Market Trends of North America Compressor Industry
Oil and Gas Industry Segment Expected to Dominate the Market
- Compressors are mechanical devices that increase the pressure of a gas by reducing its volume. They are widely used throughout the oil and gas industry. The upstream, midstream, and downstream sectors of the oil and gas business require compression for numerous applications, such as transmission, storage, gas gathering, gas lift, gas injection, flash gas compression, and refrigeration.
- Moreover, compressors are also an integral part of the gas transportation infrastructure. Hence, the expanding gas pipeline networks are expected to be one of the most significant drivers for the growth of the market studied during the forecast period.
- In 2021, the total liquefied natural gas (LNG) export from the region was 108.3 billion cubic meters (bcm), which was higher than the region exported in 2020 81.2 bcm. The conversion of the LNG from gas is likely to use compressors, and the increase in the LNG exports from the region is expected to create a positive impact on the compressor market in the region.
- In March 2022, We Energies hired Burns & McDonnell to provide engineer-procure-construct (EPC) services for two liquefied natural gas (LNG) peaking facilities in southeastern Wisconsin, near Ixoniaand Bluff Creek. The projects aim to build LNG peak shaving facilities instead of a pipeline expansion, allowing We Energies to continue providing reliable service at a significantly lower cost.
- Hence, owing to the above points, the oil and gas industry segment is likely going to dominate the North America compressor market during the forecast period.
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United States Expected to Dominate the Market
- The United States, due to the constant increase in energy demand and an increasing number of commercial and industrial operations, the country is likely to be the largest market for compressors in North America. Moreover, the growth in the share of natural gas in power generation is driven by low natural gas prices and an increasing number of such plants, which is likely going to drive the compressor market.
- The shale revolution in the United States has resulted in unprecedented petrochemical capacity creation and expansion, primarily along the United States Gulf Coast. As a result, the petrochemical sector has witnessed steady growth in the number of projects and investments. The transportation of shale gas through pipelines or by tankers in the form of LNG requires extensive use of compressors in the country.
- As of August 2022, there are in total of 160 LNG facilities in operation in the United States. Additionally, there are 11 LNG projects under construction, three of which are export terminals. The country's LNG exports have witnessed significant growth in recent years, rising from just 0.7 billion cubic meters in 2015 to 95 billion cubic meters in 2021.
- Additionally, the country has one of the largest chemical industries, globally. Several major players are investing in the chemical sector of the country, increasing the demand for compressors used in a chemical plant, during the forecast period.
- Hence, owing to the above points, the United States is expected to dominate the North America compressor market during the forecast period.
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