Global Oil & Gas Industry Gas Compressor Market - Growth, Trends, and Forecast (2018 - 2023)
Oil & gas industry amounts to more than 50% of the global gas compressor market. Growth in gas compressor market is closely linked with oil & gas prices. For example, after the drop in oil & gas prices during 2014, major leaders in gas compressor market, such as Atlas Copco and Ingersoll Rand registered stagnancy in the annual revenue for the financial year 2015-16 compared to annual revenue in the financial year 2014-15. The oil prices are expected to increase during the forecast period, which in turn, is expected to drive the market.
Growing Gas Demand to Drive the Market
Rising electricity demand in emerging markets, such as India, China, Brazil, and Mexico are expected to drive the natural gas demand in power generation sector. Apart from that, global demand for natural gas is expected to rise as natural gas is more environment-friendly compared to other fossil fuels, such as oil, and there is a global trend towards consumption of cleaner fuel owing to concerns about air pollution and global warming. Hence, the share of the gas in total global energy consumption is expected to grow, while the share of oil is expected to drop during the forecast period. As a result of this trend, the oil & gas industry is expected to move towards gas from oil, in turn driving the demand for gas compressors in oil & gas industry.
Technological Advancements to Drive the Market
Technological advancements to make the compressor more energy efficient and environmental friendly, allowing replacement of the higher number of existing conventional compressor units economically viable, which in turn, is expected to increase the demand for the gas compressors. A good example is, in 2013, Atlas Copco launched GA VSD+ compressor. This model has registered substantial success, as it can reduce the energy consumption up to 50% compared to the conventional compressor, making replacement of old compressors with advanced compressors an economically viable option.
Asia-Pacific Region to Experience Substantial Market Growth
Asia-Pacific is home to some of the largest consumer and largest importer countries of natural gas in the world. This region is still primarily dependent on oil and coal for its energy needs. But recent trend is towards increasing use of natural gas owing to growing concerns over the air pollution. Power generation and manufacturing industry are the biggest consumers of natural gas in this region. Increasing demand for electricity in countries, such as India and China is expected to drive natural gas demand. Urbanization and increasing middle class countries in Asia Pacific region are expected to drive the growth of residential gas consumption. One of the major obstacles faced by countries in Asia-Pacific region, such as India and China is lack of infrastructure for domestic production and supply of the gas, which is constraining the gas consumption. In order to address the problem, the countries in the region are expected to invest heavily in upstream, midstream, and downstream gas industry, which in turn is expected to drive the gas compressor market in the region.
Shale Gas Production and Replacement of Older Compressors to Drive US Market
Gas compressor market in the US is expected to register a considerable growth due to increased shale gas production, as well as increasing oil & gas activities in the country. Also as of 2015, it was estimated that more than half of the positive displacement gas compressors in the US were more than 30 years old. Many of these old compressors are expected to be replaced in coming years, in turn driving the gas compressor market in the country.
Key Developments in the Market
February 2018: Maersk Oil has awarded a contract to Baker Hughes GE (BHGE) to provide turbomachinery, including gas compressors, for Tyra field redevelopment project in Danish North Sea area. The order includes seven compressor trains, equipped with active magnetic bearing (AMB) solution for driver and driven equipment
The major players include - Atlas Copco Ltd, General Electric, Ingersoll Rand Plc, Siemens AG, Sulzer Ltd, Kobe Steel Ltd., Wärtsilä, and PSG Technologies, amongst others.
Reasons to Purchase this Report
Current and future oil & gas industry gas compressor market outlook in the developed and emerging markets
Analyzing various perspectives of the market with the help of Porter’s five forces analysis
The segment that is expected to dominate the market
Regions that are expected to witness fastest growth during the forecast period
Identifying the latest developments, and strategies employed by the major market players
3-month analyst support, along with the Market Estimate sheet in excel
Customization of the Report
This report can be customized to meet your requirements. Please connect with our representative, who will ensure you get a report that suits your needs
Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook