Market Trends of Europe Centrifugal Compressor Industry
This section covers the major market trends shaping the Europe Centrifugal Compressor Market according to our research experts:
Oil and Gas Sector to Dominate in the Forecast Period
- 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.
- The construction of the Baltic Pipeline from Norway to Poland is expected to initiate in 2020 and estimated to be completed by 2022. The laying of international pipelines is expected to drive the need for centrifugal compressors in the forecast period.
- The production of natural gas in Europe reached 915 bcm in 2019. With upcoming exploration activities, the output is likely to grow and drive the market of centrifugal compressors.
- In 2020, Equinor, Shell, and Total signed off on a USD 685 million plan to build the world's first carbon capture and storage (CCS) network, the Northern Lights in Norway. The project is estimated to increase the demand for compressors in the future.
- The increasing midstream market especially developing city gas distribution projects and cross country pipeline projects, are expected to drive the demand of centrifugal compressors in the oil and gas industry.
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Russia to Dominate the Market
- 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, Russia generated 1118 TWh of electricity. With increasing power demand, the market of centrifugal compressors is likely to grow considerably.
- With an increase in refining capacity to 6721 thousand barrels per day in 2019, Russia is expected to lead the market in the forecast period and creating ample demand for centrifugal compressors.
- Russia's chemical strategy 2030 outlines the creation of six new chemical clusters throughout the country, which is likely to drive the compressor market further.
- Government initiatives to expand the industrial sector and growing oil and gas industry of Russia, are expected to boost the demand for centrifugal compressors over the forecast period.
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