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The Air Compressor Market size in the Oil and Gas Industry is forecast to increase by USD 2.53 billion, at a CAGR of 4.36% between 2023 and 2028. The market's expansion hinges on several key factors, including the transition towards more energy-efficient compressors, heightened demand for stationary air compressors within the oil and gas sector, and increasing utilization of air compressors for reservoir pressure maintenance and preservation. These trends underscore a growing emphasis on sustainability and operational efficiency across industrial applications. The shift towards energy-efficient technologies addresses environmental concerns while meeting stringent regulatory requirements. Concurrently, the oil and gas industry's reliance on stationary air compressors highlights their critical role in maintaining operational continuity and enhancing productivity. Moreover, the utilization of air compressors for reservoir pressure preservation reflects ongoing efforts to optimize resource extraction processes. Collectively, these factors drive innovation and market growth in the air compressor industry, catering to diverse industrial needs and advancing technological capabilities.
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The natural gas sector and refinery and petrochemical sector rely extensively on various types of industrial air compressors such as oil-free systems, reciprocating compressors, and rotary-type positive displacement compressors. These compressors are critical in oil refineries, chemical plants, and power generation projects, ensuring efficient operations and fluid handling. In industrial automation, compressed air powers pneumatic tools, automation equipment, and conveyors, optimizing manufacturing processes. The pulp and paper industry utilizes compressors for paper production, while centrifugal compressors are vital in diverse industrial sectors including commercial manufacturing and energy and power industries. In electronics and semiconductor industries, compressors maintain controlled environments essential for delicate manufacturing processes. Furthermore, the role of compressors in hydrogen production underscores their importance in emerging energy technologies. Overall, industrial air compressors play a crucial role across a wide spectrum of applications, supporting efficiency, productivity, and reliability in various sectors globally.
Climate change and global warming have resulted in the need to focus on energy efficiency, followed by a reduction in emissions in the oil and gas industry. Reducing carbon emissions is the main goal of improving energy efficiency. Lower electricity consumption is another key reason for the adoption of new air compressors in the oil and gas in end-user industries.
Moreover, electricity consumption accounts for 70% of the total lifetime costs of compressors. To improve energy efficiency, industrial users should use compressors with reliable and efficient controls. The demand for these air compressors in the oil and gas will propel the growth of the global air compressor market in the oil and gas industry during the forecast period.
The world's fossil fuel reserves are limited, leading to increased attention to sustainable alternative fuel sources. Fuels such as upgraded biogas and biofuels help diversify the energy mix and reduce the dependence on petroleum products. Upgraded biogas will prove to be an effective alternative fuel when the trend of falling oil prices comes to an end.
Moreover, the demand for improved biogas will be boosted by favorable governmental incentives and policies, which will result in an increase in upgraded biogas production. It is expected to propel the demand for air compressors in the oil and gas industry, which will spur the growth of the global air compressor market in the oil and gas industry during the forecast period.
Oil and gas are used as fuel in vehicles, for space heating in buildings, and in the manufacturing of products such as plastics and fertilizers. The oil and gas industry's exploration and production activities have an adverse effect on the environment, although petroleum products make life simpler. Oil and gas drilling activities cause serious damage to the environment, in various ways, including oil spills, air and water pollution due to toxic chemical emissions, and climate change due to methane emissions.
However, violations of laws or international mandates due to oil spills or any oil-related products in the environment are punishable by substantial penalties, which may vary significantly, both at the regional and international levels. The environmental concerns related to oil and gas drilling activities will impede the growth of the global air compressor market in the oil and gas industry significantly during the forecast period.
The positive displacement segment will account for a major share of the market's growth during the forecast period. PD compressors, such as reciprocating piston compressors, rotary screw compressors, and rotary vane compressors, capture a certain volume of air in a chamber and then shrink the chamber to compress the air.
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The positive displacement segment was valued at USD 5.98 billion in 2018. Piston compressors are typically categorized into single-acting, and the double-acting. The rotary screw compressors come in sizes ranging from 25-300 Hp. Meanwhile, rotary sliding vane compressors operate like air motors with sliding vanes turned by an off-center rotor.
