Hydrogen Storage Market: Industry Overview, Growth Drivers, and Forecast 2035

 

The hydrogen storage market is emerging as a cornerstone of the global clean energy ecosystem. As countries and industries accelerate efforts toward decarbonization, hydrogen is increasingly viewed as a versatile, zero-emission energy carrier capable of supporting transportation, power generation, and industrial applications. Efficient and safe hydrogen storage is critical to enabling its large-scale adoption across these sectors.

The global hydrogen storage industry was valued at US$ 3.5 billion in 2024 and is expected to witness strong growth momentum. The market is estimated to expand at a CAGR of 11.9% from 2025 to 2035, reaching US$ 12.1 billion by the end of 2035.

 

Global Hydrogen Storage Market Overview

Hydrogen storage refers to the process of storing hydrogen in various physical or chemical forms for later use in energy, mobility, and industrial applications. Since hydrogen is lightweight, highly flammable, and energy-dense, specialized storage systems are essential to ensure safety, efficiency, and scalability.

Storage technologies include:

• Compressed hydrogen gas
• Liquid hydrogen
• Material-based storage, such as metal hydrides and chemical carriers

These technologies enable hydrogen utilization in fuel cell electric vehicles (FCEVs), grid-scale renewable energy storage, backup power systems, and industrial processes including refining and chemical production.

 

Key Market Drivers

Rising Adoption of Hydrogen in Clean Energy Transition

The global push toward net-zero emissions and renewable energy integration is significantly driving hydrogen storage demand. Unlike fossil fuels, hydrogen produces only water vapor when used in fuel cells or combustion, making it an attractive solution for decarbonizing hard-to-abate sectors.

Hydrogen’s ability to store excess renewable energy from solar and wind sources and release it on demand positions it as a crucial buffer for managing power intermittency. This role is prompting substantial investments in advanced hydrogen storage technologies.

Furthermore, sectors such as steelmaking, ammonia production, shipping, and heavy transport are increasingly shifting toward green hydrogen, further amplifying the need for safe and efficient storage systems.

 

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Expanding Investments in Hydrogen Infrastructure Development

Hydrogen storage market growth is also fueled by large-scale infrastructure investments. Governments worldwide are launching national hydrogen strategies supported by billions of dollars in funding for production facilities, storage caverns, pipelines, and distribution networks.

Private energy companies and automakers are partnering to develop hydrogen refueling stations integrated with on-site storage systems, enabling broader adoption in buses, trucks, and rail transport. In parallel, long-duration hydrogen storage projects are being developed to support renewable energy grids.

Major industry players are investing heavily in pilot and commercial-scale projects that incorporate advanced storage technologies, addressing scalability, safety, and cost challenges.

 

Metal Hydride: Leading Outer Material Segment

Metal hydride is the largest outer material segment in the hydrogen storage market, accounting for approximately 31.8% of total industry share. These materials chemically bind hydrogen within a metal lattice, allowing safe storage at moderate pressures and temperatures.

Metal hydrides offer:

• High volumetric storage density
• Enhanced safety compared to compressed or liquid hydrogen
• Controlled hydrogen absorption and release

These advantages make them particularly suitable for portable, stationary, and transportation applications.

 

Regional Hydrogen Storage Market Insights

Asia Pacific dominates the global hydrogen storage market with a 42.8% share, driven by ambitious clean energy targets and strong government support in countries such as Japan, China, South Korea, and Australia.

North America accounts for 23.5% of market share, supported by favorable U.S. Department of Energy policies, increasing green hydrogen investments, and expanding hydrogen refueling infrastructure.

Europe continues to gain momentum through strong regulatory frameworks, public-private partnerships, and EU-funded hydrogen storage innovation programs.

 

Competitive Landscape and Market Developments

• Auguste Cryogenics
• BNH Gas Tanks LLP
• Doosan Mobility Innovation
• Hexagon Composites ASA
• LUXFER HOLDINGS PLC
• Mahytec
• Nproxx
• Praxair, Inc.
• Shijiazhuang Enric Gas Equipment Co., Ltd.
• Steelhead Composites, INC.
• The Japan Steel Works, LTD.
• Worthington Industries
• Others

 Key competitive strategies include:

• R&D investments to improve storage efficiency and reduce costs
• Strategic mergers and acquisitions
• Development of high-pressure cylinders and cryogenic tanks

In July 2025, Hexagon Composites ASA acquired Worthington Enterprises’ Sustainable Energy Solutions business to strengthen its clean energy manufacturing footprint in Europe.
In May 2025, the EU Clean Hydrogen Partnership funded 26 hydrogen technology projects worth €154.6 million, focusing on underground and solid-state storage innovation.

 

Frequently Asked Questions (FAQs)

1. What is hydrogen storage?
Hydrogen storage involves safely storing hydrogen in gaseous, liquid, or solid forms for later use in energy, industrial, and mobility applications.

2. What is driving growth in the hydrogen storage market?
Key drivers include global decarbonization goals, renewable energy integration, hydrogen infrastructure investments, and adoption in transportation and industry.

3. Which storage technology is most widely used?
Compressed gas storage is widely used, while metal hydride storage is gaining popularity due to safety and high energy density.

4. Which region leads the hydrogen storage market?
Asia Pacific leads the global market, accounting for 42.8% share due to strong policy support and hydrogen adoption.

5. What is the future outlook for hydrogen storage?
The market is expected to grow at a CAGR of 11.9% through 2035, driven by hydrogen’s role as a mainstream clean energy carrier.