The screw compressors market is expected to grow at a CAGR of around 5.09% during the period of 2020 - 2025. the global refining capacity accounted for 101.340 million barrels per day in 2019, with an increase of 1.5%, as compared to the previous year. Looking ahead, higher global capacity is slated to be added in the near term, which may lead the capacity to continue to outpace the demand growth. Thus, the increasing investments in infrastructure in the refinery and petrochemical sectors are expected to increase the demand for screw compressors. However, the increase in the usage of renewables is likely to restrain the growth of the market during the forecast period, owing to the decrease in the demand for coal and natural gas for power generation.
- Single-Stage screw compressors are estimated to have maximum share of the screw compressors market, in 2018, due to its diverse range of applications in industries such as oil and gas, manufacturing, etc.
- Manufacturers are now making strides to become more energy-efficient, amidst rising end-user demands and changing energy efficiency standards, in several nations. If the manufacturers manage to increase the efficiency of screw compressors to a significant level, it is expected to create ample opportunity for the market in the future.
- The Asia-Pacific region is among the fastest-growing regions, and it is likely to drive the overall global consumption. The increase in the demand for natural gas is likely to foster the demand for screw compressors for use in the production and supply of gas.
Key Market Trends
Single-Stage Screw Compressors to Dominate the Market
- Single-stage screw compressors use a single stage to compress the gas, between the inlet valve and the tool nozzle. First, the air is sucked in, the gas is compressed one time using the rotors and then compressed gas or air is moved onward to a storage tank.
- They are primarily oil-injected screw compressors, delivering a pressure of around 100–125 pounds per square inch gauge (psig) in a single stage of compression, while there is also a small share of the single-stage oil-free screw compressor, but they are mainly used for achieving compressions of small amounts of gas or air and in lower ratios.
- The market for single-stage screw compressor has seen a steady increase in recent years, mainly supported by the rise of industrial activities, especially the micro, medium, and small enterprises (MSME).
- Some examples of single-stage screw compressors are Hitachi's DSP NEXT2 Series and Ingersoll Rand's SS Series, among others.
- Although the impact of the COVID-19 outbreak has been very significant of the majority of the MSMEs in the manufacturing sector, due to reduced activities caused by lockdown and social distancing measures and decrease in local and global demand due to economic slowdown.
- The impact of COVID-19 outbreak on the single-stage screw compressor is expected to be long-lasting, and it is expected to revive once the industrial activities are at pre-COVID-19 levels. This scenario is expected to arrive toward the end of the forecast period, by which time the easy availability of a vaccine or kick-in of herd immunity is expected.
Asia-Pacific to Dominate the Market
- Asia-Pacific is expected to dominate the screw compressors market and to grow at fastest rate over the forecast period.
- During 2018, the steel production in Asia-Pacific region increased drastically reaching highest in the decade. China is the biggest producer and consumer of the steel, globally.
- China has been planning to increase the quantity of nitrogen for use in oil recovery activities, which is expected to increase the demand for industrial gases. Similarly, the growth of the solar industry has supplemented the demand for argon in the country and the growth in other industrial activities has supplemented the demand for high-purity industrial gases, such as nitrogen, argon, and oxygen, which, in turn, is expected to increase demand for air separation units with compressor units, suited for handling dry and combustible gases, and are leak-proof, such as screw compressor.
- India has emerged as one of the most attractive investment destinations globally, owing to government’s initiatives such as ‘Make in India’, to fuel the manufacturing activities in the country.
- Therefore, with growing end-user industries in the region the demand for screw compressors used in these industries is expected to increase over the forecast period in the region.
The screw compressors market is fragmented, due to several companies operating in the industry. Some of the key players in this market include Atlas Copco AB, Daikin Industries, Ltd, Ingersoll-Rand PLC and Emerson Electric Co..
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