Market Insights
“The hydrogen tank material market value was US$ 223 Million in 2023 and is likely to grow at a decent CAGR of 39.5 % in the long run to reach US$ 4.2 Billion in 2032”.
Market Dynamics
Introduction
Hydrogen tanks are necessary elements for the storage and transportation of hydrogen fuel and, therefore, their material is significant for safe and efficient operation. Carbon fiber reinforced polymer (CFRP) is the most used material for constructing hydrogen tanks. CFRP is selected because of its high strength-to-weight ratio which is critical for structurally reinforcing the tanks given the pressures under which hydrogen is stored, generally up to 700 bar or 10,000 psi. The carbon fibers offer the required stiffness in the intended direction, whereas the polymer matrix holds the fibers collectively as well as shielding them against destructive conditions. Moreover, the hydrogen tanks could also have an inner layer which could be made from aluminum or polymer to reduce the permeation of the hydrogen gas and to sustain the strength of the tanks. Together, these materials make sure that hydrogen tanks are lightweight and durable enough that they can be used in fuel cell vehicles and other products that utilize hydrogen energy.
The various factors that influence the hydrogen tank material market are: First, hydrogen fuel cell technologies in the automotive industry, aerospace, and industrial market are some of the fundamental factors. Since more industries strive to minimize their carbon output and transition to cleaner fuels, the need for safe and effective hydrogen storage further grows. Second, thanks to the progress in material science and technologies lighter and stronger materials for the construction of hydrogen tanks, including advanced composites and high-strength alloys, are being developed boosting the performance and safety of storage systems. Third, government policies and incentives for renewable energy and hydrogen facilities contribute immensely to market development as they foster investments in hydrogen technologies and materials. Also, the demands for environment-friendly technologies and the shifting away from oil and natural gas as energy resources create opportunities and demand for advanced hydrogen tanks. All the above-mentioned drivers together lead to the growth of the hydrogen tank material market and strengthen the global shift towards cleaner energy.
Recent Market JVs and Acquisitions:
A huge number of strategic alliances including M&As, JVs, etc. have been performed over the past few years:
- On October 18, 2022, Worthington Industries Contracted a Partnership with Innovation Group to provide cylinder manufacturers in Canada with the highest quality cylinders.
- Hexagon Purus and Lhyfe companies entered a partnership in October 2022 to manufacture green and renewable hydrogen for mobility and industry.
- July 2022 Rev1 Venture partners with Worthington Industries to drive innovations in sustainability technology and smart manufacturing Worthington to make individual investments of up to $10 million to support emerging technologies that are consistent with Worthington’s vision and would help the company to meet the needs of current and future markets.
- In July 2021, Luxfer Gas Cylinders signed a collaboration agreement with Octopus Hydrogen to transport green hydrogen in sectors that cannot be electrified by batteries such as air and long-haul road transportation.
- In March 2021, Worthington Industries’ subsidiary SCI was bought out in full by Luxfer Group. The purpose of this transaction is to increase Luxfer Group’s capability of increasing hydrogen and CNG gas potential.
Market Segments' Analysis
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Segmentations
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List of Sub-Segments
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Segments with High Growth Opportunity
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Material Type Analysis
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Metal, Carbon Fiber and Glass Fiber
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Carbon fibers are expected to be the demand generator in the coming years.
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Tank Type Analysis
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Tank 1, Tank 2, Tank 3, and Tank 4
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Tank 4 segment is anticipated to contribute the largest share of the market.
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End-use Industry Analysis
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Automotive & Transportation, Industrial, Chemicals, Medical & Pharmaceuticals
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Industrial industries are expected to dominate the market in the forecasted period.
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Region Analysis
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North America, Europe, Asia-Pacific and Rest of the World
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Asia-Pacific is expected to maintain its reign over the forecast period.
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By Material Type
“Carbon fiber is expected to remain the dominant material type in the market during the forecast period”.
- The hydrogen tank material market is segmented into metal, carbon fiber, and glass fiber.
- Carbon fiber reinforced polymer (CFRP) has a very high strength-to-weight ratio, and this is needed in hydrogen tanks due to the pressures at which hydrogen is stored (up to 700 bar or 10,000 psi). It makes it possible to build lighter tanks and at the same time increase their safety and sturdiness.
- Compared to conventional composites or metals, CFRP materials offer better strength-to-weight and fatigue resistance, as well as increased corrosion and thermal stability. This increases the efficiency and reliability of hydrogen tanks for long-term storage and usage in many applications.
- Substantial progress continues to be made in the development of carbon fiber and composites processing technologies that result in enhanced performance and lower costs. These enhancements make CFRP offer a leading market size and more applicable for large-scale use as compared to other materials.
By Tank Type
“Tank 4 is expected to remain the dominant tank type in the market during the forecast period”.
- The market is segmented into tank 1, tank 2, tank 3 and tank 4.
- Type 4 tanks are specially built to handle high pressures of up to 700 bar or 10,000 psi. This high-pressure capacity is required for compact storage and utilization of hydrogen that is needed for applications such as fuel cell vehicles.
