Hydrogen Storage Tank Market: Global Industry Analysis and Forecast (2023-2029)

The Global Hydrogen Storage Tank Market size was valued at USD 47.22 Million in 2022 and the total Hydrogen Storage Tank Market revenue is expected to grow at a CAGR of 35.01 % from 2023 to 2029, reaching nearly USD 521.26 Million.

A specialized container known as a hydrogen tank is designed for the storage of hydrogen in either gaseous or liquid form, alternatively referred to as a hydrogen cylinder, cartridge, or ister. The construction of these tanks must adhere to strict physical requirements determined by storage pressure and temperature, prompting continuous innovation in their design and manufacturing. The hydrogen storage tank market plays a crucial role in supporting the growing interest and investment in hydrogen as a clean and sustainable energy carrier. Hydrogen is gaining momentum as a key component in the global efforts to transition towards a low-carbon economy. The storage of hydrogen is a critical aspect of its utilization across various industries, including energy, transportation, and industrial applications.

In recent years, there has been a notable surge in the development and deployment of hydrogen storage technologies, with storage tanks being a vital component of the infrastructure. These tanks are designed to safely and efficiently store hydrogen in various forms, including gaseous and liquid states. The choice of storage method often depends on the specific needs of end-users and the intended applications. The industrial overview of the hydrogen storage tank market reveals a landscape characterized by innovation and technological advancements. Traditional storage methods such as compressed hydrogen gas and liquid hydrogen are being complemented by emerging technologies like solid-state hydrogen storage and advanced composite materials. These innovations aim to enhance the safety, efficiency, and cost-effectiveness of hydrogen storage solutions.

1. April 3, 2023, the Southwest Research Institute (SwRI) has implemented a high-capacity liquid hydrogen tank to enhance its progressive hydrogen energy research ventures. By harnessing the tank’s capabilities in conjunction with a diverse research approach, SwRI aims to explore technological prospects and overcome challenges in the realm of hydrogen energy research and development. The SwRI liquid hydrogen storage tank boasts an impressive capacity of 17,000 gallons, presenting the Institute with a cost-efficient and dependable source of hydrogen for its multifaceted research undertakings. Previously, the Institute relied on commercial compressed hydrogen trailers to fuel its hydrogen research.

2. January 13, 2021, Solvay introduced a hydrogen platform designed to amalgamate all the groundbreaking material and chemical solutions the Group has in its arsenal to propel the burgeoning hydrogen economy forward. Central to this platform is Solvay’s membrane technology, specifically the ion-conducting polymer, a crucial element in the hydrogen production process.

Government initiatives and policies promoting the use of hydrogen as a clean energy source are driving the demand for hydrogen storage tanks. Countries around the world are setting ambitious targets to reduce carbon emissions, and hydrogen is seen as a versatile energy carrier that contribute to achieving these goals. Consequently, this has led to increased investments in research, development, and deployment of hydrogen storage infrastructure, including storage tanks. The industrial overview also includes collaborations and partnerships between key players in the hydrogen value chain, including manufacturers of hydrogen storage tanks, technology developers, and end-users. These collaborations are aimed at creating a robust and integrated hydrogen ecosystem to address the challenges associated with hydrogen storage and transportation.

Reports on the hydrogen storage tank market offer a comprehensive analysis of the industry, covering aspects such as market dynamics, technology, regulations, and competition. They provide a historical overview, segment the market based on technology and applications, and explore regional variations. The reports assess the technological landscape, including established methods like compressed and liquid hydrogen, as well as emerging technologies. Regulatory environments, competitive landscapes, collaborations, and funding trends are examined. Challenges facing the industry are identified, and strategies for overcoming them are proposed. The reports also present a market outlook, forecasting future trends and growth opportunities, often accompanied by case studies illustrating successful implementations.To know about the Research Methodology :- Request Free Sample Report

Hydrogen Storage Tank Market Dynamics:

Hydrogen Storage Market Fuelled by $300 Billion Investment in Global Hydrogen Projects

The rapid expansion of hydrogen projects worldwide is expected to propel the global hydrogen storage tanks market to significant growth. The hydrogen sector has experienced a surge in large-scale projects along the whole value chain, with over 30 countries, mostly in Europe, Asia, and Australia, releasing hydrogen roadmaps and committing public funding for hydrogen technologies. These projects cover a number of domains, such as giga-scale production initiatives, infrastructure development, integrated hydrogen economies, transportation applications, and industrial use. Investments in low-carbon gas have already surpassed $300 billion as of the beginning of this year, signifying a significant commitment to addressing climate change.

