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: 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.
Ask for a sample of this report: http://goo.gl/dOWulx
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.
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