Hydrogen Compressors Market by Lubrication Type (Oil-based, Oil-free), Type (Mechanical, Non-mechanical), Application (Hydrogen Infrastructure, Industrial (Oil Refining, Chemicals & Petrochemicals), Design Region - Global Forecast to 2028
[202 Pages Report] The global hydrogen compressors market size was valued USD 2.1 billion in 2023 and is poised to reach USD 2.6 billion by 2028; it is expected to record a CAGR of 4.5% during the forecast period. The initiatives by governments for clean fuel and innovations in the automotive industry are also contributing to the market's growth as well as growing demand for hydrogen fueling stations and the expansion of hydrogen gas pipelines.
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Hydrogen Compressors Market Dynamics
Driver: Substantial clean energy investments in developing economies
Clean energy investments often involve funding for the construction of hydrogen generating facilities, such as electrolyzers or reforming plants. Most hydrogen generated is in the form of low pressure. Compressors for hydrogen are used to increase its pressure so that it is suitable for storage, transportation and distribution. According to the International Energy Agency’s World Energy Investment Report 2023, the annual global energy investment is expected to reach USD 2.8 trillion in 2023, up nearly 15% from 2021 and bringing overall investment volume back to pre-crisis levels. The composition has evolved from clean energy investment as compared to the traditional fuel investment in 2022. More than USD 1.7 trillion will be allocated to clean energy, which includes renewable electricity, nuclear, grids, storage, low-emission fuels, efficiency improvements, and end-use renewables and electrification. The remaining funds, slightly more than USD 1 trillion, will be used to maintain fossil fuel supply and power, with coal accounting for approximately 15% and oil and gas accounting for the remainder. Investments in clean energy contribute to the overall growth of the hydrogen economy. As the demand for hydrogen increases across various sectors, including industry, transportation, and power generation, the need for hydrogen compressors to support storage and distribution infrastructure grows. Governments around the world are offering incentives, grants, and subsidies to support renewable energy and hydrogen-related projects. Financial support promotes the implementation of hydrogen infrastructure, leading to increasing demand for hydrogen compressors.
Restraint: High maintenance cost of hydrogen compressors
Compressors enable the safe and cost-effective transportation of hydrogen across the value chain. Compressing hydrogen involves distinct technical hurdles, unlike other industrial gases like methane (CH4) or carbon dioxide (CO2). Reciprocating compressors are commonly used in hydrogen applications today. However, this compressor has limited gas flow capacity, particularly at low suction pressures. Reciprocating compressors have higher operating and maintenance expenses compared to rotating turbo compressors. A compressor’s lifecycle costs typically take three factors into account: initial investment, lifetime maintenance costs, and lifetime energy costs. Power or energy consumption accounts for nearly 88% of a compressor’s 10-year life span cost. Hydrogen compressors, especially oil-free options, often come with a high upfront cost compared to traditional compressors. This can deter potential buyers, particularly in developing countries or cost-sensitive applications.
Opportunities: Expansion of hydrogen fueling infrastructure
With the growing adoption of fuel cell vehicles (FCVs), there is a need to establish hydrogen refueling stations. In comparison to 2021, the use of hydrogen in road transportation grew by about 45% in 2022. In 2022, the global stock of fuel cell electric vehicles was approximately 59,000, with an increase of 15% as compared with 2021. In 2022, about 15,000 fuel cell cars were sold, with Korea accounting for roughly two-thirds of that growth. China still dominates hydrogen usage in the heavy-duty vehicle transportation sector. With more than 4,100 fuel cell buses on the road worldwide, it represents more than 85% of the market, and at the end of 2021, it will represent more than 95% of the market for fuel cell trucks.
Outside of China, the market for fuel cell trucks is anticipated to grow further. The Advanced Clean Truck Regulation in California and the Global Memorandum of Understanding on Zero Emission Medium- and Heavy-Duty Vehicles, which is backed by multiple countries, signed by 16 countries, and supported by industry stakeholders, put pressure on truck manufacturers to expand their selection of zero emissions trucks. To facilitate the use of hydrogen in long-haul heavy-duty trucks across Europe, H2Accelerate was also launched in Europe in late 2020 under the partnership of hydrogen suppliers, infrastructure operators, and vehicle manufacturers. Fuel cell vehicle deployment should be complemented by the concurrent construction of supporting infrastructure. In 2021, there were more than 730 hydrogen refueling stations operating, up more than 35.1% from the previous year. Japan accounted for the largest share, followed by China and South Korea.
