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The air compressor in oil and gas industry market size is forecast to increase by USD 2.54 billion at a CAGR of 4.36% between 2023 and 2028. The air compressor market in the Oil and Gas industry is experiencing significant growth, driven by the shift towards more energy-efficient compressor technologies. Rotary compressors and oil-flooded compressors continue to dominate the stationary segment, while centrifugal compressors gain traction due to their ability to handle large volumes of gas. The focus on economy and energy security is driving the demand for stationary compressors in the commercial manufacturing sector. Additionally, environmental concerns related to oil and gas exploration and production activities are leading to increased adoption of air compressors that meet stringent emission standards. Overall, the market is expected to witness steady growth in the coming years, with a focus on improving energy efficiency, reducing emissions, and enhancing operational reliability.
Air compressors play a crucial role in various industries, including the natural gas sector. These machines are integral to powering pneumatic tools, automation equipment, conveyors, and other industrial processes. In this context, the natural gas sector relies heavily on industrial air compressors to facilitate the production, processing, and transportation of natural gas. Two primary types of air compressors are widely used in the natural gas sector: oil-free systems and reciprocating compressors. Oil-free systems are preferred in applications where oil contamination is unacceptable, such as in natural gas processing and power generation projects.
Simultaneously, reciprocating compressors, on the other hand, are suitable for compressing air to relatively low pressures and are commonly used in oil refineries and commercial manufacturing. Industrial air compressors are also essential in the energy and power sector, particularly in the context of natural gas. Centrifugal compressors and stationary compressors are often employed in natural gas processing and hydrogen production. These compressors help increase the pressure and temperature of natural gas, making it easier to transport and process. The natural gas sector's reliance on industrial air compressors extends to the chemical industry as well. In chemical plants, air compressors are used to power pneumatic tools, conveyors, and other automation equipment.
Moreover, these compressors enable efficient and effective production processes, contributing to the overall success of the chemical industry. Moreover, air compressors are increasingly being used in the electronics and semiconductor industries. In these industries, compressed air is used for various applications, including cleaning, cooling, and powering tools. The reliability and efficiency of air compressors make them indispensable in these industries, where precision and consistency are paramount. In summary, air compressors are an essential component in various industries, particularly in the natural gas sector. They power pneumatic tools, automation equipment, conveyors, and other industrial processes, enabling efficient and effective production and processing.
In conclusion, oil-free systems and reciprocating compressors are commonly used, with centrifugal compressors and stationary compressors also playing essential roles in natural gas processing and hydrogen production. The electronics and semiconductor industries also rely on air compressors for various applications, further underscoring their importance in the industrial landscape.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The positive displacement (PD) segment is estimated to witness significant growth during the forecast period.In the oil and gas industry, air compressors play a crucial role in various applications, particularly in the natural gas sector. Among the different types of air compressors, positive displacement (PD) compressors, including reciprocating piston compressors, were the largest segment of the global market in 2023. PD compressors function by capturing a specific volume of air in a chamber and reducing the chamber's size to compress the air. Reciprocating piston compressors are a type of PD compressor commonly used in the oil and gas industry. These compressors consist of a piston that moves back and forth inside a cylinder, drawing in air on one stroke and compressing it on the other.
Simultaneously, single-acting reciprocating piston compressors draw in air from one side of the piston and compress it using the downward stroke of the piston. The other side of the piston, which is exposed to the crankcase, creates an intake stroke, allowing the piston to draw in more air. These compressors are widely used in the oil and gas industry for applications such as air conditioning systems, natural gas processing, and gas pipeline transportation. In conclusion, the demand for air compressors, particularly positive displacement compressors like reciprocating piston compressors, remains high in the oil and gas industry due to their essential role in various applications. These compressors' ability to efficiently compress air makes them indispensable in the natural gas sector, gas pipeline industry, and other oil and gas applications.
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The Positive displacement (PD) segment accounted for USD 5.98 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 43% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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In the oil and gas industry, the air compressor market is experiencing significant growth in the Asia Pacific region. This expansion is primarily driven by the expansion of the oil and gas pipeline network, the development of LNG projects, and the growth of the petrochemical sector in countries like India, China, South Korea, Indonesia, and Thailand. The increasing industrialization and energy security needs in China and India, with their vast populations and high energy demands, are major factors contributing to this growth. According to the US Energy Information Administration (EIA), China holds the world's largest shale gas reserves, with over 31 TCM of technically recoverable resources.
Simultaneously, the implementation of air audits to optimize energy usage and reduce greenhouse gas emissions is another significant trend in the air compressor market. These audits help identify production losses and inefficiencies, enabling companies to make informed decisions about upgrading their compressor systems and implementing energy-saving measures. The oil and gas industry's focus on energy savings and environmental sustainability is expected to continue driving market growth in the coming years. Air compressors play a crucial role in power generation projects, particularly in the oil and gas industry, where they are used to power various operations, including drilling, production, and transportation.
