Hydrogen Storage Market

The high demand for hydrogen gas has triggered the demand for its safe and efficient storage in different forms. Hydrogen can be stored in physical and material-based forms. The physical form of hydrogen storage comprising high-pressure gas cylinders and liquid cryogenic tank are widely used because of their safe storage ability and reliable operation. The market size of physical hydrogen storage was USD 1.9 billion in 2024 and is projected to reach USD 6.3 billion by 2030, registering a CAGR of 21.8% between 2024 and 2030.

Attractive Opportunities in the Physical Hydrogen Storage Market

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Hydrogen Storage Market Dynamics

Driver: Rising demand for low-emission fuels is a major driver for market growth

Hydrogen gas is mainly used in oil refineries for the desulfurization of fuels such as gasoline and diesel in transportation applications. Hydrogen demand will increase remarkably with more use of heavier and sour crude oil worldwide. The existing hydrogen generation capacity is insufficient to meet the increasing demand, resulting in the growth of merchant sourcing of the gas. Moreover, tighter environmental regulations on the use of cleaner, low-emission fuels and stringent engine manufacturer specifications are further expected to fuel the demand for hydrogen gas during the forecast period. The European Commission has developed Euro VII standards, which will reduce 4% NOx for cars and 2% NOx for vans and trucks by 2030. India is planning to cut carbon emissions by 1 billion tons by 2030.

Restraint: Limited availability of hydrogen refueling infrastructure in developed economies is a major restraint for market growth

Current hydrogen-powered vehicles are fitted with a 700-bar storage tank, which can go up to 300 miles on a single charge. Refueling at a site takes about 3 minutes, and the tank is filled with 5 kg of hydrogen at a cost of USD 12 per kilogram, providing a mileage of 300-450. Although the technology for hydrogen cars already exists, the infrastructure required to refill the tanks is currently lacking. In 2022, approximately 814 fueling stations were operational globally, with most of them in Asia Pacific. The higher cost of constructing a fueling station (approximately USD 1–2 million) and low confidence among investors concerning the growth of the hydrogen cars market, along with the high cost of cars (between USD 50,000 and USD 70,000), is restraining the market growth of fuel cell vehicles. However, developed countries such as the UK, the US, Germany, and France have plans to increase the number of fueling stations gradually, across Europe, with a further decrease in the price involved in operating fueling stations and an increase in profit margins.

Opportunites: New applications for hydrogen-powered fuel cells is a major opportunity for market growth

Hydrogen-powered fuel cells are widely used for transportation. In 2020, 25,932 vehicles, including cars, buses, forklifts, ships & boats, and submarines, among others, were hydrogen-powered, and this number is expected to grow at a very high rate till 2027, driven by an increasing number of fueling stations, tighter regulations on internal combustion engine manufacturers concerning emission control. Fuel cell companies such as Plug Power (US), Ballard Power Systems (Canada), Hydrogenics Corporation (Canada), and SFC Energy AG (Germany) are some of the high-tech companies that develop newer applications for hydrogen-powered fuel cells. Some of these applications include ground support equipment used in airports for material handling, fuel-cell powered bicycles, ships & boats, trams & trains, submarines, and unmanned vehicles. The number of refilling stations is expected to rise during the forecast period due to the development of new end-use applications for hydrogen-powered fuel cells, thereby commercializing hydrogen technology on a large scale.

Challenges: High competition from alternative fuels is a major challenge for market growth

Hydrogen is not the only alternative fuel option that helps in reducing gas emissions. Hydrogen fuel faces stiff competition from biofuels and electric vehicles. In the first quarter of 2022, two million electric cars were sold worldwide (Source: IEA), and this sale is expected to rise significantly during the forecast period. Hydrogen cars have a threat to electric vehicles as both have less impact on the environment. The necessary infrastructure for refueling the tanks is inadequate, restraining market growth. If hydrogen technology does not become more refined globally during the forecast period, it may be substituted by electric cars. Toyota, Hyundai, and Honda have started developing electric vehicles in addition to hydrogen-powered vehicles in case the latter technology gets phased out.

Market Ecosystem

Based on form, gas form is expected to grow with highest CAGR during the forecast period.

The physical hydrogen storage market is dominated by the gas form, as most car manufacturers have opted for storing hydrogen in the gaseous form at high pressure. Transportation is a major end-use industry in the physical hydrogen storage market.

Based on type, cylinder segment led the physical hydrogen storage market, in terms of volume.