Challenges: Lack of infrastructure to hinder hydrogen markets
The insufficiency in infrastructure presents a notable hurdle for the hydrogen compressors market, especially in the context of fostering resilient hydrogen markets. With the global demand for green hydrogen rising, the inadequacies in support structures impede the seamless incorporation of hydrogen compressors technology into broader energy systems. The deployment of hydrogen compressors is closely tied to the development of a hydrogen infrastructure. The limited availability of hydrogen refueling stations and distribution networks can be a restraint for the widespread adoption of hydrogen as a transportation fuel. According to the International Energy Agency (IEA), in the first quarter of 2022, two million electric cars were sold worldwide, and this number is expected to increase significantly in the coming years. While hydrogen cars are also environmentally friendly, the lack of infrastructure for refueling is limiting their market growth. If hydrogen technology does not become more refined globally, it may be replaced by electric cars. Toyota, Hyundai, and Honda have also been developing electric-powered vehicles to prepare for any potential changes in the market. Addressing this infrastructure deficit requires collaborative efforts from governments, industry stakeholders, and investors. Strategic planning, substantial investments, and implementing policy frameworks that support the development of a comprehensive hydrogen infrastructure are essential to overcoming this challenge. As the hydrogen compressors market endeavors to achieve widespread adoption, closing the infrastructure gap becomes imperative for ensuring the seamless and effective integration of hydrogen compressors into the dynamic landscape of clean energy solutions.
Hydrogen compressor Market Ecosystem
Prominent companies in this market include Atlas Copco AB (Sweden), Linde plc (Ireland), Siemens Energy (Germany), Air Products and Chemicals, Inc. (US), and Ingersoll Rand (US). In the hydrogen compressors market, notable companies stand out as well-established and financially stable providers of hydrogen compressor products and services. With years of experience, these companies offer a diverse product portfolio, cutting-edge technologies, and strong global sales and marketing networks. Their proven track record in the industry establishes them as dependable and trustworthy partners for customers looking for hydrogen compressor solutions. These businesses have demonstrated their ability to adapt to market dynamics and consistently deliver high-quality products and services, making them leaders in meeting the demands of the energy and power sectors.
The multi-stage compressor segment, by design, is expected to be the fastest growing market during the forecast period.
This report segments the hydrogen compressors market based on design into two types: Single-stage & Multi-stage. Several factors contribute to the multi-stage compressor category being the fastest-growing in the hydrogen compressor market. These compressors are generally used to fill storage tanks and hydrogen production plants, as well as to transfer hydrogen via pipes. The multi-stage architecture allows for hydrogen compression in multiple steps, which reduces temperature rise during compression, reduces labor required for compression, and improves overall efficiency. This is especially critical when dealing with the peculiar qualities of hydrogen gas, such as its low molecular weight and great compressibility. Furthermore, the demand for multi-stage compressors is driven by the increasing need for enhanced and more cost-effective hydrogen compression technologies, as well as the growing demand for hydrogen as an alternative fuel and renewable.
By type, mechanical segment is expected to be the largest segment during the forecast period.
This report segments the hydrogen compressors market based on type into two types: Mechanical and non-mechanical. Mechanical compressors used in hydrogen compression consist of reciprocating piston compressors, screw compressors & centrifugal compressors. Mechanical hydrogen compressors are essential for compressing hydrogen to high pressures required for transportation and various applications within the evolving hydrogen economy. Mechanical compressors are often more cost-effective in terms of both initial investment and ongoing maintenance costs. The specific requirements for hydrogen compression, such as tight tolerances, are well addressed by the design and functionality of mechanical compressors.
Asia-Pacific: The largest in the hydrogen compressors market.
Asia-Pacific is expected to be the largest region in the hydrogen compressors market between 2023–2028. Asia-Pacific's dominance in the hydrogen compressors market can be attributed to several key factors. The region is experiencing rapid industrialization, urbanization, and a substantial demand for energy and power. This surge in demand aligns with a growing focus on renewable energy sources, where hydrogen plays a pivotal role. Favorable government policies promoting sustainable practices and clean energy further drive the adoption of hydrogen compressors. Additionally, the Asia-Pacific region is witnessing significant growth in the reciprocating hydrogen compressor market, particularly due to the increasing emphasis on renewable energy. Key players in manufacturing hydrogen compressors in the Asia-Pacific region include prominent companies such as Siemens, Mitsubishi Power, Neuman & Esser Group, Atlas Copco AB.
