The China Air Compressors Market is expected to reach nearly USD 9.6 billion by 2024. It can register a CAGR over 7.5 % during the forecast period (from 2016 to 2024). This is credited to the growth of economic scale and the demand on variety & quantity of air compressors. Such a trend may boost market demand over the next eight years. The growth of the downstream segments in this market may be sluggish over the forecast period. This may directly impact the performance of the China air compressors market during the same time. Over the past couple of years, air compressors are increasingly being used in mining & power industries. This attributes to high investments in fixed assets in the equipment production industry and steady economic growth in China.
Air compressors convert power into potential energy that is stored in compressed air. They function with the help of gasoline or diesel engines, or electric motors. Air compressors force higher quantities of air into a storage tank, thereby increasing the pressure. When the pressure in the storage tank reaches the upper limit, the air compressor automatically shuts down.
This compressed air is stored in the tank for future use. When the pressure in the storage tank reaches the lower limit, the air compressor repeats the pressurizing process. Air compressors also provide moderate-pressure air to operate pneumatic HVAC (Heating, Ventilation, and Air Conditioning) control system valves in school & office buildings. Additionally, these devices provide clean high pressure air for filling gas cylinders and for large scale industrial production.
Air compressors have become essential tools across a number of industries for facilitating quick and effective results. These compressors help power various types of equipment & tools, and thus enhance their productive capacities. They find use in equipment, such as refrigerators, air conditioners, industrial refrigerators, and air pumps. Industrial air compressors are used extensively in the transportation of gases & oil. It takes about 7 or 8 hp (horsepower) of electrical energy to create compressed air energy of 1 hp.
Industrial air compressors are extremely powerful and also quite reliable. They are used for enhancing industrial production capacities. Thus, the need for greater productivity is what drives the China air compressors market. The China market size for air compressors can be divided into three levels. ‘Multinational companies’ makes up the first level. This includes companies, such as Fusheng Group, Sullair Corp., Atlas Copco, and Ingersoll Rand Inc. among others. These players exhibit strong independent research & development & design capabilities. They specialize in the manufacture of superior screw air compressors.
The second level pertains to superior enterprises, such as Ningbo Baosi Energy Equipment Co. Ltd., Zhejiang Kaishan Compressor Co. Ltd., and Shanghai Hanbell Precise Machinery Co. Ltd. These players display strong capabilities in e-design and in processing & manufacturing. A prominent factor propelling the China market for air compressors is the growing need for energy efficient air compressors. This market has also been witnessing the development of application-specific air compressors over the past couple of years.
Air compressors are used widely in businesses and in homes. Businesses use these for getting work done in an efficient & safe manner. The pressure created from compressed air is used in various areas. Different applications need different types of air compressors. Although air compressors vary in size and power supply, there are two key designs for most air compressors. These are rotary screw air compressors and reciprocating piston air compressors.
The screw air compressor segment was valued USD 2.5 billion in 2014. The segment is projected to witness huge gains during the next eight years. Screw air compressors are adaptive to the development of improved compressors. Interestingly, these may even replace piston air compressors in the near future. This is because screw air compressors are more reliable, consume lesser energy, and create little noise.
The growing popularity of remote sensing technology for evaluating and monitoring performance may contribute to product demand from 2016 to 2024. Substantial demand from various application segments, such as food & beverages (F&B) could generate considerable revenues in the forecast period. Mandates on food & health safety can fuel the adoption of air compressors in the F&B industry over the next couple of years. This in turn can propel the China air compressors market.
Widespread acceptance of variable speed systems, proficient functioning at lower prices, retrofitting of the existing systems, and lesser maintenance needs are the other factors that could stimulate demand across major end-use industries. Based on applications, the China air compressor market is divided into power, mining, machinery manufacturing, metallurgy, food, electronics, petrochemicals, and pharmaceuticals. At present, this market is focusing greatly on structural modifications. Economic stability in the region along with the expanding equipment production sectors can boost demand in the forthcoming years.
Next-generation air compressor systems with an ecological stance may encourage end-users in the region to accept and eventually adopt the new technology. Oil-free systems with enhanced capacitive abilities could provide greater efficiency. Trouble-free installation & maintenance can attract end-users. As a result, this may lead to higher industry demand. Most home appliance & gas & oil industries have been adopting single & dual phase compressed air systems since quite some time now. By eliminating the need for associated devices in the installation of the products, these industries could generate higher profits via considerable cost cuts. However, fluctuating costs of raw materials may hamper industry growth.
On the basis of lubrications, the China air compressors market is categorized as oil-free and oil filled. Based on technologies, the market is further segregated into reciprocating, rotary, and centrifugal. By products, the industry is bifurcated into portable and stationary. Applications mainly include food & beverages, gas & oil, manufacturing, home appliances, energy, healthcare, and semiconductors & electronics.
The key companies operating in the China market for air compressors are M. A. T. Industries Inc.; W. W. Grainger Inc.; Zen Air Tech Pvt. Ltd.; Hoerbiger; Holding A. G.; Kaeser Compressors Inc.; and Hitachi Industrial Equipment Systems Co. Ltd.
Research Support Specialist, USA