- Type 4 tanks include a COPV design, where a plastic liner is wrapped with carbon fiber composites. This construction affords a high strength-to-weight ratio hence these tanks are lighter than other types which enhances the efficiency and effectiveness of hydrogen storage tanks.
- A plastic liner sandwiched between the composite material and a composite wrap makes the pipe more durable and resistant to environmental conditions such as heat or chemicals. This makes the tanks more serviceable and reliable owing to the endurance of their production.
- Type 4 tanks, for instance, incorporate modern composite materials that effectively shield the vessels from possible impacts and punctures to further improve hydrogen storage safety. This makes them particularly suitable for use in high-risk environments, for instance, automotive applications.
By End-Use Industry
“Industrial is expected to remain dominant end-use industry in the market during the forecast period”.
- The hydrogen tank material market is segmented into automotive & transportation, industrial, chemicals, medical & pharmaceuticals.
- Some of the various industries that currently or in the foreseeable future will require hydrogen delivery include Industrial processes – refineries, Chemical manufacturing, and steel making among others. Hydrogen is also utilized as a reagent in many industrial chemical processes including ammonia synthesis and upstream oil processing making efficient and safe storage systems a necessity.
- It is common for industrial processes to employ considerable volumes of hydrogen for storage and consumption. Designs must also accommodate large amounts of hydrogen at high pressure; Type 4 tanks and other advanced materials are suitable for this purpose.
- Since organizations are moving towards renewable energy sources and looking at hydrogen as a viable source of energy in the future, there has been a major focus on building more and more hydrogen facilities. This is in the form of establishing storage facilities for either manufacturing, distributing, or using hydrogen in different sectors within industries.
- Recent higher concerns on carbon emissions and stringent legislations and policies are pushing industries to shift towards hydrogen-based technologies. That is why while various industries strive to meet these requirements and enhance ecological performance, the need for the development of innovative hydrogen storage materials increases.
Regional Analysis
“The Asia-Pacific is expected to remain the largest market for hydrogen tank material market during the forecast period”.
- Many countries of the Asia-Pacific region are connecting significant resources to hydrogen infrastructure as part of the overall efforts in the transition to cleaner sources of energy. Japan, South Korea, and China, especially, are in front of such infrastructure creation as hydrogen refueling stations and industrial hydrogen uses, which have created the demand for hydrogen tank materials.
- Some governments in the Asia-Pacific region are already encouraging the use of hydrogen technologies through supportive policies and incentives. Such measures include monetary support such as subsidies, research funding, and the formulation of guidelines and standards to advance the production, distribution, and utilization of hydrogen.
- Hydrogen consumption is also required in sub-sectors like petrochemical, steel, and manufacturing among others in the region, which are heavy industries that require large storage of hydrogen. This industrial demand provides the impetus for the continued development of the materials used in hydrogen tanks.
- Other countries including the Asian Indian and SE Asian developing economies are quickly building up their hydrogen industries and investing in hydrogen technology. This growth contributes to a wider market for hydrogen tank materials.
Key Players
The following are the key players in the hydrogen tank material market.
Here is the list of the Top Players (Based on Dominance)
- Worthington Industries, Inc.
- Luxfer Group
- Hexagon Composites ASA
- Quantum Fuel Systems LLC
- Faber Industrie SPA
- Everest Kanto Cylinders Ltd.
- Avanco Group
- Praxair Technologies, Inc
Note: The above list does not necessarily include all the top players of the market.
Are you the leading player in this market? We would love to include your name. Write to us at sales@stratviewresearch.com
Report Features
This report provides market intelligence most comprehensively. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:
- Market structure: Overview, industry life cycle analysis, supply chain analysis.
- Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
- Market trend and forecast analysis.
- Market segment trend and forecast.
- Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
- COVID-19 impact and its recovery curve
- Attractive market segments and associated growth opportunities.
- Emerging trends.
- Strategic growth opportunities for the existing and new players.
- Key success factors.
The global hydrogen tank material market is segmented into the following categories.
Hydrogen Tank Material Market, by Material Type
- Metal (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Carbon Fiber (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Glass Fiber (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Hydrogen Tank Material Market, by Tank Type
- Tank 1 (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Tank 2 (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Tank 3 (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Tank 4 (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Hydrogen Tank Material Market, by End-use Industry
- Automotive & Transportation (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Industrial (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Chemicals (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Medical & Pharmaceuticals (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Others (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Hydrogen Tank Material Market, by Region
- North America (Country Analysis: The USA, Canada, and Mexico)
- Europe (Country Analysis: Germany, France, The UK, Russia, and Rest of Europe)
- Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)
- Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)
Research Methodology
- This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s hydrogen tank material market realities and future market possibilities for the forecast period.
- The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market.
- The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.
- This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
- More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
- We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.
Report Customization Options
With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:
Company Profiling
- Detailed profiling of additional market players (up to three players)
- SWOT analysis of key players (up to three players)
Competitive Benchmarking
- Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances
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