The global hydrogen compressor market, valued at US$ 2.2 Bn in 2022, is projected to expand steadily at a CAGR of 5.8% from 2023 to 2031, reaching a value of approximately US$ 3.6 Bn by the end of 2031. This upward trajectory is driven by the global shift toward decarbonization, the expansion of hydrogen infrastructure, and increased industrial and mobility applications of hydrogen.
Analyst Viewpoint
The hydrogen compressor market is benefiting significantly from the surge in demand for hydrogen as a clean and efficient energy carrier. Governments, private investors, and industries worldwide are recognizing hydrogen’s role in achieving net-zero goals, thereby accelerating infrastructure development. Compressors play a crucial role across the hydrogen value chain—from production and storage to distribution and end-use—making them indispensable to the hydrogen economy.
Market Introduction
Hydrogen compressors are mechanical devices that pressurize hydrogen gas, reducing its volume to facilitate storage and transport. They are vital components in hydrogen refueling stations, chemical plants, energy storage systems, and industrial processes. The main compressor types—reciprocating and centrifugal—are selected based on application needs, including pressure levels, flow rates, and cost considerations.
- Reciprocating compressors are preferred for their high compression ratios and ability to handle fluctuating demand.
- Centrifugal compressors, on the other hand, are valued for their ability to manage continuous, high-volume hydrogen flow.
Key Growth Drivers
1. Expansion of Hydrogen Refueling Infrastructure
The growth of hydrogen-powered mobility, particularly fuel cell electric vehicles (FCEVs), has led to increased investments in hydrogen refueling infrastructure. Compressors are essential to deliver hydrogen at high pressures—up to 700 bar—for fast and efficient vehicle refueling. As countries invest in low-emission transportation, hydrogen refueling stations are multiplying, directly boosting demand for hydrogen compressors.
2. Rise in Hydrogen Adoption Across Industries
Hydrogen is increasingly used in industrial applications including steel production, ammonia synthesis, and petrochemical processing. These industries rely on high-pressure hydrogen, necessitating robust compressor systems. Moreover, the emergence of hydrogen-powered stationary fuel cells and microgrids further contributes to market growth.
Market Trends
High Demand for Reciprocating Compressors
According to recent market studies, reciprocating compressors held the largest share in 2022. Their ability to manage high pressures and variable loads makes them ideal for hydrogen refueling and dynamic industrial environments. Their adaptability and cost-efficiency give them a competitive edge over other technologies.
Centrifugal Compressors Gain Traction
For large-scale applications such as hydrogen production plants and pipeline networks, centrifugal compressors offer higher flow capacity and smoother operation. As hydrogen infrastructure scales globally, centrifugal units are expected to see increased uptake in mega-projects requiring continuous gas movement.
Application Insights
The hydrogen production segment accounted for the largest market share in 2022. Whether via electrolysis, steam methane reforming, or biomass gasification, hydrogen must be compressed for downstream use. Compressors are integral to this process, enabling both onsite storage and bulk transportation.
In electrolysis-based production, compressors are critical in handling the hydrogen output from electrolyzers, ensuring the gas is ready for use or storage. This process is increasingly common as countries focus on green hydrogen development using renewable electricity.
Regional Outlook
Asia Pacific led the global hydrogen compressor market in 2022 with a market value of US$ 828.6 Mn, and it is forecast to reach US$ 1.4 Bn by 2031, growing at a CAGR of 6.2%. The region’s leadership stems from strong government policies, large-scale industrialization, and ambitious hydrogen strategies in countries such as:
- Japan: Pioneering hydrogen infrastructure and vehicle deployments
- South Korea: Investing in hydrogen fuel cell production and exports
- China: Scaling up green hydrogen projects
- India: Rolling out its National Hydrogen Mission
Competitive Landscape
Leading companies are prioritizing innovation to stay competitive in the evolving market. Burckhardt Compression AG, Atlas Copco, Ingersoll Rand, Siemens, Hitachi, and others are focusing on oil-free, energy-efficient, and digitally enabled compressor solutions.
Recent Developments:
- In February 2024, Burckhardt Compression was selected to supply high-performance hydrogen compressors for a trailer filling facility in Northwestern Europe.
- In January 2024, German startup Rejool partnered with Siemens to develop a digital twin-based hydrogen compressor, emphasizing compact design and oil-free operation.
These initiatives signal the industry’s shift toward intelligent, sustainable, and scalable compressor technologies.
Conclusion
The hydrogen compressor market stands at a pivotal point in the global clean energy transition. As hydrogen gains traction as a key solution for decarbonizing transport, power, and industry, the demand for reliable and efficient compression technologies will only intensify.
Key stakeholders, from equipment manufacturers to infrastructure developers, have significant opportunities to innovate and expand in this space. With strong government backing, robust industrial demand, and rapid infrastructure development, the hydrogen compressor market is well-positioned for long-term, sustainable growth through 2031 and beyond.
