Hydrogen Storage Tanks and Transportation Market

[203 Pages Report] The global hydrogen storage tanks and transportation market is estimated to be valued at USD 174 million in 2022 and is projected to reach USD 4,155 million by 2030, growing at a CAGR of 48.6%. The factors driving the market include the demand for can be attributed to growing investment in hydrogen technology and all regions making efforts to reduce emissions and the use of fossil fuels.

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Market Dynamics

Driver: Increase in Demand of Low Emission Fuels

Low-emission fuels comprise liquid and gaseous biofuels—hydrogen and hydrogen-derived fuels. They play an important role in decarbonizing energy systems where other measures, such as direct electrification, are difficult or expensive, such as sections of heavy industry and long-distance transport. Low-emission fuels covered only about 1% of global final energy consumption in 2021. Hydrogen is among the cleanest burning transportation fuels available. It comprises less carbon in comparison with other fossil fuels, due to which it produces lesser CO2 emissions. Over the years, an increase has been witnessed in hydrogen production. Moreover, tighter environmental regulations regarding the use of cleaner, low-emission fuels, and stringent engine manufacturer specifications are further expected to fuel the demand for hydrogen gas during the forecast period. India is planning to introduce Bharat Stage VI regulations by 2020, while China is expected to roll out the next set of emission regulations, equivalent to Euro V standards, by 2018. Owing to a sharp 10% rise in automotive sales in the Asia Pacific region, the development of premium quality cars, and a rise in consumer fuel spending patterns, the demand for cleaner fuels is expected to grow significantly during the forecast period.

Restraints: High cost of composite material based tank and regulatory approvals

The market for composites and end-user industries is competitive. In such a scenario, all decisions are governed by commercial considerations. The two most common commercial factors are capital expenditure (CAPEX) and operating expense (OPEX). The high price of raw materials and high expenditure required during the manufacturing process results in decreased economies of scale. Therefore, a cost-effective design and production technology are desired to achieve overall economies of scale. Carbon fiber and glass fiber are highly capital-intensive, and many potential players are not motivated to enter the market due to the high cost of entry. The costs of carbon fiber and glass fiber, major raw materials for Type 3 and Type 4 tanks, are very high, which eventually adds to the total cost of Type 3 and Type 4 hydrogen tanks. The identification and definition of low-cost technologies for the commercial production of low-cost carbon and glass fiber composites are among the critical issues for manufacturers globally.

Opportunities: Increased efforts for installation of hydrogen fueling stations

According to IEA, there were a total of 540 hydrogen refueling stations (HRS) in the world as of 2020. Germany’s H2Mobility program is supporting the adoption of fuel cell vehicles by developing fueling stations, which in turn, opens up opportunities for the deployment of hydrogen storage tanks. Moreover, Europe's Hydrogen for Innovative Vehicles (HyFIVE) project aims to expand its hydrogen fuel cell network, developing stations in Italy, the UK, Austria, and Denmark. Additionally, major automobile players, such as Honda (Japan), Toyota (Japan), and Nissan (Japan), are forming joint agreements with gas companies to develop a 100-station hydrogen highway within Japan. Indian Oil (India) is the largest hydrogen producer in India and aims to build a strong hydrogen distribution network. The company has invested USD 40 million in a demonstration project for hydrogen fuel cell vehicles.

Challenges: Impact of fluctuating oil prices on hydrogen tanks market

The oil price volatility has a significant impact on the low-emission fuels 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 low-emission fuel prices has led to fuel conversions. Hydrogen is considered an economical option and has a cost advantage over oil prices. Because of fluctuating oil prices, people are shifting more toward electric vehicles. Even a small reduction in the price differential between hydrogen and oil can undermine the viability of hydrogen as transportation fuel. On the other hand, when the prices of oil are at their peak, the demand for EV accelerates, ultimately pushing the demand for hydrogen storage tanks. Thus, the uncertain nature of oil prices is expected to impact the growth of the hydrogen storage tanks and transportation market in the future.

Market Trends

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By modular storage, hydrogen fuel storage systems segment to witness largest market share during forecast period

The hydrogen fuel storage systems segment is expected to witness largest market share from 2022 to 2030, as it witnesses increase in the number of hydrogen fuel cell electric vehicles (FECVs) and the resultant investments in hydrogen fueling infrastructure in these regions are expected to drive the growth of this segment.

By tank type, type 4 segment is expected to hold largest share during forecast period

The type 4 segment is expected to continue to hold the largest share of the market during the forecast period. The growth of the type 4 segment is driven largely due to the light weightness and sustaibility which are used in passenger cars.

By pressure, 200-500 bar segment to witness fastest CAGR during forecast period

By application, above 500 bar segment will be the second fastest growing segment during the forecast period. The growth of segment is attributed to owing to the increasing number of hydrogen refueling stations and trying to achieve net zero CO2 emissions.

By application, vehicle segment to witness fastest CAGR during forecast period

By application, vehicle segment will be the fastest growing segment during the forecast period. The growth of segment is attributed to owing to the increasing number of initial investments in hydrogen fueled vehicles to reduce the emmisions.

Asia Pacific is expected to be the largest market during the forecast period.

Asia Pacific is the largest and fastest-growing region in the hydrogen storage tanks and transportation market during the forecast period. The growth of the Asia Pacific hydrogen storage tanks and transportation market is characterized by the increase in the production of electricity for rural areas and green fuel due to higher demand from the petrochemical industry.

Key Market Players

The major players in the global hydrogen storage tanks and transportation market are Worthington Industries, Inc. (US), Plastic Omnium (France) , Hexagon Purus (Norway), Tenaris (US), NPROXX (Germany) etc.

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Scope of the Report

This research report categorizes the hydrogen storage tanks and transportation market by modular storage, application, tank type, pressure and region.

On the basis of by modular storage:

• Hydrogen Fuel Storage Systems
• Hydrogen Distribution Systems

On the basis of by application:

• Vehicle
• Railway
• Marine
• Stationary Storage
• Trailer for H2 Transportation

On the basis of by tank type:

• Type 1
• Type 2
• Type 3
• Type 4

On the basis of by pressure:

• Below 200 Bar
• 200-500 Bar
• Above 500 Bar

On the basis of region:

• Asia Pacific
• North America
• Europe
• Rest of the World

Recent Developments

• In October 2022, Hexagon Purus and Lhyfe collaborated for the production of green and renewable hydrogen for transportation and industrial applications.
• In May 2022, NPROXX launched a hydrogen storage tank that can power trucks and lorries. It has two large diameter tanks stacked on each side to deliver a total of about 1200 liters of volume at 700 bar pressure.
• In October 2021, Worthington Industries entered a partnership with Van Hool to provide an onboard fueling system and cylinders designed and manufactured by Worthington Industries for public transport.
• In November 2020, Tenaris and Nel Hydrogen entered into a partnership to provide a hydrogen truck refueling network for California. They develop hydrogen technologies, supplying high-pressure solutions for hydrogen storage to be installed by Shell at Long Beach.

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