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The compressors market size is forecast to increase by USD 11.92 billion at a CAGR of 2.87% between 2023 and 2028. The market is witnessing significant growth due to the increasing adoption of compressors in various industries such as oil and gas, chemicals, and power generation. This trend is driven by the rising demand for compressed air and gas applications in these sectors. Another key trend is the growing preference for oil-free compressors due to their environmental benefits and improved efficiency. However, the market is also facing challenges, including the volatility in oil and gas prices, which can impact the cost-effectiveness of compressor systems. Additionally, the development of energy-efficient compressor technologies and the increasing focus on reducing emissions are expected to provide significant opportunities for market growth. In summary, the market is experiencing strong growth driven by increasing demand from various industries and the preference for oil-free compressors. However, market growth is being challenged by the volatility in oil and gas prices and the need to develop energy-efficient technologies.
The market has experienced significant growth due to industrialization and automation in various industries such as food & beverages, HVAC, oil & gas, pharmaceuticals, power sector, manufacturing, electronics, steel, and others. The increasing demand for energy efficiency and the expansion of gas pipeline networks in emerging economies have further fueled market growth. The market is segmented into positive displacement compressors, which include dynamic compressors, and oil-free compressors. Oil-free compressors are gaining popularity due to their ability to minimize the risk of contamination in sensitive applications. The oil & gas industry and power sector are major consumers of compressors due to their extensive use in upstream and downstream processes.
Furthermore, the manufacturing sector also utilizes compressors for various applications, including the production of volatile organic compounds. The steel industry uses compressors for various processes, including the production of steel and the operation of HVAC systems. Stationary air compressors are widely used in these industries to meet their compressed air requirements.
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 oil and gas segment is estimated to witness significant growth during the forecast period. The market encompasses a wide range of applications in various industries, including the oil and gas sector, cement, chemical plants, and the electronics industry. Compressors play a crucial role in the oil and gas industry, particularly in upstream, midstream, and downstream operations. In refineries, compressors are utilized for desulfurizing and reforming processes. In natural gas plants, they are essential for transporting pressurized gas and gas injection applications. Dynamic compressors, such as electric-operated air compressors and oil-free compressors, are increasingly being adopted due to their energy efficiency and environmental benefits. The HVAC industry and manufacturing sector also heavily rely on compressors for energy conservation and industrialization.
Furthermore, in emerging economies, the middle class's growing demand for food and beverages, as well as the packaging industry, is driving the demand for compressors. The importance of energy efficiency and reducing greenhouse gas emissions is a significant factor in the market. The Energy Institute (EI) and various energy efficiency standards are encouraging the adoption of compressors that minimize carbon emissions. Compressors are also used in gas fields for gas flow, gas gathering, gas lift, and gas lift valve applications. In the context of the Climate Target Plan and the shift towards gas-based energy generation, compressors are essential for the transportation and distribution of natural gas through pipelines and gas pipeline networks.
Moreover, in the oil and gas industry, compressors ensure optimum pressure during natural gas production, natural gas processing, and oil refining processes. Their use in oil refineries includes oil-filled air compressors and oil-flooded compressors. In contrast, oil-free compressors are preferred in applications where lubricant-free air is required, such as the electronics industry. The market's growth is driven by the increasing demand for energy efficiency, energy conservation standards, and the need for reliable and efficient compressor systems in various industries.
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The oil and gas segment accounted for USD 26.13 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 38% 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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The market encompasses various types of compressors, including Positive Displacement compressors such as Reciprocating compressors and Rotary/screw compressors, used extensively in diverse industries. The petrochemical business and steel industry rely heavily on compressors for processing and transporting gases through pipeline systems. In the pharmaceuticals industry, compressors are crucial for power generation in power projects and the production of volatile organic compounds. Urbanization and residential gas consumption have led to an increased demand for portable air compressors. Rotary compressors and Reciprocating compressors, specifically, are popular choices for power generation due to their high efficiency and reliability. The power sector continues to be a significant end-user, with compressors essential for maintaining reservoir pressure in oil and gas production.
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.
Increasing adoption of compressors in various industries is the key driver of the market. The market has experienced notable growth due to the versatility and efficiency of compressors in various industries. Key sectors, including automotive, chemical, petrochemical, and manufacturing, have increasingly adopted compressors for productivity enhancement and energy conservation in their processes. Compressors play a significant role in transferring oil and gas from production sources to storage, and are utilized for diverse applications such as compressing gases and air, powering pneumatic tools and machinery, and providing energy for various uses. Moreover, compressors contribute to reducing downtime and maintenance costs, making them indispensable in industries like cement, food & beverages, HVAC, and electronics.
Furthermore, in the oil & gas industry, compressors are essential for gas gathering, gas flow control, gas injection, gas lift, and gas lift valve applications. In the context of energy efficiency and climate targets, compressors are integral to gas pipeline networks, gas transportation, and gas-based energy generation. The Middle Class in emerging economies is driving industrialization, leading to increased demand for compressors in various sectors. Energy efficiency and lubrication are critical considerations for compressor manufacturers, with electronics and oil-free compressors gaining popularity due to their low greenhouse gas emissions. In the context of the Energy Institute (EI) and energy efficiency standards, compressors play a vital role in reducing carbon emissions in coal-based electricity and oil refineries, making them an essential component in the transition towards a more sustainable energy landscape.
