Market Trends of Asia-Pacific Centrifugal Compressor Industry
This section covers the major market trends shaping the APAC Centrifugal Compressor Market according to our research experts:
Oil and Gas Sector to Dominate the Market
- Compressors are used in different applications in the oil & gas industry, such as hydrocarbon blanketing, nitrogen compression, and a compression station. Multiple applications in the industry are creating considerable demand in the future.
- In 2019, Mitsubishi Hitachi Power Systems, Ltd. completed the installation of the natural gas-fired gas turbine combined cycle facilities for the 'Jawa-2 Project' in Indonesia with a generation capacity of 880 MW. Natural gas-fired power plants are expected to drive the booster compressor market considerably.
- In 2018, GAIL executed the 5000 km of trunk pipelines across India at the cost of INR 25,000 crores. The robust midstream growth is anticipated to create a favorable market for centrifugal compressors in the coming period.
- In 2019, Asia-Pacific produced 672 bcm of natural gas. With upcoming oil and gas projects, the demand for centrifugal compressors is likely to increase in the coming years.
- The increasing midstream market especially developing city gas distribution projects, is expected to drive the demand of centrifugal compressors in the oil and gas industry.
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China to Dominate the Market
- China's commitment towards reducing pollution by substituting energy production from coal with renewable energy and gas has led to a constant rise in gas demand over the years, making it the world's 3rd largest country in terms of gas consumption.
- The industrial sector, which includes mining, manufacturing, agriculture, and construction, accounts for the largest share of energy consumption of any end-use sector and creates a considerable market for centrifugal compressors.
- In 2019, China generated 236 TWh of electricity from natural gas plants, which is a significant applicant of centrifugal compressors.
- In addition to this, the development of the refinery sector in the country is expected to boost the demand for centrifugal compressors during the forecast period.
- Sichuan province, the most important area for shale gas, is expected to produce more than 4.5 billion cubic meters of gas, increasing the demand for hydraulic fracturing. The growth in upstream and midstream activities is likely to drive the installation of the centrifugal compressors in China in the coming years.
- Government initiatives to expand the industrial sector in China, are expected to boost the demand for centrifugal compressors over the forecast period.
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