The market for Hydrogen Energy Storage is expected to reach US$ 12.96 Bn in 2027.
Hydrogen is an energy-rich gas used in many applications such as rocket fuel, car fuel, and material for industrial products such as hardened fats. It can be converted into synthetic natural gas. The hydrogen energy storage (H.E.S.) system increases resiliency and improves the economics of energy supply in electric grids, pipeline systems, and transportation fuels. The hydrogen energy storage system increases the flexibility and resilience of a sustainable energy supply system with an overall reduction in energy cost on account of integration and better utilization of renewables. In addition, the H.E.S. system can provide ancillary grid services fuel for fuel cell electric vehicles (FCEV) and material handling equipment (M.H.E.) like forklifts or airport tugs and backup power supply.
Moreover, H.E.S. systems are widely used in refineries and ammonia production facilities. Also, in the natural gas industry, hydrogen blending can increase the supply of renewable energy supply. The growing adoption of hydrogen in industrial applications influenced the demand for more storage facilities across the globe, thereby driving market growth. In 2018, the global hydrogen energy storage market accounted for US$ 12.96 Bn and was estimated to grow with a CAGR of 5.7% during the forecast period.
Globally, countries are increasingly opting to reduce their dependence on fossil fuels to conserve energy and reduce greenhouse gases. Further, with the extraordinary growth of fuel cell electric vehicles (FCEV) expected in the next decade, there is a high demand for hydrogen fuel in the transportation industry. As a result, the Credence Research Analysis estimates that the transportation segment will grow at the fastest rate during the forecast period.
In January 2020, Isuzu Motors Limited signed an agreement with Honda Motor Co. Ltd. for joint research on using fuel cells in heavy-duty trucks. Both companies are striving to expand the use of fuel cell technologies beyond use in passenger vehicles. Moreover, in November 2019, Toyota Motor Sales, U.S.A., Inc. launched its second-generation Mirai, with an upgraded FCEV powertrain having a 30% more driving range. With this launch, the company expected to grab a major share of the FCEV market, thereby influencing the hydrogen energy storage market in the near future.
The North American region has a highly developed transportation and power industry. Additionally, with the oil boom in the U.S., there is a rise in the number of refineries with a high demand for hydrogen fuel for various applications. Moreover, increasing applications of fuel cells and stringent government regulations for emission control in the U.S. and Canada drive the demand for hydrogen. Furthermore, government initiatives such as Capital Cost Allowance from the Canadian government that could potentially benefit the hydrogen and fuel cell industry. Apart from this, growing regional investment from well-established market players has positively impacted the market.
Moreover, Europe and Asia are expected to show significant growth throughout the forecast period. For example, in June 2018, France announced its Hydrogen Deployment Plan for Energy Transition, which has a target to include 20 to 40% low carbon hydrogen use in industrial applications. Also, in January 2019, South Korea announced that by 2040, the FCEV production capacity to 6.3 million, and there would be 1200 hydrogen fueling stations across the country.
The hydrogen energy storage market is fragmented, and market players are focusing on partnerships with other players to bolster their market position. Following is the list of companies covered in this report.
The research report presents the analysis of each segment from 2017 to 2027, considering 2018 as the base year for the research. Compounded annual growth rate (CAGR) for each respective segment calculated for the forecast period from 2019 to 2027.
The current report also comprehends qualitative market valuation factors such as key market drivers, market trends, restraints, and opportunities to understand the global hydrogen energy storage market better. In addition, the global report also comprises a graphical representation of a competitive landscape based on market initiatives and strategies, product portfolio, and business strengths.
The market for Hydrogen Energy Storage is expected to reach US$ 12.96 Bn in 2027.
The Hydrogen Energy Storage market is expected to see significant CAGR growth over the coming years, at 5.7%.
The report is forcasted from 2019-2027.
The base year of this report is 2018.
FuelCell Energy Inc., Linde plc, Air Liquide, ITM Power, Air Products and Chemicals Inc., Hydrogenics, Hexagon Composites ASA, Nel ASA. are some of the major players in the global market.