The North America compressor market is expected to rise at a CAGR of approximately 3.8% during 2020 - 2025. Factor such as increasing demand for compressors from the refineries and petrochemical plants that use compressors to deal with various operations related to gases and is likely going to drive the North America compressor market. However, increasing the installation of renewable energy sources to provide power, that does not use compressors are expected to restrain the North America compressor market.
- Due to the extensive usage of compressors in upstream, midstream, and downstream sectors, the oil and gas industry is expected to be the largest segment for the North America compressors market during the forecast period.
- Massive amounts of proven reserves of shale in countries such as Canada and Mexico, when extracted are expected to use compressors for the transportation of gas and are likely going to create several opportunities for the North America compressor market in the future.
- Unites States, due to its highest oil and gas refining capacity in the region is expected to dominate the North America compressor market. As of 2019, about 87.27% of the total refining capacity in North America is in the United States, where the compressors are required for several purposes, such as transportation and LNG conversion of the gas.
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 liquefied natural gas (LNG) export from the region was 47.5 billion cubic meters (bcm), which was higher than the region exported in 2018, 28.7 bcm. The conversion of the LNG from gas is likely to use compressors, and the increase in the LNG exports from the region is expected to create a positive impact on the compressor market in the region.
- In 2019, MODEC Inc commissioned MAN Energy Solutions to supply a total of six compressor trains for a new FPSO vessel in the Gulf of Mexico. The compressor trains were to be used in gas production on a new FPSO vessel, which is likely to be deployed in the offshore Area 1 block, about ten kilometers off the coast of Mexico.
- In 2018, Siemens AG received an order from North American pipeline operator, Nova Gas Transmission Ltd. (NGTL), a wholly owned subsidiary of TransCanada Corporation, to supply gas turbine-driven compressor train for the Winchell Lake Compressor Station in Alberta, Canada.
- Hence, owing to the above points, the oil and gas industry segment is likely going to dominate the North America compressor market during the forecast period.
United States Expected to Dominate the Market
- The United States, due to the constant increase in energy demand and an increasing number of commercial and industrial operations, the country is likely to be the largest market for the compressor in North America. Moreover, the growth in the share of natural gas in power generation is driven by low natural gas prices and an increasing number of such plants, which is likely going to drive the compressor market.
- The shale revolution in the United States has resulted in an unprecedented petrochemical capacity creation and expansion, primarily along the United States Gulf Coast. As a result, steady growth in the number of projects and investments has been witnessed in the petrochemical sector. The transportation of the shale gas through pipelines or by tankers in the form of LNG requires extensive use of compressors in the country.
- In 2019 shale gas production in the United States was 25.28 trillion cubic feet (Tcf). Shale gas production in 2019 accounts for 75% of the total gas produced in the country. The United States has a plan to reduce greenhouse gas emissions into the environment by shifting from coal power to gas power. The country's natural gas-based energy already surpassed coal-based energy and is going to increase during the forecast period, thus driving the compressor market in the country.
- Additionally, the country has one of the largest chemical industries, globally. Several major players are investing in the chemical sector of the country, increasing the demand for compressors used in a chemical plant, during the forecast period.
- In 2018, Exxon Mobil Corp announced to triple its oil and gas production by 2025 from Permian Basin. The Permian Basin is the largest shale oil and gas basin in the United States. Increasing company production is likely to have a positive impact on the compressor market.
- Hence, owing to the above points, the United States is expected to dominate the North America compressor market during the forecast period.
The North America compressor market is fragmented. Some of the key players in this market include Atlas Copco AB, Siemens AG, Ariel Corporation, Ebara Corporation, and Aerzener Maschinenfabrik GmbH.
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