Key Market Players
The hydrogen compressors market is dominated by a few major players that have a wide regional presence. The major players in the hydrogen compressor market include Atlas Copco AB (Sweden), Linde plc (Ireland), Siemens Energy (Germany), Air Products and Chemicals, Inc. (US), Ingersoll Rand (US). Between 2019 and 2023, Strategies such as new product launches, contracts, agreements, partnerships, collaborations, acquisitions, and expansions are followed by these companies to capture a larger share of the hydrogen compressors market.
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Report Metric |
Details |
Market size available for years |
2022–2028 |
Base year considered |
2022 |
Forecast period |
2023–2028 |
Forecast units |
Value (USD Million/Billion), Volume (Units) |
Segments Covered |
Hydrogen compressor Market by Type, by lubrication type, by design, by end use application and Region. |
Geographies covered |
Asia Pacific, North America, Europe, South America, Middle East & Africa |
Companies covered |
Atlas Copco AB (Sweden), Linde plc (Ireland), Siemens Energy (Germany), Air Products and Chemicals, Inc. (US), Ingersoll Rand (US), Mitsubishi Heavy Industries Ltd., (Japan), Hitachi Industrial Products, Ltd., (Japan), HAUG Sauer Kompressoren AG (Switzerland), KOBE STEEL, LTD. (Switzerland), Howden group (UK), NEUMAN & ESSER GROUP (UK), Sundyne, Indian Compressors Ltd. (India) Adicomp S.r.l. (Italy), Ariel Corporation (US), KEEPWIN TECHNOLOGY HEBEI CO., LTD., (China), Pure Energy Centre (UK), Aerotecnica Coltri S.p.a. (Italy), Fluitron (US), CYRUS S.A. (Greece). |
This research report categorizes the Hydrogen compressor Market by type, by lubrication type, by design, by end-use application and Region.
On the basis of lubrication type:
- Oil-based
- Oil-free
On the basis of End user:
-
Hydrogen Infrastructure
- Hydrogen storage & transportation
- Hydrogen refueling stations
-
Industrial application
- Oil refining
- Chemicals & Petrochemicals
- Others
On the basis of type:
- Mechanical Compressor
- Non-mechanical Compressor
On the basis of design:
- Single-stage
- Multi-stage
Based on region:
- Europe
- Asia Pacific
- North America
- South America
- Middle East & Africa
Recent Developments
- In October 2023, Atlas Copco Compressors is partnering with Hoffman & Hoffman to develop a new distributor agreement for Atlas Copco's whole line of industrial process cooling solutions. Hoffman & Hoffman will exclusively represent the product line throughout South Carolina, North Carolina, Virginia, and Tennessee.
- Atlas Copco has joined hands with Octopus Hydrogen to supply deliver Octopus Hydrogen 3-stage boosters grade green hydrogen.
- In June 2023, Ingersoll Rand entered into an agreement to acquire Howden Roots. Roots is a leading provider of low-pressure compression and vacuum technologies.
- In April 2021, Linde plc & AGR joined hands. Linde plc will supply various products & services to AGR. The project encompasses proton exchange membrane (PEM) electrolyzers, compressors, storage tanks and high-performance fueling stations.
- In June 2021, Air Products and Baker Hughes to Collaborate on Global Hydrogen Projects.
Frequently Asked Questions (FAQ):
What is the current size of the hydrogen compressors market?
The current market size of the hydrogen compressor market is USD 2.1 billion in 2023.
What are the major drivers for the hydrogen compressors market?
Growing demand for cleaner fuels and the implementation of supportive government policies to decarbonize various sectors are some of the major drivers for the hydrogen compressor market.
Which is the largest region during the forecasted period in the hydrogen compressors market?
Asia Pacific is expected to dominate the hydrogen compressor market between 2023–2028, followed by North America & Europe.
Which is the largest segment, by type, during the forecasted period in the hydrogen compressors market?
The mechanical compressor segment is expected to be the largest market during the forecast period owing to the relatively mature and cost-effective technology.
Which is the fastest segment, by end user, during the forecasted period in the hydrogen compressors market?
Hydrogen infrastructure is expected to be the fastest market during the forecast period, by end-use application. The growth is attributed due to the penetration of renewables in the energy system. .
