The hydrogen storage market involves storage tanks, cylinders and systems that enable the storage and transportation of hydrogen which is further utilized in industries like chemical, electronics and automotive. Hydrogen fuel when required can be extracted from these storage mediums and used as a source of clean energy. Hydrogen has a higher energy content per unit of weight compared to fossil fuels and when utilized in fuel cells, it produces only water and heat as byproducts without generating any greenhouse emissions. The demand for efficient and eco-friendly fuel solutions is driving the development of technologies for storage and distribution of hydrogen.

The Global hydrogen storage market is estimated to be valued at US$ 6.8 Bn in 2024 and is expected to exhibit a CAGR of 21% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the Hydrogen Storage Market Size  are Air Liquide, Air Products and Chemicals, Inc., Hexagon Purus, Worthington Industries, Inc., Linde plc, Luxfer Holdings PLC, Chart Industries , INOXCVA, HBank Technologies Inc., Pragma Industries. These key players are investing heavily in research and development of advanced hydrogen storage tanks, cylinders and systems to efficiently deliver hydrogen as a clean fuel solution.

The demand for hydrogen as an alternative fuel is growing rapidly across industries and automobile sector. Fuel cell powered vehicles and transportation require efficient on-board hydrogen storage solutions. Several countries are also promoting use of hydrogen for power generation and other applications to reduce carbon footprint.

With growing emphasis on use of clean energy globally, manufacturers of hydrogen storage equipment are expanding their operations internationally. Companies are focusing on countries that are investing heavily in developing a hydrogen economy and infrastructure. Partnerships with regional fuel cell technology developers and suppliers are helping these players to better cater to regional markets.

Market drivers

Stringent emission norms regarding use of conventional petroleum fuels are encouraging governments as well as industrial sectors to adopt cleaner hydrogen fuel solutions. Many nations have introduced tax benefits and subsidies for companies involved in production and distribution of hydrogen fuel. This is positively impacting investments in hydrogen storage and transportation infrastructure. Growing demand from fuel cell automotive segment is a major factor driving the need for development of lightweight and high-capacity hydrogen storage systems.

Impact of geopolitical situation on the growth of Hydrogen Storage Market

The current geopolitical situation is posing challenges for the growth of the hydrogen storage market. The ongoing Russia-Ukraine war has disrupted global energy supply chains and increased input costs. Both Russia and Ukraine are major suppliers of rare-earth minerals that are essential for hydrogen storage technologies like metal hydrides. Restrictions on Russian goods and sanctions on the country have hampered access to these critical raw materials. This is negatively impacting technology development and commercialization efforts in the hydrogen storage industry. Furthermore, the economic uncertainty caused by high inflation rates and potential recessions in major economies casts doubt over future investments in decarbonization projects. Hydrogen storage being an integral part of the emerging hydrogen economy, such investment hesitancy can slow down the market growth trajectory. To counter these challenges, industry players must look at diversifying their supply chains, partnering with alternative mineral suppliers, and working closely with governments to secure offtake commitments and incentivize green investments even during uncertain times.

Get more insights on Hydrogen Storage Market

Also read related article on Global Laparoscopic Electrodes Market