Stationary air compressors are generally larger in size than portable air compressors. These are designed to be placed in a fixed position because the size of the tanks is large and, thus, are hard to move from a site. In contrast to their portable counterparts, stationary air compressors are equipped with a higher capacity and thus store larger volumes of compressed air thereby acting as more efficient power sources. Stationary air compressors consume more electricity, which can only be provided by AC main supply and, hence, cannot be operated on battery power.
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APAC is estimated to contribute 43% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. In APAC, the growth of the air compressor in the oil and gas market in the oil and gas industry during the forecast period will be attributed to the developments in the oil and gas pipeline segment, LNG, and the petrochemical sector in countries such as India, China, South Korea, Indonesia, and Thailand.
Moreover, the higher demand for energy in China and India is based on the need to develop these economies more economically as well as secure their energy supply. There are many cross-country oil and gas pipelines planned for the transportation of hydrocarbons in these countries. The rising production of gas in the region will drive the growth of the market in focus further in APAC during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Atlas Copco AB - The company offers air compressor market in oil and gas industry such as oil-free screw air compressors zr and zt VSD, oil-free air centrifugal compressor zh and zh plus, and oil lubricated screw compressors ga VSD plus.
BOGE KOMPRESSOREN GmbH and Co. KG - The company offers air compressor market in oil and gas industry such as oil-free screw compressors, and screw compressors with oil injection cooling.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
ANEST IWATA Corp., Bauer Comp Holding GmbH, Chart Industries Inc., Doosan Portable Power Co., Elgi Equipments Ltd, Fusheng Precision Co. Ltd., Gardner Denver, General Electric Co., Hanbell Precise Machinery Co. Ltd., Ingersoll Rand Inc., KAESER KOMPRESSOREN SE, Kaishan Compressor USA, Kirloskar Pneumatic Co. Ltd., Porsche Automobil Holding SE, Quincy Compressor, Sullair LLC, Sulzer Management Ltd., and Siemens Energy AG.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
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3. Automotive Heating, Ventilation, and Air Conditioning (HVAC) Compressor Market: Automotive Heating, Ventilation, and Air Conditioning (HVAC) Compressor Market Analysis APAC,Europe,North America,South America,Middle East and Africa - US,China,Japan,India,Germany - Size and Forecast
Oil free systems and rotary type positive displacement compressors are pivotal in various industries like air conditioners, the gas pipeline industry, and power plants. They efficiently manage operations with electric motors, diesel engines, and gasoline engines, ensuring optimal performance and reducing greenhouse gas emissions. Storage tanks play a critical role in maintaining energy savings and adhering to low-carbon energy sources, enhancing air quality through rigorous air audits and compliance with emission standards. Effective management of contaminants and adherence to energy conservation standards are facilitated by organizations like the Compressed Air Society, ensuring industry compliance through Big Data analytics and cloud technology. These technologies are also integral to the mining sector, where stationary compressors including Oil flooded compressors and air cooled industrial compressors ensure operational efficiency and minimize production losses.
Moreover, In industries ranging from manufacturing to energy production, the use of oil-free systems and rotary-type positive displacement compressors is essential for efficient operations. These compressors, powered by electric motor, diesel engine, and gasoline engine, play a crucial role in various applications. They are integral in maintaining environmental sustainability by utilizing low carbon energy sources and adhering to stringent Code of Practice standards. Within the stationary segment, rotary compressors such as oil-flooded compressors and air-cooled industrial compressors ensure reliable performance and longevity. Storage tank complement these systems by enhancing operational efficiency and storage capacity, contributing to reduced energy consumption and lower emissions. The implementation of these technologies not only meets regulatory requirements but also improves overall operational reliability and sustainability across diverse industrial sectors.
Industry Scope |
|
Report Coverage |
Details |
Page number |
155 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.36% |
Market growth 2024-2028 |
USD 2.53 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.11 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 43% |
Key countries |
China, US, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ANEST IWATA Corp., Atlas Copco AB, Bauer Comp Holding GmbH, BOGE, Chart Industries Inc., Doosan Portable Power Co., Elgi Equipments Ltd, Fusheng Precision Co. Ltd., Gardner Denver, General Electric Co., Hanbell Precise Machinery Co. Ltd., Ingersoll Rand Inc., KAESER KOMPRESSOREN SE, Kaishan Compressor USA, Kirloskar Pneumatic Co. Ltd., Porsche Automobil Holding SE, Quincy Compressor, Siemens Energy AG, Sullair LLC, and Sulzer Ltd. |
Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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