The Hydrogen Council’s report underscores the significance of hydrogen in achieving deep de-carbonization and global climate targets, with the potential to become the most competitive low-carbon solution in more than 20 applications by 2030, including areas like long-haul trucking, shipping, and steel production. This growing support and investment in hydrogen represent a critical step in the transition towards clean energy.In addition to governmental commitments and investments, the hydrogen storage tank market presents considerable opportunities, particularly in regions such as Germany and the United States. In Germany, hydrogen energy storage is being implemented into the renewable energy network, with excess wind energy stored as hydrogen gas. The German government actively supports green hydrogen and power-to-gas projects, further bolstering the market.

In the United States, while commercial implementation is not as widespread, research and innovation in hydrogen storage technology are on the rise, with promising projects, such as the National Renewable Energy Laboratory’s Wind-to-Hydrogen Project, showcasing the potential for hydrogen storage as a versatile energy solution.

One of the key advantages of hydrogen energy storage is its scalability, making it an ideal complement to renewable energy sources. With the ability to store energy in large tanks and underground caverns, hydrogen efficiently time-shifts energy for days and even weeks, addressing the challenges of long-duration, time-shifting markets. This adaptability positions hydrogen as a valuable component of the energy transition, supporting the integration of renewables and helping to harness excess clean energy that would otherwise go to waste.

The hydrogen storage tank market presents a substantial opportunity for growth and innovation, with global investments and projects on the rise. As governments, investors, and industrial companies collaborate to expand the hydrogen ecosystem, the market is expected to play a crucial role in achieving climate goals and creating a more sustainable energy landscape. Whether through large-scale projects or innovative storage solutions, hydrogen’s versatility and scalability make it a cornerstone of the clean energy transition.

Manufacturing Lightweight and Cost-Effective Tanks for Hydrogen Vehicles

The hydrogen storage tank market is experiencing a dynamic shift in response to the growing demand for hydrogen-powered vehicles, presenting a fascinating trend in the automotive industry. These vehicles share similarities with electric vehicles, employing electric motors to drive the wheels. However, the key distinction lies in the energy storage approach. Unlike electric cars that store power in conventional batteries, hydrogen-powered vehicles use hydrogen as a medium to store energy, which is then converted into electricity to propel the vehicle.

While hydrogen-powered automobiles have gained popularity in nations like South Korea, Japan, and parts of the United States, where government subsidies and incentives promote their use, challenges remain. The cost of automotive storage tanks, necessary for hydrogen storage, currently limits the widespread adoption of these vehicles. Moreover, a debate exists regarding the environmental impact, as hydrogen production often involves the use of fossil fuels, making electric cars appear greener in comparison.Nonetheless, key players in the Hydrogen Storage Tank industry are actively addressing these challenges. Companies like Linde and BMW Group are partnering to develop more efficient, cost-effective, and safer hydrogen storage tank technologies for fuel cell electric vehicles. Air Liquide is investing €150 million in expanding its hydrogen storage tank production capacity, further driving innovation in this Hydrogen Storage Tank Market.

To meet the driving range requirements for various light-duty vehicle platforms, onboard hydrogen storage capacity of 5–13 kg of hydrogen is essential. These storage tanks are designed to withstand extreme pressures, with some reaching up to 875 bar, equivalent to the pressure at the deepest point of the Mariana Trench. Carbon fibers, which account for a significant portion of the expenses, are vital for tank strength.

Recent innovations aim to reduce manufacturing costs and weight without compromising safety, potentially making hydrogen-powered vehicles more cost-effective. These tanks are also rigorously tested to endure external mechanical loads, ensuring safety in accidents. Additionally, the advantages of hydrogen as a fuel include its ability to be extensively compressed, offering impressive energy density. Hydrogen-powered vehicles available in the Hydrogen Storage Tank Market already boast ranges of around 500 kilometers.

• Companies like Worthington Industries (California) and Luxfer Cylinders (California) are at the forefront of developing cutting-edge technologies and materials for hydrogen storage tanks. They are introducing innovations such as Type III hydrogen composite tanks with advanced materials that enhance safety and efficiency.

• Luxfer Cylinders, a part of the Luxfer Group(UK), is actively engaged in advancing cylinder technologies and storage solutions. They have introduced the G-Stor Pro cylinders, which have undergone rigorous testing to ensure compliance with global design standards and regulations. These innovative cylinders find applications in various sectors worldwide, including transit buses, light, medium, and heavy-duty trucks, garbage vehicles, and bulk gas transportation modules.

