Government subsidies and regulatory frameworks aimed at promoting clean energy technologies are expected to drive market expansion shortly at a CAGR of 5.50% during the forecast period 2024 to 2032

Market Research Future (MRFR) has published a cooked research report on the “Hydrogen Compressors Market” that contains information from 2019 to 2032. The hydrogen compressors market is estimated to register a CAGR of 5.50% during the forecast period of 2024 to 2032.

MRFR recognizes the following companies as the key players in the global hydrogen compressors market — 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) and Howden Group (UK).

Market Highlights

The global hydrogen compressors market is accounted to register a CAGR of 5.50% during the forecast period and is estimated to reach USD 3.37 billion by 2032.

One key factor propelling market growth is the increasing need for hydrogen across a variety of sectors, spanning energy generation, transportation, petrochemicals, and chemicals. This surge in demand serves as a pivotal force driving the market's expansion.

Browse In-depth Details [Table of Content, List of Figures, List of Tables] of Hydrogen Compressors Market Trends

Segment Analysis

The global Hydrogen Compressors Market has been segmented based on the type, lubrication type, design, and end-user.

Based on the type, the market is segmented into mechanical compressor and non-mechanical compressor. The mechanical compressor segment was attributed to holding the largest market share in 2023. In hydrogen compression, mechanical compressors encompass reciprocating piston compressors, screw compressors, and centrifugal compressors. These compressors are vital for achieving the high pressures needed to transport hydrogen and support various applications in the advancing hydrogen economy. Mechanical compressors typically offer cost advantages in terms of both initial investment and ongoing maintenance. They are well-suited to meet the specific demands of hydrogen compression, including tight tolerances, owing to their design and operational capabilities.

Based on the lubrication type, the hydrogen compressors market has been segmented into oil-based and oil-free. The oil-based segment was expected to hold the largest market share in 2023. Oil-based lubricated compressors are preferred for their lower cost and longer service life compared to oil-free compressors. They are commonly used in commercial and industrial applications, except in industries where the risk of oil contamination is deemed unacceptable, necessitating the use of oil-free compressors. Oil-based compressors are also considered more efficient, as the oil serves as a cooling medium, dissipating approximately 80% of the heat generated during the compression process. Therefore, they are particularly suitable for industrial applications that require high compression ratios.

Based on the design, the hydrogen compressors market has been segmented into single-stage and multi-stage. The multi-stage segment was expected to hold the largest market share in 2023. These compressors are commonly employed in filling storage tanks and hydrogen production facilities, as well as in transferring hydrogen through pipelines. Their multi-stage design enables hydrogen compression in several stages, which helps minimize temperature rise during compression, reduces the labor required for compression, and enhances overall efficiency. This is particularly crucial given the unique characteristics of hydrogen gas, such as its low molecular weight and high compressibility. Additionally, the increasing demand for enhanced and cost-effective hydrogen compression technologies, along with the rising utilization of hydrogen as an alternative fuel and renewable energy source, is driving the demand for multi-stage compressors.

Based on the end user, the hydrogen compressors market has been segmented into hydrogen infrastructure and industrial applications. The industrial applications segment was expected to hold the largest market share in 2023. In industrial applications, hydrogen compressors find applications across various sectors, including oil & gas, petrochemical, food & beverage, and pharmaceutical industries. In the food & beverage industry, these compressors are utilized for tasks like chemical processing, hydrogenation, and petroleum refining, where they play a crucial role in compressing hydrogen gas to the necessary pressure for these processes. Similarly, in petroleum refining operations, hydrogen compressors are instrumental in compressing hydrogen gas to the requisite pressure for refining activities.

Regional Analysis

The global hydrogen compressors market, based on region, has been divided into North America, Europe, Asia-Pacific, and Rest of the World. North America consists of the US and Canada. The Europe hydrogen compressors market comprises Germany, France, the UK, Italy, Spain, and the rest of Europe. The hydrogen compressors market in Asia-Pacific has been segmented into China, India, Japan, Australia, South Korea, and the rest of Asia-Pacific. The Rest of the World's hydrogen compressors market comprises the Middle East, Africa, and Latin America.

