Market Trends of Hydrogen Compressor Industry
Oil-based Type Segment Expected to Dominate the Market
- Oil-based lubricated compressors cost less, provide a longer service life compared to oil-free compressors, and are considered ideal for commercial and industrial applications until and unless in industries where consequences of oil contamination are considered very high and having an oil-free compressor is a must.
- Oil-based compressors are considered more efficient than the oil-free type compressors, as oil acts as a cooling medium, taking out approximately 80% of the compressor's heat during the compression process, and considered more suitable for industrial usage with requirements of a high compression ratio.
- In terms of capital outlay, lubricated oil-based compressors are often considered less expensive than oil-free compressors, with price differences often varying in the range of 30-40%. It may even reach 50%, depending upon factors such as capacity and industry-specific requirements, resulting in increased demand for oil-based hydrogen compressors.
- Although oil-based compressors are more affordable than oil-free, these compressors require continuous maintenance and greater attention in replacing filters and other components used to eliminate the risk of oil leakage. Ongoing oil contamination may result in severe consequences, such as spoiled or unsafe products, production downtime, and legal issues.
- Oil-based hydrogen compressors are mostly preferred in the manufacturing industry for glass purification, iron and steel industry, semiconductor manufacturing, etc., for welding, annealing and heat-treating of metals, in power plants (coolant for generators), aerospace applications, pharmaceuticals, etc.
- According to the United States Geological Survey, in 2022, the United States' raw steel production was estimated to be 82 million metric tons. With the increasing industrialization, steel production may continue to increase, which, in turn, may create demand for oil-based hydrogen compressors.
- There is a persistent threat of premature wear of hydrogen compressor components due to insufficient lubrication, which may add to the maintenance cost of oil-based hydrogen compressors and limit their demand.
- Therefore, based on such factors, the oil-based type segment is expected to dominate the hydrogen compressor market during the forecast period.
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Asia-Pacific Expected to Dominate the Market
- Asia-Pacific is expected to be a promising market for fuel cells in the coming years because of the favorable government policies in countries such as China, Japan, and India.
- China is one of the world's largest and fastest-growing hydrogen compressor markets. The country has witnessed significant growth in its chemical, oil, gas, and manufacturing sectors in recent years.
- Hydrogen centrifugal compressors are used in refining and petrochemical industries such as ethylene plants for cracked-gas compression and refrigeration services. Due to ethylene and benzene production shortages, the country has been investing to increase its ethylene and benzene production capacity.
- For instance, in May 2022, Neuman & Esser Beijing supplied four compressor systems to China Inner Mongolia Sanwei New Material Co. Ltd (CIMSNM). The compressors were likely used for hydrogen boosting and recycling while manufacturing 1,4-Butanediol (BDO). BDO is used in industry as a solvent and in producing specific polymers, elastic fibers, and polyurethanes.
- The development of hydrogen fuel cell vehicles and Japan's aim to build hydrogen fuel stations for recharging the vehicles are expected to drive the hydrogen compressor market.
- For instance, in Japan, 11 domestic firms, including automakers and energy firms, made a consortium to build 80 fueling stations for hydrogen fuel cell vehicles by 2022 to create a market for the next-gen fuel cell vehicle. As of September 2021, Japan has 154 hydrogen fueling stations and another 11 in the planning or construction stage. This, in turn, is expected to drive the hydrogen compressor demand for hydrogen fuel stations during the forecast period.
- Therefore, based on such factors, Asia-Pacific is expected to dominate the hydrogen compressor market during the forecast period.
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