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The Integrally Geared Centrifugal Compressor Market size is forecast to increase by USD 649.7 million at a CAGR of 6.78% between 2023 and 2028. The market is experiencing growth, driven by surging demand from the oil and gas sector. As industries prioritize energy efficiency, these compressors emerge as vital solutions for enhancing machinery efficiency and curbing operational costs. Their advanced design and engineering not only meet the rising demand for reliable compression in oil and gas operations but also contribute to sustainable energy practices. With a focus on efficiency and cost-effectiveness, integrally geared centrifugal compressors are poised to play a pivotal role in shaping the future of industrial compression systems.
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The market research report includes the adoption lifecycle of the market research and growth, covering from the innovatorâs stage to the laggardâs 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 and forecasting strategies.
Customer Landscape
The market is witnessing significant growth due to the increasing demand for oil and gas, particularly in the energy sector. These compressors are essential for oil refining, natural gas compression, and LNG liquefaction processes. The market is driven by the efficiency of machinery, which leads to reduced operational costs and lower carbon emissions. Key participants in the market include industrial and commercial entities, focusing on M&A activities to expand their market share.
In addition, technological progress in centrifugal compressors, including medium voltage and high voltage models, is a significant factor driving the market. Bearings and oil seals are critical components of these compressors, and their reliability and durability are crucial for their effective operation. Carbon capture plants are also expected to be a significant application area for integrally geared centrifugal compressors due to their energy efficiency and low emissions. The market is expected to grow steadily, with increasing demand and the shift towards energy-efficient appliances. Analysts predict that the market will continue to grow, driven by the need for reliable and efficient compressors in various industrial applications.
Rising demand from the oil and gas industry is driving growth in the market. In a number of applications, including oil extraction and transport to customers by the refinery and associated pipelines, an integral geared Centrifugal Compressor is applied. Compressed air is widely employed in the sweetening of gasoline, oxidation of sour water, regeneration of catalysts, and removal of sulfur. Moreover, compressed air is used in the acute drive of first-generation drives and actuators. Accordingly, according to the application type, integrally geared circulators are manufactured on a custom basis.
Moreover, many oil projects that have been postponed are expected to be renewed, notably in regions like the US, Brazil, and the Gulf of Mexico, as a result of stable commodity prices around the world. The demand for an integral-driven Centrifugal Compression Unit is increasing in the downstream, intermediate, and upper processes as projects are being initiated that have been delayed. With an increasing number of active rigs, the demand for compressors will grow. This is expected to grow at a high rate during the forecast period.
The increasing R&D and M&A (merger & acquisitions) is a primary trend in the market. In view of the increasing competition, industry players are trying to increase their product lines and penetrate untapped markets by means of mergers and acquisitions. This will help them in using the available resources from allies, reducing research investments of companies. It will also assist manufacturers in offering their customers complete, reliable, high-quality, and state-of-the-art technology components and services.
Market players benefit from strategic mergers and acquisitions to differentiate their products and increase their profit margins. It is seen that the companies are striving for variables such as reliability, cost-effectiveness, and efficiency in the manufacturing of finished products. In the Asia Pacific region, local and regional traders offer their products at a lower cost compared to international players. Although a few small companies, such as Sundyne, have strong leadership in the market, they face stiff competition from competitors owing to the latter's high investments in R&D. Hence, such a trend is expected to drive the growth of the market in focus during the forecast period.
The unpredictability of oil and gas prices is a major challenge in the market. Crude oil prices have a great deal to do with the success or failure of the oil and gas industry. The continuous price decline or hikes will lead to a supply-demand imbalance. The number of new projects will fall due to a drop in investment in oil and gas. Consequently, the global market for integrally geared centrifugal compressors will be negatively affected. Many upstream oil and gas companies experienced a phase of reduced revenues. This had a negative impact on the cash flow of companies.
However, integrated oil companies with operations in both upstream and downstream sectors could still manage some of the financial pressure, with revenues generated from the downstream segment. Explorations in the sea and deep oceans are very costly as they involve a large number of risks. Most companies have not yet invested in additional exploration because of falling profits from the oil and gas sector. This has led to a drop in the demand for integrally geared Centrifugal Compressors. This can also be a major future threat since the market depends highly on the price of crude oil. Hence, such a challenge is expected to hinder the growth of the market in focus during the forecast period.
