At 5.9% CAGR, the Europe Hydrogen Compressor Market is Projected to be Worth US$ 1,002.46 Million by 2035 says Business Market Insights

According to Business Market Insights’ research, the Europe hydrogen compressor market was valued at US$ 518.43 million in 2023 and is expected to reach US$ 1,002.46 million by 2035, registering a CAGR of 5.9% from 2024 to 2035. Rising investments in renewable energy and hydrogen generation projects worldwide and increasing industrial production activities are among the critical factors attributed to drive the Europe hydrogen compressor market.

Energy consumption has risen significantly with rapid urbanization and industrial growth. To meet the growing demand for power, the development of sub-transmission and intrastate transmission networks is expanding. With the rise in new power transmission projects, the deployment of hydrogen compressors is also increasing. Renewable energy plays a significant role in generating electricity to cater to increasing demand for energy. As per the International Energy Agency (IEA), the demand for electricity is projected to expand at 2.1% per year by 2040 worldwide.

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.

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.

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. For instance, in March 2022, H2 Mobility Germany's fueling station network planned an investment of US$ 121 million for the next five years for building the hydrogen infrastructure for fuel cell vehicles in the country. Thus, rising investments in renewable energy and hydrogen generation projects owing to government support and funding are anticipated to create ample opportunity for market growth in the coming years.

On the contrary, high recurring cost in maintenance hampers the growth of Europe hydrogen compressor market.

Based on type, the Europe hydrogen compressor market is bifurcated into lubricated and oil-free. The lubricated segment held 63.6% market share in 2023, amassing US$ 332.92 million. It is projected to garner US$ 641.60 million by 2035 to register 5.8% CAGR during 2024–2035.

By technology, the Europe hydrogen compressor market is segmented into reciprocating hydrogen compressor, diaphragm hydrogen compressor, non-mechanical hydrogen compressor, and others. The reciprocating hydrogen compressor segment held 42.5% share of Europe hydrogen compressor market in 2023, amassing US$ 220.33 million. It is projected to garner US$ 426.05 million by 2035 to expand at 5.9% CAGR from 2024 to 2035.

Based on end-user, the Europe hydrogen compressor market is segmented into power plants, oil and gas, food and beverages, petrochemical and chemical, hydrogen fueling stations, hydrogen storage (tube trailers), and others. The petrochemical and chemical segment held 34.8% market share in 2023, amassing US$ 180.24 million. It is projected to garner US$ 325.80 million by 2035 to register 5.3% CAGR during 2024–2035

Based on country, the Europe hydrogen compressor market is categorized into Germany, France, Italy, Spain, the UK, Switzerland, Russia, Sweden, Norway, Belgium, Netherlands, Greece, and the Rest of Europe. Our regional analysis states that Germany captured 22.9% share of Europe hydrogen compressor market in 2023. It was assessed at US$ 118.53 million in 2023 and is likely to hit US$ 216.33 million by 2035, registering a CAGR of 5.3% during 2024 to 2035.

Key players operating in the hydrogen compressor market are 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; PDC Machines Inc; Sundyne; and Ariel Corporation, among others.

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