Gas Compressors Market Size 2024-2028

The gas compressors market size is forecast to increase by USD 2.86 billion with a growth at a CAGR of 5.41% between 2024 and 2028. Market expansion hinges on various factors such as the demand for energy-efficient compressor systems, the increasing adoption of CNG as a fuel source, and the competitive and consistent pricing of CNG. However, market development faces obstacles, including reluctance to adopt new technologies, instability in oil and gas prices, and fluctuations in the costs of raw materials. These challenges can impede the growth trajectory of the market despite its potential. Therefore, addressing issues related to technology acceptance, stabilizing energy prices, and managing raw material costs are crucial for sustaining market growth. Finding solutions to these challenges will help unlock the full potential of the market and ensure its resilience amidst dynamic economic conditions. Our report examines historical data from 2018-2022, besides analyzing the current and forecasted market scenario.

Market Forecasting and Size

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Market Dynamics

The global gas compressors market is influenced by various factors, including international oil prices, consumption of oil and gas, and the demand from end-users like the pharmaceutical industry and renewable energy sector. Gas compressor manufacturers are focusing on meeting energy efficiency standards to cater to the evolving energy mix, which includes coal and gas-based electricity generation. Moreover, the governments, like India and China, are driving policies toward net-zero emissions, impacting the demand for LNG and gas compressors. Qatar's NFE project, with its increased LNG production capacity, contributes to market trends, emphasizing the need for energy-efficient compressors to reduce carbon emissions in the oil and gas industry's gas infrastructure.

Driver - Increasing need for energy-efficient gas compressor systems

In the oil and gas industry, there is a growing need to adhere to energy efficiency guidelines and reduce emissions. One of the main goals of increasing energy efficiency is to lower carbon emissions and make the industry more environmentally friendly. Regional government authorities are taking steps to ensure that various types of industrial equipment, such as compressors, motors, pumps, and fans, comply with regional regulations, particularly in Europe and North America. 

Furthermore, adopting compressors with efficient and reliable controls is the most important requirement for industrial end-users to improve overall energy efficiency. As a result, the oil and gas industry has been encouraged to reduce its energy consumption by replacing old gas compressors with new energy-efficient gas compressors. Furthermore, compressor manufacturers should adhere to the ISO 8573 group of standards, which will increase demand for these types of gas compressors and propel the overall market forward.

Trends - Technological developments in gas compressors

In an industrial compressor, about 94% of the electrical energy that is consumed is ultimately dissipated as heat energy. One way to make better use of this dissipating heat energy is to reuse this heat for other purposes, such as water heating in plant operations. Earlier, the dissipated heat was released into the surrounding atmosphere. However, with technological developments, this heat can be retrieved and reused. This reduces the cost of electric energy consumption to a great extent.

Furthermore, compressed air is critical to a wide range of end-user segments, such as the oil and gas industry. If compressors are poorly designed and maintained, they can lead to significant energy losses and waste every year. In addition, developments in system controllers have permitted industrial compressed air users to gain the benefits of compressed air savings by increasing the overall efficiency of the system through load sharing and leveling the running hours.

Challenge - Volatility in oil and gas prices

The recent fall in crude oil prices will upset NGV sales worldwide, thereby affecting the setting up of CNG refueling stations. This is expected to hinder the demand for gas compressors in refueling stations. Shale gas exploration in the US is rising and has reached record levels. The Middle East countries, on the other hand, have not reduced their output as they fear losing market shares. These two factors have led to a continuous fall in oil and gas prices.

Oil prices, which were nearly USD63.96 per barrel in February 2019, declined to USD56.21 per barrel in February 2020. The global average price of natural gas in 2019 was USD 2.37 per million British thermal units (BTUs). One of the primary reasons for the plunge in global oil and gas prices in February and March 2020 was the outbreak of the COVID-19 pandemic. In March 2020, global oil prices witnessed an average of USD 43.30 per barrel, while global natural gas prices averaged USD 1.91 per million BTUs. The plunge in oil prices has affected the sales of NGVs.

Market Segmentation

Product Segment Analysis

The PD compressors segment will account for a major share of the market's growth during the forecast period.?Positive displacement (PD) compressors are the largest segment of the global gas compressors market in 2023 and will continue to be the largest segment during the forecast period. PD compressors, such as reciprocating piston compressors, rotary screw compressors, and rotary vane compressors, capture a certain volume of air in a chamber and then shrink the chamber to compress the air.

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The PD compressors segment was valued at USD 5.33 billion in 2018. Single-acting compressors draw in the air from one side of the piston and compress it. The other side that is exposed to the crankcase of the compressor creates a downward stroke, allowing the piston to capture the air while the upward stroke compresses it. Single-acting machines comprise one, two, or more stages. They are usually air-cooled and have a size of 25 HP or below. Home, hobbyists, and automotive service compressors usually fall under this category. Some of these are used for light industrial applications as well. Unlike single-acting machines, double-acting reciprocating compressors have compression chambers on both sides of the piston. Double-acting reciprocating compressors have more than one stage and are usually water-cooled. Their sizes range from around 40 HP to over 1,000 HP. Only a few manufacturers still produce the double-acting reciprocating compressors because they are expensive to produce, require special foundations to handle vibration, and also need frequent extensive maintenance. Such factors will increase the market growth during the forecast period.

