by The Compressor Market is estimated to be valued at US$ 42.6 Bn in 2023 and is expected to exhibit a CAGR of 5.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Compressors play a vital role in various industries such as oil & gas, power generation,food & beverage, chemical, petrochemical, and others by compressing different gases including air, natural gas, carbon dioxide, and others. They help in transporting natural gas through pipelines over long distances and injecting carbon dioxide into oil wells to enhance oil recovery. They are widely used in industries for manufacturing processes that require compressed air or gas like spray painting, aeration, material handling, packaging, drying processes, and others.
Market key trends:
Rapid industrialization and urbanization in developing economies has been a major factor driving the demand for compressors. Industrial activities such as manufacturing, mining, oil & gas exploration along with infrastructure development require compressors. Countries such as China, India, Indonesia, Brazil, Mexico, South Africa and others have witnessed significant industrial and infrastructure growth over the past few decades. According to the United Nations, the urban population in the world is expected to rise by nearly 70% to reach around 6.5 billion by 2050. This rapid urbanization and industrialization will boost the demand for compressors in power generation, refrigeration, construction activities and other industrial processes. Rising demand in end use industries and focus on energy efficient products are the major market trends anticipated to drive the compressor market over the forecast period.
Porter’s Analysis
Threat of new entrants: The high initial investments required to set up manufacturing plants and R&D centers acts as a barrier for new players to enter the compressor market.
Bargaining power of buyers: The buyers have moderate bargaining power as there are many established players offering a variety of compressor products. However, the essential usage of compressors limits the impact of buyer power.
Bargaining power of suppliers: The suppliers have moderate bargaining power due to the availability of substitute components. However, any supply chain disruptions can significantly impact the compressor manufacturers.
Threat of new substitutes: No major substitute exists for compressors, limiting the threat from new substitutes.
Competitive rivalry: High due to the presence of numerous international players offering differentiated products.
SWOT Analysis
Strengths: Technology leadership, global presence, extensive product portfolio, financial might.
Weaknesses: Rising raw material prices, heavy reliance on few industries, vulnerability to economic cycles.
Opportunities: Infrastructure development in emerging nations, increasing energy demand, replacement of aging equipment.
Threats: Trade wars and geopolitical tensions, stringent environmental norms, competitive pressure from local players.
Key Takeaways
The Global Compressor Market is expected to witness high growth, exhibiting CAGR of 5.1% over the forecast period, due to increasing investments in oil & gas and construction projects across major economies.
Regionally, Asia Pacific dominates the global compressor market and is expected to maintain its leading position during the forecast period backed by rising infrastructural activities and industrialization in China and India.
Key players operating in the compressor market are Aerzener Maschinenfabrik GmbH, Ariel Corporation, Atlas Copco AB, Baker Hughes Co., Bauer Compressors Inc., Burckhardt Compression Holding AG, Ebara Corporation, Ingersoll Rand INC, Siemens Energy AG, Sulzer AG. These players are focusing on new product launches and mergers & acquisitions to strengthen their global presence.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
