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The gas compressors market size is estimated to increase by USD 2.51 billion and grow at a CAGR of 4.93% between 2022 and 2027. Market expansion hinges on various factors such as the demand for energy-efficient compressor systems, the increasing adoption of CNG as a fuel source, and the competitive and consistent pricing of CNG. However, market development faces obstacles, including reluctance to adopt new technologies, instability in oil and gas prices, and fluctuations in the costs of raw materials. These challenges can impede the growth trajectory of the market despite its potential. Therefore, addressing issues related to technology acceptance, stabilizing energy prices, and managing raw material costs are crucial for sustaining market growth. Finding solutions to these challenges will help unlock the full potential of the market and ensure its resilience amidst dynamic economic conditions.
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This report extensively covers market segmentation by product (PD compressors and roller crushers), end-user (oil and gas, power generation, chemicals and petrochemicals, mining, and others), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The market share growth of the PD compressors segment will be significant 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. The size of rotary screw compressors ranges from about 25-300 Hp. They are rapidly penetrating both smaller and larger markets, thereby driving the demand for this segment.
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The PD compressors segment was valued at USD 5.25 billion in 2017 and continued to grow until 2021. Rotary vane compressors work like an air motor with an open rotor that turns the vanes. The air is compressed when the blades reach an area where the distance between the rotor and the housing is less. Except for geometry, rotary vane compressors are similar to screw compressors. Thus, the aforementioned advantages of PD compressors will drive the growth of the gas compressor market with PD compressors during the forecast period.
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APAC is estimated to contribute 52% 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.
APAC is the largest geographic segment in the global gas compressor market and will continue to be the largest segment during the forecast period. In APAC, the growth potential is high, especially in developing countries such as India and China. China is the largest contributor to the APAC gas compressor market due to the country's growing natural gas infrastructure. China is the largest oil shale gas reservoir, with more than 31 tcm of technically usable oil shale gas reserves.
During the forecast period, the country will invest approximately USD 160 billion in shale oil development. With promising opportunities from both the prominent end-user sectors, compressor manufacturers are expected to witness a steady increase in market demand and growth during the forecast period.
The market is witnessing a surge in demand, fueled by the growing emphasis on clean energy and the reduction of CO2 emissions. Companies are increasingly deploying gas compressors across various industrial processes and gas infrastructure projects to meet the rising gas demand and support cleaner energy initiatives such as LNG (liquefied natural gas) projects. These compressors, available in various types and units, play a crucial role in gas storage units and construction projects. Moreover, companies are focusing on enhancing after-sales services and strengthening customer relationships to cater to a diverse customer base. With advancements in materials and control systems, the market is poised for continued growth while contributing to a cleaner and more sustainable energy future. The market is experiencing significant growth, driven by the increasing demand for cleaner energy source and the need to reduce carbon emissions.
Companies are deploying various types of compressors, including carrier gas compressors, across gas production projects and Gas compressor deployment to meet the rising gas demand. With a focus on cleaner energy and reduced CO2 emissions, the market is witnessing advancements in compressor type and compressor unit. Additionally, companies are enhancing after-sales services and strengthening customer relationships to cater to a diverse customer base. As industrial activities continue to expand, the demand for carrier gas compressors is expected to rise, further driving growth in the market. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the key factors driving the market is the need for energy-efficient compressor systems. In the oil and gas industry, there is a growing need to adhere to energy efficiency guidelines and reduce emissions. One of the main goals of increasing energy efficiency is to lower carbon emissions and make the industry more environmentally friendly. Regional government authorities are taking steps to ensure that various types of industrial equipment, such as compressors, motors, pumps, and fans, comply with regional regulations, particularly in Europe and North America.
Furthermore, adopting compressors with efficient and reliable controls is the most important requirement for industrial end-users in order to improve overall energy efficiency. As a result, the oil and gas industry has been encouraged to reduce its energy consumption by replacing old gas compressors with new energy-efficient gas compressors. Furthermore, compressor manufacturers should adhere to the ISO 8573 group of standards, which will increase demand for these types and propel the overall market forward.
