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The centrifugal compressor market size is forecast to increase by USD 2.79 billion, at a CAGR of 4.46% between 2023 and 2028. The growth of the market is driven by several pivotal factors. Firstly, there is a significant increase in investment in oil and gas exploration and production activities worldwide, fueled by rising energy demands. Secondly, the automotive industry is experiencing robust growth, with heightened demand for vehicles globally, driven by technological advancements and changing consumer preferences. Thirdly, the rapid industrial expansion in the Asia-Pacific (APAC) region, characterized by infrastructure development and manufacturing growth, is contributing substantially to market dynamics. These factors collectively shape the market landscape, fostering opportunities for innovation and investment across energy, automotive, and industrial sectors. As these trends continue to evolve, they are expected to drive sustained market growth, enabling stakeholders to capitalize on emerging opportunities and navigate competitive challenges effectively.
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The market is witnessing significant growth due to the increasing demand for compressors in various sectors such as Oil and Gas, Power Generation, and Transportation. Centrifugal compressors are essential components in Oil and Gas industries for gas injection, gas gathering, gas lifts, and Pressure Boosting in pipeline systems. In Power Generation, they are used for natural gas-based energy generation and Coal-based electricity generation. The rising energy efficiency standards and the need for reducing Carbon emissions are driving the market growth. Renewable power generation is also providing new opportunities for the market. The cost of Centrifugal compressors is a crucial factor influencing the market's growth.
In addition, centrifugal compressors are used to compress Gas flow and increase Pressure in various applications, including Gas fields, Reservoir pressure maintenance, Enhanced Oil Recovery (EOR), and Coalbed Methane production. The market's growth is also influenced by the increasing demand for electricity and the need for infrastructure development in various sectors. The market is expected to grow at a steady pace in the coming years due to the increasing demand for natural gas production and consumption. The market's growth is also influenced by the shift towards Gas-based energy generation and the growing environmental awareness.
Growing investment in oil and gas exploration and production activities is notably driving market growth. The market is poised for significant expansion in the oil and gas sector over the coming years. With the industry recovering from sales losses incurred in 2020, the demand for centrifugal compressors is expected to surge. Centrifugal compressors are integral to the oil and gas industry, which encompasses exploration, extraction, refining, and transportation of petroleum products. These compressors play a pivotal role in upstream, midstream, and downstream processing, particularly in the oil and gas sector. Various countries are investing heavily in oil and gas exploration and production (E&P) activities to boost hydrocarbon production. For instance, Frontera Energy Corporation, a Canadian firm, announced the discovery of 27 new wells in March 2022. Such developments underscore the market's potential for growth. Thus, such factors are driving the growth of the market during the forecast period.
Increasing merger and acquisitions is the key trend in the market. The market is witnessing intense competition among key players, leading to an increase in mergers and acquisitions (M&A) activities. These strategic moves enable companies to broaden their product offerings and penetrate new markets, thereby reducing research investments and offering advanced technology-based parts and services to customers.
For instance, in June 2021, Atlas Copco completed the acquisition of a compressor distributor in the US, while Mitsubishi Heavy Industries, Ltd., and Bombardier Inc., announced the acquisition of Canadair Regional Jet Program in May 2020. Such strategic partnerships and acquisitions are anticipated to fuel the growth of the global market during the forecast period. Thus, such trends will shape the growth of the market during the forecast period.
Fluctuating prices of raw materials is the major challenge that affects the growth of the market. The global market exhibits a high level of competition among various vendors. To maintain their market position, some companies opt for licensing strategies to expand their product offerings. The production of centrifugal compressors involves the use of primary raw materials such as steel, aluminum, and carbon steel. The price fluctuations of these materials significantly impact the cost of centrifugal compressors.
For instance, compressors in the 5-15 MW range typically cost between USD 0.5 to 0.9 million per MW, while those in larger capacity ranges may cost upwards of USD 1 million. Market research firms like Grand View Research Market, Marketsandmarkets, Future Market Insights, Future Business Insight, Mordor Intelligence, and Data Bridge Research provide insights into the market trends, growth drivers, and competitive landscape of the centrifugal compressor industry. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
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 thermal imaging camera that enables advance vision in zero ambient light environments and cut through fog, smoke or haze.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The single-stage segment is estimated to witness significant growth during the forecast period. Centrifugal compressors play a crucial role in various industries, including power generation and transportation sectors, where oil, coal, and renewable power sources are utilized. In power generation, these compressors are employed in gas-based energy production, such as natural gas processing, and coal-based electricity generation. Centrifugal compressors are also extensively used in the oil and gas industry, particularly in the upstream, midstream, and downstream sectors. In the upstream sector, centrifugal compressors are used for gas transportation, including gas gathering, gas injection, gas lifts, and pipeline systems. These compressors help maintain the required pressure and ensure the efficient flow of gas from reservoirs to processing facilities.