Rising demand for oil-free compressors is the upcoming trend in the market. Compressors are essential components used in various industries for gas flow control and energy conversion. The market can be categorized into oil-flooded and oil-free compressors based on lubrication type. In 2020, oil-flooded compressors held a larger market share due to their widespread usage in industries such as cement, chemical, oil & gas, and HVAC. However, the increasing demand for contamination-free air in industries like food & beverages, electronics, and pharmaceuticals is driving the growth of oil-free compressors. Strict quality standards in these industries require the use of Class 0-certified compressors, which are oil-free. Oil-free compressors do not use oil for sealing or cooling the compressed air.
Moroever, instead, they employ cooling water circulated through special pockets in the compressor casing. The need for energy efficiency and energy conservation standards, as outlined in the Climate Target Plan, is also fueling the demand for oil-free compressors. Furthermore, emerging economies and the middle class's growing purchasing power are increasing the demand for oil-free compressors in industries like packaging and manufacturing. The oil & gas industry, including gas fields, gas gathering, gas injection, gas lift, and gas pipeline networks, also uses compressors for gas transportation and gas-based energy generation. In the oil refineries, compressors are used to compress and transport oil and natural gas. The electronics industry and automation systems require high-quality compressed air for their operations. Dynamic compressors, such as electric-operated air compressors, are widely used in these industries due to their energy efficiency and low carbon emissions. Overall, the market is expected to grow significantly due to the increasing industrialization, the need for energy efficiency, and the demand for cleanroom applications.
Volatility in oil and gas prices is a key challenge affecting the market growth. The market is subject to various influences, with the oil and gas industry playing a significant role due to its impact on compressor demand. Volatility in crude oil prices poses a challenge for this sector, as it can affect new exploration and production investments, refinery expansions, and contract prices. The unpredictable nature of crude oil pricing can lead to price fluctuations that significantly impact the entire market. Crude oil prices have a ripple effect on various industries, including the chemical, cement, food & beverages, electronics, HVAC, manufacturing, oil & gas, and packaging industries. These industries rely on compressors for gas gathering, gas flow control, gas injection, gas lift, and gas pipeline networks.
Furthermore, compressor manufacturers produce various types, such as oil-filled, oil-flooded, oil-free, and dynamic compressors, catering to diverse applications. The oil and gas industry's volatility is further influenced by factors like automation, energy conservation standards, and climate targets. For instance, the European Union's Climate Target Plan aims to reduce greenhouse gas emissions by at least 55% by 2030. This can increase the demand for energy-efficient compressors, such as oil-free and electric-operated air compressors. Moreover, emerging economies' industrialization and middle class growth contribute to the demand for compressors in various industries. The growing demand for natural gas production and gas-based energy generation further boosts the market. Despite these opportunities, compressor manufacturers must address challenges like carbon emissions and lubrication requirements to ensure their products meet industry standards and customer expectations.
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 - This company offers compressors namely air and gas compressors, Compressed air dryers, oil free air compressor, oil lubricated air compressor and air compressor parts.
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 market is witnessing significant growth due to the increasing automation in various industries such as cement, chemical plants, food & beverages, and the manufacturing sector. Dynamic compressors, including electric-operated air compressors and oil-free compressors, are gaining popularity due to their energy efficiency and ability to meet energy conservation standards. The oil and gas industry, including natural gas production and oil refineries, is a major consumer of compressors for gas gathering, gas transportation, and gas-based energy generation. The electronics industry also utilizes compressors for cooling and lubrication purposes. The emergence of emerging economies and industrialization are driving the demand for compressors in various applications.
Furthermore, the HVAC industry and the climate target plan are also contributing to the market growth. In the oil & gas industry, compressors are used for gas lift, gas injection, and gas flow applications in gas fields and gas pipeline networks. The use of compressors in coal-based electricity generation for powering industrial processes is another significant application. The focus on reducing greenhouse gas emissions is leading to the adoption of energy-efficient compressors and the replacement of oil-filled air compressors with oil-free compressors.
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Market Scope |
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Report Coverage |
Details |
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Page number |
169 |
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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 2.87% |
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Market growth 2024-2028 |
USD 11.92 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
2.76 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
North America at 38% |
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Key countries |
US, China, Japan, UK, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Atlas Copco AB, BAC Compressors, BOGE, Danfoss AS, Dearing Compressor and Pump Co., Doosan Portable Power Co., Elgi Equipments Ltd, Fusheng Precision Co. Ltd., Hanbell Precise Machinery Co. Ltd., Hitachi Ltd., Indo-Air Compressors Pvt. Ltd., Ingersoll Rand Inc., KAESER KOMPRESSOREN SE, Kaishan Compressor USA, Kirloskar Pneumatic Co. Ltd., Kobe Steel Ltd., Parker Hannifin Corp., Siemens Energy AG, Sulzer Ltd., and Yantra Technologies |
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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. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
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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