According to a new market research report published by Credence Research, “Hydrogen Compressor Market By Technology (Single-Stage, Multi Stage), By Type (Oil-based, Oil-free), By End User (Oil and Gas, Chemical, Utility Industry, Others), and By Geography (North America, Europe, Asia Pacific, and Rest of the World)) – Growth, Future Prospects, and Competitive Landscape, 2019 -2027”, the global hydrogen compressor market is expected to reach US$ 3.09 Bn by 2027, expanding at a CAGR of 6.8% during the forecast from 2019 to 2027.
Increasing demand for distillate fuel oil and strict regulations worldwide, with respect to sulfur content has gradually increased the use of hydrogen in the industrial segment. Hydrogen is basically used in refineries for various applications including processing of crude oil, removing contaminants such as sulfur from refined oils and several others. A hydrogen compressor is used to produce compressed or liquid hydrogen by increasing the pressure and reducing volume of hydrogen. Growing applications in power generation units, transportation, oil and gas refineries, chemical plants, and other industrial process is expected to drive the market for hydrogen Compressor.
Increasing applications of hydrogen in fuel cells and electronic gadgets, along with growing numbers of hydrogen fueling stations is expected to boost the demand for hydrogen compressor market. In addition, supportive government policies and efforts to incorporate hydrogen in transportation and other applications are expected to drive the hydrogen compressor market.
Hydrogen fuel cells offer more advantage such as eliminates pollution, fuel efficient, compact size, and energy storage as compared to other technologies such as renewable hybrid systems, energy storage systems, and diesel generators. Apart from this, hydrogen fuel cells provide uninterrupted electricity without affected by dynamic weather conditions. Hydrogen fuel cells are very compact in size and requires less maintenance, which drive the market for hydrogen Compressor worldwide.
Asia Pacific is expected to witness a significant growth for hydrogen Compressor due to increase in demand from refining and petrochemical industries, and hydrogen fuel cell vehicle industry. Government policies and regulations for environmental pollution control in countries such as India, China, and Japan is expected to fuel the demand for hydrogen compressor. In January 2017, India’s Tata Motors launched first hydrogen fuel cell bus in Pune, Maharashtra. Such improvements in the automotive industry are projected to create some new opportunities for the hydrogen Compressor market.
Major developments and investments for chemical industries in Asia Pacific region is increasing the demand for hydrogen Compressor market. As a part of its energy and industrial policy, Japan is striving more to develop its hydrogen economy with an intention to reduce environmental pollutions. Due to the presence of petrochemicals and hydrogen fuel cell vehicle industries, Japan is expected to have a major demand for hydrogen Compressor.
However, due to volatility in raw materials price (stainless steel), high capital costs, frequent maintenance of Compressor, and low demand for fueling stations are the restraining factors for the growth of global hydrogen compressor market. In addition to this, growing productions and consumptions of natural gas also inhibits the growth for hydrogen Compressor.
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