Vietnam Air Compressor Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Vietnam Air Compressor Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Vietnam air compressor market is expected to witness a CAGR of more than 3.1% during the forecast period of 2022-2027. Due to the COVID-19 pandemic, the market was negatively impacted because of the lack of demand from industries and end-users. For instance, Atlas Copco, one of the major players in the market, witnessed a decline in its compressor segment from SEK 48.286 million in 2019 to SEK 47.329 million in 2020. Still, the company reported that it witnessed an incline in revenue after the second quarter of 2020. Factors such as the growing market of oil and gas, especially gas production and increasing energy consumption in Vietnam are expected to drive the air compressor market during the forecast period. The F&B market is growing the demand for air compressors for processes like processing, packaging, cutting, shaping, and many more. However, a few significant restraints to the air compressor market are its high power consumption and the heat it releases, leading to environmental concerns.

Key Highlights

• Positive displacement air compressors are expected to grow at a significant rate due to the increase in market share application of appliances like air conditioners, refrigerators, larger industrial applications, such as in metallurgy and mining, papermaking and printing, electronic and electrical, electric power, and mechanical and electrical machinery.
• Vietnam have acknowledged the environmental pollution due to the usage of coal in the power plants, to reduce this the country have increased the usage of gas-fired plants for a cleaner form of energy. Such implementation is expected to create several opportunities for the air compressor market in the future.
• Increasing natural gas production is expected to drive the market, due to increase in natural gas reinjection across the country.

Key Market TrendsPositive Displacement Compressors Expected to Hold Significant Market Share

• In a positive displacement air compressor, the gas is drawn in during the suction stroke of the piston, compressed by decreasing the volume of the gas by moving the piston in the opposite direction, and, lastly, discharged when the gas pressure exceeds the pressure acting on the outlet valve. Reciprocating compressors are useful for supplying small amounts of gas at high pressures.
• Although the discharge pressure range of rotary-type positive displacement compressors is limited, they are expected to show a growth in demand because of the growing food and beverage industry. Because of the internal cooling system, these air compressors are designed for continuous use and range in power from 5 horsepower up to 350 horsepower.
• With technical advancements and rapidly growing demand in the automobile industry, the market share of compressors is expected to grow significantly. With the help of compressors, assembling parts can be done rapidly and precisely in this sector.
• Moreover, air conditioners are one of the significant applicants for air compressors. With the advancement in living standards globally, air conditioners' sales have driven the air compressor market. According to the General Statistics Office of Vietnam, the production volume of air conditioners in the country reached 456,000 units.
• Based on multiple growing industries using the positive displacement air compressor, positive displacement air compressors are going to hold a significant market share in the forecast period.

Increasing Natural Gas Production to Drive the Market

• The growing demand for natural gas in the power and fertilizer industries is expected to boost the market. The country plans to increase the share of natural gas in the power generation mix, which currently stands at 15%. Air compressor plays a vital role in gas reinjection into an underground reservoir in order to increase the pressure within the reservoir and thus induce the flow of crude oil.
• According to the World Bank, Vietnam’s power consumption is second among all the ASEAN countries. It is expected to grow at an annual rate of 8% through 2030. The power generation sector is largely dependent on coal power technology, which increases the emissions rate of the sector. The country has various gas-based power projects planned, which culminate in using air compressors across the country.
• In December 2021, a consortium of Energy Capital Vietnam (ECV), B.Grimm Power of Thailand, and Siemens Energy planned an LNG-to-power project in Mui Ke Ga (MKG), Binh Thuan Province, in Vietnam. The first stage of the project is expected to be operational by 2025. The capacity of the MKG plant is likely to be 3600 MW, using 3 million tons of LNG per year.
• Moreover, in November 2021, Delta Offshore Energy’s upcoming LNG-to-Power project for Bac Lieu province was included in the latest plan on Vietnam’s seaport system development. The LNG-to-power project is expected to have 3.2 GW of power generating capacity and will be operational by 2024-2027.
• Such developments are likely to boost the demand for natural gas and drive Vietnam’s oil and gas upstream market.

Competitive Landscape

TheVietnam Air Compressor market is moderately fragmented. Some of the key players in this market include Atlas Copco AB, Siemens Energy AG, Mitsubishi Heavy Industries Ltd, Doosan Co Ltd, and Aerzener Maschinenfabrik GmbH.

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