South & Central America Hydrogen Compressor Market Report (2017-2035) by Scope, Segmentation, Dynamics, and Competitive Analysis

The Hydrogen Compressor Market size is expected to reach US$ 112.22 million by 2031 from US$ 55.22 million in 2023. The market is estimated to record a CAGR of 6.3% from 2024-2035.

Executive Summary and South & Central America Hydrogen Compressor Market Analysis:

The hydrogen compressor market growth in South America is attributed to the ongoing industrialization, along with a surge in government investments in the energy, oil, and gas industries. Rapid industrialization and a rise in urban population highlight the need for clean energy infrastructure, which in turn has resulted in increasing the establishment of hydrogen production facilities, propelling the use of hydrogen compressors in the region. The green hydrogen sector has gained remarkable significance in the region's energy landscape. Several factors that contribute to the expansion of this sector include the growing awareness of climate change, the need for sustainable energy sources, and supportive government policies promoting renewable energy. South America is poised to play a crucial role in the global energy transformation through the development of green hydrogen by capitalizing on the abundance of renewable energy resources. Additionally, partnerships between governments and private entities play a crucial role in supporting the growth of the green hydrogen sector. Several countries in South America have collaborated with international companies possessing expertise in hydrogen technologies, facilitating technology transfer and accelerating the adoption of green hydrogen across the region. For instance, in March 2023, Acciona, a Spanish engineering firm, and Nordex, a German company, collaborated to develop green hydrogen projects within the next 10 years in the US, South America, and Africa. Under the joint venture, these companies are expected to build their first projects by 2027, with a manufacturing capacity of 500,000 tonnes of green hydrogen per year. Such initiatives for the development and expansion of green hydrogen infrastructure are anticipated to propel the hydrogen compressor market growth in South America in the coming year.

South & Central America Hydrogen Compressor Market Strategic Insights

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South & Central America Hydrogen Compressor Market Segmentation Analysis

Key segments that contributed to the derivation of the Hydrogen Compressor Market analysis are type, technology, and end-user.

• By type, the hydrogen compressor market is bifurcated into lubricated and oil-free. The lubricated held a larger share of the market in 2023.
• By technology, the hydrogen compressor market is segmented into reciprocating hydrogen compressor, diaphragm hydrogen compressor, non-mechanical hydrogen compressor, and others. The reciprocating hydrogen compressor held the largest share of the market in 2023.
• By end user, the 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 held the largest share of the market in 2023.

South & Central America Hydrogen Compressor Market Outlook

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. 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.

South & Central America Hydrogen Compressor Market Country Insights

Based on country, the South & Central America Hydrogen Compressor Market comprises Brazil, Argentina, Columbia, and the Rest of South & Central America. The Rest of South & Central America held the largest share in 2023.

Chile, Peru, and Uruguay are the main countries in the Rest of South America. The rest of South America has one of the highest renewable energy potentials for producing green hydrogen and achieving a net-zero emission future. As per the International Energy Agency (IEA), South America has a high potential for low-carbon hydrogen; Chile, Costa Rica, El Salvador, Panama, Paraguay, Trinidad and Tobago, and Uruguay (in addition to Argentina, Brazil, and Colombia,) are highly focused on developing national hydrogen policies. Chile is committed to carbon neutrality by 2050, and it has pledged to shut down or repurpose all of its 21 coal-fired power plants by 2040; this will help it make its energy matrix cleaner. The country is already experiencing the benefits of its National Green Hydrogen Strategy, which was launched in 2020. With this strategy, it is planning to ship 72% of its output to different countries across the world. To enter European markets, Chile is considering targeting Hamburg as a potential port of entry into Germany. Hence, Chile is on the verge of becoming a global exporter due to its high potential for green hydrogen production. Such a rise in focus on developing hydrogen infrastructure is projected to boost the hydrogen compressors market growth from 2024 to 2031. Uruguay launched the Green Hydrogen Sector Fund with US$ 10 million in non-reimbursable funding from the government in financing projects. In August 2022, 9 companies won a spot in the funding, including Green H2 production, distribution, and off-take of green hydrogen. Such a rise in government initiatives toward building hydrogen infrastructure is anticipated to fuel the hydrogen compressor demand in the Rest of South America during the forecast period.

South & Central America Hydrogen Compressor Market Report Highlights

South & Central America Hydrogen Compressor Market Company Profiles

Some of the key players operating in the market include 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. These players are adopting various strategies such as expansion, product innovation, and mergers and acquisitions to provide innovative products to their consumers and increase their market share.

South & Central America Hydrogen Compressor Market Research Methodology :

The following methodology has been followed for the collection and analysis of data presented in this report:

• Secondary Research

The research process begins with comprehensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data for each market. Commonly referenced secondary research sources include, but are not limited to:

• Company websites, annual reports, financial statements, broker analyses, and investor presentations.
• Industry trade journals and other relevant publications.
• Government documents, statistical databases, and market reports.
• News articles, press releases, and webcasts specific to companies operating in the market.

Note: All financial data included in the Company Profiles section has been standardized to USD. For companies reporting in other currencies, figures have been converted to USD using the relevant exchange rates for the corresponding year.

• Primary Research

The Insight Partners’ conducts a significant number of primary interviews each year with industry stakeholders and experts to validate its data analysis, and gain valuable insights. These research interviews are designed to:

• Validate and refine findings from secondary research.
• Enhance the expertise and market understanding of the analysis team.
• Gain insights into market size, trends, growth patterns, competitive dynamics, and future prospects.

Primary research is conducted via email interactions and telephone interviews, encompassing various markets, categories, segments, and sub-segments across different regions. Participants typically include:

• Industry stakeholders: Vice Presidents, business development managers, market intelligence managers, and national sales managers
• External experts: Valuation specialists, research analysts, and key opinion leaders with industry-specific expertise.

South & Central America Hydrogen Compressor Market Country and Regional Insights