The major drivers of the global APAC compressor market are increasing gas pipeline network, surging infrastructure spending, and expanding HVAC and automotive industries. The market is predicted to reach $25.7 billion by 2030. The outbreak of COVID-19 had ruptured the entire circular economy and this market was not an exception. Lockdowns were imposed in several economies leading to the temporary shutdown of numerous corporations in Australia, South Korea, Japan, India, and China. China dominates the entire logistical network of components and raw materials for compressors, including fan units, embedded systems, and rotary blades.
Within the type segment, the positive displacement category holds the biggest APAC compressor market share in the market and will continue to show this trend in the coming years as well. This can be ascribed to the inherent benefits of this category in comparison to others. This encompasses better efficiency, a long lifespan, a wide application area, and reduced operational costs. Moreover, the conventional compressor units are being replaced by advanced ones, which in turn, will escalate the deployment of positive displacement compressors.
Segmented on the lubrication type, the APAC compressor market can be bifurcated into oil-flooded and oil-free categories. The former bifurcation continues to generate a higher market revenue and will exhibit the same trend in the future as well. This can be primarily attributed to the rising inclination of end users toward this bifurcation. This is on account of the magnificent property of its inherent capability to provide higher pressure over other oil-free compressors. Additionally, there is extensive utilization of the oil-flooded category in healthcare centers, food and beverage facilities, and others.
Within the portability segment, the stationary category bifurcation holds a larger APAC compressor market share in comparison to the portable category. This can be credited to the skyrocketing demand for compressors for the manufacturing of motor vehicles, especially in passenger vehicle air-conditioning systems. Furthermore, there is a surging integration of these compressors in automotive applications, oil and gas mining, and construction. This is owing to storing voluminous compressed air and enhanced power over the other compressors. Moreover, because of reduced operational costs, these compressors are extensively utilized in the manufacturing sector.
Segmented on application, the automotive sector generates the highest sales revenue. Moreover, it is predicted to exhibit the swiftest growth in the coming years. EVs will be the protagonist of the automotive sector in the coming years. There is a paradigm shift in consumer preferences toward EVs to curb the pollution levels. This is complemented by extensive government support in several nations, subsidies are granted for these vehicles’ purchases. In addition, these vehicles are also exempted from emissions tax. All of this will ultimately generate maximum profits in this market.
The APAC compressor market is ruled by China and this pattern will continue in the coming years. Being home to the largest population in the world, China is the global as well as regional production hotspot for these compressors. Furthermore, this is complemented by extensive government support: the corporations are encouraged to utilize high-end machine tools as a part of the vision: ‘Made in China 2025’. Additionally, the Chinese government also gave a subsidy of approximately $10,000 for every EV in 2019, augmenting growth in the market.
Hence, the expansion of the HVAC and automotive industries will create extravagant opportunities for market players to gain a competitive edge.
Source: P&S Intelligence
