Industrial Hydrogen Energy Storage Market size is estimated at USD 12.5 billion in 2024 and is set to cross USD 31.5 billion by the end of 2037, witnessing more than 8% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of industrial hydrogen energy storage is evaluated at USD 13.5 billion. Rising demand for clean energy is the major growth factor of this sector. Hydrogen is the key solution for environmental decarbonization through storing renewable energies. The energy storage system can be efficiently used in the transportation, chemical, and steel manufacturing industries. Additionally, green hydrogen promotes the adoption of renewable energy sources for production, making it an attractive option for countries to foster a carbon-free climate.
Ongoing innovations in electrolyzers and fuel cell technologies have made industrial hydrogen energy storage cost-effective and efficient. More hydrogen refueling stations and pipelines are being developed to fulfill the demand, supporting the market growth. In May 2024, Nikola Corporation announced the opening of a HYLA high-pressure modular refueling station and facility in Southern California. Such corporate initiatives are achieving milestones in producing zero-carbon emission transportation. In addition, inspiring other key players to invest in such innovations.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
8% |
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Base Year Market Size (2024) |
USD 12.5 billion |
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Forecast Year Market Size (2037) |
USD 31.5 billion |
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Regional Scope |
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Method (Compression, Liquefaction, Material-based)
Compression segment is predicted to capture industrial hydrogen energy storage market share of around 83.2% by the end of 2037. Compression is a crucial component for the distribution and storage of hydrogen-generated energy. The growth of this segment is followed by the increase in the usage of hydrogen power storage for transportation. This method of energy storage has made the deployment more feasible. A variety of options for technology including mechanical, ionic, and electrochemical can be employed for hydrogen compression. Further, allowing consumers to choose according to their application, budget, and efficiency. In addition, advancements in technology and developments in storage materials are expected to enhance the functionality of this segment.
Our in-depth analysis of the global market includes the following segments:
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Method |
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APAC Market Statistics
Asia Pacific in industrial hydrogen energy storage market is likely to capture over 58.4% revenue share by 2037. Exhibiting a remarkable increment in demand for renewable energy sources, the region is predicted to hold USD 7.9 billion by the end of 2025. The growth is supported by favorable policies, technological innovations, and a strong push towards sustainable power sources. Countries including Japan, South Korea, and Australia are implementing hydrogen energy storage as a transition strategy. National subsidies and incentives are helping in the reduction of hydrogen production costs. According to a 2024 strategy report published by the government in Australia, it will provide USD 2 per kilogram of hydrogen production as a Tax Incentive. This taxation policy will offer time-limited and demand-driven production support to eligible producers.
India is emerging as one of the largest industrial hydrogen energy storage market . Supportive government schemes and subsidies such as the Viability Gap Funding Program and National Green Hydrogen Mission are encouraging companies to invest. According to a report published by DPIIT, in September 2023, India government invested USD 2.4 billion to boost green hydrogen production and electrolyzer manufacturing. Government authorities are also offering subsidies to reduce the production cost. The 2023 DPIIT report states, that India is inviting bids for tranches, which will cover a capacity of 1500 megawatts, with an incentive of USD 52.83 per kilowatt.
China is also estimated to experience massive growth in the market. Rapid urbanization and interest in building large-scale energy sources for industries are inflating the demand for hydrogen energy supply. Even without proper government infrastructure for renewable energies, China is curating innovations in the market. According to a CSIS report, published in February 2022, China launched a hydrogen project to support fuel-supported vehicle deployment and production of renewable-based hydrogen.
North America Market Analysis
A significant growth is expected to be witnessed in North America industrial hydrogen energy storage market. The development of hydrogen power distribution channels and production infrastructure are driving the region to register lucrative growth. Government bodies are also investing in the transition of the power supply chain in industries. In March 2024, the Department of Energy announced a fund of USD 6 billion to decarbonize America’s energy-intensive industries. Such funding supports the implementation of hydrogen energy storage in industrial usage.
The U.S. market is influenced by the push for net-zero emissions by 2050. In 2021, DOE established the Hydrogen Earth Shot Challenge to reduce the cost of hydrogen production by 80%. The project supported the development and research events with funding and hydrogen hub grants. Industries are considering Hydrogen as a versatile energy carrier to align with the regulatory framework. The growing investments in green hydrogen are capturing key players to introduce new technologies for more efficient performance.
Canada has a large source of natural elements to produce hydrogen cost-effectively, which is helping the country elevate the industrial hydrogen energy storage market. The government has also been supportive by issuing strategies and investments. The country’s substantial hydropower and wind energy capacity is providing a foundation for green hydrogen production. Heavy industries are now focusing on integrating environment-friendly power-supply systems, where hydrogen fits perfectly. Further, this increases the demand for hydrogen energy storage.
The key players are innovating in production, storage, and distribution, bringing diversity to hydrogen energy applications. They are also developing technologies to utilize the stored power through hydrogen fuel cell systems and associated storage solutions. In October 2024, Nel ASA’s EPC partner launched IVHY100, a new green hydrogen solution. This model is designed to empower large-scale industries with improved scalability and decarbonization systems. Such innovation will help the company to consolidate its position in the market. Some of the prominent market players include:
Author Credits: Dhruv Bhatia
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