Hydrogen Storage Tanks and Transportation Market

[418 Pages Report] The global Hydrogen Storage tanks and transportation market is projected to reach USD 4.4 billion by 2030 from an estimated USD 0.3 billion in 2024, at a CAGR of 52.4% during the forecast period. Advancements in hydrogen production technologies, particularly in electrolysis and other methods such as steam methane reforming (SMR) with carbon capture and storage (CCS), are revolutionizing the landscape of the hydrogen economy. These technological advancements are crucial in driving down the cost of hydrogen production, making it more competitive with conventional fossil fuels. Improvements in electrolyzer efficiency, durability, and scale have significantly reduced the capital and operational costs associated with hydrogen production. As a result, green hydrogen is becoming increasingly cost-effective compared to gray (produced from natural gas) or blue (produced from natural gas with CCS) hydrogen.

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Hydrogen Storage Tanks and Transportation Market Dynamics

Driver: Prioritizing Investment in Hydrogen Infrastructure

Investment in hydrogen infrastructure is vital for fostering the growth of the hydrogen economy, which includes funding for production, distribution, refueling stations, and storage facilities. A key aspect is directing investments towards hydrogen production facilities, especially those leveraging renewable energy sources like solar or wind-powered electrolysis, to ensure a sustainable and eco-friendly hydrogen supply. Projects such as the Greon Hydrogen Initiative in Europe exemplify this approach, aiming to establish large-scale electrolysis facilities for generating green hydrogen catering to various sectors such as industry, transportation, and energy storage. Moreover, investment in hydrogen refueling stations plays a crucial role in facilitating the widespread adoption of hydrogen fuel cell vehicles (FCVs). Countries such as Japan and Germany have taken the lead in expanding their hydrogen refueling networks, driven by government subsidies and initiatives promoting cleaner transportation alternatives.

Restraint: Entry Challenges in Fiber Markets

Competition within both end-user industries and the composites market is predominantly influenced by commercial dynamics such as capital expenditure (CAPEX) and operating expense (OPEX). The high costs associated with raw materials and production processes often result in diminished economies of scale, driving the quest for cost-effective design and manufacturing approaches. However, the substantial barriers to entry, particularly in the glass fiber and carbon fiber sectors, dissuade numerous potential competitors from entering the market. Furthermore, manufacturers must obtain authorization from independent inspection bodies or regulatory agencies for their composite cylinder types, with many Asia Pacific nations like Pakistan and India prohibiting the commercial use of Type 2, Type 3, and Type 4 cylinders. These regulations may discourage the adoption of hydrogen tanks. Compliance with safety protocols to prevent explosion-related property damage or human injury is essential, although the installation of inferior cylinders and kits in vehicles remains a primary contributor to such incidents. This could potentially suppress demand and hinder the expansion of the hydrogen storage tank and transportation industries, thereby impacting long-term market prospects.

Opportunities: Enhancing Hydrogen Storage Efficiency

Advancements in Morajo technologies can lead to increased efficiency in hydrogen tanks and transportation systems, allowing for better utilization of hydrogen as an energy carrier. Those advancements enable more effective utilization of hydrogen, contributing to the overall viability and sustainability of hydrogen-based energy solutions. Storing hydrogen gas within metal cylinders via compression is a widely adopted method. However, it presents a significant challenge in the form of hydrogen embrittlement, which poses a considerable threat to the integrity of the storage vessels. Hydrogen embrittlement denotes the process by which hydrogen atoms permeate and weaken the structural integrity of the metal, leading to potential deterioration and safety hazards. As such, mitigating strategies are imperative to safeguard against this phenomenon and ensure the reliability and safety of hydrogen storage systems. Additionally, as renewable energy generation, such as wind and solar power, often fluctuates, efficient storage technologies ensure that excess energy can be effectively captured and stored as hydrogen for later use. This enables smoother integration of renewable energy into existing grids and enhances grid stability by providing a reliable storage solution for intermittent energy sources.

Challenges: Safety Threat

Ensuring the safety of hydrogen storage and transportation is paramount due to its inherent flammability and potential hazards. Robust safety measures and technologies are crucial throughout the entire hydrogen supply chain, from production to end use, to prevent leaks, ruptures, and accidents. The high-pressure storage required for hydrogen underscores the importance of safety, necessitating tanks engineered to withstand high pressures without compromising structural integrity, along with safety valves and pressure relief systems to prevent over pressurization and potential ruptures. Additionally, hydrogen's reactivity with certain metals poses challenges for storage and transportation infrastructure materials, particularly with hydrogen embrittlement causing metal structures to become brittle over time. Addressing this risk involves careful material selection or the development of coatings and treatments to prevent embrittlement.

