- The global hydrogen storage market valued $477.7 million in 2016 and is projected to grow at a CAGR of 7.6% during the forecast period (2016–2026).
- The market growth is primarily being driven by the increasing focus of utility companies on producing energy from renewable sources, such as hydrogen and oxygen.
- Further, the growing usage of hydrogen in various end-use industries, including energy, power, transportation, and electronics, is predicted to boost the market growth during the forecast period.
GLOBAL HYDROGEN STORAGE MARKET SPLIT, BY APPLICATION (2016)
Material-based storage and physical storage are the two categories of the hydrogen storage market when it is segmented on the basis of storage form. Of the two, the physical category is expected to dominate the market during the forecast period in terms of value. This can be attributed to the growing usage of hydrogen in a wide array of end-use sectors, such as crude oil refining, ammonia production, glass production, metalworks, and transportation.
On the basis of application, the hydrogen storage market is categorized into stationary power, portable power, and transportation. The stationary power category led the market during the historical period, accounting for the largest revenue share. The category is expected to continue dominating the market during the forecast period.
As per the U.S. Department of Energy, hydrogen storage can be a key enabler for the enhancement of fuel and hydrogen cell technologies for portable power, stationary power, and transportation applications. Solid, liquid, and gaseous are the various forms in which hydrogen can be stored. To store hydrogen in the gaseous form, tanks with 350–700 bar pressure are required, whereas the liquid storage of hydrogen needs cryogenic temperatures, as the boiling point of hydrogen at one atmospheric pressure is −252.8 °C. Market players are rapidly adopting hydrogen storage solutions due to the low ambient temperatures of hydrogen, resulting in low energy per unit volume. This makes it suitable for use in numerous settings, including on-board vehicles, hydrogen production sites, stationary power sites, and refueling stations, thus driving the growth of the hydrogen storage market.
Hydrogen Storage Market Dynamics
Increasing focus on research and development (R&D) on hydrogen storage technology is the key trend being observed in the hydrogen storage market. In the past few years, the U.K., the U.S., and India have constantly increased their focus on research to advance the technology employed in hydrogen and fuel cells. This has led to the availability of adequate hydrogen storage capacity for material-handling equipment, on-board light-duty vehicles, and portable power generation. Further, this will ultimately help meet the targets set by the U.S. Department of Energy.
Another trend being witnessed in the hydrogen storage market is the growing adoption of hydrogen in the solid form. The market is predicted to draw huge investments during the forecast period because of the advancements in the technology of fuel cells and hydrogen and increasing government initiatives, including new funding opportunity announcement (FOA) aimed at promoting the adoption of hydrogen storage technologies across the globe.
The key factors supporting the growth of the hydrogen storage market are increasing consumption of ammonia and methanol and growing demand for low-emission fuels across the world. The continual shift toward low-emission fuels in India, China, and countries in Southeast Asia is expected to increase the demand for hydrogen storage solutions during the forecast period. Moreover, the implementation of stricter emission standards in countries such as the U.S. and the U.K. is expected to help create awareness among consumers about the significance of clean energy and low-carbon fuels.
In addition, the rising demand for hydrogen-powered vehicles in Europe and North America is predicted to impact the growth of the hydrogen storage market positively during the forecast period. This can be mainly attributed to the easy availability of hydrogen fueling infrastructure and government regulations and initiatives supporting the use of low-emission vehicles.
Stringent emission regulations in South Korea, China, India, and Japan and the rising demand for methanol and ammonia are further expected to create growth opportunities in the hydrogen storage market during the forecast period. Europe and North America are focusing on manufacturing zero-emission hydrogen vehicles, for which governments of countries such as the U.K. and the U.S. have initiated programs and funding schemes to encourage companies to switch to hydrogen-fueled-vehicle manufacturing. Till May 10, 2016, the U.K. government had invested $2.21 million to produce an additional 100 hydrogen fuel-cell cars and vans in the next few years. This is expected to boost the growth of the hydrogen storage market during the forecast period.
The key factor restraining the growth of the hydrogen storage market is the high initial costs associated with hydrogen storage systems. The processes associated with the extraction of hydrogen demand huge investments, thus making hydrogen costly for the end users. Therefore, end-use industries often choose alternative solutions over hydrogen energy storage solutions, which, in turn, hinders the market growth to a significant extent. However, the rise in government investments and R&D is expected to reduce the negative impact of the high initial costs in the long run.
The dearth of hydrogen refueling stations is also expected to impact the hydrogen storage market growth negatively, especially in developing nations, where these are not present in adequate numbers. The hydrogen refueling infrastructure in such nations is still underdeveloped owing to the high costs of capital associated with the construction of these stations. This can be mainly attributed to the fact the hardware required for hydrogen storage is more complicated than that required for conventional fuels.
Hydrogen Storage Market Competitive Landscape
Some of the key players in the market for hydrogen storage solutions are Linde AG, Air Liquide S.A., Worthington Industries Inc., Praxair Inc., HBank Technologies Inc., McPhy Energy S.A., VRV S.p.A., Hexagon Composites ASA, and INOXCVA.
Source: PS Market Research
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