Global Booster Compressor Market is Estimated to Witness High Growth Owing to Increasing Oil & Gas Production and Rising Energy Demand
The Global Booster Compressor Market is estimated to be valued at US$ 3.74 Bn in 2024 and exhibit a CAGR of 4.6% over the forecast period 2024-2031. The market is witnessing significant growth owing to factors such as increasing oil and gas production activities and rising energy demand globally. Furthermore, growing industrialization and urbanization in developing nations has also augmented the market expansion.
Market Dynamics:
Increasing oil and gas production: Oil and gas production across the globe has increased substantially over the past few years to cater to the rising energy needs. Booster compressors play a vital role in boosting the pressure in pipelines to efficiently transport oil and natural gas over long distances. Thus, growth in the oil and gas industry has directly augmented the demand for booster compressors.
Rising energy demand: With rapid urbanization and industrialization, energy demand from various end-use industries such as power generation, manufacturing, and petrochemicals has witnessed considerable rise. This has necessitated strong gas transportation infrastructure with use of booster compressors, thereby driving their market growth. The increasing deployment of renewable energy will further bolster the requirement of booster compressors in the coming years.
Rising Demand from Oil & Gas Industry is driving the Global Booster Compressor Market
The oil & gas industry relies heavily on booster compressors to boost hydrocarbon pressure at various stages of exploration, production and transportation. As global energy demand rises steadily each year, more oil and gas fields need to be tapped to meet this demand. This has significantly increased the use of booster compressors in upstream and midstream applications such as wellhead boosting, pipeline boosting and liquid extraction. Major players in the oil & gas industry are investing heavily in developing new oil and gas reserves by drilling deeper wells both onshore and offshore. This expands the role of booster compressors in enabling efficient extraction of hydrocarbons from such challenging reserves. Moreover, aging oil & gas pipelines also need to be replaced or upgraded regularly, presenting a long-term replacement market for booster compressors. The growing complexity of modern oil & gas projects further drives integration of efficient pressure boosting solutions. All these factors are anticipated to propel the demand for booster compressors in the global oil & gas industry in the coming years.
Rising Adoption in Petrochemical Industry is Augmenting Market Growth
Petrochemical companies widely employ booster compressors for maintaining optimum operating pressure in their production facilities and transportation networks. They are crucial for vaporizing hydrocarbons prior to cracker furnaces and feeding petrochemical process units at suitable inlet pressures. The steadily expanding petrochemical production capacity worldwide is fueling installations of new petrochemical plants as well as expansions and upgrades of existing facilities. This growing requirement for pressure boosting in the petrochemical sector constitutes a notable market opportunity. Additionally, aging pipelines for transportation of petrochemical products also need periodic replacement of compressors for continued operations. The flourishing petrochemical industry in Asia Pacific and Middle East due to their proximity to oil & gas reserves serves as a major revenue generator for global booster compressor suppliers.
Higher Equipment Cost is a Major Market Restraint
Booster compressors have higher initial capital cost compared to basic centrifugal or reciprocating compressors due to additional mechanical components involved. Their footprint also tends to be larger than conventionally used gas compressors. These factors increase the overall expenditure for end-users. Operational costs including energy consumption and periodic maintenance also add to the total cost of ownership. Particularly for price-sensitive industries and developing markets, high equipment pricing poses a notable challenge to mass adoption. Manufacturers are addressing this restraint through development of compact and more cost-efficient compressor designs with reduced energy footprint. However, large capital outlay still remains a barrier, especially for upgrading aging compressor infrastructure.
Stringent Emission Norms Hamper Market Growth
Stringent emission norms imposed by environmental agencies across major countries aim to curb greenhouse gas emissions from industrial facilities. Booster compressors used in oil & gas and petrochemical plants emit greenhouse gases such as methane during operation. Complying with tightening emission regulations involves significant capital investments and operating expenses for end-users. This acts as a deterrent particularly for aging compressor fleet which require upgrades to meet current norms. The additional compliance burden leads to delay in replacement cycles as well as postponed or canceled capacity expansion projects. Manufacturers are responding to this restraint through designs integrated with emissions control systems. However, compliance still increases overall project costs. Developing alternative technologies such as electric compressors can help address this restraint in the long run.
Rising Demand in Gas Transportation and Storage Augurs Well
Transportation and storage of natural gas involves deployment of large number of booster compressors for requisite pressure boosting during flows via pipelines as well as injection and withdrawal of gas from underground storage sites. This end-use sector has been witnessing considerable expansion driven by the increasing natural gas share in global energy mix as well as growing natural gas trade between countries via cross-border pipelines. Emerging LNG projects also drive installation of specialized compressors. Furthermore, many countries are developing onboard CNG storage and fueling solutions for vehicle fleets, requiring small booster compressors. Overall, growth of natural gas-based economy worldwide opens bright opportunities for booster compressor suppliers to tap the gas midstream infrastructure development.
Growing Opportunities in Renewable Energy Boosting
Renewable energy industries such as solar, wind and hydropower are gaining rapid global traction for power generation. Many projects require centralized compressed air or gas networks using booster compressors for various applications like pneumatic controls, instrument air systems and auxiliary power units. Additionally, renewable power generating units often act as intermittently operated distributed energy resources, requiring large-scale energy storage solutions using pressurized gas.
Link: https://www.coherentmarketinsights.com/market-insight/booster-compressor-market-5092
Key Developments:
- In March 2023, Atlas Copco, a global industrial group specializing in compressed air and vacuum solutions, announced the acquisition of Compressed Air Systems, Inc. (CAS), a distributor of compressors in the U.S. This acquisition is expected to enhance Atlas Copco's sales network in the U.S., allowing the company to better serve its customers and expand its market presence.
- In December 2022, Hitachi, a leading global provider of industrial equipment and technology, announced the development of a new type of booster compressor featuring magnetic bearings. These innovative bearings are designed to reduce friction and vibration, thereby enhancing the efficiency and reliability of the compressor. This advancement reflects Hitachi's commitment to innovation and improving performance in its compressor technology.
- In October 2021, HPOIL Gas Private Limited (HOGPL), a joint venture company of Hindustan Petroleum Corporation Limited (HPCL) and Oil India Limited (OIL), issued a tender for the supply and installation of 400SCMH booster compressors for its city gas distribution project in Kolhapur district, Maharashtra, India. The successful bidder will be responsible for providing services such as supply (including transportation, transit insurance, and loading and unloading), installation, commissioning, and field performance testing of the CNG booster compressors to support HOGPL's mission of supplying clean and green fuel to domestic, industrial, and commercial consumers in the region.
- In April 2021, Kaeser Compressors, a leading manufacturer of compressed air and vacuum solutions, introduced a new line of CNC-controlled booster compressors. These compressors are designed to be more efficient and precise than traditional booster compressors, offering capacities from 28-281 cfm with pressures up to 650 psig. The new CNC line of complete booster packages features easy machine integration options, reduced installation costs, and a smaller footprint for better machine protection. The fully enclosed and integrated units are available in 10-30 hp models and include a built-in aftercooler for optimized cooling and a sound-dampening enclosure for reduced noise levels. The expanded line also adds the DNC-XL, bringing Kaeser's advanced booster lineup to nine models with flows ranging from 28-882 cfm.
Key Players:
Atlas Copco, Bauer Kompressoren, BOGE Kompressoren, Hitachi, Ingersoll Rand, Kaeser Kompressoren, Kaishan, Kirloskar Pneumatic Company Limited, Mitsubishi Heavy Industries, Quincy Compressor, SAUER Compressors, Sullair, Sundyne, Tamrotor Marine Compressors, and Yong Steel
