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

Liquid Hydrogen Tank Market Size and Trends

Global liquid hydrogen tank market is estimated to be valued at USD 68.3 Mn in 2024 and is expected to reach USD 110.4 Mn by 2031, exhibiting a compound annual growth rate (CAGR) of 7.1% from 2024 to 2031.

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Hydrogen, a critical feedstock for industries such as chemicals, electronics, and energy, is expected to see growing demand worldwide. The use of liquid hydrogen as a fuel is gaining traction as a sustainable alternative to conventional fossil fuels, particularly in sectors like commercial aviation and space exploration. Companies are increasingly investing in hydrogen infrastructure and innovative fuel cell technologies, which is anticipated to drive the demand for liquid hydrogen storage tanks.

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Insights By Type- Below 25 m³ segment leads due to increasing demand for hydrogen storage containers

In terms of type, below 25 m³ segment is estimated to contribute the highest market share of 41.6% in 2024, owing to its wide range of applications. This segment can witness growth due to its versatility across various industries. Tanks with capacity below 25 m³ are ideal for applications requiring hydrogen storage and transportation in smaller quantities, making them highly applicable in numerous sectors, thus, driving boosting demand.

Insights, By Application- Aerospace segment dominates due to rising demand for fuel used in rockets

In terms of application, aerospace segment is estimated to contribute the highest market share of 35.6% in 2024, owing to its crucial role in the industry. The aerospace sector holds the largest share in the global liquid hydrogen tank market. This dominance is due to the critical role of liquid hydrogen as both a fuel and coolant in aerospace propulsion systems. Most aerospace companies use liquid hydrogen as the main fuel for rockets and spacecraft.

Regional Insights

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Dominating Region- North America

North America is projected to lead the liquid hydrogen tank market in 2024, with an estimated market share of 49.5%.  North America liquid hydrogen tank market growth can be attributed to strong government support for clean energy initiatives such as U.S. Department of Energy's (DOE) Hydrogen Shot Initiative and increasing investments in hydrogen infrastructure by major players. Countries like the U.S. and Canada have ambitious targets for deploying hydrogen technologies and expanding the existing network.

Fastest-Growing Region- Asia Pacific

Asia Pacific region exhibits the fastest growth, driven by China and Japan's focus on establishing a hydrogen economy to meet sustainability goals and reduce dependence on fossil fuels. Considerable investments are being made to boost local manufacturing capabilities and scale up hydrogen applications across sectors in the near future.

Liquid Hydrogen Tank Market Outlook for Key Countries

Accelerated Adoption and Rising Demand for Liquid Hydrogen Storage Solutions

The U.S. is advancing hydrogen adoption through substantial federal and state incentives, particularly targeting clean energy and transportation sectors. The Biden administration's commitment to clean energy and decarbonization has spurred significant investments in hydrogen infrastructure, including liquid hydrogen storage solutions. Inflation Reduction Act (IRA) of 2022: The IRA introduces clean energy tax credits and provisions aimed at boosting domestic renewable energy production. It extends and enhances federal tax credits for clean hydrogen and fuel cell technologies, such as the Clean Hydrogen Production Credit under Section 45V and the Investment Tax Credit under Section 48, which support clean hydrogen production and related infrastructure.

China’s Hydrogen Strategy- Expanding Infrastructure and Demand for Liquid Hydrogen Storage Tanks

China is a major player in the hydrogen sector, with substantial investments in green hydrogen production. The government has set ambitious targets for reducing carbon emissions, including increasing hydrogen production and infrastructure. Liquid hydrogen storage tanks will play a crucial role as China scales up its hydrogen fuel cell vehicle fleet and develops industrial applications for hydrogen. China is already developing large-scale hydrogen storage projects in key industrial regions.

