Transportation Based Hydrogen Energy Storage Market – By Method, Analysis, Share, Growth Forecast, 2025 – 2034

Transportation Based Hydrogen Energy Storage Market Size

The global transportation based hydrogen energy storage market size was estimated at USD 1.7 billion in 2024. The market is expected to grow from USD 1.8 billion in 2025 to USD 4.3 billion in 2034, at a CAGR of 10.1%. The growth rate in the market is aided by remarkable advances in hydrogen storage technology. Innovations in hydrogen storage systems now use high-pressure tanks, metal hydrides, and liquid hydrogen storage to boost the performance, effectiveness, and safety of a system.
 

Hydrogen-containing metals, or metal hydrides, are widely used in hydrogen fuel cell vehicles (FCVs) while liquid hydrogen can be kept at very low temperatures to increase energetic density. These tanks can keep hydrogen at a storage pressure of 700 bars. Global renewable energy generation capability is predicted to enhance by more than two times by 2030.
 

Transportation-based hydrogen energy storage systems are widely used as EV battery storage systems in long range vehicles such as trucks, trains and plane. Additionally, EV sales is rising due to the price reduction in emerging economies such as India and China. For instance, by the end of 2024, India witnessed 20% rise in sales of electric cars exceeding 80,000 volume sales of electric cars.
 

Owing to its high energy density, lightweight design and longer life-period of the battery makes hydrogen fuel cell an ideal choice for BEVs. For instance, in March 2024, the UK’s top fuel cell developer and manufacturer Intelligent Energy (IE) launched a revolutionary hydrogen fuel cell system with high specifications and low dimensions unmatched by any solution currently available in the passenger car industry. This technological advancement has the potential to enable a global zero-emission future for the industry. This in turn rises demand for ESS in EV sector.
 

As the clean energy adoption is spreading widely government from different countries are promoting the usage of hydrogen energy storage especially in transportation. Rising tourism and travelling is fueling demand for efficient energy storage systems for trains, planes and heavy duty long range transportation vehicles.
 

For instance, in February 2025, Queensland is exemplifying its resolve in shifting towards green energy transitions by demonstrating a significant commitment to such initiatives, for instance, funding renewable energy and hydrogen projects, alongside a $12.5 billion hydrogen initiative. The state has redirected $2.5 billion from its GST contingency fund to finance such programs, which further showcases the state’s effort in achieving green energy transitions.
 

Transportation Based Hydrogen Energy Storage Market Trends

The transportation-based hydrogen energy storage reached USD 1.4 billion, USD 1.5 billion and USD 1.7 billion in 2022, 2023 and 2024 respectively. The transportation-based hydrogen energy storage market has been observing remarkable growth due to increasing demand for efficient battery storage from different sectors such as EV, renewable energy and many more. This is pushing numerous innovative initiations in the industry. Solid-state batteries, gravity-based ESS are some of the innovations in the field. SSB technology provide rapid charging times, higher energy density and improved safety to avoid risk of leaks and fire. Various companies such as SoCalGas and Photoncycle have introduced mass production of solid-state hydrogen fuel cell to cater to future demands of advanced batteries.
 

Adoption of hi-tech such as AI and ML in hydrogen energy storage systems designs is another trend shaping the market in focus. These technologies help to improve the performance and safety of batteries. It offers real-time data on battery’s thermal management, charging and overcharging status, current status, shelf life of battery. Repurposed hydrogen energy storage batteries is another trend stepping in to offer cost-effective transportation-based hydrogen energy storage systems. Repurposed or second life batteries have significant amount of life efficiency left for energy storage. This reduces the cost of hydrogen fuel cells. Various recycling companies initiated upcycling hydrogen fuel cell to capture the untapped market trends.
 

For instance, in November 2023, A recycling and resource recovery company named GreenWaste recently revealed that they are pilot testing the first hydrogen fuel cell garbage truck in North America. This initiative is a huge step toward the company’s commitment to achieving a zero-emission fleet and promoting innovation in green technologies for the recycling sector.
 