• The G-Stor Pro cylinders (California) are recognized for their exceptional attributes, being the lightest and most efficient Type 3 alternative fuel cylinders available in the market. With a weight that is 66 percent lighter than Type 1 all-steel cylinders and up to seven percent lighter than other composite cylinders within the natural gas vehicle (NGV) industry, Luxfer’s G-Stor Pro cylinders offer fleet operators substantial benefits. These advantages include enhanced fuel economy, increased vehicle range, and a notable reduction in maintenance costs, thanks to decreased wear and tear on vehicles.

The hydrogen storage tank market is clearly being driven by the automotive sector, with a focus on addressing challenges and innovating solutions that will make hydrogen-powered vehicles more accessible, economical, and environmentally friendly. As the technology continues to evolve, it’s expected to play a pivotal role in the automotive industry’s transition towards cleaner and more sustainable transportation solutions.

Hydrogen Storage Challenges for Green Transportation

The hydrogen storage tank market faces significant challenges, particularly in the high-density hydrogen storage segment. When compared to transportation applications, these challenges emerge differently in stationary and portable applications. The current storage options frequently require large-volume systems for storing hydrogen in gaseous form, which is less of a concern for stationary applications where the footprint of compressed gas tanks is allowed more easily.

The challenges become more pronounced in the context of fuel-cell-powered vehicles, which require plenty of hydrogen to provide a driving range of more than 300 miles while also allowing for quick and convenient refueling. Although some light-duty hydrogen fuel cell electric vehicles (FCEVs) with such a range are available, they rely on compressed gas onboard storage via large-volume, high-pressure composite vessels. While larger vehicles may face fewer challenges due to larger storage volumes, ensuring adequate hydrogen storage across all light-duty platforms remains a significant challenge. When considering the distribution of vehicle sales by range, it is clear that the 300-mile-range target is significant, as most vehicles currently available exceed this minimum requirement.

From an energy content perspective, hydrogen offers nearly three times the energy content of gasoline on a mass basis, with 120 MJ/kg for hydrogen compared to 44 MJ/kg for gasoline. However, when viewed from a volume perspective, the situation is reversed, as liquid hydrogen has a density of 8 MJ/L, whereas gasoline boasts a density of 32 MJ/L. To meet the driving range demands across a spectrum of light-duty vehicle platforms, hydrogen storage capacities ranging from 5 to 13 kg of hydrogen are imperative. Consequently, addressing the challenges associated with high-density hydrogen storage is essential for the wider adoption of hydrogen-based transportation and energy solutions.

Hydrogen Storage Tank Market Regional Insights:

Asia Pacific is expected to dominate the hydrogen storage tank market during the forecast period. China holds the largest hydrogen storage tank market share during the forecast period. Notably, China, Japan, and South Korea have set ambitious targets to integrate millions of hydrogen-powered vehicles into their transportation ecosystems by the end of the next decade. China, as the world’s largest auto market, aims to have over 1 million Fuel Cell Vehicles (FCVs) on its roads by 2030, a significant increase from the current 1,500. Japan, with more than 5 million vehicles sold annually, targets 800,000 FCVs by 2030, while South Korea, with a smaller car market, aspires to have 850,000 hydrogen vehicles by the same year, despite a slower start.

China, while the largest hydrogen producer globally, is still in the early stages of industry development, facing challenges in innovation capabilities, technical equipment, and policy support. In response, China has unveiled a national Plan to guide the integrated, green, and high-quality development of the hydrogen industry. This Plan sets the objective of building a complete hydrogen value chain by 2035, with a significant portion of hydrogen produced from renewable energy sources, aligning with China’s green energy transition, which increases the china hydrogen storage tank market demand globally.

Prior to the national Plan’s release, regional governments in China had taken the lead in setting development guidelines for hydrogen and issuing policy support for fuel cell vehicle standards, hydrogen production, storage, transportation, and refueling services. With the national Plan now in place, the focus is on promoting high-quality, hydrogen storage tank market-driven, and rational development of the hydrogen value chain through coordinated hydrogen storage tank market and infrastructure development, including a dedicated regulatory framework by 2025.

