Hydrogen Energy Storage Market, Opportunity, Growth Drivers, Industry Trend Analysis and Forecast, 2025-2034
Description
The Global Hydrogen Energy Storage Market was valued at USD 18.41 billion in 2024 and is estimated to grow at a CAGR of 8.6%, to reach USD 41.71 billion by 2034, driven by the global push for decarbonization, increasing adoption of renewable energy sources, and advancements in hydrogen storage technologies. The urgent need to store intermittent renewable energy from sources like wind and solar is elevating the role of hydrogen as a versatile and efficient energy carrier. Governments worldwide are introducing favorable policies and substantial subsidies to promote hydrogen infrastructure development, while private organizations are investing heavily in R&D to advance hydrogen compression, liquefaction, and material-based storage technologies. These innovations make hydrogen storage more efficient, safer, and cost-effective, thus accelerating commercial adoption across industrial, transportation, and stationary sectors.
Material advancements, particularly in carbon fiber-reinforced composites for compression storage and improved cryogenic techniques for liquefaction, are enhancing storage capacity and safety. Hydrogen's ability to enable grid stability, serve as a clean fuel for transportation, and decarbonize industries such as steel, chemicals, and cement positions it as a linchpin in the global energy transition. In addition, hydrogen energy storage supports large-scale, long-duration storage needs, filling critical gaps where traditional batteries are less effective.
The hydrogen energy storage market is primarily segmented by storage method, with the compression segment leading in 2024, generating USD 15.33 billion. Compression remains the most widely adopted technique due to its cost-effectiveness, operational simplicity, and compatibility with existing infrastructure for transportation, refueling, and industrial usage. Compressed hydrogen storage is crucial for fuel cell electric vehicles (FCEVs), where lightweight and high-pressure tanks (typically 350 to 700 bar) are used to maximize driving range without significantly increasing vehicle mass. Recent advancements in carbon fiber-reinforced tanks, high-performance alloys, and smart sensor integration are making compressed hydrogen storage systems safer, lighter, and more durable critical for broader adoption across transportation and stationary storage sectors.
In terms of application, the industrial segment generated USD 11.74 billion in 2024, reaffirming its dominant role in driving hydrogen energy storage demand. Heavy industries like steel production, chemical manufacturing, ammonia synthesis, petroleum refining, and glassmaking are integrating hydrogen to decarbonize critical processes and comply with tightening global emissions regulations. Green hydrogen, produced via electrolysis powered by renewable energy, is being increasingly used as a substitute for conventional, carbon-intensive hydrogen produced from natural gas (grey hydrogen). Hydrogen energy storage also enables industries to balance supply and demand by storing excess renewable electricity during low-demand periods and using it during peak periods, thereby improving grid resilience and reducing dependency on fossil fuels.
Asia Pacific Hydrogen Energy Storage Market generated USD 9.32 billion in 2024, propelled by strong government initiatives and massive infrastructure investments in countries such as Japan, South Korea, and China. Japan, with its Basic Hydrogen Strategy, is positioning hydrogen as a key pillar of its future energy system, focusing on applications across power generation, mobility, and residential energy solutions. The country is actively deploying hydrogen refueling stations, supporting FCEV adoption, and investing in international hydrogen supply chains, including partnerships with Australia and the Middle East.
Major players like Air Liquide, Linde plc, ENGIE, Air Products and Chemicals Inc., and FuelCell Energy are actively shaping the market landscape through partnerships, technological innovations, and strategic investments. New initiatives such as Europe's Green Deal, Japan's Basic Hydrogen Strategy, and the U.S.'s Hydrogen Shot Program further catalyze market expansion over the next decade.
Material advancements, particularly in carbon fiber-reinforced composites for compression storage and improved cryogenic techniques for liquefaction, are enhancing storage capacity and safety. Hydrogen's ability to enable grid stability, serve as a clean fuel for transportation, and decarbonize industries such as steel, chemicals, and cement positions it as a linchpin in the global energy transition. In addition, hydrogen energy storage supports large-scale, long-duration storage needs, filling critical gaps where traditional batteries are less effective.
The hydrogen energy storage market is primarily segmented by storage method, with the compression segment leading in 2024, generating USD 15.33 billion. Compression remains the most widely adopted technique due to its cost-effectiveness, operational simplicity, and compatibility with existing infrastructure for transportation, refueling, and industrial usage. Compressed hydrogen storage is crucial for fuel cell electric vehicles (FCEVs), where lightweight and high-pressure tanks (typically 350 to 700 bar) are used to maximize driving range without significantly increasing vehicle mass. Recent advancements in carbon fiber-reinforced tanks, high-performance alloys, and smart sensor integration are making compressed hydrogen storage systems safer, lighter, and more durable critical for broader adoption across transportation and stationary storage sectors.
In terms of application, the industrial segment generated USD 11.74 billion in 2024, reaffirming its dominant role in driving hydrogen energy storage demand. Heavy industries like steel production, chemical manufacturing, ammonia synthesis, petroleum refining, and glassmaking are integrating hydrogen to decarbonize critical processes and comply with tightening global emissions regulations. Green hydrogen, produced via electrolysis powered by renewable energy, is being increasingly used as a substitute for conventional, carbon-intensive hydrogen produced from natural gas (grey hydrogen). Hydrogen energy storage also enables industries to balance supply and demand by storing excess renewable electricity during low-demand periods and using it during peak periods, thereby improving grid resilience and reducing dependency on fossil fuels.
Asia Pacific Hydrogen Energy Storage Market generated USD 9.32 billion in 2024, propelled by strong government initiatives and massive infrastructure investments in countries such as Japan, South Korea, and China. Japan, with its Basic Hydrogen Strategy, is positioning hydrogen as a key pillar of its future energy system, focusing on applications across power generation, mobility, and residential energy solutions. The country is actively deploying hydrogen refueling stations, supporting FCEV adoption, and investing in international hydrogen supply chains, including partnerships with Australia and the Middle East.
Major players like Air Liquide, Linde plc, ENGIE, Air Products and Chemicals Inc., and FuelCell Energy are actively shaping the market landscape through partnerships, technological innovations, and strategic investments. New initiatives such as Europe's Green Deal, Japan's Basic Hydrogen Strategy, and the U.S.'s Hydrogen Shot Program further catalyze market expansion over the next decade.
Table of Contents
153 Pages
- Chapter 1 Research Methodology
- 1.1 Research design
- 1.1.1 Research approach
- 1.1.2 Data collection methods
- 1.2 Base estimates and calculations
- 1.2.1 Market estimates & forecast parameters
- 1.2.2 Key trends for market estimates
- 1.3 Forecast model
- 1.4 Primary research & validation
- 1.4.1 Primary sources
- 1.4.2 Data mining sources
- 1.5 Market Definitions
- Chapter 2 Executive Summary
- 2.1 Industry synopsis, 2021 - 2034
- 2.2 Business trends
- 2.3 Regional trends
- 2.4 Application trends
- 2.5 Method trends
- Chapter 3 Industry Insights
- 3.1 Industry ecosystem analysis
- 3.2 Regulatory landscape
- 3.2.1 North America
- 3.2.1.1 U.S.