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The study involved major activities in estimating the current size of the hydrogen compressor market. Exhaustive secondary research was done to collect information on the peer and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the total market size. Thereafter, market breakdown and data triangulation were used to estimate the market size of the segments and subsegments.
Secondary Research
This research study on the hydrogen compressor market involved the use of extensive secondary sources, directories, and databases, such as Hoover’s, Bloomberg, Factiva, IRENA, International Energy Agency, and Statista Industry Journal, to collect and identify information useful for a technical, market-oriented, and commercial study of the hydrogen compressor market. The other secondary sources included annual reports, press releases & investor presentations of companies, white papers, certified publications, articles by recognized authors, manufacturer associations, trade directories, and databases.
Primary Research
The hydrogen compressor market comprises several stakeholders, such as hydrogen compressors manufacturers, component providers, and technical support providers in the supply chain. The demand side of this market is characterized by the rising demand for hydrogen compressor in various end-use applications such as hydrogen infrastructure and industrial applications. The supply side is characterized by rising demand for contracts from the industrial sector and mergers & acquisitions among big players. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. Following is the breakdown of primary respondents:
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Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and validate the total size of the hydrogen compressor market. These methods were also used extensively to estimate the size of various subsegments in the market. The research methodology used to estimate the market size includes the following:
- The key players in the industry and market have been identified through extensive secondary research, and their market share has been determined through primary and secondary research.
- The industry’s value chain and market size, in terms of value, have been determined through both primary and secondary research processes.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
Hydrogen compressor Market Size: Top-Down Approach
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Hydrogen compressor Market Size: Bottom-Up Approach
Data Triangulation
After arriving at the overall market size from the above estimation process, the total market has been split into several segments and subsegments. Data triangulation and market breakdown processes have been employed to complete the overall market engineering process and arrive at the exact statistics for all the segments and sub-segments, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand- and supply sides. Along with this, the market has been validated using both the top-down and bottom-up approaches.
Market Definition
Hydrogen is the lightest and most abundant element. It is normally produced at relatively low pressures (20-30 bar) and must be compressed before transportation. A hydrogen compressor is a mechanical device that increases the pressure of hydrogen gas by reducing its volume. The hydrogen compressors are vital for several applications such as refueling stations, oil & gas industries, chemical industries, and other end use applications that require hydrogen to be stored, transported, or used at higher pressures than what is normally produced or provided.
The hydrogen compressors market is defined as the sum of the revenue generated by companies providing hydrogen compressors across various end users such as oil & gas, chemicals, refueling stations, other end uses and overall hydrogen value chain. The hydrogen compressors market has been analyzed for North America, Europe, Asia Pacific, South America, and Middle East & Africa.
Key Stakeholders
- Hydrogen compressor manufacturers and suppliers
- Energy and Power companies
- Hydrogen infrastructure developers
- Green hydrogen producers
- R&D laboratories
- Chemical Industries
- Oil & Gas companies
- Hydrogen refueling station providers
- Institutional investors
- Consulting companies from the energy & power sector
- Government and research organizations
- Renewable energy providers
Objectives of the Study
- To define, describe, segment, and forecast the hydrogen compressors market size, by lubrication type, type, design, and end user, in terms of value.
- To forecast the market size across six key regions: North America, Europe, Asia Pacific, South America, and Middle East & Africa, along with country-level analysis, in terms of value and volume
- To provide statistical data for installed hydrogen compressors capacity for each region and country
- To provide detailed information regarding key drivers, restraints, opportunities, and challenges influencing the market growth
- To provide the supply chain analysis, trends/disruptions impacting customer business, market mapping, pricing analysis, and regulatory landscape pertaining to the market
- To strategically analyze the ecosystem, standards and regulations, patent analysis, trade analysis, Porter’s five forces, and case studies pertaining to the market under study
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, contributions to the overall market size
- To analyze opportunities for stakeholders in the market and draw a competitive landscape for market players
- To benchmark players within the market using the company evaluation matrix, which analyzes market players based on several parameters within the broad categories of business and product strategies
- To compare the key market players with respect to the market share, product specifications, and applications
- To strategically profile the key players and comprehensively analyze their market ranking and core competencies
- To analyze competitive developments in the hydrogen compressors market, such as contracts, agreements, investments, expansions, product launches, partnerships, joint ventures, and collaborations
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
Product Analysis
- Product Matrix, which provides a detailed comparison of the product portfolio of each company
Company Information
- Detailed analyses and profiling of additional market players
Growth opportunities and latent adjacency in Hydrogen Compressors Market