U.S. Hydrogen Compressor Market Size, Share & COVID-19 Impact Analysis, By Type (Reciprocating and Centrifugal), By Application (Power Plants, Hydrogen Refueling Stations, Industrial Furnaces, Petrochemical & Chemical, Pharmaceuticals, Oil & Gas, and Others), and Country Forecast, 2023-2030

The U.S. hydrogen compressor market size was valued at USD 282.50 million in 2022 and is projected to anticipate a CAGR of 4.65% during the forecast period. 

A hydrogen compressor is a device used to increase the pressure of hydrogen gas. It takes hydrogen at a specific pressure and compresses it to a higher pressure, making it suitable for storage or transportation. Compressing hydrogen is essential in various applications, such as fuel cell vehicles, industrial processes, and hydrogen storage systems. The compressor plays a crucial role in maintaining the flow and distribution of hydrogen in these applications. The increasing interest in hydrogen drives the growth of technology as a clean and sustainable energy carrier creating a potential share in the market.

These compressors are essential components in hydrogen refueling stations and other applications where hydrogen needs to be compressed at high pressure for storage and transport. Hydrogen centrifugal compressors are used in ethylene plants for cracked gas compression and refrigeration. With upcoming projects, the demand for these compressors for ethylene plants is expected to increase in China. Due to ethylene and benzene production shortages, the country has invested in increasing its ethylene and benzene production capacity.

Various factors such as supply chain disruption and delayed projects influenced the impact of COVID-19 on the U.S. hydrogen compressor market. During the early stages of the pandemic, there were disruptions in various industrial sectors that affected the market, as hydrogen is used in industries, such as oil refining, chemicals, and fuel cell technology. However, the COVID-19 pandemic highlighted the importance of clean energy and hydrogen as a potential green energy carrier. This increased interest and investment in hydrogen-related technologies and infrastructure in the post-pandemic recovery phase.

U.S. Hydrogen Compressor Market Trends

Extensive Research on Hydrogen Infrastructure Enhancing Potential Opportunities in Market

As the demand for hydrogen increases the hydrogen economy grows and there is a need for standardization in hydrogen production. Standardization ensures interoperability and computability among different hydrogen compression systems, making it easier for various stakeholders to integrate their technologies into a united hydrogen infrastructure. Researchers and policymakers are analyzing the hydrogen demand and planning the location and capacity of hydrogen production, storage, and distribution facilities. This infrastructure is critical to support the adoption of hydrogen as a clean energy carrier. Hydrogen compressors play a vital role in this infrastructure as they are essential for increasing the pressure of hydrogen gas, making it suitable for storage and transportation.

For instance, in September 2022, the US Department of Energy (DOE) released a draft national strategy and roadmap for clean hydrogen that identifies three key priorities, such as targeting strategic, high-impact uses of hydrogen, reducing the cost of clean hydrogen to USD 1/kg by 2031 and focusing on establishing at least four regional clean hydrogen hubs.

U.S. Hydrogen Compressor Market Growth Factors

Increasing Adoption of Hydrogen as Clean Energy Will Propel Market Growth

The increasing adoption of hydrogen as a clean energy source will substantially impact the U.S. hydrogen compressor market growth. As the adoption of hydrogen-based technologies grows, there is a need to develop a robust hydrogen infrastructure. Hydrogen compressors play a critical role in this infrastructure by facilitating the compression and transport of hydrogen to various end-users, such as fuel stations, industrial facilities, and energy storage systems. Hydrogen fuel cell vehicles (FCVs) are becoming popular as an environmentally friendly transportation option.  As more FCVs hit the road, the demand for hydrogen refueling stations is increased. These compressors are integral to these refueling stations, ensuring a continuous supply of high-pressure hydrogen gas to fuel the vehicles.

Hydrogen is utilized in various industrial processes, including refining, chemical, manufacturing, and metal processing. As industries seek cleaner alternatives, the adoption of hydrogen for these applications is expected to increase, driving the need for compressors to maintain an efficient and reliable hydrogen supply. For instance, the U.S. Government outlined a new national clean hydrogen strategy. The strategy will attract private sector investment to create hydrogen infrastructure and incentivize the production of green hydrogen. The strategy is based on attracting private investment, such as the Inflation Reduction Act, to maximize infrastructure development and uptake.

