Turbocompressor Market Size, Share, & COVID-19 Impact Analysis, By Type (Centrifugal and Axial Turbocompressor), By Stage (Single-Stage and Multi-Stage), By Application (Oil & Gas, Power Generation, Chemical, Water & Wastewater, Automotive, Mining, and Others), and Regional Forecast, 2021-2028

The global Turbocompressor market size was USD 4.92 billion in 2020. The market is projected to grow from USD 5.05 billion in 2021 to USD 7.77 billion by 2028, grow at a CAGR of 6.4% in the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a lower growth of -3.8% in 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s growth and demand, returning to pre-pandemic levels once the pandemic is over.

Turbocompressor is an overhung machine used for the compression and injection of gases. They further help eliminate the pressure surge present in the injected gas. In these compressors, the pressure rises due to the continuous conversion of angular momentum imparted by a high-speed impeller into static pressure. Furthermore, they are utilized in every aspect of natural gas development. They have wide-scale applications in the oil & gas sector, and the demand for these compressors has risen substantially due to the need for growing power generation capabilities.

COVID-19 IMPACT

Investment Deficits Amid COVID-19 to Hinder Market Pace

The abrupt spread of novel coronavirus or COVID-19 has left several industries and countries in economic turmoil. The business frameworks have been significantly affected by the disturbances in the supply chain, unavailability of ample funds, shutdown of industrial facilities, and other factors. In addition, different administrations have also imposed stern actions, including social distancing guidelines, national & state level lockdowns, and constrained global interactions to limit the spread of the virus, adversely impacting the financial health of organizations.

Furthermore, manufacturers of compressors are facing several issues related to order closures on time due to worldwide lockdown. Also, delay in obtaining raw materials and other parts from suppliers, majorly located in China and other Southeast Asian countries, emerged as the key factor impacting the industry pace. However, the implementation of new smart city projects across several regions to meet their low-carbon targets is expected to counterbalance the challenges during the pandemic. Meanwhile, due to negative impact of the pandemic, major players in the market, such as Atlas Copco, Howden, Kobe Steel, and Sulzer, registered a decline in sales for 2020.

LATEST TRENDS

High Efficiency and High Reliability of Turbocompressors to Spur Opportunities

Turbocompressors have various advantages, such as high reliability and high efficiency for energy conversion; hence, triggering the demand for the product, which is estimated to drive the market growth over the projected period. Additionally, increasing demand for natural gas, which is growing the installation of gas pipeline network, is anticipated to be among the most notable drivers for the compressor market. Furthermore, the emergence of technological innovations in the product and the growing utilization of these compressors in CO2 transmissions are set to offer potential growth opportunities in the market.

Mergers and Acquisitions Initiatives by Key Players to Boost Industry Growth

Various industry players are continuously working toward organic and inorganic expansion activities to augment their product portfolio and reach across the globe, stimulating the market growth. For instance, in July 2021, L.A, Turbine, one of the global manufacturers of turboexpander products consisting of Ares, including turboexpander-compressor package, was procured by Chart Industries for USD 80 million.

DRIVING FACTORS

Continuous Technological Advancements and R&D to Propel Industry Growth

The ongoing market research and development with advancements in the product, such as advanced process control features and real-time data monitoring, are estimated to offer better growth opportunities for emerging and key players in the oil and gas industry. Accordingly, research organizations and industrial players are continuously focusing on commercializing and developing advanced compressors. For example, in October 2021, Atlas Copco compressors demonstrated a large array of technologies, including aeration technologies and a variety of blowers for wastewater treatment. The firm has the unique ability to deliver integrated packages for compressors, vacuum pumps, blowers, industrial chillers, control systems, and nitrogen systems.

Growing Adoption of Turbocompressors Across End-Use Industries to Boost Industry Growth

The growing adoption of these compressors across end-use sectors, including power generation, chemical industry, and oil & gas, is estimated to enhance the market outlook over the forecast period. These compressors have large-scale application in the oil & gas sector, and the demand for the product increased significantly in the industry, owing to the need for rising power generation capabilities. In addition, these compressors are also used for ventilation, air-conditioning, and heating in electric hybrid vehicles.

RESTRAINING FACTORS

Availability of Substitute Products Poses Risk to Turbocompressor Market

The availability of substitute products for these compressors, including rotary compressors, is estimated to restrain the market growth over the forecast period. Additionally, stringent environmental regulations present in the oil and gas sector and rising customization demand from various end-user industries are hampering the market growth. Also, the maturity of products in Europe and the introduction of new compressor technology, including screw compressors, are further expected to hamper the market.

SEGMENTATION

By Type Analysis

Centrifugal Turbocompressor to Augment the Segment Outlook

Based on type, the market is classified into centrifugal and axial turbocompressor. Centrifugal turbocompressors are expected to hold a major turbocompressor market share, owing to their characteristics and benefits over conventional compressors. These compressors are constructed uniquely according to plant requirements and consume notably less energy as compared with other compressor designs. They have applications in various end-use sectors, including mining, power generation plants, municipal (water and wastewater plants), automotive, and other end-use industries. Besides, axial turbocompressors have applications in steel plants, chemical industry, and others, owing to their high peak efficiency and small frontal area for a given flow.

