Market Trends of Blowers Industry
Oil and Gas Sector Expected to Witness Growth
- Fans and blowers are mostly used in the downstream part of the oil and gas industry for exhaust and ventilation and to keep the airflow going in refining and petrochemical processes.
- Additionally, several petrochemical projects are being proposed around the world. For instance, 512 petrochemical plants were anticipated to begin operations in China between 2021 and 2025. According to an International Energy Agency (IEA) petrochemicals assessment, practically all areas except Europe will increase their primary chemical production by 2050.
- Furthermore, the consumption of oil has increased significantly around the world. For instance, in 2021, oil consumption increased by 6.1% compared to 2020. In 2021, the oil consumption was 96908 thousand barrels per day, and in 2020, it was around 91360 thousand barrels per day.
- Major growth in the downstream sector is expected to come from the Middle East and African regions. After the Russia-Ukraine war, many of the countries in the European Union started depending on the Middle Eastern countries to meet their oil and gas needs.
- Therefore, to meet the global demand, maximize profitability, and gain more control over the global oil and gas market, governments in the region are moving toward developing the downstream sector in their domestic markets. The downstream sector is expected to receive the largest share of these investments.
- According to the BP Statistical Review of World Energy 2022, the amount of oil that can be refined around the world grew a lot, reaching 101,912 barrels per day in 2021.
- For example, Gasoline Integrated International of Nigeria announced planned to build a refinery on Tongeji Island in Nigeria in November 2022.The refinery will have a capacity of refining 100,000 liters per day, and the expansion capacity will be around 400,000 liters. The project is expected to be completed in 36 months, and the total investment in the project is expected to be around USD 68 million.
- Due to higher demand for petroleum products, the oil and gas industry is expected to be the most important segment over the next few years.
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Asia-Pacific to Dominate the Market
- In the Asia-Pacific, fans and blowers have a huge demand in the industrial and commercial sectors. The need for new corporate offices and office relocations, more warehouses and distribution centers, as well as outdated facilities and technological and logistical requirements, all drive the commercial sector.
- These things have caused the construction industry to spend more money, which has increased the demand for goods and raw materials used in construction. This has translated into increased demand for ventilation systems in the new infrastructure.
- In the industrial sector, the growth of the construction industry, the focus on natural-gas-fired power plants to replace old coal-fired ones, and the growth of oil and gas infrastructure have all led to a higher demand for fans and blowers, especially those with explosion-proof motors.
- Additionally, the steel industry is one of the major consumers of fans and blowers. China has the biggest steel production capacity in the world. The country had the largest steel manufacturing capacity additions in the world during the past two decades. This trend resulted in excessive production capacity. China has some of the most polluted cities in the world.
- For instance, crude steel production in China increased by almost 8.5% in 2022 compared to 2018. In 2021, total production was 1013,000 metric tons, compared to 929,038 metric tons in 2018. Due to the high demand for steel, the same thing is likely to happen over the next few years.
- Also, the number of data centers in places like India and China has been growing a lot, and this is expected to continue over the next five years. Fans and blowers are used to provide heating, cooling, ventilation, and the necessary airflow for these data centers, and increasing the number of data centers will lead to a further increase in the demand for fans and blowers.
- Thus, based on the above, it seems likely that the Asia-Pacific region will lead this market segment over the next few years.
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