The Hydrogen Energy Storage Market is benefitting from ongoing investments in renewable energy projects globally. Hydrogen can be produced via water electrolysis, which involves passing an electric current through water to separate it into oxygen and hydrogen gas. Green hydrogen produced from renewable energy sources such as solar and wind, offers environmental benefits over hydrogen produced from fossil fuels. As renewable power generation increases, water electrolysis is seen as a viable technique for large-scale energy storage.
The global Hydrogen Energy Storage Market size is estimated to reach USD 16.70 Bn in 2024 expanding at a CAGR of 4.6% over the forecast period.
Hydrogen storage provides an alternative to battery storage for excess renewable energy and enables it to be transported and utilized across many sectors. Important applications include industrial feedstock, transportation fuel, and integration with natural gas pipelines for energy delivery. The ability of hydrogen to store energy in large volumes makes it a compelling long duration solution compared to lithium-ion batteries.
The increasing deployment of intermittent renewable power along with supportive government policies is expected to propel the Hydrogen Energy Storage Market Demand. Notable countries include Germany, France, UK and Norway with ambitious plans to decarbonize industries and transportation using hydrogen. With hydrogen being a key element of the European Union's plan to achieve carbon neutrality by 2050, regional demand is forecast to experience significant growth.
Key Takeaways
Key players operating in the Hydrogen Energy Storage Market are Air Liquide, Linde plc, Air Products Inc, HySTRA GmbH, and Cummins Inc.
The demand for hydrogen storage is growing rapidly as renewable power capacity increases globally. Countries and industry players are making significant investments to establish hydrogen infrastructure for fuel cell vehicles, industrial applications, and green heating networks.
Major players are focusing on strategic collaborations and geographic expansion to capitalize on the rising commercialization of green hydrogen worldwide. European nations are at the forefront with supportive policies and funding schemes to scale up hydrogen valleys covering storage, transport and end-use across industries.
Market Key Trends
One of the key trends gaining traction in the Hydrogen Energy Storage Market is the increasing utilization of green hydrogen for transportation. Projects are underway to deploy fuel cell buses and trucks as zero-emission alternatives. Countries like Germany, UK and Korea have launched national hydrogen strategies committing billions towards building hydrogen refueling stations along major road networks. This is expected to drive consistent demand for large-scale hydrogen production and storage capacity over the coming decade.
Porter's Analysis
Threat of new entrants: Low capital requirement however technology and infrastructure requirement acts as a entry barrier.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of alternatives however are concerned about environmental factors.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of alternatives but dependency on hydrogen production technology providers.
Threat of new substitutes: Moderate threat from other energy storage technologies but hydrogen provides higher energy density and efficiency.
Competitive rivalry: Intense competition due to increasing demand however large players investing in technology development.
Geographical Regions
North America accounts for around 35% of the current Hydrogen Energy Storage Market value mainly attributed to supporting government policies and initiatives towards decarbonization and development of hydrogen infrastructure in countries like US and Canada. Countries in the Asia Pacific region like China, Japan and South Korea are rapidly investing in hydrogen technologies and considerably growing their hydrogen energy storage installation, making Asia Pacific the fastest growing regional market.
Hydrogen provides an alternative, flexible and dispatchable energy storage solution. Currently most of the Hydrogen Energy Storage Market value and demand is concentrated in regions with stringent emission reduction targets and clear roadmaps for hydrogen economy and infrastructure development like North America, Western Europe and Asia Pacific countries.However with falling technology costs and increasing applicability, demand for hydrogen energy storage solutions is expected to grow across various geographies globally.
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