Hydrogen Tank Material Market by Material Type (Metal, Carbon Fiber, Glass Fiber), Tank Type (Tank 1, Tank 2, Tank 3, Tank 4), End-use Industry (Automotive & Transportation, Industrial, Chemicals, Medical & Pharmaceuticals), Region – Global Forecast to 2030
Hydrogen Tank Material Market
Hydrogen Tank Material Market was valued at USD 953 million in 2023 and is projected to reach USD 3,988 million by 2030, growing at a cagr 22.7% from 2023 to 2030. Significant growth of hydrogen and hydrogen tanks in industrial applications, chemical industry, automotive & transportation, and many other end-use industries is driving the growth of the market globally.
Attractive Opportunities in the Hydrogen Tank Material Market
To know about the assumptions considered for the study, Request for Free Sample Report
Hydrogen Tank Material Market Dynamics
Drivers: Rising environmental awareness to increase hydrogen tank materials demand
Stringent environmental norms and regulations are other factors boosting the demand for hydrogen vehicles across the globe. The most important energy fuel sources prevailing globally are gasoline, diesel, petroleum products, and natural gas. The exploration and production of these fuels are harmful and pose a risk to the environment, but natural gas is considered as the alternative fuel for the enhancement of welfare and sustainable development as it reduces carbon emissions, slows down global warming, and lessens GHG emissions. In order to protect against and minimize the risks associated with the usage of gasoline or diesel as a fuel and promote the usage of natural gas, the US government has set up various rules and regulations for environmental conservation. Countries with major natural gas reserves are looking at the advantages of using hydrogen as an alternative fuel; its use results in lower CO2 emissions as compared to the use of petrol or diesel.
Restraints: High cost of composite material-based tanks and regulatory approvals
The market for composites and end-use industries is competitive. A manufacturer needs to have a composite cylinder type-approved by a regulatory body or an independent inspection authority. For instance, in most Asia Pacific countries, such as India and Pakistan, Type 2, Type 3, and Type 4 cylinders are not permissible for commercial purposes. These processes and procedures may discourage the use of hydrogen tanks. There are also certain standards that need to be conformed to, pertaining to the safety measures, to avoid human or property loss from blast accidents. However, such incidents occur mainly due to the use of substandard hydrogen cylinders and hydrogen kits in vehicles, which may hamper the demand and limit the growth of the hydrogen tank material market. These factors may impact the market, eventually.
Opportunities: Emergence of lightweight composite material-based hydrogen tanks
Hydrogen tanks are available in a variety of types, sizes, and weights to suit various applications. The emergence of lightweight cylinders has given rise to a new phase in the hydrogen tanks industry. Composite cylinders, which include Type 3, and Type 4 cylinders are basically, the lightweight cylinders, with Type 4 being the lightest., A cylinder’s cost increases with a reduction in its weight. Over the years, Type 1 has been the most dominant type of cylinder, but in recent years, there has been a shift in the demand toward composite cylinders. The Type 3 cylinders are metal-lined composite cylinders, whereas Type 4 cylinders are plastic-lined composite cylinders, due to which Type 4 is the costliest cylinder. These composite cylinders are lighter than the steel cylinders, safe, reliable, and have an increased life span, owing to their advantageous properties and increasing demand from OEMs.
Challenges: Impact of fluctuating oil prices
The oil price volatility has a significant impact on the natural gas markets. As witnessed in recent years, oil prices were relatively stable, but they fell sharply in 2014, due to which many energy companies were forced to reconsider their investments, business models, and cost structures. Over the years, the wide gap between oil and natural gas prices has led to fuel conversions. Gas prices in some markets are related to oil prices; there are also substitution effects, which means users switch between oil and gas in response to changes in pricing dynamics. Hydrogen is considered economical options and have a cost advantage over oil prices. Even a small reduction in the price differential between natural gas and oil can undermine the viability of hydrogen as transportation fuels. On the other hand, when the prices of oil are at their peak, the demand for natural gas accelerates, ultimately pushing the demand for hydrogen tanks and its material. The uncertain nature of oil prices is expected to impact the growth of the hydrogen tank material industry in the future.
