Compressor Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The global compressor market is expected to witness a CAGR of about 4.15% over the period of 2020-2025. Factors such as growing demand for natural gas, which, in turn, is leading to a growing gas pipeline network, is expected to be one of the most significant drivers for the compressor market during the forecast period. Apart from that, the emerging countries, such as India, Vietnam, and Malaysia, are encouraging foreign investments in the manufacturing industry through several government programs, which, in turn, is expected to drive the manufacturing sector, in turn, supporting the demand for compressors during the forecast period. However, consumers opt to service and continue usage of existing compressors instead of investing in new installations to reduce capital expenditure, since the cost of a new compressor is significantly high. This, along with the emission of methane in the atmosphere from the compressors, leading to environmental issues, is the restraining factor during the forecast period.

• Oil and gas end-user segment is likely to dominate the compressor market owing to the increased use of different types of compressors in upstream, midstream and downstream sectors for several distinctly different applications, such as transmission, storage, gas gathering, gas lift, gas injection, flash gas compression, refrigeration, etc.
• The coal consumption in Europe has been on a decline since 2013, from 377 million tonnes to 307 million tonnes in 2018. This has led to increased dependence on gas for power as a substitute for coal and create a huge opportunity for the compressor market.
• Asia-Pacific is the largest market and is also expected to dominate the market during the forecast period. It is driven by China and India, due to the growing natural gas infrastructure in these countries.

Scope of the Report

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Key Market Trends

Oil and Gas Segment to Dominate the Market

• The global demand for natural gas is expected to increase by 1.6%, y-o-y, for the next five years, with the consumption reaching almost 4,200 billion cubic meter (bcm) by 2025, up from 3,800 bcm in 2018.
• 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.
• The LNG trade is expected to witness a significant increase across the world, resulting in increased demand for natural gas pipeline network, which, in turn, is an upcoming opportunity for the compressor market.
• Driven by a determined policy effort to improve air quality, China contributed significantly to the increase in natural gas demand in 2018, which led to an unprecedented surge in LNG imports, placing China the world’s second-largest LNG importer, after Japan.
• There is a global trend toward cleaner fuel consumption due to the growing concerns about air pollution and global warming. The growing share of gas-based power generation is expected to help drive the gas compressor demand in the oil and gas industry during the forecast period, driving the global compressor market.
• In order to fulfill the growing gas demand, the large investments to build the gas pipeline network are expected across the world. The compressors are an integral part of gas transportation infrastructure. Hence, a growing gas pipeline network is expected to be one of the most significant drivers for the compressor market during the forecast period.

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