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The booster compressor market size was USD 1.20 billion in 2020. The market is projected to grow from USD 1.25 billion in 2021 to USD 1.99 billion in 2028 growing at a CAGR of 6.9% in the 2021-2028 period. The impact of COVID-19 globally has been unmatched and staggering, with this market witnessing a negative demand amid the pandemic across all regions. Based on our analysis, the global market outlook exhibited a decline of -4.9% in 2020 compared to the average year-on-year growth during the 2017-2019 time period. The rise in CAGR during the market forecast is attributable to this market's demand and growth rate, returning to pre-pandemic levels once the epidemic is over.
Blockades in Supply Chain Harmed Booster Compressor Market Growth Amid COVID-19
The outbreak of COVID-19 has affected several industries around the world. Almost every country is reporting infected cases, and significant measures are adopted to curb coronavirus transmission. Petroleum products are extensively used in the transportation sector, and power generation plants are among various industrial applications. According to International energy agency, oil demand is anticipated to fall by a record of 9.3 million barrels per day (mbd) year-on-year in 2020. Boosters are used to raise input air pressure to increase drilling speed and depth. In the oil and gas industry, compressor manufacturers have also experienced a negative impact on their business.
Boosters are also used to optimize air supply in industrial processes that require compressed air, which has also witnessed unprecedented challenges and changes in the wake of the Covid-19 pandemic due to the shut-down of industries worldwide. In addition, the supply chain has also mainly been impacted, as there were national lockdowns. Hence, COVID-19 impact has hampered the consumer behavior oil gas industry, dramatically impacting this market.
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Increasing Focus on Manufacturing & Processing Industries to Boost Market Development
The increasing investments in industries such as oil & gas, chemical, and power generation in the developing economies will fuel the demand for booster compressor. According to the World Investment Report 2018, Asia Pacific received investments worth USD 476 billion of foreign direct investments in 2017, which was primarily focused on China and Singapore. In addition, governments are focusing on improvising industrial policies and regulations to create a conducive environment for exploring new industries and improving sustainability amongst competitors.
Strategic investment policy priorities, entry and establishment of foreign investors, and promotion and facilitation of investment policies are some of the supportive regulations that help increase industrial applications, resulting in the market's growth.
Adoption of Booster Compressor in Enhanced Oil Recovery Techniques to Augment Market Growth
The natural gas industry in recent years has developed more technologically challenging unconventional gas reserves such as shale, tight sands, and coalbed methane. Completion of new wells and re-working of existing wells in these tight formations typically involve fracking or hydraulic fracturing of the reservoir to increase well productivity. During the enhanced oil recovery (EOR) and secondary recovery phases of crude production, pressurized gas is utilized to increase the pressure within the formation to stimulate the well and ramp up declining production. The sizes of these compressors ranging from 1040 to 3900 horsepower are being used for this purpose thereby, driving the demand in the oil and gas sector.
Utilization in Gas-fired Power plants to Increase Booster Compressors Demand
Different nations are replacing coal-based power plants with natural gas-fired power plants for power generation. Germany has already passed legislation to end coal-fired power generation by 2038, and many countries in Europe and the rest of the world are investing in natural gas power plants projects. Turbines in gas-fired power plants require a certain pressure of fuel gas to combine the fuel gas and pressurized air before combustion. The demands on compressors at the same time have been growing because gas turbines require fuel gas pressures with higher psi to achieve higher performance efficiency. Also, pipeline pressures fluctuate due to increased peak demand and overall requirements. Hence, the growing awareness of adopting low carbon emission energy sources across the globe propels the market demand for boosters during the forecast period.
Utilization Of Existing Booster Compressor by Consumers to Hamper Adoption
Industrial manufacturers and consumers rely on servicing and continuing the usage of existing compressors instead of investing in new installations to decrease capital expenditure due to the high cost of new compressors. This factor, along with the emission of methane in the atmosphere from the compressors, leading to environmental issues, is the restraining factor in the booster market during the forecast period.
Air-Cooled Boosters is Projected to Hold Notable Market Share Owing to Low Cost
Based on the cooling type, the market for booster compressors is segmented into air-cooled and water-cooled. The air-cooled segment is projected to hold the largest market share owing to its cost-effective installation and maintenance. Water-cooled units require less power compared to an air-cooled compressor but demand a constant and adequate water supply. A cooling circuit in air-cooled compressors removes the heat from the compressor by a radiator and fan combination and a shell and tube exchanger in case of water-cooled compressors.
Double Stage Compression Segment to Substantial Market Share Owing to Growing Awareness towards Clean Energy
Based on the Compression Stage, the market is segmented into single-stage, double-stage, and multi-stage. The double-stage segment dominated the global market in terms of share in 2020 based on the compression stage due to the advantages of double-stage boosters, such as being more economical, low compressor displacement, low power consumption, and low discharge temperature. In addition, a rise in demand for double-stage boosters from heavy-duty applications such as screwing, lifting, painting, greasing, and others, in furniture factories, food & beverages packaging industry, military & aerospace construction and others, is anticipated to supplement the market growth during the forecasted period.