Japan’s Hydrogen Leadership- National Strategy and Growing Demand for Hydrogen Storage Solutions

Japan is one of the world leaders in hydrogen technology and is heavily investing in hydrogen infrastructure, particularly for transportation and energy applications. The Japanese government has introduced policies to encourage the adoption of hydrogen, which is expected to drive growth in the market for liquid hydrogen tank solutions. For instance, as per the DLA Piper in May 2024, Japan was the first country to release a national hydrogen strategy, and it continues its leadership by promoting the development of its domestic hydrogen industry and international supply chains. Japan’s strategy, most recently revised in 2023, sets a production target of 12 million tonnes of low-carbon hydrogen by 2040.

Canada’s Hydrogen Push- Strategic Investments and Infrastructure Development in Alberta

Canada has been actively investing in hydrogen as a clean energy solution, with multiple projects aimed at scaling up hydrogen production and infrastructure. As of August 2024, there is a significant push towards building infrastructure for hydrogen storage and distribution, particularly in Alberta. Linde's US$ 2 billion investment in a new hydrogen production facility is one example, signaling Canada's commitment to the hydrogen economy.

India’s Hydrogen Strategy- National Mission and Growing Demand for Liquid Hydrogen Storage Solutions

India has been making progress in developing its hydrogen strategy, with the government recently unveiling the National Hydrogen Mission to boost green hydrogen production. India's market for liquid hydrogen tank will benefit from partnerships with global players like INOXCVA, which have already contributed to India's hydrogen projects.

Market Concentration and Competitive Landscape

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Top Strategies Followed by Global Liquid Hydrogen Tank Market Players

• Established players heavily invest in research and development to deliver cutting-edge products. Companies like Linde, Air Liquide, and Air Products allocate over 5% of annual revenues to R&D. This allows them to innovate high-performance tanks with enhanced storage capacities, leak-proof designs and lightweight materials.
• Mid-level players stay competitive by offering cost-effective solutions. Companies like Luxfer Gas Cylinders and Chart Industries target price-conscious commercial and industrial customers. Collaborations also help boost capabilities. For example, in July 2021, Air Products collaborated with Cummins to develop hydrogen-powered heavy-duty trucks. Such partnerships expand technology expertise and production avenues.
• Small-scale manufacturers are carving out a competitive edge by targeting specialized niches, such as custom hydrogen storage tanks for aerospace and defense applications. Their focus on niche markets and tailored solutions allows them to outperform larger competitors in these areas. Many of these firms leverage advanced technologies like composite materials and 3D printing to create innovative products while maintaining cost efficiency.

Emerging Startups in the Global Liquid Hydrogen Tank Market

Several startups are bringing innovative hydrogen technologies. Companies like First Element Fuel develops smart liquid hydrogen sensors integrated with IIoT systems. This allows real-time monitoring of tank parameters. Universal Hydrogen works on modular capsules to transport hydrogen efficiently. If successful, these startups can disrupt existing distribution models.

Sustainability remains a key focus area for startups. Startups like Cryogenic are commercializing carbon-composite tanks that are 100% recyclable. Hydrogenious aims to produce hydrogen using renewable energy without emitting CO₂. Such eco-friendly innovations will be crucial in reducing the industry's environmental impact over the long-run. Hydrogenious focuses on distributed hydrogen production ideal for off-grid industrial operations. Startups target specialized applications in aerospace, marine and defense.

Liquid Hydrogen Tank Industry News

• In August 2024, Linde plc announced a significant expansion of its clean hydrogen initiatives with a US$ 2 billion investment in a new production facility in Alberta, Canada. This state-of-the-art plant will supply hydrogen to Dow's Path2Zero complex and other clients, featuring an impressive carbon capture and sequestration capacity of over 2 million metric tons annually.
• In September 2022, Linde announced plans to construct a 35-megawatt Proton Exchange Membrane (PEM) electrolyzer in Niagara Falls, New York. This facility, set to be the company's largest electrolyzer globally, aims to enhance green liquid hydrogen production capacity in the U.S.
• In August 2022, INOXCVA designed, engineered, and manufactured India's largest liquid hydrogen storage tank, boasting a capacity of 238 cubic meters. This tank was dispatched from INOXCVA's Kandla facility to South Korea for a clean energy demonstration project.