Technological development is another factor supporting the market growth in the forecast period. In an industrial compressor, about 94% of the electrical energy that is consumed is ultimately dissipated as heat energy. One way to make better use of this dissipating heat energy is to reuse this heat for other purposes, such as water heating in plant operations. Earlier, the dissipated heat was released into the surrounding atmosphere. However, with technological developments, this heat can be retrieved and reused. This reduces the cost of electric energy consumption to a great extent.
Furthermore, compressed air is critical to a wide range of end-user segments, such as the oil and gas industry. If compressors are poorly designed and maintained, they can lead to significant energy losses and waste every year. In addition, developments in system controllers have permitted industrial compressed air users to gain the benefits of compressed air savings by increasing the overall efficiency of the system through load sharing and leveling the running hours.
The volatility in oil and gas prices has affected the global market. The recent fall in crude oil prices will upset NGV sales worldwide, thereby affecting the setting up of CNG refueling stations. This is expected to hinder the demand in refueling stations. Shale gas exploration in the US is rising and has reached record levels. The Middle East countries, on the other hand, have not reduced their output as they fear losing market shares. These two factors have led to a continuous fall in oil and gas prices.
Oil prices, which were nearly USD63.96 per barrel in February 2019, declined to USD56.21 per barrel in February 2020. The global average price of natural gas in 2019 was USD2.37 per million British thermal units (BTUs). One of the primary reasons for the plunge in global oil and gas prices in February and March 2020 was the outbreak of the COVID-19 pandemic. In March 2020, global oil prices witnessed an average of USD43.30 per barrel, while global natural gas prices averaged USD1.91 per million BTUs. The plunge in oil prices has affected the sales of NGVs.
The 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 growth strategies.
Market 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 gas and process compressors such as single-stage and multi-stage centrifugal, or turbo compressors, which are complemented by turboexpanders.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments
The market is witnessing significant growth driven by various factors such as expanding industrial activities, rising infrastructure investments, and the growing demand for cleaner energy sources. Companies are investing in technological advancements to enhance compressor efficiency and performance, catering to the increasing gas transportation needs. With the transition towards renewable energy and the push for net-zero emissions, gas compressors play a crucial role in facilitating the transportation and storage of natural gas. Additionally, strategic partnerships, regulatory standards, and environmental awareness are shaping the market landscape. As industries focus on operational efficiency and reliability, Carrier gas compressor manufacturers are innovating with improved materials and advanced compressor designs to meet the evolving needs of the energy sector and support sustainable development initiatives.
The market is experiencing significant growth, driven by factors such as rising demand for cleaner energy sources like liquefied natural gas (LNG) and control system, exploration efforts in offshore gas fields, and the expansion of gas transmission pipeline networks. Companies are increasingly focusing on technological innovation to enhance compressor efficiency and reliability, meeting stringent environmental regulations and supporting cleaner energy initiatives. With advancements in compressor designs, including dynamic compressors and variable speed drives, the market is witnessing improvements in energy efficiency and operational performance. Moreover, the transition towards sustainable products and renewable energy sources is driving investments in research and development, shaping the future of the gas compressors industry amid rapid industrialization and evolving energy needs through Gas storage project.
Gas Compressors Market Scope |
|
Report Coverage |
Details |
Page number |
176 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.93% |
Market growth 2023-2027 |
USD 2.51 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.04 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 52% |
Key countries |
US, China, India, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accudyne Systems Inc., Aerzener Maschinenfabrik GmbH, Ariel Corp, Atlas Copco AB, BAUER COMPRESSORS INC, BOGE KOMPRESSOREN GmbH and Co. KG, Burckhardt Compression Holding AG, Ebara Corp., Elgi Equipments Ltd, General Electric Co., Hitachi Ltd., IDEX Corp., Ingersoll Rand Inc., J.P Sauer and Sohn Maschinenbau GmbH, KAESER KOMPRESSOREN SE, Kobe Steel Ltd., Mitsubishi Heavy Industries Ltd., Siemens Energy AG, and Sulzer Ltd. |
Market dynamics |
Parent market analysis, market growth and trends, Market forecasting, 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 market 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. |
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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 End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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