Market Trends of Tandem Piston Compressors Industry
This section covers the major market trends shaping the Tandem Piston Compressors Market according to our research experts:
The Natural Gas is Expected Dominate the Market
- Global Natural gas consumption increased by 5.3% and reached 4,037.5 billion cubic meters in 2021. The increase in natural gas can be attributed mainly to the shale gas boom, primarily due to the technological advancement in shale gas production in the past decade.
- The gas-producing companies expect greater use of natural gas in power generation, replacing coal. Furthermore, electricity generation through natural gas increased by 2.6% in 2021.
- Moreover, many countries see an increased role for gas in the energy mix, as electricity produced with gas has half the carbon dioxide emissions of coal power. Moreover, natural gas has a role in the energy mix that helps contribute to sustainable development if methane emissions are reduced.
- Due to the development of LNG terminals, LNG infrastructure worldwide is expanding rapidly; hence, the demand for natural gas is increasing. Therefore, pipeline operators are expected to have a high demand for tandem piston compressors for natural gas transmission, which helps drive the market during the forecast period.
- Moreover, Spot gas prices have reached record highs due to Europe's efforts to diversify its natural gas supply, which have increased demand for LNG cargoes, some of which have been diverted from Asia. The heating season of 2021-2022 saw average spot LNG prices in Asia more than four times higher than the five-year norm.
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North America to Dominate the Market
- The offshore oil and gas projects in North America are becoming more competitive, owing to improving efficiencies and tightening of the supply chain, which has led to declining offshore drilling costs. Also, the recent significant expansion in U.S. oil and natural gas output is a result of technological innovation in drilling and production.
- The United States downstream industry accounted for a 17.6% share of the global refining capacity in 2021. Major factors driving the market include increased crude oil and gas production from the shale reserve and shifting focus toward the petrochemical industry.
- The United States oil and gas downstream sector is expected to witness modest growth in the future, with the increasing production of condensate splitters and the upgradation of existing facilities, primarily around the Gulf of Mexico. Additionally, fuels destined for export are expected to drive major gains in downstream production, especially LPG and distillates.
- After more than a decade of very little activity, the developments in the North American unconventional oil and gas markets have rekindled investment in new petrochemical capacity. The availability of natural gas liquids has expanded dramatically due to recent shale gas finds in the United States and Canada, and North America is once again a low-cost zone for synthesizing chemicals.
- Therefore, these factors suggest that North America is anticipated to dominate the tandem piston compressors market.
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