The centrifugal compressor market in North America is expected to grow at a CAGR of more than 3% during the forecast period of 2020-2025. The rapidly increasing production of natural gas in the United States is one of the major driving factors for the growth of the centrifugal compressor market. With growing power demand, the application of centrifugal compressors, and it demand in the power sector is likely to increase further. Natural gas-fired power plants are increasing significantly, which requires gas at high pressure using compressors. On the other hand, the oil and gas industry and manufacturing industry, which are significant end-users of centrifugal compressors, have shown a slow growth due to the COVID-19 pandemic in 2020, which can restrain the growth of the booster compressor considerably.
Key Highlights
- In the end-user, the oil and gas industry is the primary applicant for the centrifugal compressor. The growing demand for compressor stations for gas transmission is expected to drive the market in the future.
- North America is shifting towards natural gas-based energy and replacing coal-based plants. The growing gas consumption in the future is expected to create significant opportunities for market players.
- The United States is expected to dominate the market during the forecast period. The growth in the chemical, oil, and gas refining and processing industries are expected to create a significant demand.
Key Market Trends
Oil and Gas Sector to Dominate the Market
- Compressors are used in different applications in the oil & gas industry, such as hydrocarbon blanketing, nitrogen compression, and a compression station. Multiple applications in the industry are creating considerable demand in the future.
- In 2019, the United States International Development Finance Corporation planned to finance a USD 632 million natural gas pipeline in southern Mexico. The project is expected to drive the need for centrifugal compressors in the forecast period.
- The production of natural gas increased to 1128 bcm in 2019. With upcoming exploration activities, the production is likely to grow and drive the market of centrifugal compressors.
- Moreover, in Mexico, the construction of the Dos Bocas 340,000-bpd refinery commenced in mid-2019 and is expected to be completed by 2022. The refinery is expected to drive the need for centrifugal compressors in the forecast period.
- The growing oil and gas midstream market especially developing city gas distribution projects, is expected to drive the demand of centrifugal compressors in the oil and gas industry
The United States to Dominate the Market
- The industrial sector, which includes mining, manufacturing, agriculture, and construction, accounts for the largest share of energy consumption of any end-use sector and creates a considerable market for centrifugal compressors.
- In 2019, the United States generated 1700 TWh of electricity from natural gas plants, which is a significant applicant of centrifugal compressors.
- In 2019, the United States had more than 134 active gas pipeline projects. Most of the projects are expected to be operational in the forecast period, driving the centrifugal compressor market considerably.
- Government initiatives to expand the industrial sector, especially in the United States, are expected to boost the demand for centrifugal compressors over the forecast period.
Competitive Landscape
The North America centrifugal compressor market is fragmented. Some of the major companies include Ingersoll-Rand plc, Atlas Copco Ltd, Hitachi Ltd., Campbell Hausfeld LLC, and Gardner Denver, Inc.
Additional Benefits:
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