Compressors Market Emphasis on Energy Efficiency Boosts Centrifugal Compressors Market
Increasing industrialization and growing awareness on energy savings have led to advancements in compressor technology and widened the potential of the centrifugal compressors market in India. The shift to high-capacity centrifugal compressors in the process industry will add to manufacturers’ revenues and ensure market development in the country.
Mumbai/India – New analysis from Frost & Sullivan, Analysis of the Indian Centrifugal Compressors Market, finds that the market is estimated to reach INR 1,180.4 crore in 2016. The end-user segments covered in the study include the oil and gas upstream, midstream and downstream sectors, petrochemicals, chemicals and fertilizers, metals, power generation, textiles, and automotive.
“Escalating demand for energy has encouraged investments in the oil and gas pipeline sector, boosting the sale volumes of centrifugal compressors,” said Research Analyst, Industrial Automation and Process Control, Frost & Sullivan. “The initiation of several exploration and refinery projects will further broaden the prospects of centrifugal compressor manufacturers in the country.”
India's Manufacturing Sector Affected by High Inflation
Although India is considered one of the fastest growing economies in the world and rated as the most favorable destination for foreign investment in Asia, the country’s high inflation rate affects the manufacturing sector, and in turn, limits centrifugal compressor market growth. Currency depreciation also curbs investments in this capital-intensive market.
In addition,strong competition raises end-users’ bargaining power and weakens centrifugal compressor suppliers’ profit margins, which further take a hit owing to high raw material costs. The need to decrease total cost of ownership, along with legislative and commercial requirements focused on the environment and effective energy use, fuels the adoption of energy-efficient compressors in India. Therefore, vendors in India are looking to sustain profits by offering high-capacity centrifugal compressors to oil and gas and other process industries, and placing emphasis on energy efficiency, reduced environmental impact, and safety.