Hydrogen Storage System Market: Current Analysis and Forecast (2023-2030)

The demand for hydrogen storage systems is increasing worldwide due to several factors. One of the main drivers is the rising need for clean and renewable energy sources as governments and businesses aim to reduce greenhouse gas emissions and meet their climate objectives. Hydrogen storage systems play a crucial role in the hydrogen economy, which aims to produce, store, and distribute hydrogen as a clean and sustainable fuel. Additionally, the growing use of hydrogen fuel cell vehicles is another factor driving the demand for hydrogen storage systems. These vehicles require efficient and safe hydrogen storage systems to store the fuel needed for transportation. As more hydrogen fuel cell vehicles are introduced, the demand for hydrogen storage systems is expected to rise. Furthermore, advancements in hydrogen storage technologies, including the development of new materials and technologies that offer improved performance and lower costs, are also contributing to the increased demand for these systems. For example, Plug Power announced the development of C3V, a new hydrogen storage material with a high capacity and fast kinetics, in 2023.

Based on the storage type, the market is bifurcated into physical-based and material-based. Among them, material-based methods have the potential to be more cost-effective and energy-efficient than physical-based methods in the long run, as they can store more hydrogen per unit volume and weight. However, they require further research and development to overcome challenges such as stability, durability, and scalability.

The hydrogen storage system market is categorized into four segments: chemical, oil refining, industrial, and others, based on their application. The oil refining segment holds a major share in this market due to various reasons. Firstly, hydrogen is a sustainable and clean energy source that helps in reducing the carbon footprint of oil refineries. Secondly, government rules and regulations aimed at reducing greenhouse gas emissions are boosting the demand for hydrogen storage systems in oil refineries. Governments worldwide are promoting the use of renewable energy sources and encouraging the development of hydrogen technologies to combat climate change.

For a better understanding of the market adoption of the hydrogen storage system industry, the market is analyzed based on its worldwide presence in countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. The Asia Pacific hydrogen storage system market is growing at a significant rate. This is mainly due to the hydrogen storage facilities and hydrogen-related initiatives that play a vital role by enabling the integration of renewable energy sources into the grid and providing a clean and efficient alternative to fossil fuels. Further factors such as renewable energy sources such as solar and wind become more prevalent in the Asia-Pacific region, there is a need for effective ways to store this energy and make it available when it is needed.

Hydrogen storage systems can help to address this need by storing excess energy generated from renewable sources for use during periods of low demand. Moreover, with governments and private companies investing in the development of hydrogen-related technologies and infrastructure demand for hydrogen storage systems is growing for the efficient and effective storage and transportation of hydrogen.

Some of the major players operating in the market include: Air Liquide, Linde plc, Praxair Technology, Inc., Worthington Industries, McPhy Energy S.A., Luxfer Holdings PLC, Hexagon Composites ASA, H Bank Technologies Inc., Inoxwind, and Cella Energy.