The Asia-Pacific compressor market is expected to rise at a CAGR of more than 3.5% during 2020 - 2025. Factor such as increasing demand for compressors from the refineries and steel manufacturing plants where it is respectively used for gas transportation and energy generation in plants are likely going to drive the Asia-Pacific compressor market. However, increasing the installation of renewable energy sources to provide power, that does not use compressors are expected to restrain the Asia-Pacific compressor market.
- Due to the rapidly growing refining capacity of the region and extensive usage of compressors in refineries, the oil and gas industry is expected to be the fastest-growing and largest segment for the Asia-Pacific compressors market during the forecast period.
- Countries in the Asia-Pacific have acknowledged the environmental pollution due to the usage of coal in the region, for which nations in the area have increased the usage of gas-fired plants for a cleaner form of energy. Such implementation by different countries is expected to create several opportunities for the Asia-Pacific compressor market in the future.
- China, due to its dominance on the steel, chemical, power, and other manufacturing industries in the region is, expected to dominate the Asia-Pacific compressor market.
Key Market Trends
Oil and Gas Industry Segment Expected to Dominate the Market
- Compressors are mechanical devices that increase the pressure of a gas by reducing its volume. They are widely used throughout the oil and gas industry. The upstream, midstream, and downstream sectors of the oil and gas business require compression for numerous applications, such as transmission, storage, gas gathering, gas lift, gas injection, flash gas compression, and refrigeration.
- Moreover, compressors are also an integral part of the gas transportation infrastructure. Hence, the expanding gas pipeline networks are expected to be one of the most significant drivers for the growth of the market studied during the forecast period.
- In 2019, the total refining capacity of crude oil in the region was 35518 thousand barrels per day (TBPD), which was higher than the region’s capacity in 2018, 34729 TBPD. The rapid growth in the refining capacity within the nations is likely to use compressors for the transportation of the gas and is expected to create a positive impact on the compressor market in the region.
- In 2019, Hindustan Petroleum Corporation Limited (HPCL) completed the expansion of the Ramanmandi Bahadurgarh Pipeline Capacity. The objective of the project was to increase the existing capacity of pipeline to its Phase II ultimate capacity of 7.1 million metric tons per annum (MMTPA) from 4.71 MMTPA by installation of booster & mainline Pumps at Ramanmandi and construction of intermediate pump station at Barwala. Th project is likely to use compressor. The compressors are being used to build-up the pressure for the transportation of the gas through the pipeline.
- In January 2018, K Line, Toyota Tsusho Corporation, NYK Line, and Chubu Electric Power Co., four of Japan’s largest carrier services providers formed a joint venture, viz., Central LNG Shipping Japan Corporation (CLS), and announced their plans to partner up for the development of a new bunkering business that would supply LNG as a marine fuel to vessels in Japan's central region, Chubu. Such growth in the country is likely going to drive the compressor market in the country.
- Hence, owing to the above points, the oil and gas industry is likely going to be the fastest-growing and largest segment in the Asia-Pacific compressor market during the forecast period.
China Expected to Dominate the Market
- China, due to its rapid increase in energy demand and industrialization, is likely to be the largest market for the compressor in Asia-Pacific. Moreover, China has been instrumental in driving the manufacturing sector, globally. The country is the global leader in the steel, chemical, power, and cement industries, and is among the top players in the petrochemical and refining industries.
- The country's increasing refinery facility capacity due to the increasing consumption of oil and gas refined products in the country is likely to drive the compressor market during the forecast period.
- The country had the largest steel manufacturing capacity additions in the world, during the past two decades. This trend resulted in excessive production capacity which uses extensive number of compressors for and is likely going to drive the market in the country.
- In 2019, gas production in China was 177.6 billion cubic meters (bcm), which was higher than its production in 2018, 161.5 bcm. Due to increasing environmental concerns, the country has targeted more gas for energy generation than coal. The above expansion in coal power plants has been slowed down, and there is a rapid increase in gas usage in energy generation.
- In November 2019, China's Sinopec Corp launched a new refining and petrochemical complex in the south of the country. With the expansion of the refinery capacity, the country is expected to witness an increase in the demand for compressors during the forecast period.
- Hence, owing to the above points, China is expected to dominate the Asia-Pacific compressor market during the forecast period.
The Asia-Pacific compressor market is fragmented. Some of the key players in this market include Atlas Copco AB, Siemens AG, Mitsubishi Heavy Industries Ltd, Doosan Co Ltd, and Aerzener Maschinenfabrik GmbH.
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