Carbon Fiber to account for the largest market share in terms of both value and volume by 2030
In high-value applications and for higher performance, carbon fiber materials are used to produce hydrogen tanks. Carbon fiber reinforcement is mainly used to prevent galvanic corrosion of the metallic components of the cylinder for long life. These carbon fiber composite materials are majorly used in manufacturing Type 3 and Type 4 hydrogen tanks. The use of carbon fiber material in Type 3 and Type 4 hydrogen tanks, is driving the market due to the reduction in weight of fuel systems and vehicles.
Tank 4 type to be the fastest growing tank type of hydrogen tank material market
Type 4 hydrogen tanks are manufactured with a gas-tight thick rubber membrane, and metal is not used in their structural design. In the Type 4 hydrogen tanks, the plastic liner is reinforced with either woven glass fiber or a woven carbon fiber material, by which the entire tank is wrapped. These composite wrappers offer strength to the cylinder. Type 4 hydrogen tanks are very light and can contain more volumes of gas compared to other types of tanks available in related dimensions due to the very thin wall of the tanks. Also, because of the lesser load in the vehicle, the overall mileage of the vehicles improves. However, these tanks are the most expensive type, since they are made of composites.
Asia Pacific held the largest market share and is expected to witness the highest CAGR in the hydrogen tank material market
Asia Pacific is the dominating region in the hydrogen tank material market, and it is expected to witness high growth in the next five years. Asia Pacific is one of the leading markets for green technology adoption in order to meet government targets for lowering greenhouse gas (GHG) emissions. Because of the commercial deployment of Japanese fuel cell micro-CHP products, Japan and South Korea have invested heavily in fuel cell adoption since 2009. FCEVs are zero-emission vehicles that use an on-board hydrogen fuel cell to power an electric motor. To combat climate change and meet decarbonization targets, governments in the region are encouraging the use of EVs and FCEVs and are funding, either fully or partially, the construction of hydrogen refueling stations to enable the deployment of FCEVs such as public buses and municipal trucks as well as cars. the deployment of fuel cell rail applications in this region can help decarbonize the sector while also propelling the growth of the hydrogen tank material market.
To know about the assumptions considered for the study, download the pdf brochure
Hydrogen Tank Material Market Players
The key players in the global hydrogen tank material market are:
- Worthington Industries, Inc. (US)
- Luxfer Group (England)
- Hexagon Composites ASA (Norway)
- Quantum Fuel Systems LLC (US)
- Faber Industrie SPA (Italy)
- Everest Kanto Cylinders Ltd. (India)
These companies are involved in adopting various inorganic and organic strategies to increase their foothold in the hydrogen tank material industry. The study includes an in-depth competitive analysis of these key players in the hydrogen tank material market, with their company profiles, recent developments, and key market strategies.
Hydrogen Tank Material Market Report Scope
|
Report Metric |
Details |
|
Market Size Value in 2023 |
USD 953 million |
|
Revenue Forecast in 2030 |
USD 3,988 million |
|
CAGR |
22.7% |
|
Years considered for the study |
2021–2030 |
|
Base year |
2022 |
|
Forecast period |
2023–2030 |
|
Units considered |
Value (USD Million/Billion), Volume (Units) |
|
Segments |
Material Type, Tank Type, End-use Industry, and Region |
|
Regions |
Asia Pacific, North America, Europe, Latin America, and Middle East & Africa |
|
Companies |
Worthington Industries, Inc. (US), Luxfer Group (England), Hexagon Composites ASA (Norway), Quantum Fuel Systems LLC (US), Faber Industrie SPA (Italy), Everest Kanto Cylinders Ltd. (India), Avanco Group (Germany), Praxair Technologies, Inc. (US), and others. |
This research report categorizes the hydrogen tank material market based on material type, tank type, end-use industry, and region.
