Hydrogen Energy Storage Market Size, Share, and Trends 2024 to 2034

Hydrogen Energy Storage Market Size and Growth

The global hydrogen energy storage market size was estimated at USD 16.56 billion in 2023 and it is expected to surpass around USD 32.65 billion by 2033 with a registered CAGR of 7.1% from 2024 to 2033. The Asia Pacific market size was valued at USD 5,972.55 million in 2023.

Hydrogen Energy Storage Market Key Takeaways

• Asia Pacific led the global market with the highest market share of 36.07% in 2023.
• By Technology, the compression storage technology segment has held the largest market share of 41.75% in 2023.
• By End User, the industrial segment captured the biggest revenue share of 48.14% in 2023.
• By Physical State, the solid segment is estimated to hold the highest market share of 41.95% in 2023.

Hydrogen Energy Storage Market in the Asia Pacific 2024 to 2033

The Asia Pacific hydrogen energy storage market size was valued at USD 5.97 billion in 2023 and is expected to reach around USD 11.61 billion by 2033, growing at a CAGR of 7% from 2024 to 2033.

Asia-Pacific led the market with a revenue share of 36.07% in 2023. The Asia-Pacific region consists of various areas which are focusing on the development of proper resources of energy due to shortage of electricity. Thus, the hydrogen energy storage has been considered as best solution for such issues. This is contributing towards the growth of the market in Asia-Pacific region.

North America is expected to develop at the fastest rate during the forecast period. The factors such as growing demand for hydrogen in various industries, stringent government regulations, and the growing demand for green energy are driving the growth of the hydrogen energy storage market in North America region. In addition, the government of developed countries such as the U.S., and Canada are highly investing in the development projects, which is driving the market growth.

• Asia Pacific size accounted for USD 5,972.55 million in 2023 and is registering at a CAGR of 7% from 2024 to 2033.
• North America was valued at USD 4,161.08 million in 2023 and is growing at a CAGR of 8.1% from 2024 to 2033.

Hydrogen Energy Storage Market Growth Factors

The hydrogen energy storage is widely utilized in the storage of electricity. This form of storage can help during the shortage of electric power. The hydrogen energy is widely used in the transportation industries. All the vehicles can get fuel with the help of hydrogen energy storage. The hydrogen energy storage will help during the situation of energy depletion.

The rapidly growing demand for hydrogen in the industrial applications such as metal refining, oil refineries, and fuel cell among others is one of the prominent factors for the robust growth of hydrogen energy storage across the globe. Moreover, the increasing government initiatives towards the establishment of energy-saving hydrogen stations in various countries is driving the market growth of hydrogen energy storage at a lucrative rate. Additionally, the continuous research and development activities to explore a greater number of hydrogen energy storage industrial and commercial application is further boosting the market.

Due to global warming, the government of all regions and countries are focusing towards the installation of grid power stations. The hydrogen energy is widely used in stationary power. This is due to the growing demand for clean and green energy. The emission of hydrogen energy does not involve emission of any kind of toxic gases or greenhouse gases. Thus, this is supporting the expansion of the global hydrogen energy storage market over the projected period.

In addition, the rising favorable government initiatives for the development of the hydrogen energy storage market are creating lucrative opportunities for the growth of the global market. The key market players and government agencies are highly investing in research and development activities for the development of the market. These activities also focus on the efficient and effective power supply in underdeveloped regions or regions with less or no electricity.

Hydrogen Energy Storage Market Scope

As the importance of energy consumption is rising, the demand for the hydrogen energy storage is also rising. One of the key factors driving the growth of the global hydrogen energy storage market is the rising usage of fuel cell vehicles. The market for hydrogen energy storage is also rising due to the surge in demand for energy storage. Furthermore, the hydrogen energy storage is considered as cost-effective storage solution for the key market players. The innovation and technological advancements are paving way for the expansion and development of the market over the forecast period.

On the other hand, the stringent government regulations regarding production of hydrogen through the process of electrolysis is hampering the growth of the global hydrogen energy storage market. In some of the regions, the production and application of hydrogen is not allowed. The production process can harm the lives of people who are working in the factories.

