Hydrogen Compressor Market Size, Share & Industry Analysis, By Type (Oil-Free, Oil-Based), By Technology (Single-Stage, Multi-Stage), By End-user (Oil & Gas, Chemical, Utility, Refueling Stations, Others) And Regional Forecast 2023-2030

A hydrogen compressor is a device that increases the pressure of hydrogen gas by reducing its volume. Reduced volume results in compressed hydrogen or liquid hydrogen. Most compressors used for gaseous hydrogen compression are either positive displacement compressors or centrifugal compressors, depending upon the requirement. Hydrogen fuels are considered to be one of the most emerging technologies in the automotive industry, which is expected to drive the market during the forecast period.

Based on type, the market is segmented into oil-free and oil-based segments. The oil-based segment dominates the hydrogen compressor market over the forecast period, owing to its advantages and applications in several end-user industries. Oil-based compressors cost-effective and provide a longer service life as compare to oil-free compressors. In addition, oil-based compressors are considered more efficient than oil-free compressors.

Based on technology, the market is classified into single-stage and multi-stage compressors. The multi-stage compressor is preferred over a single-stage compressor due to its properties such as low leakage loss, provide more uniform torque, suitable for heavy tasks, etc. Multistage metal hydride hydrogen compressor (MHHC) uses a fusion of different materials as metal hydrides to increase the final compression ratio while increasing the absorption of both the supply pressures of each stage. The performance of MHHC can be predicted by differential equations of energy, mass, and momentum conservation.

Based on the end-use industry, the market is segmented into oil & gas, chemical, utility, refueling station, and others. The chemical segment is expected to lead the global market in 2020. In the chemical industry, hydrogen is majorly used for the production of methanol and ammonia. Methanol and ammonia consume more than 50% of the hydrogen consumption worldwide. The Asia Pacific region is the leading producer of chemicals. In addition, the Asia Pacific region is expected to see major investments in the construction of new hydrogen plants, due to which the region is expected to drive the market during the forecast period.

The major market driver for the hydrogen compressor market is the growing demand for hydrogen fueling stations. An increase in the number of hydrogen gas pipelines and innovations in automotive industries are other factors driving demand for hydrogen compressors worldwide.  Along with this, the initiatives by the government for clean fuel also contribute to the market’s growth. 

The factor that is expected to inhibit the growth of the market is the high initial cost and frequent maintenance of the compressor. Dynamic prices for the raw material may hinder the market for hydrogen compressors.  

Key Market Driver -

Growing demand for hydrogen fueling stations

Key Market Restraint -

High initial cost and frequent maintenance

Key Players Covered:

Some of the major companies that are present in the hydrogen compressor market are HAUG Sauer Kompressoren AG, Hydropac, Howden, Ariel Corporation, CORKEN – an IDEX Energy business, Atlas Copco, Hitachi, Gardner Denver, Burckhardt Compression, Sundyne, Indian Compressors Ltd., Nel Hydrogen, Kaishan, and Dresser-Rand – A Siemens Business.

Regional Analysis:

The global hydrogen compressor market has been studied across North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The market is expected to register significant growth in Asia Pacific and Middle East & Africa region. The Asia Pacific region is majorly dependent on oil to meet energy demands; due to this, the region leads the global energy demand. A surge in demand for hydrogen fuel cell vehicles is producing lucrative opportunities for the development of hydrogen fuel recharging stations in the region. Hydrogen centrifugal compressors are used in ethylene plants for cracked-gas compression and refrigeration services, owing to such projects the demand for hydrogen compressors application in ethylene plants is projected to increase in China. Africa is expected to register significant growth due to major projects under construction, such as Dangote Refinery in Nigeria. The countries in the Middle East are investing heavily in the downstream sector, as selling refined oil rather than crude oil earns higher profit margins for these countries. As the downstream industry is growing rapidly in these countries, the industry is expected to drive the hydrogen compressor market during the forecast period.

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Segmentation

Key Industry Developments

• In September 2020, Mitsubishi signed its first lucrative hydrogen contract to supply hydrogen-capable gas turbines to the much-watched 840-MW Intermountain Power Project (IPP) in Millard County, Utah.


• In February 2020, Burckhardt Compression signed an agreement with GRZ Technologies, for Renewable Energy from EPFL Lausanne, Switzerland, to develop a new hydrogen compression technology in the coming years.