Metal Hydride Market Size, Share & Trends Analysis Report By Type (Alloys, Complexes, Others), By Applications (Hydrogen Storage, NiMH Batteries, Fuel Cells, Heat Pumps, Thermal Storage, Hydrogen Compressors, Others (Purification, Refrigeration, Heat Pumps, Activators, And Isotope Separation)) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global metal hydride market size was valued at USD 3.71 billion in 2023. It is estimated to reach USD 6.93 billion by 2032, growing at a CAGR of 7.2% during the forecast period (2024–2032). Metal hydrides can be important in grid-scale energy storage and portable power applications. In order to balance supply and demand, efficient energy storage solutions are becoming increasingly important as renewable energy sources like solar and wind power grow in popularity. Moreover, technological developments in material science and nanotechnology offer prospects to improve the characteristics and functionality of metal hydrides.

Metal hydrides are any hydrogen compound that is bonded to another metal element. The bond is covalent; however, some hydrides are formed from ionic bonds. Metal hydrides are a division of materials containing metal or a metalloid bonded to hydrogen. The most common examples of metal hydrides are aluminum, boron, lithium borohydride, and various salts. Metal hydrides provide safe and effective storage options for hydrogen storage in fuel cells and hydrogen-powered automobiles. They are employed in the chemical industry's hydrogenation processes and as catalysts in a variety of chemical reactions.

Metal hydrides are mainly formed by one of the four synthesis processes: hydride transfer, a metathesis reaction, the elimination reaction—tthe elimination of beta-hydride and alpha-hydride, or the oxidative addition transition of dihydrogen to a low valent metal. Heterolytic cleavage of dihydrogen is also used, where hydrides are formed when metal complexes are treated with hydrogen in the presence of a base. Metal hydrides are also used in hydrogen sensors that identify hydrogen gas and as electrodes in rechargeable batteries. Their attributes and adaptability render them indispensable in the advancement of sustainable energy technologies and diverse industrial uses.

Highlights

• Alloys dominate the type segment
• Hydrogen storage dominates the application segment
• Asia-Pacific is the largest shareholder in the global market

Market Dynamics

Global Metal Hydride Market Drivers

Growing Clean Energy Initiatives

Growing initiatives related to clean energy are driving the metal hydride market. An extremely important development for the global battle against climate change is India's announcement that it plans to achieve net zero emissions by 2070 and to obtain half of its electricity needs from renewable energy sources by 2030. Metal hydrides are essential for fuel cell hydrogen storage and renewable energy integration as we move toward hydrogen economies. They support global initiatives to reduce carbon emissions by enabling hydrogen-powered vehicles to run emissions-free.

Furthermore, metal hydride storage is appropriate for small- to large-scale energy storage due to its high volumetric energy density and good scalability. Metal hydride is appropriate for medium- to long-term storage because there are no hydrogen losses during storage. Moreover, the adoption of metal hydrides in various applications is also being fueled by encouraging government policies and incentives encouraging investment in clean energy technologies.

Global Metal Hydride Market Restraint

High Cost Associated

The high cost of producing, distributing, and storing green hydrogen is one of the obstacles preventing it from replacing fossil fuel energy sources. This barrier becomes even more difficult to overcome for transport applications where demand is geographically dispersed and, at least in the early stages of the market, restricted to small-to-medium volumes. The costs associated with the raw materials, specialized machinery, and energy-intensive processes needed for their production are some of the factors driving up this high cost.

Furthermore, costs associated with manufacturing are further increased by the intricacy of creating high-performance metal hydrides with the required characteristics. These high expenses may constrain the extensive use of metal hydrides, particularly in cost-sensitive applications like energy storage and transportation. To realize the full potential of the metal hydride market, technological innovations and economies of scale will be necessary to remove cost barriers.

Global Metal Hydride Market Opportunities

Technological Developments

Technological developments in the metal hydride industry have sparked the creation of novel materials and procedures that improve their functionality and broaden their range of uses. Metabolism and atomic layer deposition are examples of advanced synthesis techniques that provide exact control over the morphology and properties of materials. Due to worldwide government incentives and a heightened emphasis on hydrogen storage research for polymer electrolyte membrane fuel cell operation, research on metal hydrides for hydrogen storage has surged over the last ten years.

Significant advancements have been made in the so-called complex metal hydrides for hydrogen storage applications, with the discovery of multiple new hydrides containing covalently bound complex anions. Numerous of these materials are being researched for use as anode materials and separators in lithium-ion batteries, with uses extending beyond hydrogen storage. These developments propel the development of metal hydrides for new applications such as catalysis, hydrogen-powered cars, clean energy storage, and other cutting-edge uses, supporting the long-term shift to greener energy sources.

Regional Analysis

Asia-Pacific Dominates the Global Market

Based on region, the global metal hydride market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. 

