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Hydrogen compressor market to see growth, as demand for energy & power rising

Oil&Gas Materials 25 June 2021 14:28 (UTC +04:00)
Hydrogen compressor market to see growth, as demand for energy & power rising

BAKU, Azerbaijan, June 25

By Leman Zeynalova – Trend:

The hydrogen compressor market was valued at $1,894.15 million in 2020 and is projected to reach $2,813.27 million by 2028; it is expected to grow at a Compound annual growth rate of 5.07 percent during 2020-2028, Trend reports with reference to the outlook titled ‘Hydrogen Compressors Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Type, Stage, and End-User’.

Due to the mounting urbanization and industrial growth, the energy consumption has risen manifolds. Thus, to meet the soaring demand for power, the development of sub-transmission and intrastate transmission networks is expanding, reads the report.

“The escalating demand for energy & power, owing to rising household incomes and increasing manufacturing and heavy industries, is boosting the deployment of hydrogen compressors.Renewable energy plays a significant role for offering access to electricity.”

As per the International Energy Agency (IEA), the demand of electricity is projected to expand at 2.1 percent per year by 2040 globally. The growth in requirement for electricity in Southeast Asia is among the fastest in the globe; it has the potential for the renewable energy sector. Moreover, in APAC, India is the 3rd largest producer of electricity, and the generating capacity is exponentially expanding due to favorable government support and initiation of numerous power generation projects. The growth in electrical infrastructure projects worldwide is driving the use of hydrogen compressors among several energy & power projects and creating huge opportunities for the hydrogen compressor market players.

The hydrogen compressor market is segmented based on type, stage, end user, and geography.Based on type, the market is segmented into oil-based and oil-free.

In 2020, the oil-based segment accounted for larger market share.In terms of stage, the market is bifurcated into single-stage and multi-stage.

In 2020, the multi-stage segment accounted for larger share in the market.Based on end-user, the hydrogen compressor market is segmented into chemicals, oil and gas, automotive and transportation, renewable energy, and other end-users.

In 2020, the oil and gas segment accounted for the largest share in the market. Geographically, the global hydrogen compressor market is broadly segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2020, the APAC segment accounted for the significant share in the global market.

The COVID-19 pandemic has been affecting operations of various industries in different countries since the first quarter of 2020.The tremendous spike in the infection has urged governments worldwide to impose strict restrictions on transportation.

Due to travel bans, mass lockdowns, and business shutdowns, the pandemic has disturbed economies and industries in various countries.The lockdown imposition has resulted in lesser production of commodities, goods, and services along with discontinuation of supply chain activities at several nodes.

Chemical, oil and gas, and energy & power, among other industries, have witnessed a decline in operations due to the temporary shutdown of activities.Small and medium enterprise owners have been witnessing more severe consequences of the pandemic.

These conditions are also limiting the hydrogen compressor market growth. Furthermore, the COVID-19 pandemic has already negatively impacted the sales of electronics equipment and hydrogen compressors in 2020, as companies had to be functional with limited workforce and they are now trying to cope up with the losses they faced in the year 2020. Additionally, municipalities are functioning slowly as compared to the past and the renewable energy projects are at halt, which is further limiting the hydrogen compressor market growth globally.

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Follow the author on Twitter: @Lyaman_Zeyn

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