Europe Compressor Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Europe Compressor Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Europe compressor market is expected to rise at a CAGR of more than 4% during the forecast period of 2020-2025. Factor such as increasing demand for compressors from the chemical industry for application such as refrigeration is likely going to drive the Europe compressor market. However, increasing the installation of renewable energy sources to provide power, that does not use compressors are expected to restrain the Europe compressor market.

• Due to the extensive usage of compressors in upstream, midstream, and downstream sectors, the oil and gas industry is expected to be the largest segment for the Europe compressors market during the forecast period.
• New technologies in compressors having more efficiency than the present ones and saves 20% to 50% more energy are expected to create several opportunities for the Europe compressor market in the future.
• Russia, due to its highest oil and gas refining capacity in the region, is expected to dominate the Europe compressor market. As of 2019, about 29.7% of the total refining capacity in Europe is in Russia, where the compressors are required for several purposes, such as transportation and LNG conversion of the gas.

• Compressors are mechanical devices that increase the pressure of a gas by reducing its volume. They are widely used throughout the oil and gas industry. The upstream, midstream, and downstream sectors of the oil and gas business require compression for numerous applications, such as transmission, storage, gas gathering, gas lift, gas injection, flash gas compression, and refrigeration.​
• Several countries in Europe have targeted to phase out from the coal-based energy due to the rising environmental concerns. Such a decision is likely to trigger more gas-based power in the country, which provides a cleaner energy source than coal.
• In 2019, the total liquefied natural gas (LNG) export from the region was 48 billion cubic meters (bcm), which was higher than the region exported in 2018, 36.7 bcm. The conversion of the LNG from gas is likely to use compressors, and the increase in the LNG exports from the region is expected to create a positive impact on the compressor market in the region.
• In 2019, BP plc completed its Culzean project in the North Sea, which is expected to produce 200,000-barrel oil equivalent per day of hydrocarbon by end of 2020. The project is likely to use compressors at various stages for the transportation of the gas from the field to the onshore facility.
• In 2019, Exxon Mobil announced its plan to expand its Fawley refinery near Southampton, United Kingdom. Such projects in the refinery sector, which use compressors extensively, are likely to drive the market.
• Hence, owing to the above points, the oil and gas industry segment is likely going to dominate the European compressor market during the forecast period.

• Russia, as energy is an essential part of the country's economy, contributing to approximately 40% of the state revenues. Furthermore, Russia is projected to remain among the top energy exporters in 2020 and beyond, because of which it is likely to be the largest market for the compressor in Europe.
• Food production and processing represent a crucial part of the Russian economy. The fast pace of life in the country, easy storage, and increased shelf life of packaged foods have led to an increased demand for products suitable for consumption on-the-go.
• Moreover, the growth in the share of natural gas in power generation is driven by low natural gas prices and an increasing number of such plants, which is likely going to drive the compressor market.​
• From recent years the country is witnessing a sharp rise in the LNG exports. With the increasing expansion into the world's LNG market, the country is expected to invest in the LNG industry infrastructure, which is likely to have a direct impact on the compressor market.
• In 2019, the gas production in Russia was 679 billion cubic meters (bcm), which was higher than the production of 2018, 669.1 bcm. The country has already started reducing coal usage for energy generation and compensating it with natural gas, which is likely to drive the compressor market in the country.
• In December 2019, Russian President Vladimir Putin and Chinese President Xi Jinping launched a new China-Russia natural gas pipeline, connecting a Siberian gas field to a city in north-eastern China. Such projects in the country where gas is involved are likely to use compressors for transferring the gas.
• Hence, owing to the above points, Russia is expected to dominate the Europe compressor market during the forecast period.

The Europe compressor market is moderately fragmented. Some of the key players in this market include Atlas Copco AB, Siemens AG, Sulzer AG, Baker Hughes Co, and Aerzener Maschinenfabrik GmbH.

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