By Stage Analysis

Multi-Stage Turbocompressor to See Maximum Adoption During the Forecast Period

By stage, the market is divided into single-stage and multi-stage. Single-stage type dominated the market in 2020. These compressors are designed for low maintenance, long life, and continuous service in corrosive and unclean applications, including refineries, natural gas processing, petrochemical plants, power stations, and coal gasification. Additionally, single-stage turbocompressor is adopted in a large range in end-use industries due to its smooth operation, ease of maintenance, and higher efficiencies that ensure reliable performance. On the other hand, multi-stage turbocompressors are used in the aerospace industry, as most high compression jet engines utilize multi-stage axial compressors for their operation.

By Application Analysis

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Oil & Gas Application Segment to Dominate the Market Owing to the Products Large Fleet Size

Based on application, the global market is segmented into oil & gas, power generation, chemical, water & wastewater, automotive, mining, and others. The oil & gas application segment is estimated to lead the market, owing to suitable operation of these compressors for pumping, compression, and generation of electricity in the oil & gas industry. In the oil & gas sector, the product is used in downstream, upstream, and midstream applications.

Additionally, these compressors have applications in wastewater management, power generation, mining, pharmaceutical, chemical, and other end-use industries. These applications offer plenty of growth opportunities for the product in the coming years. As the industries move toward automation, the applications of the product are increasing in these areas.

REGIONAL INSIGHTS

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The market size in North America stood at USD 1.58 billion in 2020. North America is estimated to dominate the market owing to the high adoption of technological advancements in products. Also, the presence of leading players is estimated to drive the growth of the regional market. Manufacturers, such as GE Power, Elliot Group, and others, have dominated the regional market. Water & wastewater industries are estimated to propel the market outlook. For example, in Canada, almost 86% of the population has been served by the municipal wastewater systems.

Asia Pacific is anticipated to grow at the highest CAGR over the forecast period. The market growth in Asia Pacific can be attributed to several factors, such as rapid growth and subsequent increases in economic activities, including industrialization, modern agriculture, and urbanization. In addition, China, India, South Korea, Indonesia, and Taiwan hold a significant share in the global chemical industry, which is a key application for the product.

Europe is anticipated to witness promising growth in the market. The primary factors driving the growth in the region are rising demand for smart water systems and the penetration of the automotive sector. Europe is witnessing a rising installation of water and wastewater plants with increasing demand for clean water across various sectors. For instance, in July 2020, H+E GmbH in Germany, Stuttgart, one of the leading international suppliers of industrial process water and wastewater management solutions, secured the contract for a supply water treatment plant for an automobile manufacturer in Germany.

Latin America is anticipated to grow on account of the rising demand for water treatment technologies in the region. Furthermore, the growing industrialization in the region is anticipated to drive the market. In the Middle East and Africa, GCC countries have experienced an increase in population and are expected to experience an increasing strain on their supplies of electricity, food, and water to ensure sustainable growth. Hence, the market in this region is anticipated to experience opportunities during the forecast period.

KEY INDUSTRY PLAYERS

Ingersoll Rand and Atlas Copco Dominate the Market

The competitive landscape of the market depicts an industry dominated by Ingersoll Rand Plc and Atlas Copco. These players hold a major portion of the market spread across Europe, North America, and Asia Pacific. The market also has the presence of other major players such as Elliot Group, Sulzer, Howden, Kawasaki Heavy Industries, Kobe Steel, MAN Diesel & Turbo, and others. The widespread customer reach in different parts of the world along with higher brand value compared to other companies has been the prominent factor for companies such as Ingersoll Rand to develop a strong footprint in the global market.

List of Key Companies Profiled:

• Ingersoll Rand (Ireland)


• Atlas Copco (Sweden)


• Elliot Group (U.S.)


• Howden (Scotland)


• Kawasaki Heavy Industries, Ltd. (Japan)


• Kobe Steel (Japan)


• MAN (Germany)


• Mitsubishi Heavy Industries (Japan)


• GE (U.S.)


• Sulzer (Switzerland)


• SKF (Sweden)


• Siemens Energy (Germany)

KEY INDUSTRY DEVELOPMENTS:

• August 2021: R&D Dynamics Corporation, based in Bloomfield, Connecticut, secured a contract from the U.S. Department of Energy to produce air management system compressors for heavy-duty truck applications under its Million Mile Fuel Cell Truck program. The firm pioneered the production, manufacturing, and development of clean energy technology products, including turbocompressors for fuel cells, turbogenerators for waste heat recovery power generation, and others.


• February 2020: Siemens, a German engineering company, secured an agreement to supply boil-off compressor (BOG) packages containing STC-SV turbocompressors for Venture Global’s LNG project, a liquefied natural gas (LNG) producer based in the U.S. The LNG export facility is estimated to develop 10 million tonnes per annum of clean energy, which is anticipated to be exported globally.

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The market research report presents a comprehensive industry assessment by offering valuable insights, facts, industry-related information, and historical data. Several methodologies and approaches are adopted to make meaningful assumptions and views to formulate the report. Furthermore, the report covers a detailed global turbocompressor market analysis with segments, including end-users, regions, and key market trends helping our readers get a comprehensive overview of the global industry.

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