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The single-stage segment was the largest and was valued at USD 6.73 billion in 2018. Gas-based energy generation, including LNG trains and MTPA, is expected to grow rapidly, leading to increased demand for centrifugal compressors. Centrifugal compressors are cost-effective solutions for compressing gases, making them an attractive option for various industries. Frequently asked questions about centrifugal compressors include their efficiency, reliability, and maintenance requirements. Discount offers and technological advancements are also driving the growth of the market. In summary, centrifugal compressors are essential components in various industries, including power generation and transportation sectors, where they help compress gases from various energy source, such as oil, coal, and renewable power. They are used extensively in the oil and gas industry for gas transportation, processing, and vaporization system. The increasing focus on energy efficiency and environmental awareness, coupled with the growing demand for gas-based energy generation, is expected to drive the growth of the market.
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APAC is estimated to contribute 46% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Centrifugal compressors play a crucial role in various industries, including power generation and transportation sectors, where oil, coal, and renewable energy sources are utilized. In power generation, centrifugal compressors are employed in coal-based electricity generation and gas-based energy generation to increase the pressure and flow rate of fuel gases, enhancing overall efficiency. In the oil and gas sector, centrifugal compressors are used extensively in upstream, midstream, and downstream applications such as gas transportation, gas injection, gas gathering, gas lifts, and pipeline systems. The costs associated with energy efficiency standards continue to rise, creating market opportunities for centrifugal compressors in electricity production and natural gas production.
In addition, centrifugal compressors are also used in vaporization systems for fish feed factories, NFE, LNG trains, and MTPA. The fastest growing sectors include pipeline projects and carbon emissions reduction in coal-based electricity generation. Discount offers and advancements in technology are driving the demand for centrifugal compressors in these areas. Centrifugal compressors are essential for maintaining pressure and ensuring efficient gas flow in pipeline systems, gas fields, reservoir pressure management, and Enhanced Oil Recovery (EOR) processes. The environmental awareness movement is also fueling the demand for gas-based energy generation and natural gas consumption, further increasing the importance of centrifugal compressors in these industries.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD bllion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
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Centrifugal compressors play a crucial role in various industries, particularly in the Oil, Coal, and Energy sector. These compressors are essential in Power generation, Transportation sectors, and the oil and gas segment industry. In the Oil and Gas sector, centrifugal compressors are used extensively in the Upstream, Midstream, and Downstream sectors. They are integral to Gas transportation, including Gas injection, Gas gathering, Gas lifts, and Pressure compression in pipeline systems. The market is driven by the increasing demand for Energy efficiency and the shift towards Renewable power generation. Costs are a significant factor in the market, with the focus on reducing operational costs and increasing energy efficiency. The market offers numerous opportunities in Electricity generation, Oil and Gas production, and Natural gas consumption.
Moreover, energy efficiency standards and Environmental awareness are key factors influencing the market. The market is witnessing significant growth in Gas-based energy generation, LNG trains, and MTPA projects. Frequently asked questions about the market include its fastest-growing applications and discount offers. Centrifugal compressors are used in various industries, including the Fish feed factory and NFE. They are also employed in Vaporization systems and are essential in the Oil and Gas industry for EOR processes. The market for Centrifugal Compressors is expected to grow significantly due to the increasing demand for Carbon emissions reduction and Coal-based electricity generation replacement with Gas-based energy generation.
Also, the market is influenced by various factors across the energy sector. In the oil and gas midstream sector, centrifugal compressors play a crucial role in transporting natural gas through pipelines efficiently. Specifically, MOWI vacuum insulated storage and vaporization systems are integral for liquefied natural gas (LNG) facilities, ensuring effective storage and distribution. These compressors are also essential in the downstream sector for refining processes, optimizing production and enhancing efficiency. This scope of the report of centrifugal compressors across different energy segments, offering insights into their applications and growth opportunities. It provides detailed license options for accessing comprehensive market analysis, emphasizing their strategic importance in the evolving energy landscape.
Market Scope |
|
Report Coverage |
Details |
Page number |
139 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.46% |
Market growth 2024-2028 |
USD 2.79 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.14 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 46% |
Key countries |
China, US, Germany, India, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Atlas Copco AB, Baker Hughes Co., Ebara Corp., FS ELLIOTT Co. LLC, Fusheng Precision Co. Ltd., General Electric Co., Hanbell Precise Machinery Co. Ltd., Hanwha Power Systems Co. Ltd., Hitachi Ltd., IHI Corp., Ingersoll Rand Inc., Kawasaki Heavy Industries Ltd., Kobe Steel Ltd., MAN Energy Solutions SE, Mitsubishi Heavy Industries Ltd., Mitsui and Co. 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, Market condition analysis for market 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. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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