End-user Segment Analysis:

Based on end-user, the market has been segmented into oil and gas, power generation, chemicals and petrochemicals|Mining and others. The Oil and gas segment will account for the largest share of this segment. In the oil and gas industry, gas compressors are used in upstream, midstream, and downstream operations. During the petroleum refining process, compressors are used for desulfurizing and reforming, whereas in natural gas plants, they are used in applications such as pressurized gas transportation and gas injection. Pressure fluctuations in oil and gas plants can lead to sudden deadly explosions that can destroy equipment and imperil workers. Therefore, vendors offer gas compressors with multivariable transmitters to the oil and gas industry to maintain optimum pressure in oil and gas processing plants.Thus, the increasing demand for gas compressors in the oil and gas industry will boost the growth of the oil and gas segment in the global gas compressors market during the forecast period.

Regional Analysis

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APAC is estimated to contribute 48% to the growth by 2027.  Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. APAC was the largest geographical segment of the global gas compressors market in 2023 and will continue to remain the largest segment during the forecast period. Moreover, China is the major revenue contributor in the gas compressors market in APAC due to the growing natural gas infrastructure in the country. China is the largest reservoir of shale gas, with more than 31 tcm of technically recoverable shale gas resources. The country is expected to invest around USD160 billion in shale oil development in the forecast period. 

Who are the Major Market Companies?

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.

Accudyne Systems Inc.: The company offers gas compressors system which has high efficiency that deliver consistently high performance in the critical industries and serve environments with flow control systems for oil and gas industry.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:

Aerzener Maschinenfabrik GmbH, Atlas Copco AB, BAUER COMPRESSORS INC, BOGE KOMPRESSOREN GmbH and Co. KG, Burckhardt Compression Holding AG, Ebara Corp., Elgi Equipments Ltd, Gardner Denver, General Electric Co., Hitachi Ltd., IDEX Corp., Ingersoll Rand Inc., J.P Sauer and Sohn Maschinenbau GmbH, KAESER KOMPRESSOREN SE, Kobe Steel Ltd., Mitsubishi Heavy Industries Ltd., Siemens AG, Sulzer Management Ltd., and The Procter and Gamble Co. 

Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Segment Overview

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.

• Product Outlook 
  • PD compressors
  • Roller crushers

• End-user Outlook 
  • Oil and gas
  • Power generation
  • Chemicals and petrochemicals
  • Mining
  • Others

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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Compressors Market Compressors Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, China, Japan, UK, Germany - Size and Forecast 
Air Compressor Market in Oil and Gas Industry Air Compressor Market in Oil and Gas Industry by Product, Type, and Geography - Forecast and analysis

Market Analyst Overview

The market is witnessing a surge in demand, fueled by the growing emphasis on clean energy and the reduction of CO2 emissions. Companies are increasingly deploying gas compressors across various industrial processes and gas infrastructure projects to meet the rising gas demand and support cleaner energy initiatives such as LNG (liquefied natural gas) projects. These compressors, available in various types and units, play a crucial role in gas storage units and construction projects. Moreover, companies are focusing on enhancing after-sales services and strengthening customer relationships to cater to a diverse customer base. With advancements in materials and control systems, the market is poised for continued growth while contributing to a cleaner and more sustainable energy future. The market is experiencing significant growth, driven by the increasing demand for cleaner energy source and the need to reduce carbon emissions.

Further, companies are deploying various types of compressors, including carrier gas compressors, across gas production projects and Gas compressor deployment to meet the rising gas demand. With a focus on cleaner energy and reduced CO2 emissions, the market is witnessing advancements in compressor type and compressor unit. Additionally, companies are enhancing after-sales services and strengthening customer relationships to cater to a diverse customer base. As industrial activities continue to expand, the demand for carrier gas compressors is expected to rise, further driving growth in the market. The market is witnessing significant growth driven by various factors such as expanding industrial activities, rising infrastructure investments, and the growing demand for cleaner energy sources. Companies are investing in technological advancements to enhance compressor efficiency and performance, catering to the increasing gas transportation needs. With the transition towards renewable energy and the push for net-zero emissions, gas compressors play a crucial role in facilitating the transportation and storage of natural gas.

Additionally, strategic partnerships, regulatory standards, and environmental awareness are shaping the market landscape. As industries focus on operational efficiency and reliability, Carrier gas compressor manufacturers are innovating with improved materials and advanced compressor designs to meet the evolving needs of the energy sector and support sustainable development initiatives. The market is experiencing significant growth, driven by factors such as rising demand for cleaner energy sources like liquefied natural gas (LNG) and control system, exploration efforts in offshore gas fields, and the expansion of gas transmission pipeline networks. Companies are increasingly focusing on technological innovation to enhance compressor efficiency and reliability, meeting stringent environmental regulations and supporting cleaner energy initiatives. With advancements in compressor designs, including dynamic compressors and variable speed drives, the market is witnessing improvements in energy efficiency and operational performance. Moreover, the transition towards sustainable products and renewable energy sources is driving investments in research and development, shaping the future of the gas compressors industry amid rapid industrialization and evolving energy needs through Gas storage project.

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What are the Key Data Covered in this Gas Compressors Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the size of the market growth and trends and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Market growth and forecasting across APAC, North America, Europe, Middle East and Africa, and South America
• A thorough market report analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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