The largest market share for the hydrogen compressors market was maintained by the North American regional sector. The region's focus on sustainable energy and the growing adoption of hydrogen fuel cell vehicles are key drivers of market expansion. In 2022, the US witnessed the addition of 32GW of new renewable power capacity to its grid, resulting in a significant increase in renewable power generation. Renewable energy output surged to 974TWh from 864TWh in 2021, marking a 12.6% year-on-year growth and reaching its highest level ever, accounting for 22.7% of total US power generation. The United States Department of Energy's support for research and development has led to numerous patents and innovative technologies in the hydrogen compressors market, solidifying North America's leadership in this sector. Recent collaborations, such as the partnership between the National Renewable Energy Laboratory (NREL) and Toyota Motor North America, showcase advancements in large-scale power production using hydrogen fuel cells, which in turn drive the demand for hydrogen compressors. US companies have been actively investing to expand their market presence in the hydrogen compressor industry, focusing on developing enhanced compressor technologies tailored for hydrogen production, transportation, and utilization. Prominent players in the region include Ariel Corporation, Atlas Copco Group, and Burckhardt Compression AG.

Moreover, the Europe market has been persistently growing over the forecast period. Europe is experiencing moderate growth, supported by government initiatives aimed at promoting clean hydrogen production. Between 2021 and 2027, the EU government has allocated approximately US$ 578 billion for climate spending. Additionally, the European Commission has earmarked US$ 847.2 billion from the climate change innovation fund for renewable hydrogen production. The use of hydrogen compressors is widespread in renewable energy applications, buoyed by government support and initiatives. Increased investments in the oil & gas industry further propel the growth of the hydrogen compressor market in Europe. The region's oil & gas sector is witnessing numerous large-scale projects, leading to significant demand for hydrogen compressors. Notable projects include the development of the Johan Sverdrup and Johan Castberg oil fields in Norway, as well as the Lochnagar and Rosebank oil and gas exploration endeavors in the UK and the Aphrodite Gas Field in Cyprus.

The Asia-Pacific region is poised to become a lucrative market for fuel cells, thanks to favorable government policies in countries like China, Japan, and India. China, in particular, stands out as one of the world's largest and fastest-growing markets for hydrogen compressors. According to estimates by MERICS, hydrogen is projected to constitute 10–12 percent of China's energy consumption by 2050. As the world's leading hydrogen producer, China boasts an annual output of 33 million tons, which accounts for over a third of global demand. Significant growth has been observed across China's chemical, oil, gas, and manufacturing sectors in recent years. Hydrogen centrifugal compressors are extensively used in industries such as refining and petrochemicals, particularly in ethylene plants, for cracked-gas compression and refrigeration services. In response to shortages in ethylene and benzene production, China has been investing in expanding its production capacity for these substances. For instance, in May 2022, Neuman & Esser Beijing supplied four compressor systems to China Inner Mongolia Sanwei New Material Co. Ltd (CIMSNM). These compressors were likely utilized for hydrogen boosting and recycling during the manufacturing process of 1,4-butanediol (BDO). BDO serves as a solvent and is used in the production of specific polymers, elastic fibers, and polyurethanes within various industries.

Furthermore, the rest of the world's hydrogen compressors market is divided into the Middle East, Africa, and Latin America. In the Middle East, Africa, and Latin America, there is a noticeable uptick in the demand for hydrogen across various industries. Latin America, in particular, is witnessing significant growth in green hydrogen facilities, with ten operational facilities as of 2022 and 87 projects in various stages of completion expected to be operational by 2040. Currently, the region boasts a green hydrogen capacity of 57.5 thousand tons per annum (MTPA), and with the projects in the pipeline, this capacity is projected to soar to 7,271 MTPA by 2040. Hydrogen is increasingly being acknowledged as a clean energy carrier with wide-ranging applications in sectors such as transportation, chemicals, and power generation. As countries in these regions strive to transition towards greener energy sources to mitigate carbon emissions, the demand for hydrogen and associated infrastructure, including compressors, is poised to experience a significant upsurge.

Key Findings of the Study

• The global hydrogen compressors market is expected to reach USD 3.37 billion by 2032, at a CAGR of 5.50% during the forecast period.


• The Asia-Pacific region accounted for the fastest-growing global market because of rapid industrialization and urbanization, leading to a substantial demand for energy and power.


• Based on type, the mechanical compressor segment was attributed to holding the largest market in 2023, with an approximate market share of 55–60%.


• 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) and Howden Group (UK) are the key market players.