By Material Type:
- Metal
- Carbon Fiber
- Glass Fiber
By Tank Type:
- Tank 1
- Tank 2
- Tank 3
- Tank 4
By End-use Industry:
- Automotive & Transportation
- Industrial
- Chemicals
- Medical & Pharmaceuticals
- Others
By Region:
- Asia Pacific
- North America
- Europe
- Latin America
- Middle East & Africa
Recent Developments
- In October 2022, Worthington Industries entered into a Partnership with Innovair Group to bring the best quality cylinders to Canada.
- In October 2022, Hexagon Purus and Lhyfe companies has got into a collaboration project for production of green and renewable hydrogen for transportation and industrial applications.
- In July 2022, Rev1 Ventures Partners with Worthington Industries to accelerate advancements in sustainability technology, smart manufacturing. Worthington to provide individual investments, up to $10 million, to propel emerging technologies that align with Worthington’s vision and enable the company to better serve current and future markets.
- In July 2021, Luxfer Gas Cylinders partnered with Octopus Hydrogen to make heavy goods transportation and the aviation industries cleaner and greener by delivering green hydrogen to the sectors which cannot be decarbonized by batteries alone, mainly aviation and heavy-duty road vehicles.
- In March 2021, The Worthington Industries subsidiary SCI was acquired by Luxfer Group in full. The goal of this transaction is to strengthen Luxfer Group's capacity for expanding hydrogen and CNG gas potential.
Frequently Asked Questions (FAQ):
Which are the key players of hydrogen tank material market and what are their strategies to strengthen their market presence/shares?
Some of the key players of hydrogen tank material market Worthington Industries, Inc. (US), Luxfer Group (England), Hexagon Composites ASA (Norway), Quantum Fuel Systems LLC (US), Faber Industrie SPA (Italy), Everest Kanto Cylinders Ltd. (India) among others, are the key manufacturers that secured contracts, deals in the last few years. Agreements, expansions, technological developments, contracts, and deals was the key strategies adopted by these companies to strengthen their hydrogen tank material market presence.
What are the drivers for the hydrogen tank material market?
Increased use of hydrogen and clean energy in automotive & transportation and industrial industries is expected to drive the market globally.
Which type of material holds the largest market share?
Metal segment holds the largest share in terms of both, value and volume in the hydrogen tank material market.
What is the major factor on which the final price of hydrogen tank relies?
Price and availability of raw material along with the type of manufacturing process used plays an important role in determining the costs of the hydrogen tanks.
Which region is expected to hold the highest market share?
Asia Pacific will dominate the market share in forecasted period i.e. between 2023 to 2030, due to the huge demand coming from the countries like China, India and South Korea. .
To speak to our analyst for a discussion on the above findings, click Speak to Analyst
The study involved two major activities in estimating the current size of the hydrogen tank material market. Exhaustive secondary research was performed to collect information on the market, the peer market, and the parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the total market size. After that, market breakdown and data triangulation procedures were used to determine the extent of market segments and sub-segments.
Secondary Research
In the secondary research process, various secondary sources, such as Hoovers, Bloomberg BusinessWeek, and Factiva, were referred to for identifying and collecting information for this study. These secondary sources included annual reports, press releases and investor presentations of companies, white papers, certified publications, articles by recognized authors, gold standard & silver standard websites, regulatory bodies, trade directories, and databases.
Primary Research
The hydrogen tank material market comprises several stakeholders, such as material suppliers, manufacturers, end-product users, and regulatory organizations in the supply chain. The demand side of this market is characterized by the development of mainly the automotive & transportation, industrial, chemicals, medical & pharmaceuticals, and other end-use industries. Advancements in technology and diverse applications in various end-use industries describe the supply side. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information.
Following is the breakdown of primary respondents:
Notes: Tiers of companies are selected based on their ownership and revenues in 2022.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
Both the top-down and bottom-up approaches were used to estimate and validate the total size of the hydrogen tank material market. These methods were also used extensively to determine the size of various sub-segments in the market. The research methodology used to estimate the market size included the following:
- The key players in the industry and markets were identified through extensive secondary research.
