Global Process Gas Compressors Market - Segmented by Type (Oil Injected and Oil Free), End-user (Oil and Gas, Manufacturing, Healthcare, Power Generation, Industrial Gases, and Chemical/Petrochemical Industry), and Region - Growth, Trends, and Forecast (2018 - 2023)
The process gas compressor market was valued at USD 7.22 billion in 2017 and is expected to reach a value of USD 8.54 billion by 2023 at a CAGR of 3.02% during the forecast period (2018 - 2023).
Process gas compression is an advanced procedure in the industrial usage for pressurizing and circulating gas through a cylinder, to enhance conditions for a chemical reaction. The extensive applications of the equipment are found in the midstream oil & gas industry, chemical/petrochemical industry, healthcare industry, and metal processing sector of the manufacturing industry. The process gas compressors market is expected to witness a considerably substantial growth when compared to the weak demand caused by the oil & gas industry and its subsidiaries in the past four years. However, with improving global economic situation and increasing oil prices, the demand for the process gas compressors is expected to rise in the near future.
Growing Adoption of IIoT to Create New Opportunities
The industrial internet of things (IIoT) has taken factory automation to the next level of the industrial revolution (Industry 4.0). Companies are increasingly adopting IIoT solution to benefit from a broad range of advantages provided by these solutions. The Industrial Internet of Things (IIoT), also known as the Industrial Internet, brings together brilliant machines, advanced analytics, and people at work. It is the ultimate network of several devices connected by communications technologies that enable the companies to prepare systems that can monitor, collect, exchange, analyze, and deliver valuable information used to make decisions by the management.
With the help of technologies like machine-to-machine (M2M) communication, industrial big data analytics, and cyber security the IIoT is delivering uncompromised levels of efficiency and performance to its users. As a result, this is changing the way process gas compressors operate in a manufacturing environment. Each new iteration of the product is evolving to be much smarter and more compatible with IIoT standards leading to new opportunities in the market.
Surge in Crude Oil Prices to Nudge the Growth
Since the drop in oil prices in early 2014, from USD 100 per barrel to USD 50 per barrel, the oil and gas industry, the most significant contributor to the process gas compressors market, suffered from the lack of investments. This led to a severe slowdown in all the secondary industries depending upon the oil & gas sector, including the sales of process gas compressors. However, in 2016, there was a modest increase in the up-stream activities lead by North America and the Middle East regions. Although most of the Middle East countries are constrained by the norms of Oil Producing and Exporting Countries (OPEC), there has been a considerable up-stream activity in the region.
It is estimated that more than USD 337 billion is already being spent on the active upstream projects under execution in the Middle East while an additional USD 622 billion worth infrastructure development is being planned. All of these investments made by the Middle East governments are said to be an effort to remain as the top oil and gas producer and exporter in the world. In case of North America, the newly found shale gas resources and National OCS leasing programs are strengthening their import and export activities racing them to the top of the charts. This upbeat in the oil & gas industry is expected to improve with further strengthening oil prices in the near future, opening up opportunities to the process gas compressors market.
Key Developments in the Market