Asia-Pacific is the most significant global metal hydride market shareholder and is expected to expand substantially during the forecast period. Asia-Pacific is home to emerging economies, which are transforming into attractive hubs for international companies to set up their business operations and R&D laboratories in countries such as India, China, Singapore, and Malaysia. Some of the prominent countries in Asia-Pacific, such as South Korea, India, China, Japan, Thailand, and Indonesia, are actively engaged in investing and fulfilling their energy needs through renewable and clean energy sources. According to Recap Data, around 11% of China's energy needs are met by renewable energy sources. Moreover, China's and India's energy demands are projected to rise by 5.5% and 6%, respectively.

Furthermore, one of the possible growth drivers propelling the Asia-Pacific metal hydride market is the combination of economic growth and a focus on the clean energy mission. For instance, India aims to achieve net-zero carbon emissions by 2070, 50% cumulative installed renewable power by 2030, and a reduction of less than 45% in the country's economic carbon intensity by the end of the decade. By 2030, India wants to have 500 GW of installed capacity for renewable energy. Overall, the Asia-Pacific metal hydride market is poised for substantial expansion due to increasing awareness of environmental issues and the transition towards sustainable energy sources.

North America's automotive and transportation sectors are expected to flourish, leading to significant regional growth over the forecast period. The United States is a leader in innovation and one of the biggest contributors to R&D to support the growth of the automotive and transportation industries. SelectUSA reports that sales of light vehicles in the United States exceeded 17.2 million units in 2018. Moreover, according to Auto Alliance, the United States accounts for about 17% of the USD 105 billion global R&D valuation. Rising hydrogen fuel consumption is also anticipated to fuel the growth of the regional metal hydride market. Canada is also a major factor in the growth of the metal hydride market. Canada's economy is mostly based on trade, which forces the nation to improve its transportation system. As a result, over the following ten years, the Canadian government will invest about USD 10.1 billion in trade and transportation projects.

Europe is expected to experience robust growth due to the rising utilization of renewable energy sources. For example, in 2022, about 86% of European power installations came from renewable sources. According to Eurostat, Europe is one of the top regions for R&D spending in the field of renewable energy, with the government funding more than 31% of the total amount invested. Moreover, Europe is the world's biggest importer of energy resources, importing most of the power sources it needs from other economies to meet its energy demands. For example, imports of natural gas, petroleum products, and solid fuels account for about 54% of its energy needs. Such factors propel regional market growth.

Segmental Analysis

The global metal hydride market is bifurcated into types and applications.

Based on type, the global metal hydride market is segmented into alloys, complexes, and others.

The alloy segment dominates the global market. This is because the ore of zirconium, vanadium, and niobium has a high export value. Different metals are combined to create alloys with properties specifically designed for their intended uses. Compared to pure metal hydrides, alloy-based metal hydrides have higher stability, better kinetics, and increased hydrogen storage capacities. They are widely utilized in energy storage applications, hydrogen-powered vehicles, and hydrogen storage systems for fuel cells. Moreover, alloys are a crucial component driving innovation and expansion in the metal hydride market, with ongoing research concentrating on creating new alloy compositions and refining alloy structures to improve performance.

Based on applications, the global metal hydride market is segmented into hydrogen storage, NiMH batteries, fuel cells, heat pumps, thermal storage, hydrogen compressors, and others (purification, refrigeration, heat pumps, activators, and isotope separation).

The hydrogen storage segment owns the highest market share. This is because the hydrogen storage sector is the primary function of metal hydride. The market for metal hydrides is primarily used for hydrogen storage, which provides a reliable and effective way to store hydrogen for a variety of applications. Metal hydrides are a compact and stable storage solution that absorbs hydrogen through reversible chemical reactions. They play a crucial role in renewable energy systems, allowing the integration of intermittent energy sources, and in hydrogen-powered vehicles, enabling onboard fuel cell storage.

Impact of covid-19

As part of steps to control the transmission of the COVID-19 pandemic, governments in several nations have limited the movement of commodities and people and suspended the functioning of manufacturing facilities. It has impacted power usage throughout the world. As per the short-term forecast of the United States Energy Information Administration (EIA), electricity consumption in the United States is expected to fall by a record 4.5% by the end of 2020, as businesses have temporarily shut down due to the government lockdowns to stop the prevalence of the coronavirus. As a result, global demand for and manufacturing instrument transformers is expected to fall.

Recent Developments

November 2023: A 500 KG total capacity contract was awarded to GKN Hydrogen for the installation of two of its metal hydride hydrogen storage units at the Technical University of Braunschweig Research Airport in Germany. The units are scheduled to be installed in December 2023 and progressively go into operation in 2024 as part of a €20 million (USD 21.9 million) German Federal Ministry of Education and Research (BMBF) "hydrogen terminal project.".