Compressor Growth Opportunities in the Hydrogen Market

Compressor Growth Opportunities in the Hydrogen Market

Compressor Vendors Exploring Hydrogen Production Technologies as Emissions Regulations Dominate the Climate Agenda

The analysis of the global compressors market in the emerging hydrogen sector discusses key trends and insights into the opportunities available for compressor vendors. Significant developments in hydrogen production from fossil fuels with carbon capture, utilization, and storage (CCUS) have been made despite marginal growth in production from announced projects.

The market opportunity for compressors in hydrogen production and distribution is substantial. In North America and Europe, many large-scale projects involved in low-emissions hydrogen in refining, chemicals, and steel manufacturing reached final investment decisions (FID) in 2023, indicating positive growth prospects. China is a leader in this space, backed by its strength in mass manufacturing clean energy technologies. Other regions also show increased government investment in hydrogen technologies.

Low-emissions hydrogen remains an emerging sector and, consequently, faces uncertainties in costs and the need to scale in the future. It is expected that as hydrogen hubs are established in the upcoming years, steel and shipping applications will offer opportunities. As part of the infrastructure, the compressors used will also need modification. Hydrogen's versatile nature as a fuel, a chemical feedstock, or converted into methane and methanol makes it an important consideration for energy companies.

Key Issues Addressed

What are the types of compressors and their applications?
What are the factors enabling growth?
How is the hydrogen market performing?
What areas should compressor vendors look at to benefit from the hydrogen market?