Hydrogen Storage tanks and transportation market Ecosystem

In the hydrogen storage tanks and transportation sector, major organizations stand out as well-established and financially reliable suppliers of hydrogen storage tanks products and services. With years of experience, these organizations provide a comprehensive product portfolio, cutting-edge technologies, and strong global sales and marketing channels. Their strong track record in the sector establishes them as dependable and trustworthy partners for consumers looking for hydrogen storage options. These organizations have proved their capacity to adapt to market dynamics and consistently offer high-quality products and services, establishing them as industry leaders in addressing the demands of the energy and power sectors. Prominent companies in this market include Hexagon Purus (Norway), Worthington Enterprises, Inc  (US), Tenaris (Luxembourg), Plastic Omnium (France), and UMOE (Norway).

The Vehicles segment, by application, is expected to be the largest market during the forecast period.

This report segments the Hydrogen Storage tanks and transportation market based on application into five categories: Vehicles, Railways, Stationary Storage, Marine and Hydrogen Transportation Trailers. The Vehicles segment is expected to be the largest market during the forecast period. Integration of hydrogen storage and transportation systems into vehicles, including advancements in tank design, onboard storage solutions, and vehicle architecture, is critical for optimizing vehicle performance, range, and safety, driving innovation and demand in the market.

By Modular Storage, Hydrogen Fuel Storage Systems is expected to be the largest segment during the forecast period.

This report segments Hydrogen Storage tanks and transportation market based on modular storage into two segments: Hydrogen Fuel Storage Systems and Hydrogen Distribution Systems. The Hydrogen Fuel Storage Systems segment is expected to be the fastest-growing segment of the Hydrogen Storage tanks and transportation market during the forecast period. Hydrogen storage systems play a crucial role in storing excess renewable energy from sources like wind and solar, contributing to grid stability and enabling the use of renewable hydrogen for various applications.

Europe: The second largest growing region in the Hydrogen Storage tanks and transportation market.

Europe is expected to be the second largest region in the Hydrogen Storage tanks and transportation market between 2024–2030. European partnerships with other countries, such as Japan and South Korea, which are also investing heavily in hydrogen technologies, are accelerating the development of global hydrogen supply chains and transportation networks. The increasing demand for hydrogen-powered vehicles necessitates the development of efficient storage and transportation solutions. Alongside this, infrastructure expansion for hydrogen refueling stations is crucial for wider adoption. Advancements in storage technology and the potential of hydrogen in various industries further expand the market. Additionally, existing natural gas infrastructure can be partially leveraged for hydrogen transportation, reducing costs. The drive for energy security through domestically produced hydrogen and strong collaboration among stakeholders are additional forces propelling this market forward.

Key Market Players

The hydrogen storage tanks and transportation market is dominated by a few major players that have a wide regional presence. The major players in the hydrogen storage tanks and transportation market include Hexagon Purus (Norway), Worthington Enterprises, Inc (US), Tenaris (Luxembourg), Plastic Omnium (France), and UMOE (Norway).  Between 2020 and 2024, Strategies such as new product launches, contracts, agreements, partnerships, collaborations, acquisitions, and expansions are followed by these companies to capture a larger share of the Hydrogen Storage tanks and transportation market.

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Scope of the Report

This research report categorizes the Hydrogen Storage Tanks and Transportation Market based on tank type, pressure, modular storage, material type, application and region.

On the basis of Application:

• Vehicle
• Railways
• Marine
• Stationary Storage
• Hydrogen Transportation Trailers

On the basis of Tank Type:

• Type 1
• Type 2
• Type 3
• Type 3

On the basis of Modular Storage:

• Hydrogen Fuel Storage Systems
• Hydrogen Distribution Systems R744

On the basis of Pressure:

• Below 200 bars
• 200-500 bars
• Above 500 bars

On the basis of Material Type:

• Metals
• Glass Fiber
• Carbon Fiber

Based on region:

• North America
• Europe
• Asia Pacific
• RoW

Recent Developments

• In January 2024, Plastic Omnium, through its joint venture PO-Rein, initiated the construction of high-pressure hydrogen vessels mega-plant in Jiading, Shanghai. The future mega-plant, spanning 28,000 square meters, is situated in Jiading Hydrogen Park, a key hydrogen development hub in China. The project, announced in 2023, aims to cater to the growing demand for hydrogen storage systems in the Chinese commercial vehicle sector. The PO-Rein joint venture factory is projected to be operational by 2026, with the capacity to produce up to 60,000 hydrogen vessels annually.
• In December 2023, Hexagon Purus prolonged its framework agreement with a major European green hydrogen producer, now encompassing hydrogen distribution systems delivery for  2024, emphasizing the commitment to advancing hydrogen infrastructure in Europe.
• In December 2023, Hexagon Purus received a significant order to deliver hydrogen distribution systems to a leading player in the green hydrogen ecosystem for USD 10.3 million. This strategic collaboration underscored Hexagon Purus' pivotal role in advancing green hydrogen infrastructure, aligning with the industry's shift toward sustainable energy solutions.
• In September 2023, Hexagon Purus inaugurated a new hydrogen cylinder manufacturing hub in Kassel, Germany, signaling a significant expansion in its production capabilities. This state-of-the-art facility underscores Hexagon Purus's commitment to meeting the increasing demand for hydrogen storage solutions.

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