Centrifugal Compressors Market: Energy-efficient compressors demonstrate a commitment to environmental responsibility, potentially enhancing brand reputation of Centrifugal Compressor Manufacturers

Centrifugal Compressors Market was valued at USD 13.44 Bn in 2023 and is expected to reach USD 18.47 Bn by 2030, at a CAGR of 4.64% during the forecast period.

Definition:

Centrifugal compressors are a type of machine that uses rotary motion to increase the pressure of a gas. They are widely used in a variety of industrial applications like pneumatic conveying systems, natural gas transportation, oil refineries, chemical plants and power plants.
Centrifugal Compressors Market Overview:
The demand for centrifugal compressors from automotive, oil and gas, petrochemicals, aerospace, and chemical industries is expected to grow because of ongoing construction and automotive projects in APAC, America and Europe. Technological advancement and growing industrial sectors in developing countries such as China, Japan, India, Brazil and others are expected to provide the key opportunities for the centrifugal compressors market during the forecast period. New build projects are expected to constitute a significant portion (83%) of oil and gas projects across the value chain in North America by 2028. The United States is expected to remain the primary driver of new oil and gas projects. North America's oil and gas sector is gearing up for a period of growth, with 558 new projects expected to come online between 2024 and 2028. It consists of 74 upstream projects, 263 midstream and refinery and petrochemicals at 102 and 119 respectively. The share of new build projects is high compared to midstream sector. It is expected to hold 52% of total new build projects across the value chain. The upstream sector has high oil and gas expansion projects, which is expected to hold 33% of the North America expansion projects. Key players are heavily investing into the oil and gas downstream sector that drive the need for centrifugal compressors. ExxonMobil's multi-billion-dollar investment in downstream projects like refineries and liquefied natural gas (LNG) facilities translates to a need for a large number of centrifugal compressors.

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In recent years, the unprecedented possibilities have attracted numerous start-ups and established companies commercializing the technology. The leading OEMs have started to gradually integrate centrifugal compressors into their manufacturing sector value chains. The market for centrifugal compressor is rapidly evolving as many companies realise the advantages over traditional design and manufacturing techniques. China is investing heavily in new manufacturing technologies to stay competitive long-term. One of the key market drivers in China is a resolute push by the Chinese government for smart manufacturing and a modernized industry. Key players are gradually stepped up their investment in innovations and marketing across the globe, thanks to continuous focus on cost management, higher efficiency of process. The oil and natural gas reserves in the Asia-Pacific region is most notably in India, Indonesia, Malaysia, China and offshore western Australia, long-term energy demand growth is expected to surpass its own production capacity.



The centrifugal compressor has widespread applications in the upstream, midstream, and downstream processing in the oil and gas industry. Several countries have taken initiatives to increase investments in oil and gas E&P activities to increase the production of hydrocarbons. An increase in demand for efficiency and environmental responsibility is pushing manufacturers to develop next-generation centrifugal compressors. Centrifugal compressors are used throughout industry because they have fewer rubbing parts, are relatively energy efficient, and give higher airflow than a similarly sized reciprocating compressor. The Middle East & Africa market is expected to show substantial demand for the product in the production of gas turbines. Power industry in the region is expected to construct approximately 500 new coal power plants by 2030, on account of adoption of renewable energy. An increase in nuclear power production capacity of the region is also expected to positively influence the demand for centrifugal compressor during the forecast period.

The power sector has witnessed a massive change over the years. New technologies are implemented for clean and efficient harnessing of natural resources for commercial power generation. The natural gas-based power generation has proven to be the most efficient and clean way to meet the increasing global power demand. Natural gas-based power generation is a significant driver for demand in centrifugal compressors. The natural gas is an attractive choice for new power generating plants, because of its fuel efficiency. Natural gas also burns cleaner than coal or oil, and as more governments are implementing national or regional plans to reduce carbon dioxide (CO2) emissions. Natural gas-fired electricity is expected to account for 80% of all future electricity generation capacities by 2035. Additionally, many countries have started phasing out nuclear and coal power generations that are expected to increase the demand for the demand for reliable and efficient centrifugal compressors.

