Hydrogen Storage and Transportation Market Drivers And Restraints To 2031

Hydrogen Storage and Transportation Market: Introduction

Demand for hydrogen has been rising in the automobile sector, as hydrogen provides clean and pollution free fuel. Demand for hydrogen is also high in other industries such as chemical, oil & gas, and manufacturing. This is boosting the demand for hydrogen storage and transportation.
Stringent governmental regulations on the usage of fossil fuel have compelled companies to invest more in hydrogen production. This is expected to augment the hydrogen storage and transportation market.

Rapid globalization and industrialization is one of the key drivers of the hydrogen storage and transportation market. Demand for hydrogen has been increasing significantly in various industries across the world. For instance, rise in demand for hydrogen in the chemical industry is a prominent factor boosting the hydrogen storage and transportation market. More than two-thirds of the global hydrogen production is used in the chemical industry, primarily for the synthesis of ammonia and methanol.
Rise in utilization of hydrogen in fuel cell operated vehicles is likely to drive the hydrogen storage and transportation market in the near future. Fuel cell offers pollution free transportation and can be used as substitute for fossil fuel. Furthermore, governments across the world are promoting the use of fuel cell vehicles to reduce greenhouse and carbon emissions. Governments are investing significantly in development of infrastructure for fuel cell vehicles. Thus, increase in use of hydrogen in the automobile industry is likely to propel the demand for hydrogen storage and transportation during the forecast period.

The global hydrogen storage and transportation market can be segmented based on type and end-user
In terms of type, the hydrogen storage and transportation market can be segmented into gas hydrogen, liquid hydrogen, and solid hydrogen. The gas hydrogen segment is expected to expand significantly in the near future.
Based on end-user, the hydrogen storage and transportation market can be divided into chemical, oil & gas, transportation, metalworking, and others. The chemical segment dominated the hydrogen storage and transportation market in 2020. Hydrogen is used as ingredient in many chemicals such as hydrochloric acid and ammonia.

Based on region, the global hydrogen storage and transportation market can be classified into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa
Asia Pacific dominated the global hydrogen storage and transportation market in 2020. The market in the region is expected to expand at a significant pace during the forecast period, as demand for hydrogen is high in chemical, fertilizers, and refinery industries in countries such as China, India, South Korea, and other ASEAN countries.
North America is projected to account for important share of the hydrogen storage and transportation market in the near future. The U.S. is estimated to lead the market in the region during the forecast period. This can ascribed to the rise in demand for hydrogen storage and transportation in oil refineries.
Europe is also key region of the global hydrogen storage and transportation market. The market in the region is projected to expand at a steady CAGR during the forecast period. The U.K., Germany, and France are likely to lead the hydrogen storage and transportation market in Europe during the forecast period.
The market in Middle East & Africa and Latin America is expected to expand significantly, as countries such as Saudi Arabia, the UAE, Brazil, Mexico, and Venezuela have large number of oil refineries

The coronavirus pandemic has led to imposition of lockdowns in all major countries of the world. It has put the world economy in major distress. Demand for hydrogen storage and transportation declined significantly due to the lockdowns. However, governments in many parts of the world are lifting the lockdown restrictions. As a result, manufacturing process is steadily rising. Thus, demand for hydrogen storage and transportation is increasing steadily all. This trend is expected to continue during the forecast period.