Material-Based Hydrogen Energy Storage Market Trends

Growth Drivers

• Rising adoption in transportation: The transportation sector is witnessing increasing adoption of hydrogen as a clean fuel alternative to traditional fossil fuels. Industries such as heavy-duty vehicles, aviation, and maritime sectors are set to benefit from the growth of the material-based hydrogen energy storage market. Storage systems such as metal hydrides or carbon nanomaterials are ideal for hydrogen fuel cell electric vehicles owing to their ability to store hydrogen in lightweight form. The market’s robust growth is owed to automobile companies leveraging hydrogen energy-based solutions owing to a reduction in refueling time. For instance, in September 2024, Hyundai Motor and Skoda Group signed a memorandum of understanding (MoU) to cooperate in establishing a hydrogen economy to boost a sustainable future mobility ecosystem.
• Favorable regulatory ecosystem and decarbonization targets: National governments and international organizations are pushing for decarbonization targets owing to a net-zero emissions goal by 2050. The decarbonization trends create profitable revenue opportunities for the global material-based hydrogen energy storage market. Government tax breaks and incentives make it lucrative for businesses to invest in research on hydrogen energy storage and adopt hydrogen energy-based solutions in their sectors by creating a favorable regulatory ecosystem. For instance, the Inflation Reduction Act of 2022 (IRA) in the U.S. provides incentives such as clean energy tax credits to increase domestic renewable energy production.
  
  Various governments are increasingly giving similar subsidies to encourage companies to ramp up production of green energy. In December 2023, fourteen companies in India, such as Bharat Petroleum Corp, JSW Energy, Sembcorp Green Hydrogen, Acme Cleantech, etc., submitted their bids for tax incentives under the green hydrogen mission of India.
• Technological advancements in hydrogen storage materials: Increasing investments in research on storage materials such as carbon-based nanomaterials, metal hydrides, and alloys are positioned to improve the efficiency of hydrogen energy storage systems. For example, a September 2024 study by the Royal Society of Chemistry noted that supramolecular crystals have the potential for storing hydrogen owing to their molecular structure, which is made of interconnected organic materials in a honeycomb pattern. This structure makes the material more stable and allows it to store 53.7 g of hydrogen per liter. 
  
  Ongoing research aiming to increase storage capacity and remain lightweight is projected to boost the revenue surge of the material-based hydrogen energy storage market. Additionally, the commercialization of advanced materials is poised to reduce the cost of hydrogen energy storage, further fueling the market’s rapid growth.

Challenges

• Challenge in supply chain due to limited infrastructure: The hydrogen production, transportation, and storage infrastructure can be underdeveloped in emerging economies which can pose a challenge to the market’s growth. Additionally, the supply chain is affected owing to limited infrastructure in certain regions. A volatile supply chain can affect the scope of penetration in new markets as well as the global market. Logistical bottlenecks and delays can curtail the market’s growth curve.
• Weight-to-volume ratio and hydrogen embrittlement: The market’s growth curve can be affected due to hydrogen embrittlement as metals can become brittle and prone to failure. This can lead to limitations in materials that can effectively store hydrogen energy in high-pressure applications. Additionally, achieving an optimal weight-to-volume ratio is a challenge for manufacturers in the material-based hydrogen energy storage market. The U.S. Department of Energy (DoE) set a target for hydrogen energy storage systems, i.e., the weight of stored hydrogen should be, at the very minimum, 6.5% of the total system. Achieving strict standards can cause challenges for the market.