The Compressor Market Estimated to Witness Substantial Growth Due to Rising Industrialization

 

Compressor Market

Compressors are rotating mechanical devices that increase the pressure of a gas by reducing its volume. Compressors are widely used across various end use industries such as oil & gas, power generation, mining, manufacturing, chemical, and others. They are an integral part of industrial processes as compressed air is used for operating pneumatic tools, conveying materials, and controlling production equipment. In the manufacturing industry, compressors are used for painting, assembling, and packaging processes. The global compressor market is estimated to be valued at US$ 42.6 Bn in 2023 and is expected to exhibit a CAGR of 5.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics

The compressor market is expected to grow at a significant rate owing to rising industrialization across developing regions of Asia Pacific and Latin America. Rapid industrialization has increased the demand for compressed air from various end use industries such as oil & gas, manufacturing, mining, and others. Industrial compressors account for more than 60% of the overall compressor market. These compressors are primarily used in production processes, construction equipment, and material handling. Moreover, increasing energy consumption from industries has propelled the demand for compressed natural gas (CNG) and other gas-based fuels. As compressors play a vital role in gas transmission and distribution networks, their growing applications in the development of gas-based infrastructure is anticipated to fuel the market growth over the forecast period.

SWOT Analysis

Strength: The compressor market benefits from strong demand across diverse end-use industries such as oil and gas, power generation, manufacturing, and chemicals. Rising natural gas production and new pipeline infrastructure projects boost market prospects. Manufacturers continuously focus on developing innovative product offerings with improved efficiency and durability.

Weakness: Frequent fluctuations in crude oil prices pose challenges for long-term investment decisions in the oil and gas industry. High initial costs associated with compressor equipment limit their adoption.

Opportunity: Rising natural gas demand for power generation coupled with initiatives toward expanding gas distribution networks present lucrative opportunities. Growing industrialization and rapid urbanization in Asia Pacific and Middle East and Africa create favorable conditions.

Threats: Volatility in raw material prices may squeeze profit margins. Switch toward renewable energy reduces reliance on fossil fuels.

Key Takeaways:

The global compressor market is expected to witness high growth. Rising demands from various end-use industries such as oil & gas, power generation, manufacturing etc coupled with growing industrialization worldwide are expected to drive market growth. Moreover, growing number of natural gas exploration and production activities along with increasing exports further supports market growth during the forecast period.

Regional analysis

The Asia Pacific region dominates the global compressor market and is expected to maintain its leading position during the forecast period. Rapid urbanization and industrialization along with increasing foreign investments in manufacturing sector across China, India, Indonesia and other emerging countries in the region drives the market growth. Moreover, growing energy needs owing to rising population also supports the demand. North America and Europe are also significant markets owing to well-established oil & gas industry and power generation sector.

Key players

Key players operating in the compressor market are Aerzener Maschinenfabrik GmbH, Ariel Corporation, Atlas Copco AB, Baker Hughes Co., Bauer Compressors Inc., Burckhardt Compression Holding AG, Ebara Corporation, Ingersoll Rand INC, Siemens Energy AG, Sulzer AG. Key players focus on new product innovations, partnerships and mergers & acquisitions to strengthen their market position.

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