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Compressors Environmental Concerns with Shale Production Cloud Compressor Market

| Editor: Dominik Stephan

2014 was a successful year for compressor manufacturers, as investments in oil and gas projects fueled the demand. Now, however, economic uncertainties and concerns about air quality related to shale gas production overshadow the outlook, recent studies show.

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Total value of shipments of the air and gas compressor manufacturing industry (NAICS 333912) in the United States from 2008 to 2018 (in million U.S. dollars)
Total value of shipments of the air and gas compressor manufacturing industry (NAICS 333912) in the United States from 2008 to 2018 (in million U.S. dollars)
(Picture: US Census Bureau; Statista)

The oil and gas industry is the largest revenue contributor and primary driver of the global process gas (PG) compressor market. Global investment in exploration and production (E&P) of oil and gas made 2014 a good year for PG compressor manufacturers. With growing shale gas production and increasing demand for liquefied natural gas in North America, the PG compressor market is expected to remain on the upswing. Shale gas and other unconventional energy E&P in regions such as Asia-Pacific (APAC) and Africa will also help sustain the market.

New analysis from Frost & Sullivan, Analysis of the Global Process Gas Compressor Market, finds that the market earned revenues of more than $6 billion in 2014 and estimates this to cross $8 billion in 2021. The study covers reciprocating, rotary and centrifugal PG compressors.

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“Power generation is another industry that has given a boost to the PG compressor market,” said Frost & Sullivan Industrial Automation & Process Control Research Analyst Sakthi Sobana Pandian. “While conversion from coal-fired to gas-fired plants has driven demand in North America, need to generate more power to cater to demands of the expanding population and urbanization trends has fuelled PG compressor adoption rates in APAC.”

Rising Number of Gas Compression Stations Raises Convcerns

However, a rising number of gas compressor stations could fuel concerns about air quality. Air monitoring systems have been installed to measure the impact of gas drilling and other infrastructure and limitations could be imposed on investment activity among station owners, thereby adversely impacting market progress.

“Although PG compressor technology is mature, there is scope for improvement in terms of energy efficiency and compliance with environmental regulations,” noted Pandian. “If eco-friendly PG compressors are made available globally, end users are likely to upgrade their existing systems.”

Economic Uncertainties Standing in the Way of Investments

For the moment, however, economic gloom across end-user industries has suppressed the purchase of new PG compressors. End-users remain focused on refurbishing and maintaining existing PG compressors rather than investing in new installations.

Analysis of the Global Process Gas Compressor Market is part of the Industrial Automation & Process Control Growth Partnership Service program. Frost & Sullivan’s related studies include: Chinese PG Compressors Market, North American Engineered Pumps Market, Global Pumps Market in the Oil and Gas Industry, and Chinese Industrial Air Compressors Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

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