Hydrogen Compressor Market Size, Share & Trends Analysis Report By Lubrication Type (Oil Based, Oil Free), By End Use (Petrochemicals & Chemicals, Oil & Gas), By Region (North America, Europe), And Segment Forecasts, 2024 - 2030

Hydrogen Compressor Market Size & Trends

The global hydrogen compressor market size was valued at USD 1.85 billion in 2023 and is projected to grow at a CAGR of 3.9% from 2024 to 2030. As the world shifts toward a more sustainable energy system, hydrogen is increasingly viewed as a vital component of the future energy mix. It can be used as a clean fuel in various applications, from transportation to power generation. Compressors are essential in this hydrogen supply chain, enabling storage, transportation, and utilization of this element by compressing it to high pressures required for these applications.

The integration of renewable energy sources such as wind and solar power has increased the focus on hydrogen as an energy storage solution. During periods of excess renewable energy production, electrolysis can convert this surplus electricity into hydrogen, which can then be stored and later converted back into electricity or used as a fuel. Hydrogen compressors play a crucial role in this process, making it possible to store and transport this material efficiently.

Moreover, fuel cell technology, which converts this element into electricity with water as the only byproduct, is rapidly advancing. This technology is becoming more prevalent in various sectors, including automotive (fuel cell vehicles), stationary power generation, and portable power systems. The increased adoption of fuel cells necessitates reliable and efficient such compressors to ensure a steady supply of hydrogen at the required pressure levels.

Additionally, governments worldwide are implementing policies and incentives to promote use of hydrogen as part of their efforts to reduce greenhouse gas emissions and combat climate change. These initiatives include subsidies for hydrogen production, infrastructure development, and research and development funding. As a result, demand for this product is bolstered by these supportive regulatory frameworks that drive investment in these technologies.

Furthermore, hydrogen is widely used in various industrial processes, such as refining, ammonia production, and methanol synthesis. The need for this element in these industries continues to grow, driven by increasing production demands and need for cleaner production processes. These compressors are vital for these industrial applications, ensuring the efficient handling and processing of this gas.

The development of hydrogen refueling infrastructure is critical for the adoption of hydrogen-powered vehicles. Such refueling stations require compressors to pressurize this gas to the high levels needed for vehicle fueling. As the network of this element refueling stations expands globally, demand for such compressors rises correspondingly.

Continuous advancements in compressor technology are making such compressors more efficient, reliable, and cost-effective. Innovations such as oil-free compressors, improved materials, and enhanced cooling systems are driving the adoption of these compressors by addressing issues related to maintenance, energy consumption, and operational efficiency.

Lubrication Type

On the basis of lubrication type, the oil based segment led this industry with the largest revenue share of 67.5% in 2023 and is forecasted to grow at a significant CAGR from 2024 to 2030. Oil-based compressors are renowned for their high operational efficiency and reliability. The presence of oil in this system aids in lubrication, reducing wear and tear on moving parts. This results in longer service life and lower maintenance requirements, which are crucial for industrial applications where downtime can be costly. The reliability of oil-based compressors makes them a preferred choice in sectors that demand consistent and continuous operation.

Moreover, oil-based compressors generally have lower initial costs and operational expenses compared to their oil-free counterparts. The lubrication provided by oil reduces friction and improves overall efficiency of compression process, leading to lower energy consumption. Additionally, maintenance costs for oil-based compressors are often lower due to the reduced frequency of repairs and replacements. This cost-effectiveness is a significant driver for their adoption in cost-sensitive industries.

Furthermore, oil-based compressors are capable of achieving high compression ratios, which are essential for applications requiring hydrogen at high pressures. High compression ratios are particularly important in industrial processes, hydrogen refueling stations, and energy storage systems. The ability to compress hydrogen to the required pressures efficiently makes oil-based compressors highly suitable for these demanding applications.

End Use Insights

Based on end use, petrochemical & chemical industries dominated this market in 2023 with a revenue share of 43.2%. This is expected to grow at a significant CAGR from 2024 to 2030. Hydrogen is a critical component in various chemical and petrochemical processes, including the production of ammonia, methanol, and other key chemicals. In these processes, such elements are often required at high pressures for efficient reactions. These compressors are essential for achieving these pressures, enabling the effective utilization of hydrogen in these processes. As the demand for these chemicals grows, so does the need for efficient hydrogen compression.

Moreover, stringent environmental regulations are pushing petrochemical and chemical industries towards cleaner production methods. Hydrogen is seen as a cleaner alternative for various processes, reducing environmental footprint of chemical manufacturing. This need to comply with these regulations and reduce greenhouse gas emissions is leading to greater adoption of hydrogen-based processes, thereby increasing demand for such compressors.