Overview of Evolution of Centrifugal Compressor Technology:

Early stages, the basic concept of centrifugal compressors using rotating impellers to increase pressure was established. Early designs were primarily focused on functionality and achieving basic compression needs. After that, Development of stronger and lighter materials like steel alloys allowed for higher operating speeds and improved efficiency. Early forms of Computational Fluid Dynamics (CFD) emerged, helping in basic impeller design optimization. The inclusion of VSDs allowed for adjusting compressor speed based on demand, that led to some efficiency gains. In the mid-20 century, emphasis has shifted towards improving reliability and reducing downtime. Active magnetic bearings were introduced, which offered precise shaft control and reduced wear, improving equipment life. Growing awareness of environmental impact led to the development of dry gas seals to minimize fugitive emissions. Today, highly sophisticated CFD software and 3d printing technologies have revolutionized impeller design for superior efficiency and complex geometries. Sensors, actuators, and advanced controls have created smart centrifugal compressors that self-optimize and offer predictive maintenance capabilities. Virtual testing and optimization using digital twins have improved development cycles and reduced costs. Continuous research and development are expected to push for further advancements in dry gas seals to minimize environmental impact. The evolution of centrifugal compressor technology is a continuous process driven by the need for efficiency, reliability, and environmental sustainability.
Centrifugal Compressors Market Dynamics
Oil And Gas Projects Are a Significant Contributor to The Demand for Centrifugal Compressors.

An increase in global demand for cleaner burning fuels like natural gas translates to more natural gas processing and transportation projects are expected to drive the need for centrifugal compressors. The development of oil and unconventional natural gas resources are expected to create an opportunity to increase economic growth throughout North America and improve the region’s competitiveness in global markets. The growth of the oil and gas downstream sector in North America and refining capacity of the United States are expected to drive the demand for centrifugal air compressors during the forecast period. The oil and gas industry are the major end-user for the centrifugal compressor. The growing demand for compressor stations for gas transmission is expected to drive the market in the future. 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 expected to create considerable demand for centrifugal compressors. Centrifugal compressors are used in distillation processes to separate crude oil into various fractions like gasoline, diesel, and petrochemicals.

The Manufacturing Sector Is a Driving Force Behind the Demand for Centrifugal Compressors.

Manufacturing is the backbone of the global economy. Centrifugal air compressors are used throughout all types of industrial manufacturing and are most often found in large volume production plants and refineries. They feature minimal parts, less maintenance, and greater capacities per square foot, making them a dependable source of clean, oil-free, compressed air. The growth of manufacturing has a significant impact on the centrifugal compressor Europe market. As a pneumatic tool, a centrifugal compressor is widely used in manufacturing and industrial activities. In addition, the development of nuclear power, power plants and pharmaceutical industries and increasing emphasis on product quality are expected to increase the demand for air compressors during the forecast period. Europe the world’s largest exporter of manufactured goods. EU annually achieves a significant surplus in the trade of manufacturing goods, Thanks to the strengths of its manufacturing industry. Key players operating in the centrifugal compressors market are focusing to deploy energy saving products, which can significantly reduce CO2 emissions, with an energy-saving effect of 35%-40 and reach to European high standards. The manufacturing sector in the Europe market is expected to value at USD 1 billion by 2027. centrifugal compressors are widely used in production plants. In the manufacturing industry, contaminant-free air can be used directly in several plants as a source of power to produce equipment and machines. The demands placed on equipment in the manufacturing industry are very high

The centrifugal compressor market is witnessing a surge in the demand for fit-for-purpose gas compressors.

New market opportunities for centrifugal compressors are creating by improvements in "fit-for-purpose" centrifugal compressors that are utilized as fuel gas boosters for turbines generating electricity at refineries, chemical industries, hospitals, etc. Growing Trend of Fit-for-Purpose gas compressors are signifying a shift towards more specialized and optimized compressor solutions. Traditional "one-size-fits-all" compressors was operated at optimal efficiency. Fit-for-purpose compressors are designed with specific applications like tailored configurations, material selection, and control system optimization. Fit-for-purpose compressors are designed for the specific operating conditions, which leads to enhanced durability, and reduced risk of failures. The focus on efficiency in fit-for-purpose compressors translates to lower energy consumption and reduced emissions. It aligns with the growing emphasis on sustainability across industries. The demand for fit-for-purpose gas compressors is expected to rise significantly because of the features like efficiency, reliability, and environmental sustainability.

