APAC air compressor market is poised to reach USD 15.2 billion by 2024, citing a CAGR of 4.1 per cent during forecast period. Factors including the growing demand from food and beverage industry, and increasing demand for energy efficient compressors are the primary drivers accelerating the growth of the market. Apart from this, increasing demand from industries such as oil & gas, and power are also supporting the growth of the market, according to P&S Intelligence.
Insights on market segments
Based on type, APAC air compressor market has been divided into positive displacement and dynamic, where dynamic category is further bifurcated into centrifugal and axial compressors. Of these, centrifugal compressors witnessed a higher market share in 2018, buoyed by an increasing demand from the oil & gas industry. Further in the forecast period, oil & gas industry in APAC is expected to provide lucrative opportunities for the centrifugal compressor market in the countries of APAC majorly from China. Moreover, China is expected to be a major contributor to the centrifugal compressor market owing to the Chinese coal-to-gas switch policy that focuses on decreasing the usage of coal.
Further, the positive displacement air compressor category is subdivided into rotary and reciprocating, of which rotary has become a preferred choice of the end-users in the region. Higher energy efficiency offered by these compressors is the primary factor for the increasing demand for rotary screw air compressors. Energy efficiency plays a significant role in overall cost, as more than 75 per cent long term cost arises from energy usage, resulting in increased adoption of screw air compressors.
On the basis of application, market has been categorised into construction, power, industrial manufacturing, HVACR, chemical and cement, oil & gas, automotive, food & beverage, textile, and others; wherein, others include healthcare, research laboratories, and agriculture. Of these, food & beverage industry is expected to grow with the fastest CAGR during the forecast period, owing to increasing demand for compressed air for applications including cleaning of food containers, cleaning extra food from machinery, and to sort, cut or shape food.
The Indian air compressor market is expected to witness the fastest growth during the forecast period, both in terms of volume and value, owing to the expected high growth in small businesses and construction industry in the country. The market demand is displaying a shift from reciprocating air compressors to quality screw air compressors, due to more inclination of companies toward quality products, as well as better efficiency and productivity offered by these compressors.
Launch of compressors with IoT technology to provide substantial opportunity
APAC is exhibiting increased demand for IoT-enabled compressors, due to rising need to operate compressors more energy efficiently. So, the major players in the compressor market are focused on launching compressors with IoT enabled technology and innovate energy efficient products. For instance, in January 2018, Elgi Equipments Limited launched compressors with IoT technology namely air alert, which is a SIM-card based communication system that tracks multiple data points such as volume of air delivered, pressure, operating temperature, and energy efficiency rating. By transmission of data to servers, it provides valuable insights such as changes in air consumption, service interval, and general compressor health.
