Global Screw Compressor Market - 2023-2030

Global Screw Compressor Market - 2023-2030

Global Screw Compressor Market reached US$ 11.2 billion in 2022 and is expected to reach US$ 16.8 billion by 2030 growing with a CAGR of 5.2% during the forecast period 2023-2030. The growth of large-scale state-backed infrastructure projects in emerging economies will augment demand for screw compressors from the construction.

New developments are likely to alter the regional dynamics of demand for screw compressors from the mining industry. For instance, in February 2023, India discovered 5.9 million tons of lithium reserves in Salal-Haimana in the union territory of Jammu and Kashmir. Furthermore, South American countries such as Bolivia and Chile are expected to start commercial operations to mine lithium reserves in the coming years.
Screw compressor manufacturers are also introducing more economical, smaller-sized compressors to increase adoption among small and medium enterprises and propel market growth. For instance, in April 2023, Atlas Copco AB, a Swedish industrial equipment manufacturer, expanded its line of GA VSDS screw compressors with smaller 5-18 kW sizes.

Market Dynamics
Expansion of the F&B Industry in Emerging Countries
The rising global population, changing lifestyles, ubranization and increased disposable incomes have led to a surge in the demand for processed food products. The food and beverage industries in fast growing developing countries such as India, have witnessed rapid expansion as multinational companies undertake significant investment. According the data from the Indian government, the Indian F&B industry received US$ 709 million in FDI in 2022.

Companies are chiefly investing in new plants to increase local production. For instance, in November 2022, Meiji (China) Investment Co, a Chinese investment firm, announced a 650 million yuan (US$ 91 million) to set up a new ice cream factory in Shanghai. Screw compressors are widely used within the F&B industry for packaging, filling and material handling operations.

Growing Production of Lithium-Ion Batteries
Strong consumer sentiment has underpinned growth in global smartphone production, with nearly 1.2 billion units shipped in 2022. Furthermore, global electric vehicle production surpassed 10 million vehicles in 2022. Consumer electronics such as smartphones and electric vehicles are powered by lithium-ion batteries. The growing production of lithium-ion batteries is fueling an ever growing demand for lithium.

Although global lithium mine output has quadrupled from roughly 28,000 tons in 2010 to over 100,000 tons in 2022. However, based on rising demand projections, it is forecasted that lithium production must increase nearly six fold by 2030 to keep up with rising demand. It has a created supply side pressure to exploit more lithium reserves.

New lithium mines have are being developed in recent years to augment global supply. In January 2023, Bolivia signed a US$ 1 billion agreement with China to develop some of the largest lithium reserves. In May 2023, production commenced at the new Olaroz-Cauchari mine in Argentina. Screw compressors are used in lithium mining for dewatering and lithium concentrate extraction.

High Initial Cost
Screw compressors, especially those designed for industrial and commercial applications, typically involve a substantial initial capital investment. The cost includes not only the purchase of the compressor unit itself but also associated components such as air dryers, filters, receivers, and installation expenses. High initial cost of screw compressors leads small and medium enterprises to prioritize their limited capital expenditure on other, more immediate demands.
Obtaining affordable financing for high-cost investments like screw compressors can be challenging, particularly for small and medium enterprises or companies with limited creditworthiness. Lack of suitable financing options can further hinder the adoption of screw compressors among smaller companies and relegate it as an exclusive preserve of big corporations.

COVID-19 Impact Analysis
The COVID-19 pandemic has had a significant impact on the global screw compressor market. The initial outbreak led to widespread disruptions in supply chains, temporary closures of manufacturing facilities, and a decline in industrial activities worldwide. As a result, the demand for screw compressors experienced a sharp decline in various industries, including automotive, mining and oil and gas.

However, as economies gradually reopened and industrial activities resumed in the post-pandemic period, the demand for screw compressors started to recover. Demand has almost recovered to pre-pandemic levels, however, some supply chain issues still linger, constraining the ability of manufacturers to fully cater to the growth in demand.

AI Impact
AI algorithms projects for monitoring and analyzing real-time data from screw compressor systems, enabling predictive maintenance and early fault detection have been successful. However, commercialization of these concepts has yet to be adopted. AI-powered control systems can be developed to optimize compressor operation by adjusting parameters in real-time based on the changing demand, thereby improving energy efficiency and reducing operating costs.

AI can be utilized in the design and development of screw compressors to enhance performance and efficiency. Computational fluid dynamics (CFD) simulations, coupled with AI algorithms, can optimize rotor and casing geometries to minimize pressure losses, improve airflow, and reduce energy consumption. It enables the production of more efficient and advanced screw compressor systems.

Ukraine-Russia Impact
The Ukraine-Russia war has led to major sanctions imposed on Russia by U.S. and the European Union (E.U), thereby disrupting the flow of western technological goods to Russia. The oil and gas, mining and petrochemical industries in Russia will reorient towards Chinese and other Asian manufacturers to meet the demand for screw compressors.

The war has also disrupted global energy supplies. Europe has completely reoriented its energy supply from Russia to U.S. and middle east. The opportunity to increase natural gas exports has created new demand for screw compressors from the North American oil and gas industry. North America is expected to remain a major energy exporter in the upcoming years.

Segment Analysis
The global screw compressor market is segmented based on type, stage, operation, end-user and region.

Due To Their Robustness and Simplicity, Single Stage Compressors are More Widely Preffered
Single-stage screw compressors have a simpler design with fewer components compared to multi-stage screw compressors. The simplicity makes them easier to manufacture, install, operate, and maintain. The compressors can handle a wide range of capacity and pressure requirements and are capable of delivering a high volume of compressed air at relatively low to medium pressures.

The maintenance tasks, such as oil changes, filter replacements, and routine inspections, are relatively straightforward and less time-consuming. The ease of maintenance translates into higher availability and less production downtime for businesses relying on compressed air systems. Furthermore, due to their simpler design, single stage compressors are more robust and less prone to failures and breakdowns.

Geographical Analysis
Changing Energy Landscape Allows North America to Garner Major Market Share
North America occupies a share of nearly quarter of the global screw compressor market. North America has emerged as a major exporter in recent years, mainly due to U.S., which exported nearly 6.65 trillion cubic feet of natural gas in 2021. Furthermore, according to the U.S. government’s energy information administration (EIA), natural gas exports increased by 9% in 2022 as compared to 2021.

North America is well-positioned to take advantage of the current situation as increased European demand pushed LNG prices to record highs. New LNG infrastructure is being developed to handle the projected rise in exports over the medium term. For instance, in March 2023, Bechtel Energy, a U.S.-based EPC company, received approval to commence construction of a US$ 13 billion LNG export terminal in Port Arthur, Texas, U.S.

Competitive Landscape
The major global players include Atlas Copco AB, Ingersoll Rand, MAN Energy Solution SE, Gardner Denver, Kaeser Kompressoren, Boge Kompressoren, BAUER COMP Holding GmbH, Howden Group, Kobe Steel Ltd. and Hitachi Compressor (Suzhou) Co., Ltd.

Why Purchase the Report?
• To visualize the global screw compressor market segmentation based on type, stage, operation, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of screw compressor market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.
The global screw compressor market report would provide approximately 64 tables, 68 figures and 205 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies