Compressor Market Size
Study Period | 2020 - 2029 |
Base Year For Estimation | 2023 |
CAGR | 4.47 % |
Fastest Growing Market | Asia Pacific |
Largest Market | Asia Pacific |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Compressor Market Analysis
The Compressor Market size is estimated at USD 42.04 billion in 2023 and is expected to reach USD 52.31 billion by 2028, registering a CAGR of 4.47% during the forecast period (2023-2028).
- Over the medium term, factors such as growing demand for natural gas, which, in turn, is leading to a growing gas pipeline network, are expected to be one of the most significant drivers for the compressor market during the forecast period.
- On the other hand, increasing solar and wind power installation is expected to decrease the countries' dependency on fossil fuel-fired power generation, such as coal and natural gas. This poses a threat to the compressor market during the forecast period.
- Nevertheless, several compressor manufacturers are making strides to develop more energy-efficient products amid rising end-user demands and changing energy efficiency standards. This factor is expected to create several opportunities for the market in the future.
- The Asia-Pacific region dominates the market and will likely register the highest CAGR during the forecast period. China and India drive it due to these countries' growing natural gas infrastructure.
Compressor Market Trends
Oil and Gas Segment Expected to Dominate the Market
- The oil and gas industry offers widespread applications for positive displacement and dynamic compressors, including the upstream, midstream, and downstream sectors. The compressors serve various purposes across the oil and gas industry, such as gas transportation, compression for gas injection, gas gathering, gas lift, etc.
- In oil and gas upstream operations, gas lifts are used, in which low-pressure gas (3 to 7 bar) is compressed to a higher pressure and recycled down the well casing-tubing annulus through a gas lift valve into the tubing at a predetermined depth that enables to lighten the liquid column in the tubing.
- Dynamic compressors are used in later phases to maintain or increase gas flow into the pipeline systems in gas fields, as the reservoir pressure tends to decrease over time. The gas reinjection is used for enhanced oil recovery (EOR) to compensate for the natural decline in production from the oil fields.
- With the increasing environmental awareness over the last decade, most countries have planned to lower carbon emissions by shifting from coal-based electricity to gas-based energy generation. The increase in natural gas production and its consumption for power generation is likely to continue, which is expected to support the demand for compressors from the oil and gas industry. In 2022, around 4043.8 billion cubic meters of natural gas were produced globally, per Energy Institute (EI).
- For instance, India is developing its gas pipeline infrastructure to meet the growing demand. The Indian government announced a pipeline project in various states.
- On a similar note, the government of China has set a target to achieve net-zero emissions by 2060. Under the country's energy transition plan, natural gas is expected to play a crucial role in reducing CO2 emissions, and it is expected to be the country's largest energy source in the next decade.
- Further, according to the United States Energy Information Administration (EIA), in the long term, due to expected increases in international demand for natural gas, the country's LNG exports are expected to more than double between 2020-2029, which is likely to have a positive impact on the compressor market.
- Therefore, owing to the above points, the oil and gas segment is expected to dominate the compressor market during the forecast period.
Asia-Pacific to Dominate the Market
- Asia-Pacific is home to some of the world's largest consumers and largest importers countries of natural gas. This region still primarily depends on oil and coal for its energy needs. But the recent trend is toward increasing the use of natural gas owing to growing concerns over air pollution.
- The power generation and manufacturing industries are the region's biggest natural gas consumers. Increasing demand for electricity in countries such as India and China is expected to drive natural gas demand.
- Urbanization and the increasing middle class in countries in the Asia-Pacific region are expected to drive the growth of residential gas consumption. The growing gas consumption is expected to help drive the gas compressor demand in the midstream gas industry and the power and manufacturing industry.
- China is committed to strengthening its oil and natural gas pipeline network in the next ten years to boost further the clean fuel's share in China's energy mix. According to the National Development and Reform Commission, the country's oil and gas pipeline network is expected to reach 240,000 km by 2025. Out of the 240,000 km, the natural gas pipelines are expected to reach 123,000 km. As compressors are one of the most used equipments powering the long-distance natural gas pipeline, the growth in the pipeline network is expected to drive the demand for compressors during the forecast period.