Key Takeaways from Analyst

• Global liquid hydrogen tank market growth is driven by rising demand for clean energy. Increasing focus on developing a hydrogen economy to store and transport green hydrogen boosts more investments into advanced liquid hydrogen storage solutions. The aerospace sector's focus on developing hydrogen-powered aircraft and rockets can also boost opportunities for liquid hydrogen tank manufacturers in the near future. North America is expected to dominate the market over the forecast period led by strong government support for building hydrogen infrastructure in countries like U.S.and Canada. Asia Pacific region will also emerge as a high growth market for liquid hydrogen tanks due to China's strengthening push for renewable energy and fuel cell vehicles.
• High production costs associated with cryogenic tanks requiring advanced materials can also hamper the market growth. High infrastructure investment needs for widespread distribution of liquid hydrogen also pose challenges. Safety concerns around flammability of hydrogen is also a restraint particularly for broader commercial usage. Identification of low-cost cryogenic materials can help lower production costs in the long-run. Growing number of pilot projects testing liquid hydrogen supply chains can help address infrastructure challenges gradually. Standardization of safety protocols can help allay concerns, expanding commercial applications over time. Partnerships between tank manufacturers and end users will be crucial to increase adoption.

Market Report Scope

Market Dynamics

Market Driver- Growing demand for hydrogen as a clean energy source in various applications

As awareness regarding greenhouse gas emissions and global warming rises worldwide, there will be huge demand for alternative clean energy sources. Hydrogen is emerging as one of the most viable clean energy options for various industries and applications. Being the lightest and most abundant element in the universe, hydrogen has a high energy content by weight and produces only water vapor when used as a fuel. For instance, according to the Statista Research Department (July 2024), the global market value for hydrogen storage tanks was estimated at 188.5 million U.S. dollars in 2023. This figure is projected to grow substantially over the next decade, surpassing one billion U.S. dollars by 2030 and beyond.

Market Challenge- High costs associated with the production and transportation of liquid hydrogen

One of the major challenges faced by global liquid hydrogen tank market includes high costs associated with the production and transportation of liquid hydrogen. Producing and liquefying hydrogen requires significant amounts of energy, which leads to high production costs. It takes around 50-60 kWh of energy to produce just 1 kg of liquid hydrogen. Transportation of liquid hydrogen also poses cost challenges due to the complex logistical needs of transporting products at cryogenic temperatures. Specialized and highly insulated tankers are required to prevent boil-off, which increases transportation expenses.

Market Opportunity- Technological advancements in hydrogen storage solutions improving efficiency and safety

Technological advancements are being made to improve the efficiency and safety of hydrogen storage solutions, representing an opportunity for growth in the global liquid hydrogen tank market. Researchers are working on developing more efficient methods of hydrogen production that reduce energy requirements. New materials with enhanced storage capacities are also being explored to allow for smaller, lighter weight tanks that lower transportation costs. Advanced insulation technologies help minimize boil-off in cryogenic tankers as well. Furthermore, innovations in metal hydride storage and sorbent-based storage media offer promising alternatives to conventional tank designs.

Market Segmentation

•  Type Insights (Revenue, USD Mn, 2019 - 2031)
• • Below 25 m³
  • 25m³-45m³
  • 45m³-100m³
  • Above 100m³
•  Application Insights (Revenue, USD Mn, 2019 - 2031)
• • Aerospace
  • Industrial
  • Transportation
  • Energy
  • Others
• Regional Insights (Revenue, USD Mn, 2019 - 2031)
• • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Linde plc
  • Air Products and Chemicals, Inc.
  • Hydrogenics Corporation
  • Chart Industries, Inc.
  • McPhy Energy S.A.
  • INOXCVA
  • Cryofab, Inc.
  • Parker Hannifin Corporation
  • Worthington Industries, Inc.
  • ACD LLC
  • Emerson Electric Co.
  • FIBA Technologies, Inc.
  • Tonnage Gas Systems
  • Haskel International, Inc.
  • Cryoquip, LLC