Compressors Market Analysis
The compressors market is set to witness a spend growth of nearly USD 6 billion with spend momentum to accelerate at a CAGR of more than 4% between 2019-2024. The increasing momentum of the oil and gas exploration activities is creating an exponential demand for compressors. The boost in the industrial activities that are being observed in the anufacturing, power generation, and mining sectors is driving spend growth in the compressors market at a significant rate. Meanwhile, driven by the increasing demand, compressors suppliers are leveraging technologies such as the GA VSD+ to produce energy-efficient compressors which are not improving the performance of these equipment but also facilitating buyers with almost 50% energy cost savings.
Top Spending Regions in the Compressors Market
APAC is dominating the global compressors market and is anticipated to generate a revenue of over USD 20 billion through the forecast period.
APAC
Spend growth in APAC will be primarily attributed to the growing demand from the automobile industry to produce electric vehicles and passenger cars. The rise in the production of oil and gas will also contribute to spend growth in the compressors market in this region.
North America
The high demand from the food and beverage industry due to strict regulations on health and safety will drive the demand in the compressors market in this region. Natural gas is being widely used as a low-cost and low emission alternative fuel in industries such as cement, mining, petroleum refineries, and steel in the US. This will create demand for compressors and propel spend growth in the market in the US during the forecast period.
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What are the Key Price Trends in this Market?
- Forecasts of volatility in the price of raw materials such as copper, aluminum, iron ore, nickel, stainless steel will accelerate compressor supplier's manufacturing costs which will have an inflationary impact on the price of the finished product.
- The growing stringency of regulations that mandate the use of non-renewal resources for production processes will compel suppliers to extensively invest to maintain sustainability at their units and adhere to regulatory compliance enforced by regulatory authorities. According to the compressors price trends, this will have a significant impact on the market price.
- Suppliers are typically dependent on transport and logistics service providers to fulfill their supply chain requirements. Low vertical integration in the supply chain process hampers the performance of suppliers starting from raw materials procurement till the distribution of compressors. Hence, an increase in logistics cost will drive the compressors price.
Download the free sample of this report to know what the key compressors procurement best practices that you must adopt to address price dynamism in this market.
Insights Offered in this Compressors Market Report
- Global and regional spend potential for the compressors market for the period of 2019-2024
- Supplier relationship management practices in the compressors market
- Supplier margins and selection criteria in the compressors market
- Top compressors suppliers and their cost structures
- Top compressors suppliers in the US and their cost structures
- Compressors market spend analysis in the US
- Compressors price trends, and forecasts
- Cost drivers influencing the compressors prices
Insights into Compressors Supply Market
- It has been observed that suppliers are focusing on innovating energy-efficient compressors such as variable-speed drive compressors that can save approximately 30% of systems' energy cost. These compressors not only save money but also help in pollution control.
- Most compressors suppliers are facing intense competition from entrants which is driving them to increase their R&D activities to develop smart devices, thereby enhancing their product portfolio. Leading players in the compressors market are increasing their M&A activities to expand market share and increase penetration within the market. Suppliers in the compressors market are engaging themselves in the acquisition of distributors to enhance their supply chain.
- Buyers are advised to partner with vertically integrated suppliers which will result in logistic cost savings and the reduction of the total TAT associated with the procurement process.
Insights into Some of the Leading Compressors Suppliers
This compressors market procurement intelligence report has enlisted the top suppliers and their cost structures, SLA terms, best selection criteria, and negotiation strategies for the top compressors suppliers. The top compressors suppliers highlighted in this report include:
- Atlas Copco AB
- Gardner Denver Inc.
- Baker Hughes Co.
- Siemens AG
- Sulzer Ltd.
- Ingersoll-Rand Plc
Criteria to select suppliers in this dynamic compressors market is subject to change based on the day-to-day market outlook. Get a free demo of our procurement platform to gain immediate access into real-time insights to the changing suppliers selection criteria.
