Market Trends of Industrial Air Compressors Industry
This section covers the major market trends shaping the Industrial Air Compressors Market according to our research experts:
Rotary Air compressors to Hold Significant Share
- Rotary air compressors, also known as rotary screw air compressors, are a positive displacement compression system and are adopted above other compressors due to several advantages it offers, like a significant reduction in weight and easier maintenance (owing to the availability of simplified maintenance procedures), lesser overall oil consumption, proven reliability in harsh environments, and less heat generation.
- Rotary air compressors are mainly preferred by users requiring constant pressure for usually extended periods. It is used in various industrial settings for applications such as material handling, spray painting, and use with machine tools. In addition, multiple industries, such as manufacturing, food, beverage, and pharmaceutical, are deploying oil-free air compressors to optimize their processes and reduce costs in production.
- Moreover, Oil-injected air compressors are generally used by users requiring large volumes of medium-pressure air. For instance, No Sabe Fallar, SA de CV, the Mexican subsidiary of the global BIC Group, manufactures safe, reliable BIC products and uses a group of GA-type compressors, an energy-saving ES control system, and the AirConnect Visualization System. The oil-lubricated air compressor provides equal levels of reliability and substantially drives down costs through the smart use of energy.
- Oil-free rotary screw models are used in production, industrial, or medical applications to disable oil from entering the airflow, like food packaging or medical oxygen. Oil-free rotary air compressors are expensive as they require two compression stages to reach the same pressures as an oil-injected rotary system.
- Industrial air compressors play a significant role in the modern oil and gas industry for large and small operations. For instance, according to Q Air-California, 95% of petroleum gas is processed through compression before transporting in a pipeline.
- The oil and gas industry demands sustainable and reliable compressed air equipment. Various downstream oil & gas companies are impacted due to a slowdown in demand for petrochemical and refined products due to the COVID-19 pandemic. Lower refining margins lead to lower profits for downstream oil companies such as BPCL, HPCL, IOCL, and RIL. In contrast, upstream companies such as Oil India and ONGC are impacted due to less gas and oil demand growth due to a reduction in travel and industrial activities, thereby affecting industrial air compressors in the oil and gas industry.
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Asia-Pacific to Account for a Significant Market Share
- China is expected to be one of the largest markets in the Asia-Pacific region and globally for industrial air compressors in terms of production and consumption. The primary factor for the country's dominance is the presence of several air compressor manufacturers in the country, such as Zhejiang Kaishan Compressor Co. Ltd, VMAC Company, DHH Compressor Jiangsu Co. Ltd, and DENAIR Energy Saving Technology (Shanghai) PLC, among others.
- The other factors that are highly responsible for the growth in the region are the Government regulations and policies expected to boost the market further, increasing air compressors' adoption for energy efficiency. For instance, The Energy Policy and Conservation Act prescribed energy conservation standards for various consumer products and commercial and industrial equipment, including air compressors.
- Moreover, China has become attractive by developing indigenous industries and subsequent acceleration in exports, the introduction of stringent standards, and rapid urbanization. China has a very high industrial production rate and ranks among the 28 fastest-growing nations. These factors act as drivers for adopting industrial air compressors in manufacturing facilities in the county.
- In addition, Several investments are being planned to aid the quality of growth in the region, address environmental concerns, and reduce overcapacity, for the same. It has a leading presence in several end-user industries, such as food and beverage, electronics, construction, and mining.
- Despite enormous development in alternative energy sources, oil and oil-based products' demand increases with the rising global population, predominantly in China, India, and Japan. Consequently, to keep up with the demand, industrial air and gas compressors have become invaluable for ensuring the appropriate pressure levels for these operations, with innovations focused on lower energy requirements, increased speed, and a more remarkable ability to withstand harsh drilling environments to maintain a competitive edge.
- Furthermore, India is expected to become the fifth-largest manufacturing country globally by the end of 2021. Manufacturing giants, such as Siemens, GE, and Boeing, have either set up or are setting up new manufacturing plants in India as part of their expansion strategy. These trends indicate the growth in the country's adoption of industrial air compressors.
- According to the recent forecast of OPEC, for the first time in current projections, India is expected to stand as the single most significant contributor to future energy demand, followed by China and other countries, standing in the product range of oil from 22 to 23 mboe/d. Establishing these refineries and storage in seashore areas and areas of harsh climatic conditions is expected to push industrial air compressor demand in the country.
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