In Japan, a highly industrialized country with limited hydrocarbon resources, hydrogen holds multiple values, including energy security, industrial competitiveness, and carbon emissions reduction. Japan adopted the Basic Hydrogen Storage Tank Market Strategy in 2017, making it the first country to establish a countrywide hydrogen framework. Japan has a broad end-use approach covering power, transportation, residential, heavy industry, and potentially refining. The country is also a leader in fuel cell technology, especially FCVs, and seeks to export this technology worldwide. Japan is determined to expand its hydrogen market from 2 million tons per year in 2023 to 3 million tons per year by 2030 and a substantial 20 million tons per year by 2050. To achieve this, Japan plans to drive down hydrogen costs to about one-third of the current levels by 2030. The government provides strong funding for research, development, demonstration, and deployment (RDD&D) in collaboration with industrial stakeholders.
South Korea, meanwhile, is making significant investments in hydrogen and has the third-largest public investment in hydrogen after Germany and Japan. The country is beginning to develop domestic infrastructure for importing hydrogen. While it has competitive heavy industry sectors, hydrogen use in these sectors has not been the primary focus of the government’s pursuit of a hydrogen economy. South Korea adopted the Hydrogen Economy Roadmap in 2019 and passed the Hydrogen Law in 2020 to lay the legal foundations for promoting hydrogen and safety standards, which drives the hydrogen storage tank market growth. The country’s efforts include R&D on liquefied hydrogen storage technology, reducing transportation costs, building a hydrogen pipeline network, and developing hydrogen-receiving infrastructure. KOGAS, South Korea’s state-run utility, plans to invest $37 billion overseas by 2040 to establish renewable power generation facilities that produce hydrogen. Large government funding underpins South Korea’s hydrogen efforts, with significant investments and subsidies for hydrogen vehicle adoption. Additionally, the country’s renewable portfolio standard supports large-scale stationary fuel cell power generation, and the government has reduced the price of natural gas for fuel cell production. Five South Korean conglomerates plan to invest $38 billion in hydrogen technology by 2030, highlighting the nation’s commitment to hydrogen’s role in its economic and environmental future.

The hydrogen storage tank market report provides a comprehensive regional analysis of the global as well as regional hydrogen storage tank market, focusing on key countries and their efforts to drive the growth of hydrogen technologies and infrastructure. It offers insights into the challenges and opportunities within the region and highlights the role of government policies and private investments in advancing the hydrogen economy.

Hydrogen Storage Tank Market Scope: Inquiry Before Buying

Hydrogen Storage Tank Market Key Players:

1. Air Products and Chemicals, Inc. (USA)
2. Linde plc (UK)
3. Hexagon Composites ASA (Norway)
4. McPhy Energy S.A. (France)
5. Praxair, Inc. (Now part of Linde) (USA)
6. NEL ASA (Norway)
7. Plug Power Inc. (USA)
8. Hydrogenics Corporation (Now part of Cummins Inc.)(Canada)
9. Cryostar SAS (France)
10. Quantum Fuel Systems LLC (USA)
11. Luxfer Holdings PLC (UK)
12. Worthington Industries, Inc. (USA)
13. INOXCVA (India)
14. VRV S.p.A. (Italy)
15. Chart Industries, Inc.(USA)
16. Hitachi, Ltd.(Japan)
17. Kawasaki Heavy Industries, Ltd.(Japan)
18. Mitsubishi Heavy Industries, Ltd (Japan)
19. CIMC ENRIC Holdings Limited (China)
20. ITM Power plc(UK)

FAQs:

1. What are the growth drivers for the Hydrogen Storage Tank Market?
Ans. Rising Interest in Hydrogen as a Clean Energy Source is to be the major driver for the Hydrogen Storage Tank Market.

2. What is the major restraint for the Hydrogen Storage Tank Market growth?
Ans. Stringent government regulations are expected to be the major restraining factor for the Hydrogen Storage Tank Market growth.

3. Which Region is expected to lead the global Hydrogen Storage Tank Market during the forecast period?
Ans. Asia Pacific is expected to lead the global Hydrogen Storage Tank Market during the forecast period.

4. What is the projected Europe Hydrogen Storage Tank Market size & growth rate of the Hydrogen Storage Tank Market?
Ans. The Hydrogen Storage Tank Market size was valued at USD 47.22 Million in 2022 and the total Anime revenue is expected to grow at a CAGR of 35.01% from 2023 to 2029, reaching nearly USD 521.26 Million.

5. What segments are covered in the Hydrogen Storage Tank Market report?
Ans. The segments covered in the Hydrogen Storage Tank Market report are type, material type, storage type, application, end user and country.

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