The global hydrogen energy storage market size to reach USD 2,038.7 million in 2021. It is expected to grow to USD 3,232.7 million by 2030, growing at a CAGR of 5.4% during the forecast period (2022–2030). The hydrogen energy storage market is the method of storing excess energy via electrolysis. In this method, hydrogen is extracted from a chemical solution. Hydrogen energy is stored in liquid, solid, and gaseous states. Widespread use of hydrogen storage in fuel cell technologies for stationary power and transportation applications. Utilizing excess electric energy, the increase in demand for hydrogen energy storage is expected to propel market growth. Increased demand for hydrogen energy storage as a replacement for conventional fossil fuels is anticipated to stimulate market growth. The hydrogen energy storage market is the method of storing excess energy via electrolysis. In this method, hydrogen is extracted from a chemical solution. This energy can be stored in liquid, solid, and gaseous states. The solid hydrogen is stored by absorption through a solid material. The hydrogen energy storage market uses fuel cell technologies widely utilized in stationary power and transportation applications.
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Growth in Using an Alternative to Fossil Fuel
It is anticipated that the expansion of the hydrogen energy storage market, which uses excess electrical energy, will be the primary factor driving market growth. This is because the market for hydrogen energy storage uses surplus electrical energy. This is because the market for hydrogen energy storage utilizes any excess electrical energy available. One of the primary factors that will drive the expansion of the market will be an increase in the use of hydrogen storage as an alternative to fossil fuel use in a wide variety of end-users. This is because hydrogen storage offers several advantages that fossil fuel does not. This will be the primary factor that will be driven by an increase in the utilization of hydrogen storage as a substitute for the utilization of fossil fuel.
Increase in Consumer Demand for Environmentally Friendly Power Sources
The increase in the visibility of services associated with sustainable energy will also be a driving force behind the market expansion. This is because sustainable energy is becoming increasingly popular. In the long run, hydrogen energy might benefit the power grid and the transportation industry. The increased attention governments worldwide are devoting to environmentally friendly power generation is anticipated to grow the market during the forecast period. This is because governments in every region of the world are actively working to lessen their impact on the environment by producing carbon dioxide. The market's growth is being propelled significantly by several factors, including this.
High Capital Cost of the Liquid
The amount of energy that can be generated from hydrogen by fuel cells and then used to satisfy the requirements of commercial and residential buildings is extremely low. Fuel cells rely on hydrogen as their source of energy. In addition, the market for storing hydrogen energy in liquid form involves high capital costs due to the high insulation costs required to prevent vaporization. These costs are necessary to keep the liquid from becoming vaporized. These costs are needed to prevent the liquid from turning into vapor, which would be undesirable. For instance, based on the information provided by the Department of Energy in the United States, the cost of storing hydrogen of the solid type is USD 2.1/kg, respectively, for a flow rate of 10 kg/hr. A storage capacity of 10 kilograms per hour is included in this price. The cost of storing hydrogen in solid form remains at USD 2.1/kg even when the flow rate is 10,000 kg per hour. Even though there is a decrease in flow rate, this is still the case.
Substantial Investment, as well as Support from the Government
For instance, the Energy Storage Association, the national trade association for the energy storage industry in the United States, introduced the energy storage tax incentive and deployment act. This bill is intended to encourage the use of energy storage technologies. The use of energy storage technologies is something that the sponsors of this bill hope to stimulate and make more accessible. The proponents of this bill have expressed their hope that it will encourage and facilitate the utilization of various energy storage technologies. This act provides that any method of storing energy, including hydrogen storage, will be eligible for financial incentives, regardless of the type of energy being stored. These provisions apply to any method of storing energy, including hydrogen storage. These regulations apply to all possible means of storing energy, including hydrogen storage. It is anticipated that recent events will result in the emergence of new opportunities in the market as a consequence of their respective effects. This is because their products will each have their impact.
The global hydrogen energy storage market is segmented by Product Type, Application, and End-User.
Based on product type, the global hydrogen energy storage market is classified into Liquid, Solid, and Gas. Gas type emerged as the market leader, expected to grow with a CAGR of 6.7% during the forecast period. This is attributed to the low cost of energy storage for compressed gas compared to solid and liquid types. As the quantity of hydrogen storage increases, per unit storage cost, decreases for gas type, whereas, for solid type, it remains the same.
Based on application, the global hydrogen energy storage market is classified into Stationary Power, Portable Power, and Transportation.
The stationary power segment has the highest market share and is expected with a CAGR of 7.7% during the forecast period. Growth in the prominence of renewable and sustainable power sources globally will positively impact the market growth. Both positive displacement and dynamic cryogenic pumps have numerous applications in the oil and gas industry, including the upstream, midstream, and downstream sectors. In the oil and gas industry, high-pressure compressors serve various functions, including gas transportation, storage, separation, and processing. Furthermore, cryogenic pumps are required in high-temperature, sandy, corrosive, and marine environments, both onshore and offshore.
The global hydrogen energy storage market is primarily segmented into three major regions, namely North America, Europe, and Asia-Pacific.
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The Asia-Pacific region is the most dominant one, expected to grow with a CAGR of 6% during the forecast period. With the influence of productivity improvements in this region, Asia-Pacific accounted for the highest revenue share. The developing economies in the Asia-Pacific region are increasingly relying on a variety of foreign machinery, leading to an increase in the number of goods produced per unit of labor.