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 integrally geared centrifugal compressors such as Atlas Copco ZH 350+, delivering high-performance and energy-efficient integrally geared centrifugal compressors.
We also have detailed analyses of the marketâs competitive landscape and offer information on 20 market companies, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories 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.
The oil and gas segment will account for a major share of the market's growth during the forecast period. Oil and gas applications contribute a major share to the market. For a wide range of applications, i.e. for the production of LNG in the Oil & Gas sector, Integrally geared compressors are used to generate different forms of energy from oil refining, midstream operations, gas processing, etc. Compressors play a vital role in deciding the efficiency and operational cost of these applications, and integrally geared compressors have more efficiency than other compressors.
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The oil and gas segment was valued at USD 473.40 million in 2018. The demand for crude oil has increased globally, owing to the rise in the number of automobiles. Billions of dollars are being spent on new and upgrading projects in the oil industry by a number of countries, such as India, China, Russia, the United Arab Emirates, etc. Therefore, increased shale gas explorations and intensified oil extraction activities in the Middle East will increase the demand for integrally geared centrifugal compressors during the forecast period.
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APAC is estimated to contribute 55% to the growth by 2028. Technavioâs analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. The market in APAC is expected to grow moderately during the forecast period. Demand for integrally geared centrifugal compressors is expected to be fueled by the growth in oil and gas, industrial gases, or chemical and petrochemical industries of this region. The oil and gas sector is the major contributor to the market in APAC. Japan, China, South Korea, and India are the largest importers of crude oil as they have multiple large-capacity refineries. Integrally geared centrifugal compressors are extensively used in refineries for oil refining. This is boosting the growth of the market in the region.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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The market is witnessing significant growth in the Oil and Gas industry due to the increasing demand for energy-efficient machinery in various applications. The efficiency of machinery plays a crucial role in operational costs, making integrally geared centrifugal compressors an attractive choice for industries such as Oil refining and Natural Gas compression. Key participants in the market include Atlas Copco AB, among others. Market research reports published by various analyst teams provide insights into the market trends, growth drivers, and competitive landscape. Technological progress in materials, smart features, and innovative designs are key factors fueling the market growth. Integrally geared centrifugal compressors are widely used in Carbon capture plants, LNG liquefaction, CNG refueling, and Automobiles. The market is segmented into Medium voltage centrifugal and High voltage centrifugal compressors. The increasing industrialization and urbanization, along with the growth of Renewable energy projects, are expected to further boost the market.
In addition, vendor selection in the market is based on factors such as brand recognition, reliability, and cost-effectiveness. Key industry players are focusing on M&A activities to expand their market presence and enhance their product offerings. The market research team reports also cover the impact of trends such as Energy efficient appliances and the increasing adoption of turbines in various industries. Impeller, gear, bearings, and oil seals are critical components of integrally geared centrifugal compressors, and their development and optimization are essential for market growth. In conclusion, market is poised for robust growth in the coming years, driven by the demand for energyefficient compressor, technological advancements, and the expanding applications in various industries. Also, the market thrives through reciprocating compressors, retail networks, and online platforms for widespread accessibility and distribution.
Market Scope |
|
Report Coverage |
Details |
Page number |
189 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.78% |
Market growth 2024-2028 |
USD 649.7 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.24 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 55% |
Key countries |
US, China, Japan, India, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Atlas Copco AB, Baker Hughes Co., Chart Industries Inc., Cryostar, FS ELLIOTT Co. LLC, Fu Sheng Industrial Co. Ltd., General Electric Co., Hanwha Corp., Hitachi Ltd., HMS Hydraulic Machines and Systems Group PLC, IHI Corp., Ingersoll Rand Inc., Kawasaki Heavy Industries Ltd., KNM Group Berhad, Kobe Steel Ltd., Mitsubishi Heavy Industries Ltd., Nanjing SAG Equipment Co. Ltd., Siemens AG, Sundyne LLC, and Volkswagen AG |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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 Application
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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