The demand for energy-efficient centrifugal compressors is expected to grow as businesses prioritize cost savings.

Businesses are constantly looking for ways to streamline operations and reduce costs. Energy-efficient compressors contribute to cost reduction goal by minimizing energy waste. Centrifugal compressors use considerably more energy than smaller compressors because they are better suited for applications requiring very large capacity, often above 12,000 cfm. Centrifugal compressors used in various industrial processes often have high life-cycle costs because of energy expenses, which makes them a top choice for energy efficiency improvements. According to estimates, an energy-efficient centrifugal compressor can save 20% to 50% on energy. All industries that use compressors are seeing an increase in demand for energy-efficient compressors as a result of rising electricity rates. As end-user demands increase and energy efficiency standards change internationally, manufacturers are now taking steps to become more energy-efficient. Centrifugal compressors can become the preferred option in a larger range of applications, which is expected to drive the market growth if manufacturers are able to focus on significantly boost their efficiency. Energy-efficient compressors are often designed with features that reduce wear and tear, leading to less frequent maintenance needs. It helps to reduce cost on maintenance labor and parts.

Initial Cost investment for Production of Centrifugal Compressor is expected to limit the market Growth.

Centrifugal compressor Manufacturers need huge capital investment for the R&D requirements and for entire technology setup. They also need to follow protocols that meet government regulations for Production. The recent technology advancements in the platooning technology have made a viable, cost-savings option for production of Compressors. Many manufacturers may find lack of access to affordable financing because of the lack of a clear demand signal. U.S. small manufacturers have fallen behind larger firms in their technology investment because of the demand, financing, and knowledge challenges. However, the cost of the production setup has largely influenced by capacity and on scale of systems. Also, lack of industrial infrastructure and cost & availability of the raw material are hampering entry rate of new entrance in the Centrifugal compressor market. The developing economies are requiring to adopt an integrated approach to centrifugal compressor including defence and public sectors, specifically within the nation’s small, medium and large-scale industries. Centrifugal compressor is revolutionizing product design and on-location manufacturing, which is enabling radical product design and re-design and accelerate development of new material properties, and transformation of business capabilities through production of sustainable designs realised at lower cost.

Centrifugal Compressors Market Regulatory Landscape:

Regulatory bodies like the Occupational Safety and Health Administration (OSHA) in the US or the European Commission (EC) have directives related to pressure vessel safety, machine safety, and noise emissions that centrifugal compressor manufacturers and users need to comply with.


Centrifugal Compressors Market Segment Analysis
Based on product, centrifugal compressors market is segmented into single-stage and multi-stage. Government policies on energy conservation and rising consumer awareness are expected to drive demand for centrifugal compressors during the forecast period. An increase in end-user demand for enhanced air quality and reliability is expected to boost the growth of centrifugal compressors market. Single-stage compressors held the dominant share in the market with a share of 61% in 2023. They have a simpler design with fewer moving parts compared to multi-stage models, which offer low manufacturing costs and easier maintenance. single-stage compressors can be more energy-efficient than multi-stage models because of their simpler design in the lower pressure outputs application area. Many pneumatic tools used in manufacturing and construction require compressed air. Single-stage compressors are a cost-effective solution for these applications. Many industrial applications require compressed gas at very high pressures. Multi-stage compressors achieve high pressure by progressively increasing the pressure of the gas in each stage. Single-stage compressors are limited in their ability to achieve extremely high-pressure outputs. Multi-stage compressors are used in the application area like gas reinjection, natural gas transportation, and refinery operations, where high pressure requirement is must.



Based on technology, centrifugal compressors market is segmented into gas compressor and air compressor. The air compressor segment held the dominant position in the global centrifugal compressors market. Air compressors are used in a vast array of industrial and commercial application like Food and beverage processing, Chemical processing and Mining and quarrying. On the other hand, gas compressors are essential in applications where very high pressures are needed. Gas compressors are designed to handle specific gas types, often requiring specialized materials and configurations.

