Hydrogen Tube Trailer Market Size, Share & COVID-19 Impact Analysis, By Type (Modular Tube, Intermediate Tube, and Jumbo Tube), By Application Type (Hydrogen Fuel Station and Industrial Use), and Regional Forecasts, 2023-2030

The global hydrogen tube trailer market size was valued at USD 319.2 million in 2022. The market is projected to grow from USD 340.6 million in 2023 to USD 557.5 million by 2030, exhibiting a CAGR of 7.3% during the forecast period.

Hydrogen tube trailers are compressed hydrogen trailers consisting of high-pressure cylinders to contain, store, or transport the hydrogen (H2) to the end users. These cylinders are of either steel or composite materials such as carbon fiber and advanced polymers. As the global demand for hydrogen is rapidly growing, so is the adoption of tube trailers for the safe and efficient transportation of hydrogen gas. According to the International Energy Agency (IEA), in 2021, the global hydrogen demand reached nearly 94 million tonnes, a 5% increase compared to 2020. Hydrogen and its derivatives are a crucial part of the decarburization plans unveiled by governments across the globe.

Hydrogen usage in the industrial and automotive industries primarily drives the demand for hydrogen tube trailers. The trailers are essential for low-cost compressed hydrogen transportation compared to pipeline-based delivery solutions. They are suited for immediate short-term delivery of compressed gaseous hydrogen due to the high costs of pipeline-based hydrogen transportation and lack of pipeline infrastructure.

COVID-19 IMPACT

Decline in Hydrogen Demand Due to Disruption in Industrial Activities Hampered Market Growth

The COVID-19 pandemic has had both direct and indirect negative impacts on the global hydrogen tube trailer market growth. The pandemic led to disruptions in global supply chains due to lockdown measures, travel restrictions, and reduced manufacturing activities. These disruptions affected the production and delivery of tube trailers and their components, causing delays and supply chain challenges.

Many infrastructure projects related to hydrogen have experienced delays due to the economic uncertainties caused by the pandemic. Companies and governments had to reassess their investments and projects, leading to postponed deployments and hampered market growth.

The pandemic reduced industrial activities in various sectors such as automotive, aerospace, and energy. This decline in industrial output and demand indirectly impacts this market since these industries are significant consumers of hydrogen. Thus, the decreased demand for hydrogen slowed the adoption of tube trailers for transportation. For instance, in 2019, the hydrogen demand was 91.2 MT. The need for hydrogen decreased to 89.5 MT in 2020. This dropped demand hampered the market growth during the pandemic.

LATEST TRENDS

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Growing Adoption of Composite Tube Trailers to Drive the Market Growth

The hydrogen producers' adoption of composite tube trailers for storage and efficient transportation of hydrogen is a key trend in the market.

Composite tube trailers are lightweight compressed gas trailers constructed with composite materials such as advanced polymers. Due to their light compared to conventional steel tube trailers, composite trailers offer more hydrogen-carrying capacity.

For instance, according to the U.S. Department of Energy, traditional steel tube trailers have a limited onboard hydrogen carrying capacity of 380 kg. In contrast, composite tube trailers offer an improved capacity of nearly 560 to 900 kg of hydrogen per trailer. Therefore, almost all major hydrogen producers are shifting to composite tube trailers for efficient hydrogen transportation.

DRIVING FACTORS

Surging Demand for Hydrogen across Various Industries to Propel Market Growth

The demand for hydrogen tube trailers is rapidly increasing owing to the surging production and consumption of hydrogen across the globe. As per the IEA forecast, the hydrogen demand is anticipated to reach 179.9 MT by 2030. This increasing consumption of hydrogen across industries such as hydrogen fueling, aviation, mobility, heavy-duty transport, shipping, refineries, and petrochemical industries is projected to boost the market growth in future years.

Hydrogen is one of the leading alternatives for fossil fuels as it generates water as a byproduct instead of greenhouse gases. This makes it a eco-friendlier fuel choice. Therefore, surging government focus on emission-free mobility is likely to propel the adoption of hydrogen fuel cell-powered vehicles, which is further expected to influence market growth.

Increasing Sales of Hydrogen Fuel Cell Vehicles to Boost Market Growth

The increasing demand for Hydrogen Fuel Cell-Powered Electric Vehicles (FCEV) across the globe as a viable, clean alternative to fossil fuel-powered vehicles is anticipated to accelerate the product demand in the mobility sector.

FCEVs require a reliable supply chain for a continuous supply of hydrogen, which involves its transportation from production facilities to H2 refueling stations. Therefore, increasing FCEV sales are anticipated to boost the market growth over the forecast period. For instance, in 2021, U.S. FCEV sales rebounded by nearly 257% year-on-year growth, reaching a record level of approximately 3,341 units. The growth is majorly attributed to the push from the leading FCEV manufacturers such as Toyota and Hyundai.

RESTRAINING FACTORS

Limited Hydrogen Carrying Capacity of Tube Trailers May Hamper the Market Growth

Hydrogen tube trailers are utilized to haul the hydrogen gas. However, various government restrictions on tube pressure and onboard weight limit the weight-carrying capacity of these tube trailers. Additionally, due to the weight of the steel tubes in conventional steel tube trailers, their onboard carrying capacity is limited to approximately 380 kg.

Moreover, other means of hydrogen transportation provide certain advantages over tube trailers. For instance, hydrogen transportation through pipelines offers a continuous and uninterrupted supply of hydrogen. Therefore, increasing the use of other means of transportation such as pipelines may hamper the market growth in the upcoming years.

SEGMENTATION

By Type Analysis

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Modular Tube Segment to Lead Driven by the Flexibility to Transport Hydrogen to Different Locations in an Efficient Manner

By type, the market is segmented into modular tube, intermediate tube, and jumbo tube.  

The modular tube segment held the largest market share in 2022 and is likely to continue its dominance throughout the forecast period. As countries and industries invest in hydrogen industry infrastructure development, the need for reliable transportation solutions becomes paramount. Modular tube trailers offer a flexible and scalable option for transporting hydrogen to different locations, supporting the expansion of the hydrogen supply chain. Therefore, the surging adoption of modular tube trailers for efficient and scalable transportation of hydrogen is likely to fuel the segment growth in years to come.

Jumbo tube segment is expected to witness the fastest growth rate over the forecast period. Jumbo tube trailers are designed to carry more hydrogen gas than standard-sized tube trailers. The increased capacity allows more significant quantities of hydrogen to be transported to the end users, which is beneficial in meeting the growing demand for hydrogen in various applications such as fuel cell vehicles, industrial processes, and energy storage. This is likely to boost the segment growth over the forecast period.

By Application Type Analysis

Increasing Adoption of Hydrogen for Industrial Application to Propel Market Growth across Industrial Use Segment

By application type, the market is classified into hydrogen fuel station and industrial use. 

The industrial use segment dominated the market in 2022 and is likely to continue its dominance in years to come. Hydrogen is widely used as a feedstock in various industrial processes. It is used in petrochemicals, refueling, ammonia, methanol, and steel manufacturing. Thus, the demand for hydrogen as critical raw material drives the need for efficient transportation solutions such as hydrogen tube trailers for various industries. This is likely to accelerate the adoption of hydrogen tube trailers for industrial use.

The hydrogen fuel station segment is anticipated to register the fastest growth rate over the study period. The increasing adoption of hydrogen fuel cell vehicles (FCVs) drives the demand for hydrogen fuel stations. As more FCVs are introduced, reliable and accessible refueling infrastructure becomes crucial. In this case, hydrogen tube trailers play a vital role in transporting hydrogen to fueling stations, contributing to the growth of the market globally. For instance, the global fuel cell cars sold till 2021 were 15,500 units, which increased to 18,892 in 2022. The market witnessed an increase in additional sales of 3,392 units worldwide. The surging FCEV sales are expected to drive the global market growth.  