- The industry’s supply chain and market size, in terms of value, were determined through primary and secondary research processes.
- All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
Data Triangulation
After arriving at the overall hydrogen tank material market size, using the market size estimation processes explained above, the market was split into several segments and sub-segments. To complete the whole market engineering process and arrive at the exact statistics of each market segment and sub-segment, the data triangulation and market breakdown procedures were employed, wherever applicable. The data was triangulated by studying various factors and trends from both the demand and supply sides, mainly from the automotive & transportation, industrial, chemicals, medical & pharmaceuticals.
Market Definition
The Office of Energy Efficiency and Renewable Energy has defined that hydrogen can be stored physically as either a gas or a liquid. Storage of hydrogen as a gas typically requires high-pressure tanks [350–700 bar (5,000–10,000 psi) tank pressure]. Storage of hydrogen as a liquid requires cryogenic temperatures because its boiling point at one atmosphere pressure is -423.04°F (−252.8°C).
Hydrogen tank can be considered as a storage vessel designed for holding or storing hydrogen gas wither at low or high temperature. Hydrogen tank materials mainly consist of carbon fiber, glass fiber, metal or composite materials. Overall, the choice and preference of the materials depends on the applications and required properties and characteristics including weight, capacity, pressure, and cost. The market covers hydrogen storage tanks used to store hydrogen in gaseous form for stationary and mobile applications. Stationary hydrogen storage tanks in the form of bundles and cascades are used to store hydrogen gas in hydrogen refueling stations, chemical, industrial, medical & pharmaceutical, and other industries. The mobile applications include hydrogen storage tanks in the form of bundles and cascades for transporting hydrogen at shorter distances. The mobile applications also include on-board (fuel tanks) hydrogen tanks and those transported through tube trailers over a distance of 300 Km. The scope of this report is restricted to tanks used to store hydrogen in gaseous form and doesn’t include those used to store cryogenic, cryo-compressed or material-based hydrogen tanks. The cost of gaseous hydrogen tanks is considered for the revenue estimation and depends on various factors such as material, industry, and tank volume.
Key Stakeholders
- Hydrogen tank manufacturers
- Raw material suppliers
- Distributors and suppliers
- Industry associations
- Universities, governments & research organizations
- Associations and industrial bodies
- Research and consulting firms
- R&D institutions
- Environmental support agencies
- Investment banks and private equity firms
Objectives of the Report
- To define, describe, and forecast the size of the hydrogen tank material industry, in terms of value and volume
- To provide detailed information about the key factors (drivers, restraints, opportunities, and challenges) influencing the growth of the market
- To provide detailed information about the technological advancements influencing the growth of the market
- To forecast the market based on the material type, tank type, and end-use industry
- To define, describe, and forecast the market based on five regions, namely, North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
- To strategically analyze micro-markets with respect to individual growth trends, prospects, and their contribution to the overall market
- To analyze the opportunities in the market for stakeholders and provide a competitive landscape for the market leaders
- To analyze recent developments such as expansions and joint ventures in the market
- To strategically profile the key players and comprehensively analyze their market share and core competencies
Available Customizations
With the given market data, MarketsandMarkets offers customizations according to the company’s specific needs.
The following customization options are available for the report:
Product Analysis
- Product matrix, which gives a detailed comparison of the product portfolio of each company
Regional Analysis
- Further breakdown of Rest of Europe hydrogen tank material market
- Further breakdown of Rest of North America hydrogen tank material market
- Further breakdown of Rest of Asia Pacific hydrogen tank material market
- Further breakdown of Rest of Middle East & Africa hydrogen tank material market
- Further breakdown of Rest of Latin America hydrogen tank material markets
Company Information
- Detailed analysis and profiling of additional market players (up to five)
Growth opportunities and latent adjacency in Hydrogen Tank Material Market