Moreover, the production of hydrogen requires good number of raw materials. The lack of good supply chain management can lead to the disruption in the hydrogen production process. The production cost of hydrogen is considered as high in nature, which is restricting the growth of the market.

The surge in demand for hydrogen energy storage in the developed and developing regions such as Europe and North America is propelling the growth of the global hydrogen energy storage market. The government of those regions is constantly taking measures and initiatives for the conservation of the energy. Additionally, the government is also collaborating with the major market players for the development and growth of the global market. The government agencies are also providing incentives and subsidies for the installation and maintenance of hydrogen energy storage plants in underdeveloped regions. All of these aforementioned factors are boosting the market growth.  

Technology Insights

The compression storage technology segment accounted market share of around 41.75% in 2023. The compression storage technology is most widely used technology for the hydrogen energy storage. This technology helps to store huge amount of energy in cylinders. Later this energy is used in various industries.

The liquefaction technology segment is fastest growing segment of the market in 2023. Mainly the liquefaction technology is used for the storage of large amount of energy for industrial purposes. With the help of this technology, the transmission and transport of energy is quite easy. Thus, this factor is driving the growth of the segment.

• The compression segment has accounted USD 6,913.08 million in 2023 and registering at a CAGR of 6.7% from 2024 to 2033.
• The material based segment has reached at USD 3,616.50 million in 2023 and growing at a CAGR of 8.0% from 2024 to 2033.

Hydrogen Energy Storage Market, By Technology, 2020 to 2023 (USD Million)

End User Insights

The industrial segment garnered a revenue market of 48.14% in 2023. The hydrogen is used in industries for various processes. Some of the manufacturing processes require hydrogen energy. The stored hydrogen is used in the electricity generation process as well.

The commercial segment is fastest growing segment of the market in 2023. Due to shortage of energy and electricity in some areas and growing number of infrastructural development projects, the demand for hydrogen energy storage is increasing at a rapid pace at commercial areas.

• The industrial segment accounted for USD 7,971.90 million in 2023 and is growing at a CAGR of 6.6% from 2024 to 2033.
• The commercial segment was valued at USD 6,951.04 million in 2023 and is growing at a CAGR of 7.7% from 2024 to 2033.

Hydrogen Energy Storage Market, By End User, 2020 to 2023 (USD Million)

Physical State Insights

In 2023, the solid segment led the market with a 41.95% revenue share. The hydrogen is stored in solid form for a specific period of time. Later, this stored hydrogen energy is converted into liquid form.

The liquid segment, on the other hand, is predicted to develop at the quickest rate in the future years. The liquid form of hydrogen energy is used in a wide range of applications such as industrial and commercial purposes.

• In terms of revenue, the solid segment accounted for USD 6,945.54 million in 2023 and is registering a CAGR of 6.6% from 2024 to 2033.
• The liquid segment was valued at USD 5,461.84 million in 2023 and is growing at a CAGR of 7.7% from 2024 to 2033.

Hydrogen Energy Storage Market, By Physical State, 2020 to 2023 (USD Million)

Hydrogen Energy Storage Market Key Developments

• NPROXX and Cummins Inc. declared joint agreement for hydrogen storage tanks in June 2020. The customers will be able to purchase compressed natural gas storage products for various applications through the joint venture.
• The Orlando Utilities Commission embarked on a project in October 2019 to integrate the rising solar footprint of the public power utility by establishing a hydrogen and lithium battery storage system.
• The Los Angeles Department of water and power will assist with the founding of the Green Hydrogen Coalition in January 2020, an institute dedicated to advancing green energy production and accelerating the emergence of a carbon free energy future. 

Hydrogen Energy Storage Market Companies

• Air Liquide
• Steelhead Composites Inc.
• Air Products Inc.
• ITM Power
• Iwatani Corporation
• Nedstack Fuel Cell Technology BV
• Cummins Inc.
• Engie
• Nel ASA
• Linde PLC

Segments Covered in the Report

By Technology

• Compression
• Liquefaction
• Material Based

By Physical State

• Solid
• Liquid
• Gas

By End User

• Residential
• Commercial
• Industrial

By Application

• Stationary Power
• Transportation

By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)
• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa