Hydrogen Compressor Market Forecasts to 2028 – Global Analysis By Lubrication Type (Oil-Based and Oil-Free), Technology (Multi Stage and Single Stage), Hydrogen Pressure (200 bar, 350 bar, 400 bar, 500 bar, 700 bar and 900 bar), End User (Oil and Gas, Che

Hydrogen Compressor Market Forecasts to 2028 – Global Analysis By Lubrication Type (Oil-Based and Oil-Free), Technology (Multi Stage and Single Stage), Hydrogen Pressure (200 bar, 350 bar, 400 bar, 500 bar, 700 bar and 900 bar), End User (Oil and Gas, Chemical, Refueling Stations and Other End Users) and By Geography

According to Stratistics MRC, the Global Hydrogen Compressor Market is accounted for $1.64 billion in 2022 and is expected to reach $2.49 billion by 2028 growing at a CAGR of 7.23% during the forecast period. A hydrogen compressor is equipment that lowers the volume of hydrogen gas while raising its pressure. Compressed hydrogen, or liquid hydrogen, is the result of reduced volume. The most prevalent types of compressors used to compress gaseous hydrogen are positive displacement or centrifugal compressors.

According to the International Energy Agency (IEA), the demand for hydrogen has grown more than threefold since 1975, further anticipated to rise in the forthcoming years, resulting in the establishment of more hydrogen production plants and pipelines for its transportation.

Market Dynamics

Driver:

Rising use of hydrogen in various industries

In recent years, the demand for hydrogen has multiplied across industries. Compared to conventional fuels, the use of hydrogen for energy production has a lower environmental impact. Governments everywhere are enforcing strict emission standards, particularly in the industrial sector, in response to the world's changing climate. As a result, producers are compelled to use clean energy sources. In order to comply with regulations, manufacturers use hydrogen for clean energy generation because solar, wind, and biogas cannot supply the amount of energy needed at this scale.

Restraint

High capital investment for hydrogen plant

Organizations that currently use hydrogen energy can either have hydrogen gas delivered to them via tube trailers for smaller quantities or build a plant on-site to produce hydrogen gas if they need a higher quantity of fuel. It costs a lot of money to set up the infrastructure needed to use hydrogen fuel cells. In addition to worrying about the costs associated with hydrogen gas deliveries or constructing an on-site plant to generate hydrogen gas, organizations will need to work with their local government and fire department to get approvals. Such factors are hampering market expansion.

Opportunity

Evolving hydrogen fuel cell technology

Lately, there has been a rise in research into hydrogen fuel cells. Energy production methods are changing dramatically as a result of the use of hydrogen. Environmental protection and clean energy production are both possible with hydrogen fuel cells. The demand for hydrogen fuel cells is increasing because they can be used for a variety of purposes, including supplying vital energy backup for large manufacturing facilities and supplying power for cars and homes. Furthermore, the development of hydrogen fuel cells is being driven by the rising demand for cleaner energy.

Threat

Highly flammable & loss of energy

Lift truck fuel cells require hydrogen in the gas form, which can be stored either as a gas under high pressure or as a liquid under cryogenic conditions. Energy loss is a built-in component of both hydrogen storage techniques. About 13% of the hydrogen's total energy must be expended in the process of compressing it, and liquefaction results in a 40% energy loss. Due to its high flammability and ease of escape, hydrogen gas is easily released. Metals can corrode if hydrogen gas escapes their containment. As a result, these contaminated metals may become brittle and more likely to break.

Covid-19 Impact

Several nations around the world imposed lockdowns and restrictions as a result of the COVID-19 impact. This led to a gap between supply and demand in the industries that use hydrogen, which had an adverse effect on the market. Operations for refining crude oil were disrupted by the sudden drop in demand from the transportation sector and the oil price's plunge to its lowest level in decades. Due to lockdowns, the pandemic caused many products on the hydrogen compressor market to stop being produced. In addition, with the release of the COVID-19 vaccine on the market, fewer cases of the disease are anticipated in the future. As a result, businesses that make hydrogen air compressors are now operating at full capacity. This is expected to aid in the market's recovery.

The Oil-Based segment is expected to be the largest during the forecast period

Due to its benefits and numerous end-user industries' applications, the oil-based segment will continue to be dominant during the forecast period. Compared to oil-free compressors, oil-based compressors are more affordable and offer a longer service life. Additionally, oil-based compressors are also thought to be more effective than oil-free compressors.

The Multi Stage segment is expected to have the highest CAGR during the forecast period

Due to its advantages over a single-stage compressor, such as its suitability for heavy tasks, low leakage loss, the multi-stage segment is estimated to have the highest CAGR during the forecast period. The multistage metal hydride hydrogen compressor increases the final compression ratio while increasing the absorption of both the supply pressures of each stage. It does this by fusing various materials to form metal hydrides. They are also widely used in many different industries, including oil and gas, power generation, food and beverage processing, and mining, among others, due to their capacity to manage heavy workloads at lower operating costs, which is fostering the growth of the segment.

Region with largest share

Asia-Pacific dominated the market and is anticipated to hold the largest market share for hydrogen compressors during the forecast period. In 2021, the region had a volume share of more than 40%. Asia-Pacific markets are growing due to increased industrialization and labor availability. In addition, China is Asia’s top producer and exporter of hydrogen compressors, followed by Japan and India, which are still developing their manufacturing industries. The development of the hydrogen compressor market in Asia-Pacific is also fueled by the region's rapid industrialization and government initiatives to improve the manufacturing sector in the automotive and chemical industries.

Region with highest CAGR

Due to the dramatic shift in the region's energy consumption from fossil fuels to alternative fuels, the market for hydrogen compressors in Europe is anticipated to witness lucrative growth during the forecast period. The various initiatives taken by the local government, focusing on fostering the expansion of energy generation through alternative sources, are what are responsible for this change in consumer preference. The national market for hydrogen compressors is dominated by Germany. The proliferation of hydrogen fuel cell vehicles and filling stations is responsible for the country's market expansion.

Key players in the market

Some of the key players profiled in the Hydrogen Compressor Market include Ariel Corporation, Atlas Copco AB, Adicomp, Baker Hughes, Burckhardt Compression AG, Coltri, Corken Inc., Fluitron, Inc., Fornovo Gas Compressors, Gardner Denver Nash, LLC, HAUG Sauer Kompressoren AG, Hitachi, Ltd., Howden Group Ltd, Hydro-Pac Inc., IDEX Corporation, Indian Compressors Ltd, Ingersoll, Rand, Inc., Lenhardt & Wagner GmbH, Nel ASA, NEUMAN & ESSER GROUP, PDC Machines Inc., Sauer Compressors, Sundyne Corp. and Toplong Compressors.

Key Developments

In March 2023, Hitachi Energy and Gulf Cooperation Council Interconnection Authority (GCCIA) announced today the signing of a contract to upgrade the Al-Fadhili highvoltage direct current (HVDC) converter station under the GCCIA authority in Saudi Arabia. Its mission is to create a resilient interconnected grid, ensuring power security, and economic benefits.

In July 2022, Hydrogen infrastructure development company LIFTE H2, head quartered in the US with a German subsidiary, and compressor manufacturer Burckhardt Compression, head quartered in Switzerland, have signed a Memorandum of Understanding (MOU) to develop a joint offering of Hydrogen solutions to the market.

In June 2022, Ariel Corporation, the world’s largest manufacturer of separable reciprocating gas compressors and Hoerbiger, a global leader in reciprocating gas compressor components technology, announce their agreement to provide non-lube compressor solutions capable of fulfilling the hydrogen compression requirements of the future hydrogen mobility market such as public transportation, large fleet vehicles, private trucking companies, trains, boats/ships and other high volume, high pressure, vehicle-fueling applications.

Lubrication Types Covered:
• Oil-Based
• Oil-Free

Technologies Covered:
• Multi Stage
• Single Stage

Hydrogen Pressures Covered:
• 200 bar
• 350 bar
• 400 bar
• 500 bar
• 700 bar
• 900 bar

End Users Covered:
• Oil and Gas
• Chemical
• Refueling Stations
• Renewable Energy
• Automotive
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements