Hydrogen Energy Storage Market to reach $25.4 Bn globally by 2027
Hydrogen is touted as the future of large scale energy storage as lithium-ion batteries empty within hours
According to a report titled “Hydrogen Energy Storage Market” published by Allied Market Research, the global hydrogen energy storage industry is anticipated to hit $25.4 billion by 2027, registering a CAGR of 6.5% from 2020 to 2027.
Hydrogen energy storage is a type of chemical energy storage, and is used to store electric power in the form of hydrogen.
If renewables are to enjoy the lion’s share of the generation mix, long-term energy storage will have to be retrofitted as solar and wind do not run all the time, while lithium-ion batteries empty within hours.
With Hydrogen energy storage, it would become possible to achieve a zero-carbon grid without thermal power plants
Hydrogen energy storage will be essential in reaching the global climate goals of decarbonising the electricity sector.
Most energy pundits see the technology as a long-term solution in addressing the utility scale energy storage challenges.
Growth in demand for hydrogen storage technology, utilizing excess electric energy, is expected to drive the market’s growth exponentially.
The technology can also help with clean power needs for the transport, manufacturing and mining sectors.
The high capital cost is expected to curb the growth to some extent. However, robust investment and government support are expected to create lucrative opportunities for the key players in the industry.
The transportation segment to lead the trail
Based on application, the transportation segment contributed to more than two-thirds of the global hydrogen energy storage market revenue in 2019, and is projected to rule the roost by 2027. Increase in demand for sustainable fuel power with reduced emission fuels the segment growth. The stationary segment would grow at the fastest CAGR of 7.30% during the forecast period. This is due to growing emphasis on de-carbonization and sustainable power solutions.
Asia-Pacific to dominate in terms of revenue, North America to portray a significant CAGR-
Based on region, Asia-Pacific held the major share in 2019, generating nearly half of the global hydrogen energy storage market, owing to the impact of productivity improvements in the province. The emerging economies in Asia-Pacific are adopting various foreign equipment; thus, improving the production efficiency. Simultaneously, the market across Latin America, Middle East and African(LAMEA) would generate the fastest CAGR of 8.60% from 2020 to 2027, due to rise in the number of trade fairs and exhibitions that are promoting new technologies in the region.
Key players in the hydrogen industry include-
- Air Products and Chemicals
- FuelCell Energy
- Hydrogenics,Hexagon Composites
- ITM Power
- Nel Hydrogen
- Air Liquide (France)
- Plug Power
- Worthington Industries