Hydrogen Compressor Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Hydrogen Compressor Market Data

Hydrogen Compressor Market Trends & Drivers

 Accelerating Decarbonization through Renewable Shift

• Three main uses of clean hydrogen exist in a decarbonized economy: as a substrate, as fuel, and for load balancing and energy storage. These applications are critical in many different industries, including transportation, energy, manufacturing, and agriculture. In order to achieve these goals and make effective use of the gas in these businesses, compressors are needed.
• Hydrogen has the ability to stabilize the erratic output of renewable energy sources, such as photovoltaic panels.
• One of the options for storing renewable energy is this gas, which is an affordable way to store significant amounts of electricity for a few days, weeks, or months.
• Renewable energy may be transported across vast distances using hydrogen and hydrogen-based fuels.
• Air quality and energy security could also be improved by it, and it improves power systems' flexibility.

Hydrogen's Versatility in Supply and Application

• It is becoming imperative for the transportation sector to move away from dirty fuels, such as gasoline and diesel. A large number of battery-powered electric cars are already on U.S. roads. Further, because long trips need a huge amount of energy for heavy vehicles, such as trucks and trucks, instead of the battery, a hydrogen fuel cell that elongates the driving range can be used. During the reaction, hydrogen combines with oxygen to create energy and water. To refuel these vehicles, hydrogen stations are being set up.
• Further, green hydrogen can substitute natural gas and offer significant emission reduction. Its high heat capacity allows it to be used as a coolant in power plants.
• The heating industry could also benefit from storing hydrogen and turning it back into something else via reverse electrolysis.
• When the gas is turned into energy, it releases water and a lot of thermal energy, which could be used in the future to heat buildings. Using H2 for heating through existing gas lines works best in older buildings that have not switched to electric heating yet.

Challenges with Positive-Displacement Compressors

• Because of the tight tolerances needed to stop leaks, hydrogen compression is a tough job for positive-displacement compressors.
• When the suction pipe is too long and the width is too small, it makes the suction resistance higher, which changes the amount of air. Fouling and clogging lower the amount of exhaust, and the filter needs to be cleaned often.
• Because of regular wear and tear, parts that are worn out too quickly, such as piston rings, need to be replaced.
• The compression force of the compression valve is incorrect. If the compression force is small, air leakage is required. Too much tightness does not work either, which deforms and damages the valve cover.
• Some oil seals become less flexible because the rubber wears down after being used for too long, which lets oil leak out of compressors.

Hydrogen Compressor Industry Outlook

Compressor Type Outlook

• The mechanical type held the larger market share, of 80%, in 2023. Screw, centrifugal, and reciprocating piston compressors are the mechanical compressors covered in the study.
• In the rapidly developing hydrogen economy, mechanical compression devices are crucial for compressing hydrogen to the high temperatures needed for transportation and other uses. In terms of the initial investment and continuing maintenance expenses, these variants are frequently more economical.
• These devices achieve the volumetric and gravimetric density of energy near the 2017 objectives of the DOE and an efficiency of up to 95%.
• Furthermore, these compressors are affordable, safe, and efficient to use.
• They are also free of moving components, run quietly, and show great dependability and safety, as well as design simplicity and increased compactness, resulting in a rich potential for market players.
• Additionally, multiple nations are setting up hydrogen refueling stations, which are expected to boost the need for mechanical hydrogen compressors.
• The U.K. government announced in April 2022 the establishment of a Future System Operator to supervise the U.K.'s energy sector and infrastructure, including developing technologies and implementing the energy security strategy of the U.K. The government released an array of suggestions in support of its hydrogen strategy, including Hydrogen Investor Roadmap: Leading the Way to Net Zero, a policy paper.

On the basis of type, the market is classified as:

• Mechanical Compressors (Larger and Faster-Growing Category)
• Non-Mechanical Compressors

Application Outlook

• The oil & gas category held the largest share, of 45%, in 2023. The rising investment in the oil & gas sector is projected to raise demand for these machines.
• By using hydrogen, heavier hydrocarbon molecules, i.e., heavy crude oil, are reduced into lighter, more-valuable products, such as gasoline and diesel, in what is termed hydrocracking.
• Sulfur is removed from crude oil and refined products through the hydrotreating process. When compressed hydrogen reacts with these contaminants, removable chemicals are formed. This majorly impacts the market for hydrogen compressors, especially since tighter regulations on fuel quality are being implemented around the world.
• The upgradation of bitumen is necessary before its transportation and processing, since it is quite viscous. This procedure requires the use of compressed hydrogen to saturate the long-chain molecules in bitumen, to facilitate simpler flow.
• The COSMHYC research project, supported by the European Commission's Fuel Cell and Hydrogen Joint Undertaking, has started testing a prototype of a metal hydride compressor. It produced high-pressure values of over 430 bars during preliminary testing.
• ADNOC stated in May 2022 that it intended to construct an additional LNG plant in Fujairah, surpassing its ability to export and produce up to 9.6 million tonnes annually.
• The recently established UAE Hydrogen Alliance with ADNOC, Mubadala, and ADQ is projected to provide chances to collaborate, produce, store, transport, and secure, and H2 supply.

The following applications were studied for the report:

• Power Plants
• Hydrogen Refueling Stations
• Industrial Furnaces
• Petrochemical & Chemical Plants
• Pharmaceutical Facilities
• Oil & Gas Refineries (Largest and Fastest-Growing Category)
• Others

Design Outlook

• The multi-stage category held the larger market share, of 75%, in 2023, and it is expected to witness the higher CAGR over the forecast period. These compressors are typically utilized for filling storage tanks at hydrogen production plants, as well as to transport the gas via pipelines.
• The multi-stage architecture minimizes temperature rise, reduces labor demands, and offers high effectiveness. This is important considering the low molecular weight and substantial compressibility of this gas.
• The demand for multi-stage variants is propelled by the rising requirement for improved and more-affordable H2 compression technologies, along with the growing demand for the gas as an alternative fuel and renewable resource.

The design segment of the market is classified as:

• Single-Stage
• Multi-Stage (Larger and Faster-Growing Category)

Lubrication Outlook

• The oil-free bifurcation dominated the market, with a share, of 80%, in 2023. The oil-free type removes the possibility of oil contamination in compressed hydrogen. This is important as even minute amounts of oil can seriously hinder semiconductor production, the performance of fuel cells, and many other applications. The growth in the demand for oil-free compressors is driven by the emphasis on preserving ultra-clean hydrogen through the compression process.
• The growing investment in the oil and gas sector is going to boost up the need for hydrogen compressors.
• The oil-based bifurcation is expected to grow at the higher rate, of 6%, in the forecast period. This will be because oil-based variants are sturdy, durable, and capable of handling enormous loads. They offer efficient sealing, while minimizing wear and strain on the moving components.
• Oil-based compressors utilize oil as a cooling medium, absorbing approximately 80% of the heat produced during compression and leading to increased efficiency. They are deemed acceptable for a wide range of industrial applications needing higher pressure.
• They are frequently used in industrial applications where high-pressure compression and continuous operation are necessary.

We have classified the lubrication type segment as follows:

• Oil-Based (Faster-Growing Category)
• Oil-Free (Larger Category)

Asia-Pacific is the Largest Region

• Geographically, Asia-Pacific is the largest as well as fastest market, and it will advance at a CAGR of 6% during 2024–2030. The region is rapidly developing and urbanizing with an immense need for thermal and electrical energy. The increase in the demand for hydrogen compressors is due to the growing focus on renewable energy sources, with hydrogen playing a significant part.
• Regulations of the government that promote sustainable activities and clean energy additionally encourage the adoption of hydrogen compressors.

The regions and countries analyzed for this report include:

• North America
  • U.S. (Larger Country Market)
  • Canada
• Europe
  • Germany (Largest Country Market)
  • U.K. (Fastest-Growing Country Market)
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Largest and Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia
  • South Africa (Largest Country Market)
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

Market Nature - Consolidated

The market has grown more competitive with both established and developing businesses contending for the market share. Companies are focused on innovation, broad product offerings, and strategic partnerships to obtain a competitive advantage.

Hydrogen Compressor Companies News

• In June 2022, HRS, a European designer and manufacturer of hydrogen refueling stations, and Burckhardt Compression, a provider of reciprocating compressor systems, announced the signing of a supply deal for multiple-diaphragm compressors. These devices were incorporated into HRS hydrogen refueling stations, which have a daily capacity of more than one ton.
• Ariel Corporation, a manufacturer of reciprocating gas compressors, and Hoerbiger formed an agreement in June 2022 to offer non-lube compressors for the automotive industry. Applications will include public transportation, large fleets, private trucking companies, trains, boats/ships, and other high-volume, high-pressure vehicle refueling applications.
• The Clean Hydrogen Collaboration (2021–2027) is a joint public-private collaboration financed by the European Commission through Mission Europe. This expands on the success of the previous version, the Fuel Cells and Hydrogen Joint Undertaking, and includes the Hydrogen Valleys Platform, which is an EU-led program under Mission Innovation.
• The European Commission announced its Hydrogen Strategy, which aims to produce 1 million tons of green hydrogen and build 40 GW of electrolyzers by 2030.