Based on application, centrifugal compressors market is segmented into Oil & gas, Power generation, Chemicals, Petrochemicals, Food, Dairy and Beverage, Metal Refining, Pharmaceutical and Others. The Oil & gas segment held the largest share accounting for 46.43% in 2023. The oil and gas sector offers widespread applications for centrifugal compressors, which include the upstream, midstream, and downstream industries. The centrifugal compressors serve various purposes across the oil and gas industry, such as gas transportation, compression for gas injection, gas gathering, gas lift, etc. Oil and gas exploration, production, transportation, and refining processes heavily rely on centrifugal compressors throughout the value chain. There are a number of floating production storage and offloading (FPSOs) projects in Middle East and Africa, which is expected to begin operations during the forecast period. An increase in FPSO projects is expected to create opportunities for centrifugal compressors. As the requirement of continuous power supply is imperative for industrial operations, new power plants, oil and gas sectors need to be developed. An increase in increase in development of power generation plants, particularly the gas-fired generation plants and expansion of oil and gas industries are expected to drive the demand for centrifugal compressor during the forecast period. The Offshore oil and gas industry has created a requirement for fluid handling machinery that has high output to weight and space ratios, coupled with reliability and ease of maintenance.
Centrifugal Compressors Market Regional Insight
The rising demand of Centrifugal Compressors in Asia Pacific is creating a hub for regional production and distribution.

Rapid economic growth in countries like China and India is leading to a significant increase in energy demand across various sectors. The expansion of industries like oil & gas, power generation, chemicals, and manufacturing create a growing need for centrifugal compressors in various applications. Investments in infrastructure development projects are driving demand for compressors for tasks like gas transportation and pipeline pressurization. Asia Pacific is emerging as regional hubs for centrifugal compressor manufacturing to meet the growing demand and potentially reduce reliance on imports, countries.

Many power generation projects are expected to drive demand for centrifugal compressor. Bangladesh Payra 1,320 MW Power Plant combined cycle power plant utilizes natural gas and requires centrifugal compressors for various functions like gas transportation, pressurization within the gas turbine cycle, and instrument air supply. Indonesia Jawa Integrated Power Project consists of several natural gas-fired power plants with a total capacity of 3,500 MW. Centrifugal compressors play a vital role in gas circulation, boosting pressure for efficient power generation. China Huaneng Qingdao Shidao 1,400 MW CCP Project is highly efficient power plant utilizes natural gas and steam turbines. Centrifugal compressors are essential for various stages, including boiler feedwater applications.

The oil & gas sector in Asia Pacific is witnessing a boom that resulting to a significant rise in demand for centrifugal compressors. India Dhamra LNG Terminal project involves building a major import terminal for liquefied natural gas (LNG) on India's east coast. China Hong Kong GWC LNG Terminal project expands on existing LNG storage facilities in Hong Kong. Power of Siberia Pipeline (Russia-China) massive pipeline stretches over 3,000 kilometers, transporting natural gas from Russia to China. The new oil & gas developments are expected to boost the demand for centrifugal compressor.



High investment in oil and gas exploration and production activities is one of the key drivers fueling the centrifugal compressor market growth in Middle East and Africa. The centrifugal compressor has widespread applications in the upstream, midstream, and downstream processing in the oil and gas industry. The Middle East is home to some of the world's largest oil and gas reserves. Countries like Saudi Arabia, Iraq, Iran, and the UAE are major producers. Middle East countries have taken initiatives to increase investments in oil and gas E&P activities to increase the production of hydrocarbons that drive the demand for centrifugal compressions.

Centrifugal Compressors Market Key Developments:

In 2023, Ingersoll Rand Inc has entered into a definitive agreement to acquire Howden Roots LLC. Roots is known for its positive displacement blowers, rotary lobe blowers, and centrifugal compressors. The complementary acquisition expands low-pressure compression and vacuum product Products and adds centrifugal compression capabilities.

In 2024, Baker Hughes has received an order by Worley to supply gas technology equipment for the third phase of Saudi Arabia’s Master Gas System project. Baker Hughes will supply 17 pipeline centrifugal compressors, which are driven by state-of-the-art aeroderivative gas turbines. The new 4,000-km pipeline is expected to increase domestic gas distribution and contribute to a reduction of carbon emissions.

In 2024, Hitachi limited has received order from Singapore Refining Company for the motorization project of the existing steam turbine. They have received order for revamping of the existing compressor for de-carbonization.

