As the world accelerates its transition to net-zero emissions and clean energy, the global hydrogen storage market is gaining strong momentum. Projected to reach USD 3.5 billion in 2024 , the industry is expected to grow at a robust CAGR of 11.9% from 2025 to 2035 , reaching an estimated USD 12.1 billion in 2035. Increasing demand for hydrogen as a versatile energy carrier, significant investments in infrastructure, and supportive policies are driving this growth.
Analyst Perspective: Why Hydrogen Storage Matters
Hydrogen is increasingly recognized as a key element in a decarbonized energy system . Its versatility allows it to be used in a wide range of applications, including transportation, power generation, industrial heating, and refining, making it a strategic fuel for sectors where emissions are difficult to reduce. However, one of the biggest challenges is storing and transporting hydrogen efficiently and safely .
Storage ensures stable supply, safe logistics, and flexible utilization across multiple sectors. Advanced storage technologies, including compressed gas tanks, liquid hydrogen, and solid options such as metal hydrides and chemical carriers , are rapidly evolving to meet these needs.
Analysts point to R&D efforts by major players, as well as strategic alliances between automakers, energy companies and technology providers , which are accelerating commercialization . From government-backed hydrogen hubs to pilot-scale projects for long-term storage , the market is laying the foundation for hydrogen to become a mainstream energy carrier within the next decade.
Global Hydrogen Storage Market Overview
Hydrogen storage refers to the process of preserving hydrogen in various physical and chemical forms for use in mobility, industry, and energy applications . Hydrogen is emerging as a clean and ubiquitous energy carrier , and the development of cost-effective and safe storage systems is essential to building a reliable hydrogen economy.
- Compressed gas storage (high-pressure tanks) remains the most common form due to its simplicity and scalability.
- Storing liquid hydrogen requires cryogenic systems and advanced handling, but offers higher energy density.
- Materials-based storage technologies (metal hydrides, chemical carriers, adsorbents) offer higher volumetric density, improved safety, and portability in certain applications.
Combining these technologies will enable the use of hydrogen in fuel cells for transportation, grid-scale renewable energy balancing, back-up power systems, and industrial feedstock applications .
Key Market Drivers
- Increasing hydrogen adoption in the clean energy transition
The global drive towards decarbonisation and renewable energy integration is a key catalyst. Hydrogen offers a zero-emission alternative to fossil fuels, as it emits only water vapour when used in fuel cells or combustion.
- Grid balancing : Hydrogen acts as a long-term energy storage buffer by absorbing excess renewable energy (solar, wind) and releasing it when needed .
- Mobility : Fuel cell electric vehicles (FCEVs) have an advantage over battery electric vehicles for heavy-duty transportation because they require hydrogen storage tanks for extended driving range and quick refueling.
- Industrial Applications: Hydrogen is increasingly replacing natural gas and coal in steel production, ammonia synthesis and refining , driving demand for high-density, secure storage solutions.
Governments across Europe, Asia-Pacific and North America are providing policy incentives, R&D funding and roadmaps to accelerate hydrogen adoption , and this transition is creating significant opportunities for innovative storage technologies.
- Expanding investment in hydrogen infrastructure development
Another major growth driver is the buildout of a global hydrogen infrastructure , with countries such as Japan, South Korea, Germany and the United States committing billions of dollars to building production plants, pipelines, caverns and refueling stations under their national hydrogen strategies.
- Transportation sector : Automakers and energy companies are partnering to expand hydrogen refueling networks, particularly for trucks, buses, and trains.
- Grid-scale storage : Energy companies are investing in underground storage caverns and bulk storage facilities to integrate hydrogen with renewable energy for reliable power supply.
- Private investment: Companies such as Shell, Linde and Air Liquide are using innovative storage technologies to scale up commercial projects.
Public-private partnerships will reduce investment risks, accelerate deployment and further strengthen the role of hydrogen in next-generation energy systems.
Market Segmentation Insights
Housing material: Lead metal hydride
Metal hydrides account for 31.8% of the market share , making them the largest packaging material segment. These materials chemically absorb hydrogen into their lattice, allowing it to be safely stored at moderate pressures and temperatures .
The advantages are:
- High volume density
- Reliable long-term storage
- Safer than compressed/liquid options
Metal hydrides are particularly suitable for portable, stationary and transport applications where compactness and safety are important.
Regional Analysis
- Asia Pacific (42.8% share): Driven by ambitious clean energy targets, significant investments, and national hydrogen roadmaps in Japan, South Korea, China, and Australia , the region leads the global hydrogen storage market. The adoption of fuel cell vehicles , green hydrogen initiatives, and large-scale storage projects are supporting this region's dominance.
- North America (23.5% share) : Driven by US Department of Energy policies, expanding refueling infrastructure, and a strong R&D ecosystem , pilot projects in the transportation and power sectors are further driving demand.
- Europe : Driven by strict climate targets and an EU hydrogen strategy, the country is investing heavily in underground storage technologies, hydrogen hubs and renewable energy integration.
Competitive environment
The hydrogen storage market is moderately consolidated, with companies around the world focusing on innovation, safety, and scalability.
The major companies are :
- Auguste Cryogenics – Cryogenic Tanks and Solutions
- BNH Gas Tanks LLP – High Pressure Storage Systems
- Doosan Mobility Innovation – Hydrogen Fuel Cell Mobility Solutions
- Hexagon Composites ASA – Advanced Composite Storage Cylinders
- LUXFER HOLDINGS PLC – Lightweight High-Pressure Storage Solutions
Other notable companies include Mahytec, Nproxx, Praxair, Shijiazhuang Enric Gas Equipment, Steelhead Composites, The Japan Steel Works, and Worthington Industries. Competition is driven by product innovation, research and development, partnerships, and acquisitions .
Recent developments
- July 2025 : Hexagon Composites ASA acquires a stake in Worthington Enterprises' Sustainable Energy Solutions (SES) for €11.7 million , strengthening its European clean energy portfolio.
- May 2025 : The EU Clean Hydrogen Partnership awarded 26 projects totaling €154.6 million in funding , focusing on underground storage, solid materials, and purification systems. These efforts highlight Europe's commitment to expanding safe, efficient, and scalable hydrogen storage infrastructure.
in conclusion
The hydrogen storage market is expected to grow exponentially on the back of the global clean energy transition, increasing hydrogen adoption in transportation and industry, and large-scale infrastructure investments. With Asia Pacific leading the way, followed by North America and Europe, the sector is rapidly evolving into a cornerstone of the hydrogen economy .
Innovations in metal hydrides, composite tanks, and cryogenic systems are accelerating the widespread adoption of hydrogen storage by overcoming cost, scalability, and safety challenges. Strategic partnerships, government incentives, and continued research and development will shape the competitive landscape over the next decade.
With a market size expected to grow to US$12.1 billion by 2035 , hydrogen storage will no longer be a bottleneck but a key driver of decarbonization , underpinning the integration of mobility, industry and renewables in a sustainable energy future.