RESTRAINING FACTORS

High Initial Investment for the Installation of Hydrogen Compression to Restrain Market Growth

Hydrogen compressors are complex and specialized equipment, resulting in high initial installation and setup costs. This cost factor may deter some potential buyers or slow down the U.S. hydrogen compressor market growth. The compressors must be built to withstand the challenges of hydrogen, such as its low molecular weight and high reactivity. Developing such advanced technology requires significant research, engineering expertise, and materials, all contributing to the high manufacturing cost of these compressors.

The upfront cost of buying a hydrogen compressor can be substantial, especially for large-scale industrial applications. The higher cost of these compressors compared to other compressors can deter potential buyers, especially when considering other technologies. Installing these compressors requires careful planning and adherence to safety standards. Specialized infrastructure and safety measures may be necessary to handle hydrogen gas, adding to the installation cost.

U.S. Hydrogen Compressor Market Segmentation Landscape

By Type Analysis

Based on type, the market is segmented into reciprocating and centrifugal.

The dominance of the reciprocating segment in the hydrogen compressor market can be attributed to several factors. Reciprocating compressors are well-suited for hydrogen compression due to their ability to handle varying capacity requirements and provide high-pressure ratios. It goes to the category of positive displacement compressors, where a specific volume of gas is trapped, compressed, and discharged.

A centrifugal compressor is a dynamic compressor that uses high-speed rotating impellers to increase the kinetic energy of the gas and convert it into pressure energy making it more useful for various applications. It belongs to the turbomachinery category, which relies on the dynamic action of rotating elements to compress the gas. The centrifugal compressor is the second leading segment in the market by type.

By Application Analysis

Based on application, the market is segmented into power plants, hydrogen refueling stations, industrial furnaces, petrochemical & chemical, pharmaceuticals, oil & gas, and others.

The petrochemical & chemical segment is dominating the market. Combining a hydrogen compressor with the petrochemical and chemical industries represents a potential application of hydrogen in these sectors. Due to this factor the usage of hydrogen compressors is diversified in various applications and the segment dominates in the industry. Hydrogen is a crucial feedstock in many petrochemical & chemical industries. It is used in processes, such as hydrocracking, hydrogenation, and others.

Power plants utilizing these compressors represent a potential application of hydrogen as an energy source in the power generation sector. A hydrogen refueling station with hydrogen compression is a critical infrastructure for developing and promoting hydrogen fuel cell vehicles.

List of Key U.S. Hydrogen Compressor Market Companies

The U.S. hydrogen compressor market is highly competitive. The major players operating in the market compete with a broader range of manufacturers and organizations that manufacture compressors and related products. Many of these companies are the largest hydrogen compressor companies in the industry, with a U.S. presence, longer operating histories, more significant financial, technical, and other resources, and greater visibility.

In addition, the market also includes various small key players with high regional or national competitiveness, enabling them to respond quickly to emerging or new technologies and changing customer demands.

Some of the other companies with a considerable U.S. hydrogen compressor market share include Ariel Corporation, CORKEN – an IDEX Energy business, Atlas Copco, Hitachi, Nel Hydrogen, Kaishan, Dresser-Rand, Howden Group, nel asa, and Fluitron.

LIST OF KEY COMPANIES PROFILED:

• Ariel Corporation (U.S.)


• CORKEN – an IDEX Energy business (U.S.)


• Atlas Copco (Sweden)


• Hitachi (Japan)


• Nel Hydrogen (Norway)


• Kaishan (Japan)


• Dresser-Rand (Texas)


• Howden Group (U.K.)


• Haskel (U.S.)


• Fluitron (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• March 2023: Southwest Research Institute developed a new hydrogen compressor. It can improve the efficiency and reliability of hydrogen compression in fueling fuel cell electric vehicles (FCEVs). This new development will help the company compress hydrogen as a fuel.


• July 2022: Baker Hughes has expanded its use of reciprocating compressors for new users. Due to this, the company has witnessed a growing demand for hydrogen compressors globally. Currently, the company has more than 2250 units globally.


• June 2022: Ariel Corporation and Hoerbiger have agreed to provide non-lube compression solutions that can easily cater to the requirements of hydrogen compressors for future hydrogen mobility.

REPORT COVERAGE

The report provides a detailed market analysis. Moreover, it is focused on providing vital information for key products, leading segment information, key developments in the market, and leading product applications. Besides, the report provides insights into the market trends and highlights key industry developments. The above factor will drive the market growth during the forecast period.

Report Scope & Segmentation