Underground Hydrogen Storage Market Size, Market Share, Application Analysis, Regional Outlook, Growth Trends, Key Players, Competitive Strategies and Forecasts, 2023 to 2031

The market for underground hydrogen storage is anticipated to expand at a CAGR of 10.5% during the forecast period of 2023 and 2031. The expansion of the underground hydrogen storage market is primarily attributable to research and development in hydrogen technologies and the growing acceptance of alternative energy sources. Increasing applications of hydrogen across multiple industries are anticipated to contribute to market expansion. Hydrogen storage is a cutting-edge technology that requires intricate technical knowledge and manufacturing components. To manufacture and maintain the structural integrity of underground hydrogen storage facilities, it is necessary to adhere to a variety of regulations and procedures. Due to the vast quantities of hydrogen produced in the United States, the market is expected to experience substantial growth over the forecast period.

The United States is among the world's earliest adopters of clean energy solutions for manufacturing, transportation, and power generation. The underground hydrogen storage market in the United States has been expanding due to technological advancements, the delivery of real-time data related to gas injection, and the raising awareness of hydrogen gas as a clean fuel. The market for underground hydrogen storage in the United States is dominated by salt formations because of their high deliverability and cycling rates. Massive investments in the construction of underground hydrogen storage facilities have contributed to the expansion of the underground hydrogen storage market in the United States.

Salt Cavern Segment Dominated the Market by Storage Type

The segment on storage types includes porous media storage, salt caverns, and engineered cavities. In 2022, the salt caverns segment dominated the market, accounting for 99% of the global volume share. Salt caverns are salt domes and bedded salts with a short cycle of 10 to 20 days and high deliverability. Due to the need for new infrastructures and solution mining, these caverns are the most expensive of the various storage types. Unlike depleted reservoirs, salt caverns require approximately 20-30% less cushion gas injection.

Porous media storage represented the second-largest market share for underground hydrogen storage. Its storage consists of limestone, formations, shale, and conglomerates, which provide hydrogen storage with high permeability and void fractions. It consists of depleted gas fields and aquifers. To balance renewable energy supply and seasonal demand, porous media storage has been proposed as an efficient and sustainable method for storing underground hydrogen. Engineered cavities are underground hydrogen storage facilities that have been converted from mine shafts. The establishment of hydrogen storage facilities based on engineered cavities is still in the research and development stage, and a favorable outcome is anticipated shortly. Several pilot projects have been conducted while conceptual designs of these facilities are being developed to determine their anticipated outcomes.

Europe Remains the Global Leader

Europe dominated the global market in 2022, with a volume share of over 55%. Europe has made substantial investments in hydrogen energy as an alternative energy source. Countries in the region are increasing their underground hydrogen storage capacities to achieve energy independence. The British government has made substantial investments in developing its hydrogen generation and storage capacities. The nation intends to play a significant role in the emerging hydrogen economy. Over the forecast period, North America is expected to emerge as the leading regional market for underground hydrogen storage due to technological advancements, real-time data delivery related to gas injection, and raising awareness of natural gas as a clean fuel.

Due to the widespread adoption of hydrogen in industrial applications such as oil refining and the production of methanol and ammonia, Asia Pacific is expected to have a significant demand for underground hydrogen storage facilities in the coming years. It is anticipated that the presence of numerous refineries in China and India will increase the demand for underground hydrogen storage in the region. Furthermore, countries such as Japan and Australia are evaluating greener and cleaner technologies for hydrogen production, which is anticipated to increase the demand for underground hydrogen facilities in the region over the forecast period.

Market Competition to Intensify During the Forecast Period

The underground hydrogen storage industry on a global scale is a highly competitive market due to the presence of major industries, which are relatively concentrated and highly competitive. Air Liquide, Air Products and Chemicals, Inc., Engie, Linde plc, Texas Brine Company, LLC, Uniper SE, WSP, and Other notable players are some of the leading companies operating in the global underground hydrogen storage market.

Historical & Forecast Period

This study report represents analysis of each segment from 2021 to 2031 considering 2022 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2022 to 2031.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Underground Hydrogen Storage market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Underground Hydrogen Storage market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Market Segmentation

Type

• Porous Media Storage
• Salt Caverns
• Engineered Cavities

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Underground Hydrogen Storage market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2031.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Underground Hydrogen Storage market?
• Which is the largest regional market for Underground Hydrogen Storage market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Underground Hydrogen Storage market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Underground Hydrogen Storage market worldwide?

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