- 3.2.1.1.1 Regional Clean Hydrogen Hubs (H2Hubs) program
- 3.2.1.1.2 U.S. Clean Hydrogen Production Standard (CHPS)
- 3.2.1.1.3 Low Carbon Fuel Standard (LCFS)
- 3.2.1.1.4 Energy policy act, 2005
- 3.2.1.2 Canada
- 3.2.1.3 Mexico
- 3.2.1.3.1 Mexican Official Standard NOM-017-CRE-2019
- 3.2.2 Europe
- 3.2.2.1 UK
- 3.2.2.2 Germany
- 3.2.2.3 Italy
- 3.2.2.4 Netherlands
- 3.2.2.5 Spain
- 3.2.3 Asia Pacific
- 3.2.3.1 China
- 3.2.3.1.1 GB/T 20234
- 3.2.3.2 India
- 3.2.3.3 Japan
- 3.2.3.4 Australia
- 3.2.3.5 Japan
- 3.2.3.5.1 Basic hydrogen strategy & hydrogen energy storage regulations 58
- 3.2.3.5.2 JIS (Japanese Industrial Standards)
- 3.2.3.5.3 PSE Certification (Product Safety Electrical Certification)
- 3.2.3.5.4 J1772 (Type 1) Connector Standard
- 3.2.3.5.5 JEVS (Japan Electric Vehicle Standard)
- 3.2.3.6 Italy
- 3.2.3.6.1 Osservatorio Prezzi delle Tariffe di Ricarica della Mobilità Elettrica 61
- 3.2.3.6.2 IEC 62196 Standard - Type 2 (Mennekes)
- 3.2.3.6.3 CEI 64-8 and IEC 61851 (Italy)
- 3.2.3.6.4 Ecobonus Scheme (Italy)
- 3.2.3.7 France:
- 3.2.3.7.1 IEC 62196 Type 2 (Mennekes)
- 3.2.3.7.2 NF C 15-100 and IEC 61851 (France)
- 3.2.3.7.3 NF (Norme Française) Certification
- 3.2.3.7.4 CE Marking (Conformité Européenne)
- 3.2.3.7.5 Prime à la Conversion (France)
- 3.2.3.7.6 ADEME Subsidies (France)
- 3.2.3.8 UK
- 3.2.3.8.1 IEC 62196 Type 2 Connector Standard
- 3.2.3.8.2 BS 1361
- 3.2.3.8.3 UK Home Charging Scheme (Electric Vehicle Homecharge Scheme - EVHS)
- 3.2.3.8.4 UKCA Marking - BS 7671
- 3.2.3.8.5 Electric Vehicle Road to Zero Strategy
- 3.2.3.9 Norway and Sweden
- 3.3 Industry impact forces
- 3.3.1 Growth drivers
- 3.3.1.1 Shifting policy framework across the hydrogen industry
- 3.3.1.2 Growing investments toward hydrogen-based infrastructure
- 3.3.1.3 Increasing clean energy demand
- 3.3.2 Industry pitfalls & challenges
- 3.3.2.1 High capital cost
- 3.4 Growth potential analysis
- 3.5 Porter's Analysis
- 3.5.1 Bargaining power of supplier
- 3.5.2 Bargaining power of buyers
- 3.5.3 Threat of new entrants
- 3.5.4 Threat of substitutes
- 3.6 PESTEL analysis
- Chapter 4 Competitive Landscape, 2023
- 4.1 Introduction
- 4.2 Strategic dashboard
- 4.2.1 FuelCell Energy
- 4.2.1.1 Contract
- 4.2.1.2 Funding
- 4.2.2 SSE Thermal
- 4.2.2.1 Partnership
- 4.2.2.2 Acquisition
- 4.2.2.3 Project
- 4.2.3 GKN Hydrogen
- 4.2.3.1 Project development
- 4.2.3.2 MoU
- 4.2.3.3 Acquisition
- 4.2.3.4 Contract
- 4.2.4 Linde plc
- 4.2.4.1 Investment
- 4.2.4.2 Supply order
- 4.2.5 Gravitricity
- 4.2.5.1 Funding
- 4.2.5.2 Agreement/Collaboration
- 4.2.6 ENGIE
- 4.2.6.1 Business expansion
- 4.2.6.2 Collaboration
- 4.2.7 Air Products and Chemicals, Inc.
