Hydrogen Energy Storage Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The Hydrogen Energy Market is set for substantial growth. The current market size of $19.9 billion in 2024 is projected to reach $35.2 billion by 2032. This growth reflects a robust CAGR of 8.5% over the forecast period. The main driving forces behind this growth are the rising demand for renewable energy and the need for efficient energy storage solutions. As the energy transition continues to gain momentum, the hydrogen economy is set to become an important source of energy storage. Further, the advancement of hydrogen production, storage, and distribution technologies is driving the market. Advances in electrolysis and the development of advanced storage materials are increasing the efficiency and cost-effectiveness of hydrogen energy systems. The key players in the market, such as Air Products and Chemicals, Inc., Siemens Energy, and Plug Power, are launching new products and entering into strategic alliances to take advantage of the growing demand. The recent collaborations to develop large-scale hydrogen production and storage solutions are a clear indication of the industry’s commitment to the commercialization of hydrogen energy.

Regional Market Size

Regional Deep Dive

The Hydrogen Energy Market is expected to grow at a significant CAGR during the forecast period, owing to the rising demand for renewable energy sources and the need for efficient energy storage systems. In North America, Europe, Asia-Pacific, the Middle East, and Africa, and Latin America, the market is driven by the implementation of regional policies, technological advancements, and investments in the construction of hydrogen-related facilities. Each region offers opportunities and challenges, which are based on local regulations, economic conditions, and cultural attitudes towards the transition to sustainable energy.

Europe

• The European Union has set ambitious targets for hydrogen production as part of its Green Deal, with plans to invest billions in hydrogen infrastructure and technology, aiming to make Europe a global leader in hydrogen energy.
• Germany and the Netherlands are the pioneers of hydrogen projects such as the H2global initiative, which aims to create a global hydrogen market, and the Nationale Wasserstoffstrategie in Germany, which aims to increase the hydrogen production and use.

Asia Pacific

• Japan and South Korea are at the forefront of hydrogen technology, with Japan's 'Basic Hydrogen Strategy' aiming to establish a hydrogen-based society and South Korea's government investing heavily in hydrogen fuel cell technology and infrastructure.
• The region is witnessing a surge in collaborations between governments and private sectors, such as the partnership between Australia's government and major energy companies to develop hydrogen export capabilities to Asia.

Latin America

• Countries such as Chile are exploring hydrogen production using their vast renewable energy resources, with the government setting ambitious targets to become a leading exporter of green hydrogen.
• The region is also seeing increased interest from international investors and companies, with projects like the 'H2 Chile' initiative aiming to develop a hydrogen economy and attract foreign investment.

North America

• The U.S. Department of Energy has launched initiatives to promote hydrogen as a key component of the clean energy transition, including funding for research and development projects aimed at improving hydrogen production and storage technologies.
• And companies like Plug Power and Air Products are making major investments in the hydrogen industry, both in the construction of large hydrogen production plants and in the launching of hydrogen-powered industrial applications.

Middle East And Africa

• Countries like Saudi Arabia and the UAE are investing in hydrogen as part of their diversification strategies away from oil dependency, with projects like NEOM in Saudi Arabia aiming to produce green hydrogen on a massive scale.
• The region's abundant renewable energy resources, particularly solar and wind, are being leveraged to produce hydrogen, positioning it as a potential global hub for hydrogen production and export.

Did You Know?

“Did you know that hydrogen is the most abundant element in the universe, making up about 75% of its elemental mass, yet it accounts for less than 1% of the energy consumed on Earth?” — U.S. Department of Energy

Segmental Market Size

The hydrogen energy storage market is a rapidly growing area of the energy market. This is mainly due to the increasing need for energy storage to support the intermittent production of wind and solar energy. Regulations promoting the use of clean energy and technological progress in hydrogen production and storage are also contributing to the growth. The market is currently in the pilot phase. Notable projects are the HyBalance project in Denmark and the HESC project in Australia. The main applications are in the field of grid stabilization, backup power, and integration with fuel cell technology in the transportation sector. The development of the electrolysis and fuel cell technology is also shaping the market. Companies such as Siemens and Air Products are in the forefront of developing new solutions that improve the efficiency and viability of hydrogen energy storage.

Future Outlook

The hydrogen storage market is expected to grow at a CAGR of 8.5% from 2024 to 2032, from $19.9 billion to $35.2 billion. This growth is mainly due to the need to increase the share of renewable energies in the energy system and the need for efficient energy storage. As countries around the world commit themselves to reducing carbon emissions and transforming their energy systems, hydrogen is expected to play a major role in balancing supply and demand, in particular in the transport, industrial and electricity systems. Technological advances, in particular the increasing efficiency of electrolysis and fuel cells, will also drive market penetration. The development of hydrogen as a clean energy carrier is also facilitated by government policies and incentives. Future trends, such as the development of hydrogen hubs and the emergence of public-private partnerships, will improve the availability of hydrogen storage systems and reduce costs. By 2032, hydrogen will have a significant share of the energy storage market, and its use in different applications will be at unprecedented levels, thus consolidating hydrogen’s role as a cornerstone of the future energy system.