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The Air Compressor Market in the Oil and Gas Industry size is estimated to grow at a CAGR of 4.1% between 2023 and 2027. The market size is forecast to increase by USD 2,287.43 million. The growth of the market depends on several factors, the shift to more energy-efficient compressors, the rising demand for stationary air compressors in the oil and gas industry, and the increasing demand for air compressors to re-inject reservoir pressure preservation.
This report extensively covers market segmentation by product (positive displacement and centrifugal), type (stationary and portable), and geography (APAC, North America, Europe, South America, and the Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
Air Compressor Market in Oil and Gas Industry Forecast 2023-2027
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Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
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 5,843.67 million in 2017 and continued to grow until 2021. 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 38% to the growth by 2027. 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.
Countries such as China, Japan, South Korea, and India were severely affected by the COVID-19 pandemic. However, due to various government enterprises such as mass vaccination drives and social distancing, the number of COVID-19 cases declined significantly in 2020. The regional economic activities have thus become progressively more active. As a result, the demand for oil and gas surged from the beginning of 2021, which helped the regional market recover to some extent. Thus, the growing demand for oil and gas in the region will drive the growth of the regional market 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 air compressor market in the oil and gas Industry report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Air Compressor Market Scope In Oil And Gas Industry |
|
Report Coverage |
Details |
Page number |
157 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.1% |
Market growth 2023-2027 |
USD 2,287.43 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.65 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 38% |
Key countries |
US, China, Japan, Germany, and the 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 KOMPRESSOREN GmbH and Co. KG, 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 |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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