Hydrogen Energy Storage Market Size, Share, Competitive Landscape and Trend Analysis Report by Product Type, Application and End User : Opportunity Analysis and Industry Forecast, 2020-2027

Hydrogen Energy Storage Market Outlook – 2027

The global hydrogen energy storage market size was valued at $15.4 billion in 2019, and is projected to reach $25.4 billion by 2027, growing at a CAGR of 6.5% from 2020 to 2027. Hydrogen energy storage, a type of chemical energy storage, is used to store electric power in the form of hydrogen. Hydrogen is produced through electrolysis of water and the gas is stored in medium or large sized containers according to the requirements. The gas can be converted into energy in combustion engine or in fuel cell. Usually, hydrogen energy is stored in three form; liquid, solid, and gaseous form. To store hydrogen in gas form, it requires high high-pressure tanks, whereas it can be stored in liquid form only under cryogenic temperature. Hydrogen storage is widely used in fuel cell technologies for stationary power and transport applications.

Growth in demand for hydrogen energy storage, utilizing excess electric energy, is expected to drive the market growth. Increase in application of hydrogen storage as a replacement of fossil fuel in different end users is expected to fuel the market growth. For example, in July 2018, Enbridge Gas Distribution, a distributor of natural gas in Canada and Hydrogenics opened power-to-gas facility using the Markham hydrogen energy storage facility in Ontario, Canada. Furthermore, growing prominence of sustainable energy services will propel the market growth. Hydrogen energy can be used for grid energy services and for transportation sectors. As governments across the globe are focusing more on sustainable power sources, the market is expected to witness steady growth in forecast timeframe.  However, hydrogen energy used in fuel cell is very low to cover the energy demand of commercial and residential buildings. In addition, liquid hydrogen energy storage involves high capital cost, owing to high insulation cost to prevent vaporization. Nonetheless, incentive schemes from government and robust investment from industry players may slowly improve the market growth. For instance, in June 2019, Energy Storage Association, the US national trade association for energy storage, brought energy storage tax incentive and deployment act. According to this act, all energy storage technologies, including hydrogen storage, will be eligible for tax incentives. Such new development will create further opportunities in the market.

The global hydrogen energy storage market is segmented on the basis of product type, application, end user, and region. Based on product type, it is segmented into liquid, solid, and gas. Based on application, the market is classified into stationary power, portable power, transportation, and others. Based on end user, the market is segmented into industrial and commercial. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Major players have adopted acquisition, agreements, and partnership to sustain the intense market competition. Some of the key players profiled in the report of hydrogen energy storage industry include Air Liquide (France), Air Products and Chemicals, FuelCell Energy, Hexagon Composites, Hydrogenics, ITM Power, Linde, Nel Hydrogen, Plug Power, and Worthington Industries.

Global Hydrogen Energy Storage Market, By Region

Asia-Pacific accounted for highest revenue share, owing to the impact of productivity improvements. The emerging economies in Asia-Pacific are adopting various foreign equipment; thus, improving the production efficiency. Also, North America accounted for significant market share. This is attributed to large presence of major players in the U.S. and Canada. Additionally, presence of regulatory bodies, such as energy storage association, promoting application of hydrogen energy will drive the market growth.  

Global Hydrogen Energy Storage Market, By Product Type

Gas type hydrogen energy storage accounted for significant revenue share. This is attributed to low cost of energy storage for compressed gas compared to that of solid and liquid type. As the quantity of hydrogen storage increases, for gas type, per unit storage cost decreases, whereas, for solid type, it remains same. For instance, according to the United States Department of Energy, at hydrogen flow of 10 kg/hr, the storage costs for gas and solid type are $0.9/KG and $2.1/KG, respectively. However, at hydrogen flow of 10,000 kg/hr, the storage cost for gas and solid type are $0.25/KG and $2.1/KG, respectively.

Global Hydrogen Energy Storage Market, By Application

The stationary power accounted for highest market growth, owing to increase in demand for renewable power sources. Growing prominence of renewable and sustainable power sources across the globe will positively impact the market growth.

Global Hydrogen Energy Storage Market, By End-User

The commercial segment accounted for significant revenue share, owing to increase in demand in commercial buildings and highly populated cities. The application of hydrogen energy storage in these areas can complement the operation of heating systems, specially the heat pumps during winter.

COVID-19 scenario analysis

• The hydrogen energy storage market has significant impact of COVID-19 pandemic, owing to travel restrictions and global lockdown norms. 
• This global lockdown led to cancelled shipments of various energy storage components and hindered project visits. According to a survey of Energy Storage Association, 62% of respondents faced delay in deployment of projects.
• From beginning of May, 2020, over 70 countries including India, US, EU, and Switzerland had taken drastic measures to restrict export and import activities.
• However, shifting trend toward decarbonization and sustainable energy resources will further increase the market demand in post-COVID timeframe. 
• Furthermore, with the growing demand for electric vehicles, large number of industry players are investing in new startups in emerging economies, which will further create new market opportunities during the forecast period.

Key benefits for stakeholders

• The global hydrogen energy storage market analysis covers in-depth information of major industry participants.
• Porter’s five forces analysis helps analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
• Major countries have been mapped according to their individual revenue contribution to the regional market.
• The report provides in-depth analysis of the global hydrogen energy storage market forecast for the period 2020–2027.
• The report outlines the current global hydrogen energy storage market trends and future estimations of the market from 2019 to 2027 to understand the prevailing opportunities and potential investment pockets. 
• The key drivers, restraints, & market opportunity and their detailed impact analysis are explained in the study.

  Hydrogen Energy Storage Market Report Highlights

Aspects	Details
By Product Type	Liquid Solid Gas
By Application	Stationary Power Transportation
By End User	Industrial Commercial
By Region	North America  (U.S., Canada, Mexico) Europe  (Germany, UK, France, Spain, Italy, Rest of Europe) Asia-Pacific  (China, Japan, India, South Korea, Australia, Rest of Asia-Pacific) LAMEA  (Brazil, Saudi Arabia, South Africa, Rest of LAMEA)
Key Market Players	Plug Power, Air Products and Chemicals, Cummins Inc., Nel Hydrogen, ITM Power, Air Liquide, Worthington Industries, Hexagon Composites ASA, FuelCell Energy, LINDE PLC

Analyst Review

The global hydrogen energy storage market is moving toward expansion phase. This is mainly attributed to a significant surge in demand for sustainable energy sources and growth in demand for electric vehicles. As large number of countries in European Union are showing their interest in decarbonized hydrogen sector, the market will witness significant market growth in the upcoming years. However, in current scenario, the investment in decarbonized hydrogen projects is highly expensive and risky, due to lack of active incentive schemes. Nonetheless, government support through public-private partnerships and public funding may create lucrative opportunities in the market.

Author Name(s) : Ayushi Choudhary| Sagnik Chatterjee | Eswara Prasad

Related Tags

• Energy Storage
• Energy Storage Solutions
• Renewable Energy Storage
• Hydrogen Storage