Market Trends of Axial Compressor Industry
This section covers the major market trends shaping the Axial Compressor Market according to our research experts:
Oil and Gas Segment to Dominate the Market
- Natural gas demand grew by 4.6% in 2018 and is expected to continue this trend over the forecast period, signifying an almost equal increase in axial compressor market.
- Axial compressor demand in midstream oil & gas Industry is also expected to grow with increase in exports and imports by gas producing countries such as the United States and Russia and gas consuming countries such as China and the European Union respectively. The consumption of natural gas is expected to witness the fastest growth among all fuel types. The lower cost, in comparison with other fossil fuel types, is expected to supplement the demand for natural gas, during the forecast period.
- Global oil and gas trunk pipeline are expected to grow from 1.9 million km in 2019 to 2.2 million km by 2023, showing a total growth of 13.4%. Asia-Pacific and North America lead in this data with a total of approximately 14 million km growth in pipeline length according to announced and planned projects, this trend is expected to show positive signs for axial compressor market in coming years.
- In the United States there has been a significant reduction in share of energy production from coal, which is being gradually being replaced by energy production from gas. Share of energy production from gas rose from 27.5% in 2014 to 35.1% in 2018, this indicates towards a growth for axial compressor market growth in Oil and Gas Industry.
- A similar rise for gas demand for energy production can be seen globally, with more growth rate in developing countries such as India, China, Mexico, etc., thereby driving the axial compressor market along with it.
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Asia-Pacific to Dominate the Market
- Asia Pacific has witnessed the fastest growth rate corresponding to the industrial and consumer market growth, especially from the countries such as India and China and also the gas demand growth from developed countries such as Australia.
- Power generation and manufacturing industry are the biggest consumers of natural gas in this region. Increasing demand for electricity in countries, such as India and China is expected to drive natural gas demand.
- India's investment in refining and petrochemicals industry, and the growth of steel production is expected to pave a way for the axial compressor market in India. Refining capacity of India grew to 22495.43 TMT in March 2019, an increase of 6.51% from March 2018
- China's commitment towards reducing pollution by substituting energy production from coal with renewable energy and energy production from gas have led to a constant rise in gas demand over the years, making it the world's 3rd largest country in terms of gas consumption.
- Refining capacity of China is also on the rise, with a recent contract for 1 MTA ethylene and refinery expansion project of Sinochem Quanzhou Petrochemical.
- Therefore, the aforementioned factors are expected to drive the market in forecast period, similar to the trend witnessed in recent years.
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