To mitigate their carbon footprints related to manufacturing batteries and hydrogen integrated ESS several companies are altering the design of batteries with sustainable materials or technology. These include, gravity-based energy storage systems. This technology uses excess electricity to lift heavy weights. To generate power, the system uses gravitational potential energy. This offers sustainable and cost-effective ESS than conventional ESS. Various companies are introducing gravity-based hydrogen energy storage to achieve the cutting edge benefits from cost-sensitive target. For instance, in February 2024, Energy Vault, a global leader in green hydrogen and gravity-based technologies, has announced that construction has begun on what will be the largest green hydrogen long-duration energy storage plant in the United States. Such initiatives increases demand for cost-effective and sustainable hydrogen integrated ESS.
 

Transportation Based Hydrogen Energy Storage Market Analysis

The transportation-based hydrogen energy storage market by method is segmented into compression, liquefaction, and material-based. The compression segment accounted 83.4% share in 2024.
 

• The hydrogen energy storage offers longer duration storage of energy. Owing to this pumped hydro is majorly used in renewable energy integration and grid energy storage systems. Due to these factors government of different countries are initiating positive strategies.
   
• For instance, in August 2024, Greenko formed an agreement to construct three hydro pumped energy storage Tamil Nadu with a total capacity of 3.3 GW. The project covers three areas including Salem, Tirupathur, and Tiruvannamalai districts. Such initiatives increases demand for pumped hydro.
   
• Rising sales of EV worldwide is rising demand for hydrogen fuel cells. For instance, sales of EVs in European countries for the month of December 2024 registered 0.7% growth when compared to the sales of EVs for the month of December 2023. Thus reaching 310,000 units sales.
   
• Solar power is gradually capturing significant growth in the energy industry. For instance, solar power is predicted to cross 2 TW by the end of 2025 from 1 TW solar power capacity in April 2022. The growing adoption of solar energy worldwide is expected to boost the demand for hydrogen fuel cells in transportation system.  
   

• Rising industrialization and upgradation of aging grids into modern grid and favorable government initiatives will also increase the demand for transportation-based hydrogen energy storage systems. For instance, in January 2025, industrial output in European area grew by 0.8% crossing the estimation of 0.6% growth.
   
• Owing to rise in adoption of EV due to rising adoption of environmental friendly transportation and favorable government policies in the field, the transportation-based hydrogen energy storage market is expected to witness higher demand.
   
• For instance, more than 13.5 million electric cars were purchased across the world, i.e., more than 34% YoY growth was witnessed by the sector in 2023. Thus crossing 39.5 million total number of electric cars on road by end of 2023.
   

• The transportation based hydrogen energy storage market in U.S. reached USD 305.1 million, USD 331.9 million and USD 361.8 billion in 2022, 2023 and 2024 respectively. Favorable government initiatives to promote ESS in U.S. is likely to increase demand for hydrogen energy storage for transportation in future.
   
• For instance, in July 2024, the U.S. Department of Energy (DOE) and ARCHES announced the impressive signing of a USD 12.6 billion contract to construct a clean, renewable Hydrogen Hub in California.
   
• Included in this amount is the up to USD 1.2 billion in federal appropriations earmarked last year when California was chosen as a national hub. ARCHES is the first of seven Hydrogen Hubs throughout the country to officially sign their agreement with the DOE.
   
• Furthermore, increasing deployment of solar power and cost-effective ESS technologies in emerging countries such as China and India is likely to boost the demand for energy storage systems in APAC.
   
• For instance, in March 2025, Adani Energy Solutions was awarded a $325 million contract to build a power transmission system to support the development of a green hydrogen and ammonia manufacturing plant in Gujarat. This supports India's target of green hydrogen production of five million tons a year by 2030.
   

Transportation Based Hydrogen Energy Storage Market Share

Top 5 companies including BYD, General Electric, LG Energy Solution, Siemens and Samsung held a market share of over 40% in 2024. Many market players are operating in transportation-based hydrogen energy storage market and players are working to develop cost-effective and wide range of hydrogen fuel cells.
 

