Oil and Gas Industry Gas Compressor Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Oil and Gas Industry Gas Compressor Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global oil and gas industry gas compressor market is expected to grow at a CAGR of more than 3% over the period of 2020-2025. 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. However , the volatile crude oil prices are expected to hinder the growth of the market during the forecast period.

Key Highlights

• Midstream segment is expected to dominate the market, owing to the increased use of compressor to liquefy and transport natural gas from one location, or process, to another.
• Rising electricity demand in emerging markets, such as India, China, Brazil, and Mexico are expected to drive the natural gas demand in the power generation sector, which in turn is expected to create ample opportunities for gas compressors market.
• Asia Pacific is expected to show substantial market growth owing to the increase in gas demand in countries such as India, China, Australia, etc.

Key Market TrendsMidstream Sector to Dominate the Market

• The application of gas compressors in the midstream sector includes gas processing, gas pipeline transmission, and gas storage. Transport of gas in pipelines is a very effective way of transporting energy over large distances. By increasing the pressure of gas, compressors are used to help liquefy and transport natural gas from one location, or process, to another.
• Gas flowing in pipe suffers from pressure losses that increase with flow velocity and the length of the pipe. Therefore, every 50 to 100 miles, a compressor station is necessary to recompress the gas and compensate for the pressure losses.
• For 2018, operators planned to complete roughly 11,936 miles of gas pipelines, worldwide. Whereas, for projects completed after 2018, companies planned to lay more than 24,731 miles of pipeline. Therefore, with the increase in the pipeline construction activities, the demand for compressors within the midstream sector is expected to increase, during the forecast period.
• LNG contracting activity rebounded in 2018 to reach its highest level in five years, with a total of 123 bcm/y of concluded contracts. Much of this increase relates to the development and financing of new liquefaction projects.
• Hence, the midstream segment is expected to drive the demand for compressors during the forecast period.

Asia-Pacific to Dominate the Market Growth

• 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 field of Pipeline and City Gas Distribution by India is expected to be a major part of gas compressor market growth in the Asia-Pacific region. India is expected to bring online 34,384 km of new-build pipelines by 2023.
• CNG outlets are a big market for gas compressors, in India the demand for CNG have grown from 2,037 thousand metric tonnes in 2014-2015 to 3,076 thousand metric tonnes in 2018-2019. This demand is expected to increase the scope for gas compressor market in India.
• India’s investment in refining and petrochemicals industry is expected to pave a way for the gas compressor market in India. Refining capacity of India grew to 22495.43 TMT in March 2019, an increase of 6.51% from March 2018
• China’s commitment towards reducing pollution by substituting energy production from coal with renewable energy and energy production from gas have led to a constant rise in gas demand over the years, making it the world’s 3rd largest country in terms of gas consumption. .
• Refining capacity of China is also on the rise, with a recent contract for 1 MTA ethylene and refinery expansion project of Sinochem Quanzhou Petrochemical.

Competitive Landscape

The oil and gas industry gas compressor market is partially consolidated with top companies accounting for major part of the market share in 2018. Some of the major companies include Atlas Copco, Ariel Corporation, BAUER Compressors, Clean Energy Compression, Ingersoll Rand, etc.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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