The broader expansion of green energy infrastructure, including production, storage, and distribution facilities, is supporting the growth of such compressors. Petrochemical and chemical industries are investing in dedicated hydrogen production and storage facilities to ensure a stable supply of this gas for their processes. This investment in infrastructure drives industry demand for these compressors, which are integral to the efficient handling of hydrogen.

The production of specialty chemicals, which are used in a wide range of industries including pharmaceuticals, agriculture, and consumer goods, often involves hydrogen. The growth of specialty chemicals market is driving industry demand for efficient hydrogen compression solutions. These enable the precise control of hydrogen pressures required in these specialized production processes.

Regional Insights

North America's industrial sectors, including chemical manufacturing, refining, and steel production, have substantial green energy requirements. The push to decarbonize these industries by integrating hydrogen into their processes necessitates the use of such compressors to ensure efficient and reliable hydrogen delivery and storage.

U.S. Hydrogen Compressor Market Trends

The hydrogen compressor market in the U.S. is growing as stringent decarburization goals drive adoption of green across various sectors, from power generation to heavy industry. Such compressors are critical for applications such as hydrogen injection into natural gas grids, which helps reduce the carbon footprint of energy consumption.

Europe Hydrogen Compressor Market Trends

Europe is at the forefront of green energy revolution, with the European Union setting ambitious targets for hydrogen production as part of its Green Deal. Countries like Germany, France, and the Netherlands are leading the way with substantial investments in hydrogen infrastructure, including electrolyzers, storage facilities, and transport networks, all of which require such compressors.

Asia Pacific Hydrogen Compressor Market Trends

The hydrogen compressor market in Asia Pacific is growing as countries, such as China, Japan, and South Korea, are experiencing rapid industrial growth. These countries are heavily investing in clean energy alternative to support their expanding industries. Hydrogen compressors are essential for industrial applications, from steel production to chemical manufacturing. Japan and South Korea are technological leaders in hydrogen fuel cell technology. Both countries have extensive hydrogen refueling station networks and are advancing hydrogen-powered transportation. The need for high-pressure hydrogen compressors is critical to support these developments.

Key Hydrogen Compressor Company Insights

Some of the key players operating in the market include Hitachi Limited and IDEX Corporation

• Hitachi Limited, headquartered in Tokyo, Japan, is a global conglomerate that operates in multiple sectors, including information technology, infrastructure systems, energy solutions, and industrial products. This company is actively involved in the development and production of hydrogen compressors.

• IDEX Corporation, headquartered in Northbrook, Illinois, USA, is a global leader in applied solutions and specialty industrial products. Established in 1988, IDEX operates in various sectors, including fluid and metering technologies, health and science technologies, fire and safety, and diversified products. This company has a strong global presence, with operations and customers across North America, Europe, Asia, and other regions.

Molex is one of the emerging market participants.

• Ingersoll Rand Inc., headquartered in Davidson, North Carolina, USA, is a global industrial company known for its diverse range of products and services, including air compressors, pumps, and industrial machinery. This company provides a range of hydrogen compressors designed to meet the high-pressure requirements of industry applications.

Recent Developments

• In April 2024, MITSUI E&S Co. Ltd. announced the beginning of the sale of high-flow hydrogen compressors tailored for hydrogen station facilities and hydrogen production equipment. The compressor can compress hydrogen to up to 50 MPa at a flow rate of 95 kg/h.

• In August 2023, Sundyne announced four new standard PPI diaphragm compressor packages designed to make it more comfortable, faster, and more cost-effective to purchase, deploy, and maintain PPI hydrogen compressors. The new compressor packages cover a pressure range from 20 bar (290 psi) suction to 550 bar (8,000 psi) discharge, with flows from 10 kg/hr (22 lbs/hr) up to 60 kg/hr (132 lbs/hr). Each package can be delivered in compliance with North American or European requirements.

Hydrogen Compressor Market Report Scope

Global Hydrogen Compressor Market Report Segmentation

This report forecasts revenue growth at the global, regional & country levels and provides an analysis of the latest industry trends in each of the segments from 2018 to 2030. For this study, Grand View Research has segmented the global hydrogen compressor market on the basis of lubrication type, end use, and region:

• Lubrication Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Oil Based

  • Oil Free

• End Use Outlook (Revenue, USD Million, 2018 - 2030)

  • Petrochemical & Chemicals

  • Oil & Gas

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa