Asia Pacific Hydrogen Compressor Market

The Asia Pacific hydrogen compressor market was valued at US$ 612.39 million in 2022 and is expected to reach US$ 975.49 million by 2030; it is estimated to register a CAGR of 6.0% from 2022 to 2030.

Rising Investments in Renewable Energy and Hydrogen Generation Projects Worldwide

Fuel Asia Pacific Hydrogen Compressor Market

With rising urbanization and rapid industrial growth, energy consumption across the globe has proliferated. Thus, to meet this huge demand for power, there is a rapid increase in the launch of hydrogen-generated power projects. According to the Ember Climate Organization, total global energy demand reached ~13,393 TWh in the first quarter of 2022, an increase from 13,004 TWh compared to 2021. Such an increase in demand for energy and power, owing to rising residential and industrial manufacturing requirements, is driving the demand for hydrogen compressors. Renewable energy plays a significant role in making electricity. Per the International Energy Agency (IEA), the global demand for electricity is anticipated to increase by 2.1% annually by 2040. Further, the growth in electricity demand is higher in Asia Pacific countries such as China, Japan, and India. In APAC, India is the third largest producer of electricity, generating higher capacity with favorable government support and the initiation of numerous power generation projects. For instance, the Khargone Transmission Project was initiated to connect NTPC's 1,320 MW thermal power project at Khandwa in Madhya Pradesh with a transmission system to serve Maharashtra and southern states. Along with the new power transmission projects, the deployment of hydrogen compressors is also increasing. Therefore, development in the renewable energy & power sector is surging the demand for power generation projects worldwide, thereby boosting the demand for hydrogen compressors.

There is a rise in investments in the renewable energy sector due to increased government initiatives and funding, which promotes the adoption of hydrogen compressors. Per the IEA, global investments in the renewable energy sector reached US$ 358.0 billion in the first six months of 2023, an increase of 22% rise compared to the start of last year and an all-time high for any six months. Renewable energy companies compared to last year, 2022. The venture capital firms and private equity companies are expanding their operations in the renewable energy sector, reaching US$ 10.4 billion in the first quarter of 2023. China accounted for the largest market share in the first quarter of 2023, with investment reaching US$ 177 billion, increased by 16% compared to the first quarter of 2022. Also, the US secured an investment of ~US$ 36 billion, followed by Germany, with an investment of US$ 11.9 billion for the expansion of the renewable energy sector. Further, many hydrogen production projects are being launched due to government support and funding. According to the International Energy Agency Organization and McKinsey Report, globally, more than 680 large-scale investment projects announced with investments of US$ 240 billion by 2022. The report estimates that investment is expected to reach US$ 700 billion by 2030 to achieve the net-zero target. Also, investment in building hydrogen fuel stations across the globe is rising, owing to a surge in investments in fuel cell technology by private equity firms and venture capital.

Thus, rising investments in renewable energy and hydrogen generation projects owing to government support and funding are anticipated to create ample opportunity for the market growth in the coming years.

Asia Pacific Hydrogen Compressor Market Overview

The APAC hydrogen compressor market is further segmented into Australia, India, China, Japan, South Korea, and the Rest of APAC. The rapid industrialization of several sectors, including food & beverages, automotive, chemical, and oil & gas, owing to rising government support, is driving the hydrogen compressors market growth. The growth in these industries led to the adoption of innovative devices, including hydrogen compressors and centrifugal compressors, among others.

The growth in the oil and gas sector can boost the upstream and downstream activities. The rise in of oil and gas exploration activities boosts the demand to integrate hydrogen compressors in both downstream and upstream oil and natural gas industries, as well as operate under harsh environmental conditions. In APAC's oil and gas production, India, China, and Indonesia have the largest contribution. Also, gas production is highest among Australia, China, Indonesia, and Malaysia. In 2023, governments of Southeast Asian countries invested US$ 16 billion in oil and gas greenfield projects. Further, APAC's demand for hydrogen compressors is largest in 2022 owing to rapid investments in the energy & power sector with several government projects in the region. The region is expected to dominate owing to ample investment by the government in the renewable energy sector. Renewable energy investment in Asia Pacific is expected to reach US$ 1.3 trillion by 2030. The fossil fuel expenditures were recorded to be US$ 54 billion annually in Asia Pacific. Further, India and China are the leading contributors to the hydrogen compressors market growth. The installation of large-scale solar power projects across India is likely to promote the adoption of hydrogen compressors. Besides, due to rising power demand in other developing countries of APAC, coupled with the growing investment in R&D activities, it is expected to boost the growth of the Asia Pacific hydrogen compressor market. Additionally, the APAC hydrogen compressor market is led by China and Japan and further anticipates significant growth with growing fuel cell stack shipments for the transport industry.

Asia Pacific Hydrogen Compressor Market Revenue and Forecast to 2030 (US$ Million)

Asia Pacific Hydrogen Compressor Strategic Insights

Strategic insights for the Asia Pacific Hydrogen Compressor provides data-driven analysis of the industry landscape, including current trends, key players, and regional nuances. These insights offer actionable recommendations, enabling readers to differentiate themselves from competitors by identifying untapped segments or developing unique value propositions. Leveraging data analytics, these insights help industry players anticipate the market shifts, whether investors, manufacturers, or other stakeholders. A future-oriented perspective is essential, helping stakeholders anticipate market shifts and position themselves for long-term success in this dynamic region. Ultimately, effective strategic insights empower readers to make informed decisions that drive profitability and achieve their business objectives within the market.

Asia Pacific Hydrogen Compressor Report Scope

Asia Pacific Hydrogen Compressor Regional Insights

The geographic scope of the Asia Pacific Hydrogen Compressor refers to the specific areas in which a business operates and competes. Understanding local distinctions, such as diverse consumer preferences (e.g., demand for specific plug types or battery backup durations), varying economic conditions, and regulatory environments, is crucial for tailoring strategies to specific markets. Businesses can expand their reach by identifying underserved areas or adapting their offerings to meet local demands. A clear market focus allows for more effective resource allocation, targeted marketing campaigns, and better positioning against local competitors, ultimately driving growth in those targeted areas.

Asia Pacific Hydrogen Compressor Market Segmentation 

The Asia Pacific hydrogen compressor market is categorized into type, stage, end user, and country.

Based on type, the Asia Pacific hydrogen compressor market is bifurcated into oil-based and oil-free. The oil-based segment held a larger market share in 2022.

In terms of stage, the Asia Pacific hydrogen compressor market is categorized into single-stage and multi-stage. The multi-stage segment held a larger market share in 2022.

By end-user, the Asia Pacific hydrogen compressor market is segmented into chemicals, oil and gas, automotive and transportation, renewable energy, refueling stations, and others. The oil and gas segment held the largest market share in 2022.

By country, the Asia Pacific hydrogen compressor market is segmented into Australia, China, India, Japan, South Korea, and the Rest of Asia Pacific. China dominated the Asia Pacific hydrogen compressor market share in 2022.

Atlas Copco AB; Burckhardt Compression AG; Fluitron, Inc.; Gardner Denver Nash, LLC; Howden Group; HAUG Sauer Kompressoren AG; NEUMAN & ESSER GROUP; Hydro-Pac, Inc.; Lenhardt & Wagner GmbH; and PDC Machines Inc. are among the leading companies operating in the Asia Pacific hydrogen compressor market.