REGIONAL INSIGHTS

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Rising Demand for Clean Energy Solutions in Asia Pacific to Fuel Market Growth in the Region

Regionally, the market is categorized into North America, Europe, Asia Pacific, and the rest of the world.

Asia Pacific held the largest hydrogen tube trailer market share in 2022 and is expected to dominate throughout the forecast period. Asia Pacific countries have made substantial progress in developing hydrogen infrastructure, including hydrogen refueling stations, industrial hydrogen supply networks, and hydrogen production facilities. The region's commitment to building a robust hydrogen supply chain has driven the demand for hydrogen tube trailers, essential for safely transporting hydrogen gas. Moreover, Asia Pacific has been witnessing strong growth in industrial expansion in the past decade. Therefore, a strong industrial presence in the region is fueling the demand for hydrogen, further accelerating the market growth in the region.

Europe is projected to witness the fastest growth rate over the forecast period. The European Union has formulated a comprehensive strategy to accelerate the deployment of hydrogen technologies and foster the growth of a hydrogen economy, contributing to the region's market growth. Increasing government investment to adopt clean energy to tackle the problems related to climate change and emission control is anticipated to boost market growth during the forecast period.

North America held a considerable market share in 2022. The market growth is driven by the growing hydrogen demand in the U.S. in refineries and the demand for pure hydrogen in H2 fueling stations across states such as California. Similarly, the rest of the world, which covers South America and the Middle East & Africa, accounted for a significant market share in 2022 owing to the increasing hydrogen consumption across Egypt, Saudi Arabia, Iran, and others.

KEY INDUSTRY PLAYERS

Key Players Focus on Producing Lightweight Composite Tube Trailers to Drive Market Growth

The market is very fragmented, with several global as well as regional players operating in this industry. It is observed that both global, as well as regional players have decent product portfolios with a high focus on the technological development of tube trailers and catering to the growing demand for hydrogen worldwide over the upcoming years.

The majority of the players are focused on innovating lightweight and composite materials that can be used for manufacturing lightweight, highly durable and reliable, and efficient hydrogen tube trailers. Manufacturers are developing advanced technologies to provide highly efficient and cost-effective hydrogen transportation systems.

LIST OF KEY COMPANIES PROFILED:

• FIBA Technologies, Inc. (U.S.)


• Hexagon Purus ASA (Norway)


• Composite Advanced Technologies, LLC. (U.S.)


• Linde plc (Ireland)


• Weldship Corporation (U.S.)


• H2 Hauler (Australia)


• Air Liquide (France)


• Nishal Enterprises Pvt. Ltd. (India)


• Air Products and Chemicals, Inc. (U.S.)


• CALVERA Hydrogen (Spain)


• ILJIN Hysolus CO., LTD. (South Korea)

KEY INDUSTRY DEVELOPMENTS:

• April 2023 – FIBA Technologies developed a re-test, repair, and refurbishment schedule that accesses its customers, enabling advanced booking of trailer services. The company has its service center located in Ohio, Kentucky, Pennsylvania, Louisiana, and California in the U.S.


• February 2023 – CALVERA Hydrogen developed a large hydrogen tube trailer model to be built for Shell Hydrogen. The trailer length has been designed to be 45 feet long.


• December 2022 – FIBA Technologies Inc. built Jumbo Tube Trailers, adding to its existing lease fleet. With the help of this, the company aimed to cater to the demand for gas transportation trailers that will be growing in 2023.


• November 2022 – Hexagon Purus, with the help of wholly owned subsidiary Wystrach GmbH, signed a contract with the full-service provider of green hydrogen projects, Hypion. The contract concludes the delivery of Hexagon’s hydrogen distribution system to Hypion.


• September 2021 – Hexagon Purus, a company of Hexagon Composite ASA, completely acquired Wystrach GmbH. The latter is a leading hydrogen system provider in Europe.

REPORT COVERAGE

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The research report provides detailed analysis and focuses on key aspects such as leading companies, types, design, and technology. Besides this, the report offers insight into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the growth of the market in recent years.

Report Scope & Segmentation