- Similarly, India is investing in its petrochemical business which is anticipated to create a rising demand for compressors. For instance, in June 2021, the Indian Oil Corporation (IOC) signed a memorandum of understanding (MoU) with the Gujarat government to set up six different projects, including the LuPech project for petrochemicals Acrylics-Oxo Alcohol project at Dumad near Vadodara and hydrogen dispensing facility around Vadodara. The projects combined will entail an investment of USD 3.25 billion.
- Therefore, due to the above points, Asia-Pacific is expected to dominate the compressor market during the studied period.
Compressor Industry Overview
The compressor market is fragmented. Some of the key players in this market (in no particular order) includes Atlas Copco AB, Baker Hughes Co., Ingersoll-Rand Inc, Siemens Energy AG, and Sulzer Ltd., among others.
Compressor Market Leaders
Atlas Copco AB
Siemens Energy AG
Ingersoll-Rand Inc
Baker Hughes Co.
Sulzer ltd
*Disclaimer: Major Players sorted in no particular order
Compressor Market News
- March 2023: Sapphire Gas Solutions and Bauer Compressors Inc. announced a national partnership between the two companies. This partnership allows Sapphire to install, construct, and maintain a group of state-of-the-art Bauer-manufactured gas compressors and offer OEM parts servicing multiple vital industries covering the United States, Canada, and Mexico.
- December 2022: ELGi Compressors USA, Inc announced the strategic rebranding of its portable air compressor line in North America, previously branded as Rotair. The company rebranded Rotair to ELGi by leveraging ELGi's established credibility.
Compressor Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, till 2028
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.1.1 The Growing Demand for Natural Gas
4.5.1.2 Rising Pipeline Infrastructure across Globe
4.5.2 Restraints
4.5.2.1 Increasing Adoption of Solar and Wind Energies
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 End-User
5.1.1 Oil and Gas Industry
5.1.2 Power Sector
5.1.3 Manufacturing Sector
5.1.4 Chemicals and Petrochemical Industry
5.1.5 Other End-Users
5.2 Type
5.2.1 Positive Displacement
5.2.2 Dynamic
5.3 Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Rest of North America
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 France
5.3.2.3 United Kingdom
5.3.2.4 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 India
5.3.3.3 Japan
5.3.3.4 South Korea
5.3.3.5 Rest of Asia-Pacific
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of South America
5.3.5 Middle-East and Africa
5.3.5.1 Saudi Arabia
5.3.5.2 United Arab Emirates
5.3.5.3 South Africa
5.3.5.4 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Aerzener Maschinenfabrik GmbH
6.3.2 Ariel Corporation
6.3.3 Atlas Copco AB
6.3.4 Baker Hughes Co.
6.3.5 Bauer Compressors Inc.
6.3.6 Burckhardt Compression Holding AG
6.3.7 Ebara Corporation
6.3.8 Ingersoll Rand Inc
6.3.9 Siemens Energy AG
6.3.10 Sulzer Ltd
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Several Compressor Manufacturers are Making Strides to Develop More Energy-Efficient Products
Compressor Industry Segmentation
In a compressor, the volume of a substance (usually a gas) is reduced to increase the pressure. Compressors are used in many applications which involve increasing the pressure within the gas storage container, such as in petroleum refineries and chemical plants where gases are compressed.
The compressor market is segmented by type, end-user, and geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa). By type, the market is segmented into positive displacement and dynamic. By end-user, the market is segmented into the oil and gas industry, power sector, manufacturing sector, chemicals and petrochemical industry, and other end users. The report also covers the size and forecasts for the compressor market across major regions. The market sizing and forecasts have been done for each segment based on revenue (USD).
End-User | |
Oil and Gas Industry | |
Power Sector | |
Manufacturing Sector | |
Chemicals and Petrochemical Industry | |
Other End-Users |
Type | |
Positive Displacement | |
Dynamic |
Geography | |||||||
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Compressor Market Research FAQs
What is the current Compressor Market size?
The Compressor Market is projected to register a CAGR of 4.47% during the forecast period (2024-2029)
Who are the key players in Compressor Market?
Atlas Copco AB , Siemens Energy AG, Ingersoll-Rand Inc, Baker Hughes Co. and Sulzer ltd are the major companies operating in the Compressor Market.
Which is the fastest growing region in Compressor Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Compressor Market?
In 2024, the Asia Pacific accounts for the largest market share in Compressor Market.
What years does this Compressor Market cover?
The report covers the Compressor Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Compressor Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Compressor Industry Report
Statistics for the 2024 Compressor market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Compressor analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.