Compressors are primarily used in the economy's manufacturing, oil, gas, and power generation sectors. Gas is increasingly taking the place of oil and coal as the primary fuel for transportation and energy production. It is projected that businesses and governments worldwide will focus on expanding the gas infrastructure to fulfill the growing demand for gas. As a result, the compressor business will soon grow. However, the increasing use of renewable energy sources like solar and wind is anticipated to eventually reduce the demand for compressors during the forecast period due to the global trend toward using cleaner fuels for energy production and consumption in response to growing concerns about air pollution and global warming.
By 2025, natural gas demand is anticipated to rise by 1.7% annually, with consumption rising to 4,000 billion cubic meters (bcm) by that year. One of the regions with the most substantial growth rates worldwide, Asia-Pacific is expected to boost global consumption. The International Energy Agency predicts that through 2024, India's growth will be roughly 9% per year. (IEA). Natural gas demand will increase by 25 billion cubic meters nationwide (bcm). This hypothetical situation is based on the benefits of using natural gas rather than coal or oil for industrial applications like producing electricity and heating buildings, which lowers air pollution and CO2 emissions.
Natural gas is displacing coal and nuclear power more and more as part of global measures to decarbonize developing economies and diversify the world's energy supply. The development of new natural gas sources, such as shale gas reservoirs, and the resulting price pressure drive the global natural gas trade. As a result, transportation and storage amounts will increase during the forecast period.
It is expected that more capacity will be added soon, causing it to keep growing more quickly than demand. The construction of a refinery is a costly endeavor that necessitates increased regulatory pressure and industry expertise and experience. As a result of various governments implementing advantageous policies and an increase in foreign direct investment (FDI) in multiple industries, such as petrochemicals, natural gas, and refineries, compressor makers may see their market share growth. In February 2020, the Mexican government proposed spending more than USD 14 billion on Pemex's refining activities. By increasing investments, the nation's simple refineries will be upgraded to complex ones, improving its capacity to process heavy crude oil.
Asia-Pacific is the most significant revenue contributor, anticipated to exhibit a CAGR of 4.05% over the projection period. To enhance the share of clean fuels in the nation's energy mix, China has pledged to develop its oil and natural gas pipeline network over the next ten years. As compressors are one of the most crucial pieces of machinery used to power long-distance natural gas pipelines, it is anticipated that the demand for them will rise during the projected period. The Chinese central government consolidated different pipeline enterprises to become PipeChina in October 2020 to create a more unified national gas network and increase the country's gas consumption.
Some power plants in the U.S. store LNG on-site for times of high energy demand, such as in the winter and summer, or when pipeline supply capacity is constrained or insufficient to satisfy the increased demand for natural gas by other consumers. After being removed from natural gas pipelines and briefly liquefied, the natural gas is placed in cryogenic tanks for storage. According to the Federal Energy Regulatory Commission, more than 110 LNG facilities were operating in the U.S. as of 2021. (FERC). Additionally, it's predicted that by the end of 2022, operations will start on the new LNG liquefaction trains at Sabine Pass and Calcasieu Pass in Louisiana.
The global compressor market's major key players are Aerzener Maschinenfabrik GmbH, Ariel Corporation, Atlas Copco AB, Baker Hughes Co., Bauer Compressors Inc., Burckhardt Compression Holding AG, Ebara Corporation, Ingersoll Rand Inc, and Siemens Energy AG.