In a recent publication by Allied Market Research, the global hydrogen energy storage market showcased substantial growth, reaching a valuation of $15.4 billion in 2019. Projections indicate a steady climb, with an anticipated value of $25.4 billion by 2027, reflecting a robust compound annual growth rate (CAGR) of 6.5% from 2020 to 2027.
Hydrogen energy storage, a process involving the conversion of electrical energy into hydrogen through water electrolysis for subsequent storage and release, plays a pivotal role in the integration of renewable energy sources like wind and solar. The Asia-Pacific region led the market in 2019, capturing 47% of the revenue share, attributed to productivity improvements and the adoption of foreign equipment in emerging economies.
Key industry players contributing to this dynamic market include Air Liquide (France), Air Products and Chemicals, FuelCell Energy, Hexagon Composites, Hydrogenics, ITM Power, Linde, Nel Hydrogen, Plug Power, and Worthington Industries.
Hydrogen energy storage’s versatility extends beyond supporting renewable energy integration. It facilitates decentralized power generation, allowing energy production in areas where traditional infrastructure might pose challenges. Additionally, hydrogen energy proves valuable in industrial processes requiring high-temperature heat or a reducing agent.
While governments worldwide focus on decarbonization, the hydrogen energy storage market is poised for steady growth. The replacement of conventional fossil fuels and the proliferation of sustainable energy resources are expected to further drive market expansion.
Despite the optimistic outlook, the market faces challenges, including the high capital cost associated with liquid and solid hydrogen energy storage for small and medium-scale applications. Liquid hydrogen storage demands substantial insulation costs to prevent vaporization, while solid hydrogen storage incurs higher storage costs compared to alternative fuel types.
Amid these challenges, the solid hydrogen storage segment is projected to exhibit the highest CAGR of approximately 9.2% in terms of revenue during the forecast period. The transportation segment, accounting for more than 50% market share, is expected to maintain a CAGR of 6.1% in revenue during the forecast period.
The COVID-19 pandemic significantly impacted the hydrogen energy storage market due to travel restrictions and global lockdown norms. However, the report anticipates a post-COVID surge in demand, driven by a continued trend toward decarbonization and sustainable energy resources. With a growing emphasis on electric vehicles, numerous industry players are investing in startups in emerging economies, creating new market opportunities in the forecast period.