Centrifugal Compressors Market Report Offers:

The section 1 of the centrifugal compressors market includes the study assumption and market definition, scope of the study for centrifugal compressors market and executive summary. The section 2 is a competitive landscape, which covers in depth analysis of the competitive landscape for the global centrifugal compressors market. The section 3 represents centrifugal compressors market dynamics, which includes the qualitative analysis data growth drivers, challenges, restraints, opportunities, and trends along with PESTLE, PORTER’s five forces analysis, and government schemes and initiatives. Section 4 includes global centrifugal compressors market size and forecast by segmentation (by Value) (2023-2030), which gives the data about product, technology, applications and region. section covers market size and analysis for each segment and their sub-segments. It also covers segment-wise trend analysis and industry opportunities. Section 5 gives the data of North America centrifugal compressors market size and forecast by segmentation. Section 6 gives the data of Europe centrifugal compressors market size and forecast by segmentation. Section 7 represents the data about Asia Pacific centrifugal compressors market size and forecast by segmentation. Section 8 covers the data about Middle East & Africa centrifugal compressors market size and forecast by segmentation. Section 8 offers the data about South America centrifugal compressors market size and forecast by segmentation with a CAGR.

The section 9 is company profile section, which cover the information about key player operating in the centrifugal compressors market. It also gives the data about company overview, headquarters, established year, Business portfolio, product portfolio, business strategy and SWOT analysis. The section 10 is key findings in the centrifugal compressors market. The last section gives the data about data collections and research methodology.
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Centrifugal Compressors Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
US $ 13.44 bn.


Forecast Period 2024 to 2030 CAGR:
4.64%
Market Size in 2030:
US $ 18.47 Bn.


 Segments Covered:
by Product
Single-Stage
Multi-Stage


by Technology
Gas Compressor
Natural Gas
  Carbon Dioxide
  Hydrogen
  Nitrogen
Steam (MVR)
Air Compressor
Air Separation
  Instrument & Plant Air
  Combustion and Process Reactor Air


by Application
Oil & gas
Power generation
Chemicals
Petrochemicals
Food, Dairy and Beverage
Metal Refining
Pharmaceutical
Others



Centrifugal Compressors Market by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Centrifugal Compressors Market, Key Players are
1. Atlas Copco (Sweden)
2. Ingersoll Rand (USA)
3. Siemens Energy (Germany)
4. Gardner Denver (USA)
5. GE Oil & Gas (USA)
6. Elliott Group - USA
7. Mitsubishi Heavy Industries (Japan)
8. MAN Energy Solutions (Germany)
9. Hitachi (Japan)
10. Kobelco Compressors (Japan)
11. Dresser-Rand (USA)
12. FS-Elliott (USA)
13. Sullair (USA)
14. Hanwha Power Systems (South Korea)
15. Solar Turbines (USA)
16. IHI Corporation (Japan)
17. Kaeser Compressors (Germany)
18. Shenyang Blower Works Group (China)
19. Boge Compressors (Germany)
20. Sundyne (United States)

Frequently asked Questions:

1: What is the primary application of centrifugal compressors in the oil and gas industry?
Ans: Centrifugal compressors are extensively used in the oil and gas industry for various purposes, including gas transportation, compression for gas injection, and gas gathering due to their ability to provide a continuous supply of compressed air/gas at high pressure.

2: Why is there a growing demand for centrifugal compressors in the power sector?
Ans: The power sector's shift towards natural gas-based power generation, known for its efficiency and cleaner burning, is propelling the demand for centrifugal compressors, especially in gas-fired power plants expected to account for 80% of future electricity generation capacities by 2035.

3: How is the Centrifugal Compressors Market expected to grow in response to oil and gas exploration and production activities?
Ans: Increasing investments in oil and gas exploration and production activities are anticipated to fuel the growth of the centrifugal compressor market, playing a crucial role in various stages, from exploration and development to transportation and processing.

4. What is the projected growth rate for Centrifugal Compressors Market during the forecast period?
Ans: The Centrifugal Compressors Market growth is expected to grow at a 4.64% rate of CAGR during the forecast period.

5. How are technological advancements driving innovation in Centrifugal Compressors?
Ans: Advanced Materials, Advanced Control Systems, Improved Designs, are some of the technology advancement factors, which are expected to drive innovations in the Joint Compound.