Among these companies BYD is one of the largest share holding company in the transportation-based hydrogen energy storage market. Owing to its vast product offerings, widespread of geological clientele and strategic partnership with clients to offer customized transportation-based hydrogen energy storage systems along the side of typical products. The demand for hydrogen fuel cells is expected to boost as the clean energy and electric vehicle industry constantly grow, especially in emerging countries such as China, and India.
 

Furthermore, supportive government regulations in the developing and developed countries and affordable labor cost further decreases prices of transportation-based hydrogen energy storage systems and aids strong uphold of market in the cost-sensitive group of consumers. Other major companies including General Electric, LG Energy Solution, Siemens and Samsung are also poised to target significant share of the market in focus, particularly in cost-sensitive electric vehicles target group and energy storage systems sectors.
 

Some of the key market players operating across the energy storage systems industry are:

• Air Liquide
• Air Products and Chemicals
• Cockerill Jingli Compressed hydrogen
• ENGIE
• FuelCell Energy
• GKN Compressed Hydrogen
• Gravitricity
• ITM Power
• Linde plc
• McPhy Energy
• Nel
• SSE
   

Transportation Based Hydrogen Energy Storage Market Companies

• Air liquide is one of the major players in the worldwide hydrogen market, offering integrated services related to hydrogen production, storage, and transportation, especially for the vehicles’ industry. Air Liquide is actively developing the hydrogen refueling infrastructure to keep pace with the increasing number of hydrogen fuel cell vehicles.
   
• Air Products and Chemicals is one of the largest manufacturers of industrial gases and has actively invested in the hydrogen economy, especially in its infrastructure and logistics. Air Products has contracts to build hydrogen fueling stations for hydrogen trucks in North America and in Europe.
   
• Linde plc is a multinational company dealing in industrial gases, and has a broad market share in the hydrogen production, storage, and infrastructure including transportation related hydrogen services. Linde is advancing the technologies of hydrogen storage, such as liquefied hydrogen and compressed hydrogen, to improve the efficiency of transporting hydrogen.
   
• ITM Power PLC is a UK based company aimed on green hydrogen production for transportation with electrolyzer technology and hydrogen fueling stations. Along with major automotive manufacturers, ITM Power is collaborating with BMW and Ford to extend hydrogen mobility solutions and infrastructure for hydrogen refueling.
   
• Nel ASA is a Norwegian company focusing in hydrogen infrastructure development and transportation, storage and fueling technologies. Other recent initiatives include the development of refueling stations for hydrogen-powered buses and trucks to focus on heavy-duty transportation.
   

Transportation Based Hydrogen Energy Storage Industry News

• In February 2025, Toyota revealed its third generation fuel cell system (3rd Gen FC System) that enhances the functionality of hydrogen cells, making strides toward achieving a hydrogen society. In addition to the already mentioned features, the system also increases fuel efficiency and reduces operational expenses considerably when compared to previous models of the company.
   
• In January 2024, Honda announced commencement of its production of the 2025 Honda CR-V e:FCEV fuel cell electric vehicle at the Performance Manufacturing Center (PMC) in Ohio. As the first hydrogen fuel cell electric vehicle in the country, it is uniquely the only electric vehicle in America with a US manufactured fuel cell system capable of EV plug in charging.
   
• In November 2024, Southern California Gas Co. (SoCalGas) in collaboration with GKN Hydrogen unveiled the starting of a research demo project on an innovative clean renewable hydrogen storage solution with the U.S. Department of Energy's (DOE's) National Renewable Energy Laboratory (NREL).
• In May 2024, the Swedish auto maker Volvo has declared that it will commence customer trials for hydrogen internal combustion engines powered trucks in 2026, with wider markets planned for the end of the decade.
   

The transportation based hydrogen energy storage market research report includes in-depth coverage of the industry with estimates & forecast in terms of USD Billion from 2021 to 2034, for the following segments:

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Market, By Product

• Compression
• Liquefaction
• Material-based

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Netherlands
  • Russia
• Asia Pacific
  • China
  • India
  • Japan