Process Gas Compressors Industry

Process Gas Compressors Market Analysis

The Process Gas Compressors Market is expected to register a CAGR of 3.71% during the forecast period.

• The oil-injected segment held the major share in the market in 2020, and it is likely to dominate the market during the forecast period.
• Moreover, increasing natural gas consumption and increasing demand for energy-efficient process gas compressors are expected to create immense opportunities for the market.
• Asia-Pacific is expected to be the largest and fastest growing market, mainly on the account of rapidly-increasing natural gas and LNG consumption in the region, and a rapidly-expanding manufacturing sector in China, India, and the Southeast Asian countries.

Process Gas Compressors Market Trends

Oil-injected Compressors to Dominate the Market

• Oil-injected compressors are anticipated to hold a major share owing to the higher efficiency, lower costs and longer operational life of this type of compressors in most applications where oil contamination is not an operational issue.
• The oil-injected process gas compressors are used in hydrogen plants for Pressure Swing Adsorption (PSA) and Steam-Methane Reforming (SMR) processes. According to an estimation, the global consumption of hydrogen is expected to increase dramatically from 56 metric tons/year (Mt/y) in 2017 to 108 metric tons/year in 2050.
• In addition, the oil-injected process gas compressor is also an important component of petroleum refinery, as it is used in a wide array of processes, including hydrotreating, desulphurization of gasoline/diesel, Continuous Catalytic Reforming process because cooling through lubricants provides longer continuous operation and high reliability. Hence, with increasing oil refining capacity it can be anticipated that the demand for oil-injected compressors is likely to increase as well.

Asia-Pacific to Witness Fastest Growth

• The Asia-Pacific has shown the fastest growth rate corresponding to the industrial and consumer market growth of India and China and also the gas demand growth from developed countries such as Australia.
• Recent developments in the end-user industry are expected to be a major driver for the process gas compressor market's growth in the region. End users like oil and gas, power generation, and manufacturing industry, all are anticipated to witness significant growth which will further aid the growth of the process gas compressors.
• Since 2015, the region's natural gas consumption has increased steadily. With consumption of 716.4 bcm in 2015 to 861.6 bcm in 2020, natural gas consumption increased at a modest CAGR of 3.76%, which further indicates the growth in the oil and gas industry, especially natural gas.
• Moreover, supporting government initiatives and increasing investments in the region also foreshadow the growth of the manufacturing industry, especially in China and India. For instance, in India, the Make In India and Production Linked Incentive (PLI) schemes gave the manufacturing industry a substantial boost in various verticals. In addition, according to the India Brand Equity Foundation, by 2025, the Indian manufacturing sector has the potential to reach USD 1 trillion.

Process Gas Compressors Industry Overview

The market is moderately fragmented. Some of the key players in the market include Atlas Copco Group, Ingersoll Rand Inc., Sundyne, Siemens Energy AG, Howden Group among others.

Process Gas Compressors Market Leaders

Process Gas Compressors Market News

• In August 2020, Vericor power systems announced a strategic partnership with Atlas Copco Gas and process to power integrally geared centrifugal compressors and companders with Vericor gas-driven turbines.
• In February 2020, Burckhardt Compression signed a JV agreement with GRZ Technologies, a spin-off of Laboratory of Materials for Renewable Energy from EPFL Lausanne, Switzerland for the development of a new hydrogen compression technology for hydrogen fuel stations, hydrogen energy storage systems, and other applications