August 11, 2016 - 12:43 PM EDT
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APAC Leads the Global Compressor Market with China as the Key Contributing Country in the Region, Says Technavio

The global compressor market is expected grow at a CAGR of close to 7% during the forecast period, according to Technavio’s latest report.

In this report, Technavio covers the market outlook and growth prospects of the global compressor market for 2016-2020. The market is further categorized into three end-user segments, which are oil and gas, manufacturing, and others.

The oil and gas production process makes extensive use of air compressors. Hence, the oil and gas industry is one of the major end-users of compressors, especially in the Middle East, the Americas, Africa, and China.

Technavio’s heavy industry research analysts segment the global compressor market into the following regions:

  • APAC
  • EMEA
  • Americas

APAC: fastest-growing region for the compressor market

The compressor market in APAC is expected to exceed USD 35 billion by 2020, growing at a CAGR of close to 8%. China is driving the compressor market in APAC mainly due to the growing natural gas infrastructure in the country. China is the reservoir of the world’s largest shale gas reserves with more than 31 tcm of technically recoverable shale gas resources. The country’s investment in shale oil development in the forecast period is expected to be around USD 160 billion.

China is also better called as the world's manufacturing hub due to the presence of a flourishing manufacturing industry. China’s manufacturing output grew by 7% in the third quarter of 2015, other Asian countries that exhibited remarkable manufacturing output growth rates are Malaysia, the Republic of Korea, Pakistan, Vietnam, India, and Indonesia. “The rise in manufacturing output in these countries can be attributed to increased foreign investments, growth in the manufacturing of textiles, and machinery and equipment. This, in turn, will definitely boost the compressor market in the region,” says Anju Ajaykumar, a lead engineering tools research expert from Technavio.

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EMEA: robust oil and gas exploration activities to boost growth

The compressor market in EMEA is expected to reach USD 30 billion by 2020, growing at a CAGR of over 6%. EMEA has a strong end-user presence in terms of the oil and gas industry, especially in the Middle East, which boasts of strong production activities.

Mainstream infrastructure in the industry has become old and requires renovation for efficient operation. This scenario is more visible in the Middle East, which is currently the dominating base for oil and gas reserves. Existing refineries not only need renovation but also are undergoing expansion and development with the growing demand for crude oil. The demand for oil and gas is rising every year, leading to additional investments.

Africa is gaining popularity nowadays in terms of oil and gas exploration activities. Africa has about 128 billion barrels of oil reserves and 508 trillion cubic feet of gas reserves. The new discoveries of oil and gas in the region is expected to increase Africa's contribution to oil supply worldwide. With the rising oil and gas industry in these regions, leading to more exploration activities, the demand for compressors will witness definite growth.

Industrial manufacturing output trends in Europe and Eurozone have been healthy due to higher growth figures in the third quarter of 2015 in certain non-euro economies such as Malta (7%), Hungary (6.8%), Czech Republic (6.7%), and Slovakia (6.2%). However, Russia, which is one of the major countries in Europe, exhibited a decline of 6.4% in the third quarter of 2015. “Overall, the pace of recovery in Europe has been quite stable and is expected to remain steady during the forecast period. With stable end-user industries present across the region, the compressor market is expected to grow steadily during the forecast period,” says Anju.

Americas: shale gas boom in the US to promote growth

The compressor market in the Americas is expected to exceed USD 19 billion by 2020, growing at a CAGR of over 5%. Shale gas exploration in the Americas, especially the coasts of Canada and the US, has amplified due to the growing need for self-sufficiency in energy. This growing shale gas boom will definitely create a huge demand for the compressor market in this region from the oil and gas industry.

The manufacturing industry in the Americas is also witnessing a growth phase now. However, the Latin American countries showed a decline in industrial manufacturing output with exceptions like Mexico and Chile, where the output grew by 2.9% and 0.3% respectively in the third quarter of 2015.

Thus, it is evident that most of the demand for compressors in the Americas will be fueled by the shale gas boom in the US as well as steady manufacturing growth in the country. Rest of the region will exhibit moderate or declining demand for the market.

The top vendors in the global compressor market as highlighted in the report are:

  • Atlas Copco
  • Ingersoll Rand
  • Siemens
  • Sulzer
  • Wuxi Compressor

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About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

If you are interested in more information, please contact our media team at [email protected].

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770

Source: Business Wire (August 11, 2016 - 12:43 PM EDT)

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