Also, as the demand for energy continues to rise, the need for efficient and reliable air compressor systems will become increasingly important. The market for air compressors in the oil and gas industry is expected to grow steadily, offering significant opportunities for manufacturers and suppliers. In conclusion, the air compressor market in the oil and gas industry in the Asia Pacific region is poised for strong expansion due to the increasing demand for energy, the growth of the petrochemical sector, and the implementation of energy-saving measures. The focus on reducing greenhouse gas emissions and optimizing production processes is also expected to drive market growth. Companies in this industry that prioritize energy efficiency and sustainability will be well-positioned to capitalize on these trends.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The shift to more energy-efficient compressors is the key driver of the market. In response to the pressing concerns of climate change and energy conservation, the oil and gas industry is focusing on enhancing energy efficiency and reducing emissions. This trend is particularly prominent in North America and Europe, where regional governments are implementing stringent regulations to ensure compliance with emission standards.
Simultaneously, one of the key areas of focus is the use of air compressors, which account for a significant portion of electricity consumption in end-user industries. With electricity consumption representing approximately 70% of the total lifetime costs of compressors, the adoption of energy-efficient models is a strategic move for businesses. By investing in advanced air compressor technologies, companies can not only reduce their carbon footprint but also lower their operational costs.
The rising focus on economy and energy security is the upcoming trend in the market. In the industrial sectors, there is a growing emphasis on energy and power sources that are sustainable and less reliant on traditional fossil fuels. Alternative fuels, such as upgraded biogas and biofuels, are gaining traction as they contribute to diversifying the energy mix and decreasing the dependence on petroleum products. Upgraded biogas, which shares the same chemical properties as natural gas, is an effective alternative fuel that will prove beneficial when oil prices stabilize. This locally produced fuel can be transported through existing gas grids, thereby reducing the impact of oil and gas price fluctuations during the forecast period. Government incentives and policies are expected to fuel the demand for upgraded biogas, leading to an increase in its production.
Additionally, industries such as electronics, semiconductor, and hydrogen are exploring the potential of upgraded biogas as a cleaner and more cost-effective energy source. Big Data analytics plays a crucial role in optimizing the production and distribution of upgraded biogas, making it a promising investment opportunity for businesses in the US.
The environmental concerns related to oil and gas exploration and production activities is a key challenge affecting the market growth. In the oil and gas industry, compressors play a vital role in the production process. Compressors, such as rotary compressors and oil-flooded compressors, are utilized in both the stationary segment and commercial manufacturing. Centrifugal compressors are also commonly used in stationary applications. These compressors help increase the pressure of natural gas or other hydrocarbon mixtures to facilitate transportation and processing. The oil and gas industry relies heavily on compressors to extract and process resources.
However, the drilling process in oil and gas exploration and production activities can negatively impact the environment. Oil spills, air and water pollution from toxic chemical emissions, and methane emissions contributing to climate change are among the concerns. To facilitate the drilling process, drilling fluids are used to cool and lubricate the drill bits and pipes. These fluids can contain various additives and may need to be compressed before use. As a result, compressors are essential in the oil and gas industry, ensuring efficient and effective production while minimizing environmental impact.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Atlas Copco AB - The company offers air compressor market in oil and gas industry such as oil-free screw air compressors zr and zt VSD, oil-free air centrifugal compressor zh and zh plus, and oil lubricated screw compressors ga VSD plus.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The air compressor market in the natural gas sector has witnessed significant growth due to the increasing demand for compressed air in various applications. Reciprocating compressors, oil-free systems, rotary compressors, centrifugal compressors, and oil flooded compressors are widely used in the gas pipeline industry for compressing natural gas to transport it through long distances. Stationary air compressors are extensively used in power plants, oil refineries, and chemical plants for power generation projects and industrial automation. These compressors are driven by electric motors, diesel engines, or gasoline engines and are used to power pneumatic tools, automation equipment, conveyors, and other industrial applications.
Also, in the oil and gas industry, energy savings and reducing greenhouse gas emissions are crucial. Air audits help identify production losses and energy conservation standards ensure the efficient use of compressed air. Compressed air quality is essential to maintain emission standards and prevent contaminants from entering the environment. The Compressed Air Society has established a code of practice for the selection, installation, operation, and maintenance of industrial air compressors. The use of advanced technologies such as big data analytics and cloud technology in the oil and gas industry can optimize the performance of air compressors and reduce energy consumption.
In conclusion, ihe stationary segment of the air compressor market includes compressors used in commercial manufacturing, energy and power, electronics, semiconductor industries, hydrogen production, and other industrial sectors. The adoption of air compressors in these industries is driven by the need for efficient energy use, reducing production losses, and meeting emission standards.
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Market Scope |
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Report Coverage |
Details |
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Page number |
155 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.36% |
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Market growth 2024-2028 |
USD 2.54 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.11 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 43% |
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Key countries |
China, US, Japan, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ANEST IWATA Corp., Atlas Copco AB, Bauer Comp Holding GmbH, BOGE, Chart Industries Inc., Doosan Portable Power Co., Elgi Equipments Ltd, Fusheng Precision Co. Ltd., Gardner Denver, General Electric Co., Hanbell Precise Machinery Co. Ltd., Ingersoll Rand Inc., KAESER KOMPRESSOREN SE, Kaishan Compressor USA, Kirloskar Pneumatic Co. Ltd., Porsche Automobil Holding SE, Quincy Compressor, Siemens Energy AG, Sullair LLC, and Sulzer Ltd. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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