Based on the discharge pressure, the market is segmented into below 999 PSI, 1000-1499 PSI, 1500-4999 PSI, and above 5000 PSI. The 1000-1499 PSI segment is expected to hold the largest market in the forecasted period due to their wide applications in the oil and gas industry, such as nitrogen purging and displacing inert gases, and removal of impurities in the subsurface pipeline.
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The market is segmented into oil & gas, power generation, industrial, and other end-users. The oil & gas segment holds the largest market share among the end-users due to multiple applications in upstream, downstream, and midstream sectors such as refining, drilling activity hydrocarbon blanketing, and others.
The Industrial segment is expected to experience considerable growth owing to the demand for boosters in chemical & petrochemical industry applications to produce polyethylene terephthalate (PET) bottles, PVC, and other drugs. The utilization of boosters in industrial pressure testing and nitrogen leak tests would also likely drive the demand during the analyzed period.
Different countries are replacing coal-fired power plants with natural gas-fired power plants. It is expected for boosters to play a significant role in power generation sectors in the future. The demand for power in the domestic and industrial sector and growing awareness for using clean and low carbon-emitting fuel upticks the market for these compressors during the forecast period.
An Infographic Representation of Booster Compressor Market
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The market for booster compressor is segmented into region North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. In North America, the U.S. & Canada hold significant potential for the oil & gas industry. U.S Energy Information Administration estimates proved reserves of 494.6 trillion cubic feet of natural gas. In the event of depleting coal resources, LNG-based power plants are increasing their market share, and this holds a potential growth opportunity for these compressors, which drives the market growth. The demand for gas is projected to increase in the coming years. This is primarily attributed to growth in the industrial and power sectors, as the US government had planned to add 18 GW of new gas-based power plants by 2020, which is expected to complete by 2022. The U.S. is focused on the manufacturing & processing industry, such as machinery and primary metals production industries, which accounts for 11% of the US economy.
Europe is expected to showcase a significant growth in power demand. The increasing application of high-pressure industrial gases in the steel industry, oil & gas, metal & mining, and manufacturing & processing industries augments the demand for the market across Europe. The average demand for natural gas is projected to grow by 1.5% per year from 2019 to 2025, as per the International Energy Agency (IEA). According to the European Commission (EC) report on the gas market, Europe imported the most significant volume of LNG in 2019 at 108 billion cubic meters (bcm), marking 27% of total gas imports. 22% of Europe's gas consumption is owing to the spot market and no capital expenditure from small players, which has fueled the demand for the market in the region.
As per the world economic forum, Asia Pacific will hold the largest GDP (Gross Domestic Product) owing to rapidly changing consumer behavior, supportive policies to achieve sustainable development, and investment in industrial infrastructure. A significant increase in power demand and the growing awareness of renewable power generation in the countries in South America is also propelling the need for gas-based power plants, driving the demand for the boosters.
The Middle East & Africa is the dominating region involved in the extraction, production and refining of oil & gas products as it holds half of the world's proven conventional reserves of natural gas. Countries in the region, such as Qatar, Saudi Arabia, Oman, and Kuwait, are major oil and natural gas exporters. The growth is primarily attributed to the offshore gas developments in the UAE and Qatar, which require boosters to inject high-pressure nitrogen gas. In July 2019, Kuwait signed an offshore exploration contract worth USD 600 billion with Halliburton to drill six high-pressure, high-temperature (HP/HT) exploration wells.
Major Players such as BOGE UK, Atlas Copco, and KAESER KOMPRESSOREN Expected to Lead the Way With R&D Investments and Wide Customer Reach
The market is moderately fragmented, with different key players operating at the international level. The competitive landscape of booster compressor shows that the industry participants are significantly focused on the boosters of higher discharge pressure, higher capacity, and higher efficiency with enhanced operational characteristics to fortify their global foothold. Considering all the scenarios, BOGE UK, Atlas Copco, and KAESER KOMPRESSOREN held significant market share in the LPG market globally due to their better-performing products and established supply chain. They are expected to stay the market leaders in the upcoming years.
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The market research report provides a detailed global booster compressor market analysis of the market and focuses on key aspects such as leading companies, products, and upcoming product developments. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth trends of the market over recent years.
Value (USD Billion)
By Cooling Type, By Compression Stages, By Discharge Pressure, By End-User, and By Region
By Cooling Type
By Compression Stages
By Discharge Pressure
Fortune Business Insights says that the global market size was USD 1.20 billion in 2020
The global market is projected to reach USD 1.99 billion in 2028.
Growing at a CAGR of 6.9%, the market will exhibit a steady growth trends in the forecast period (2021-2028).
The oil & gas segment is expected to be the leading segment in this market during the forecast period.
Adoption of boosters in enhanced oil recovery techniques is the key during the forecast period.
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