a viable alternative in these hard-to-abate sectors. It can be used as a feedstock as well as engine fuel, enabling industries to lower their carbon footprint. Several countries have embarked on initiatives to facilitate ‘green hydrogen’ production from renewable energy and its use across various applications and invest in this projects. For instance, on March 6, 2023, according to the National Portal of India, the National Green Hydrogen Mission was approved by the Union Cabinet on January 4, 2022, with the intended objectives of India a leading producer and supplier of Green Hydrogen in the world. Additionally, private companies are investing in developing technologies to produce and utilize ‘blue hydrogen’ from natural gas with carbon capture. With stringent emission norms and an available infrastructure, industries will be motivated to switch to hydrogen. This growing focus on decarbonizing carbon-intensive industries through increased hydrogen consumption is expected to significantly drive its storage, transportation and utilization worldwide.