Applications, where hydrogen is required in relatively small quantities at regular intervals, are generally supplied with cylinders and transported by trucks and trailers. Hydrogen is supplied in cylinders, popularly known as cylinder banks. The market of cylinders used for hydrogen storage finds applications in food, metalworking, and electronics. Hydrogen is used in the food industry to convert unhealthy unsaturated fats into saturated oil and fats. It is also used as an element to make hydrogenated vegetable oils such as margarine and butter. In the metalworking industry, hydrogen gas is mixed with argon to create a range of argon/hydrogen shielding gas for tungsten inert gas (TAG) and plasma welding. In electronics, hydrogen gas is used for lithography (gases used for laser operations), purging, and generator cooling.

Based on application, the transportation segment is expected to witness exceptional growth in the physical hydrogen storage market.

Transportation application is projected to register the highest growth during the forecast period. The primary drivers of physical hydrogen storage market growth in this segment are the demand for hydrogen-powered fuel cell vehicles in European and North American markets due to regulations concerning the reduced use of CO2-emitting cars. Moreover, there have been many innovations recently in hydrogen-powered fuel cell applications which will further boost the demand for hydrogen storage tanks during the forecast period. The transportation fuel cells are expected to grow exceptionally, driven by sustainable innovations in fossil fuel-free energy sources. Automobile companies such as Hyundai (South Korea), Toyota (Japan), Honda (Japan), and Daimler AG (Germany) are developing a combination of hydrogen and electric-powered cars, which will further boost the demand for hydrogen storage tanks during the forecast period. Currently, some of the manufacturers of Class 4 (carbon fiber) transportation tanks are ILJIN (South Korea), Hexagon Lincoln (US), Quantum Fuel Technologies Worldwide Inc. (US) & Luxfer Holdings PLC (UK).

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Asia Pacific to be the fastest-growing region in the physical hydrogen storage market during the forecast period.

Asia Pacific is one of the leading green technology adoption markets to meet government targets for lowering greenhouse gas (GHG) emissions. Japan and South Korea have invested heavily in fuel cell adoption since 2009, owing to the commercial deployment of Japanese fuel cell micro-CHP products. The Roadmap for the Hydrogen Economy of South Korea, published in January 2019, outlines one of the most critical national fuel cell and hydrogen development plans. The Japanese Basic Hydrogen Strategy also lays out a vision for common goals that the public and private sectors should strive for by 2050. Fuel cells have also piqued the interest of India and Malaysia, which have launched exclusive programs to promote them in regional markets. China has also announced a four-year pilot program to support R&D and demonstration of FCEVs in select cities across the country.

Key Market Players

Some of the key players in the global hydrogen storage market are Air Liquide (France), Worthington Industries, Inc. (US), Luxfer Holdings PLC (UK), Linde plc (Germany), Chart Industries (US), INOXCVA (India), Hexagon Composites ASA (Norway), HBank Technologies Inc. (Taiwan), Pragma Industries (France), Croyolor (France).

These companies are involved in adopting various inorganic and organic strategies to increase their foothold in the hydrogen storage industry. The study includes an in-depth competitive analysis of these key players in the hydrogen storage market, with their company profiles, recent developments, and key market strategies. 

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Scope of the Report

The study categorizes the hydrogen storage market based on form type, type, Application, and Region.

By Form:

• Gas
• Physica

By Type:

• Cylinder
• Merchant/Bulk
• On-site
• On-board

By Application:

• Chemicals
• Oil Refineries
• Metalworking
• Industrial
• Automotive & Transportation
• Others

By Region:

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa

Recent Developments

• In April 2022, Innovair Group partnered with Worthing Industries Inc. to introduce the best cylinders in Canada.
• In March 2022, Air Liquide and Lotte Chemical has entered into a joint venture to scale up the hydrogen supply chain for mobility markets.
• In July 2021, Luxfer Gas Cylinders, a subsidiary of Luxfer Holdings Inc. and Octopus Hydrogen have partnered to make the goods transportation and aviation industry cleaner and greener.
• In March 2021, Luxfer Holdings Inc. acquired SCI (Structural Composites Industries) business of Worthington Industries Inc. to capitalize the growing hydrogen opportunities. The SCI team will be joining the Gas cylinders team of Luxfer.
• In February 2021, Linde partnered with Hyosung Corporation to develop, own, and operate liquid hydrogen infrastructure in South Korea.
• In February 2021, Worthington released ThermaGuard™ hydrogen cylinders for transporting and storing high-pressure hydrogen gas, meticulously developed using Worthington’s aerospace-grade standards.

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