- 4.2.7.1 Contract
- 4.2.8 Air Liquide
- 4.2.8.1 Partnership/Collaboration
- 4.2.9 Hydrogen in Motion
- 4.2.9.1 Project development
- 4.3 Innovation and technology landscape
- 4.3.1 GKN Hydrogen
- 4.3.2 SSE Thermal
- 4.3.3 Gravitricity
- 4.3.4 Hydrogen in Motion
- Chapter 5 Market, By Method
- 5.1 Key trends
- 5.2 Compression
- 5.3 Liquefaction
- 5.4 Material-based
- Chapter 6 Market, By Application
- 6.1 Key trends
- 6.2 Industrial
- 6.3 Transportation
- 6.4 Stationary
- 6.5 Others
- Chapter 7 Market, By Region
- 7.1 Key trends
- 7.2 North America
- 7.3 Europe
- 7.4 Asia Pacific
- 7.5 Rest of World
- Chapter 8 Company Profiles
- 8.1 ENGIE
- 8.1.1 Global Overview
- 8.1.2 Market/Business Overview
- 8.1.3 Financial Data
- 8.1.4 Product landscape
- 8.1.5 Strategic Outlook
- 8.1.6 SWOT Analysis
- 8.2 Air Liquide
- 8.2.1 Global Overview
- 8.2.2 Market/Business Overview
- 8.2.3 Financial Data
- 8.2.4 Product Landscape
- 8.2.5 Strategic Outlook
- 8.2.6 SWOT analysis
- 8.3 Linde plc
- 8.3.1 Global Overview
- 8.3.2 Market/Business Overview
- 8.3.3 Financial Data
- 8.3.4 Product Landscape
- 8.3.5 Strategic Outlook
- 8.3.6 SWOT Analysis
- 8.4 Air Products and Chemicals Inc.
- 8.4.1 Global Overview
- 8.4.2 Market/Business Overview
- 8.4.3 Financial Data
- 8.4.4 Product landscape
- 8.4.5 Strategic Outlook
- 8.4.6 SWOT Analysis
- 8.5 McPhy Energy S.A
- 8.5.1 Global Overview
- 8.5.2 Market/Business Overview
- 8.5.3 Financial Data
- 8.5.4 Product landscape
- 8.5.5 SWOT Analysis
- 8.6 Nel ASA
- 8.6.1 Global Overview
- 8.6.2 Market/Business Overview
- 8.6.3 Financial Data
- 8.6.4 Product landscape
- 8.6.5 SWOT Analysis
- 8.7 Cockerill Jingli Hydrogen
- 8.7.1 Global Overview
- 8.7.2 Market/Business Overview
- 8.7.3 Financial Data
- 8.7.4 Product landscape
- 8.7.5 Strategic Outlook
- 8.7.6 SWOT Analysis
- 8.8 FuelCell Energy, Inc.
- 8.8.1 Global overview
- 8.8.2 Market/business overview
- 8.8.3 Financial data
- 8.8.4 Product landscape
- 8.8.5 Strategic Outlook
- 8.8.6 SWOT analysis
- 8.9 ITM Power PLC
- 8.9.1 Global Overview
- 8.9.2 Market/Business Overview
- 8.9.3 Financial Data
- 8.9.4 Product landscape
- 8.9.5 SWOT Analysis
- 8.10 GKN Hydrogen
- 8.10.1 Global Overview
- 8.10.2 Market/Business Overview
- 8.10.3 Financial Data
- 8.10.4 Product landscape
- 8.10.5 Strategic Outlook
- 8.10.6 SWOT Analysis
- 8.11 Gravitricity Ltd
- 8.11.1 Global Overview
- 8.11.2 Market/Business Overview
- 8.11.3 Financial Data
- 8.11.4 Product landscape
- 8.11.5 Strategic Outlook
- 8.11.6 SWOT Analysis
- 8.12 SSE
- 8.12.1 Global Overview
- 8.12.2 Market/Business Overview
- 8.12.3 Financial Data
- 8.12.4 Product landscape
- 8.12.5 Strategic Outlook
- 8.12.6 SWOT Analysis
- 8.13 Hydrogen in Motion
- 8.13.1 Global Overview
- 8.13.2 Market/Business Overview
- 8.13.3 Financial Data
- 8.13.4 Product landscape
- 8.13.5 Strategic Outlook
- 8.13.6 SWOT Analysis
Search Inside Report
Pricing
Currency Rates
Questions or Comments?
Our team has the ability to search within reports to verify it suits your needs. We can also help maximize your budget by finding sections of reports you can purchase.
