Published: May 2019 | Report Code: SE11672 | Available Format: PDF | Pages: 114
China Compressor Market Overview
China compressor market has reached $12.7 billion in 2018 and is expected to register a CAGR of 3.5% during 2019-2024. China compressor market is projected to grow rapidly due to the growing automotive industry, along with growing construction sector. The automotive industry requires compressors throughout the vehicle production process applications including tire inflation, product finishing, and plasma cutting and welding. With rise in production of motor vehicles in the country, China compressor market is expected to demonstrate amicable growth over the forecast period.
Based on the compressor type, China compressor market is segmented into positive displacement compressor and dynamic compressor. Among these, the positive displacement compressor category accounted for the largest share in the market in 2018. The positive displacement category is driven by the rotary type of compressors which held a dominating revenue share in 2018. The major factor driving the rotary type compressor market is attributed to the increasing air conditioner (AC) production across China. The rise in AC sales is primarily driven by the increasing construction of commercial complexes and buildings.
Based on the lubrication type, China compressor market is categorized into an oil-flooded and oil-free compressor. Among these, the oil-free compressor market is expected to be the fastest growing type during the forecast period. This can be attributed to growing demand for oil-free compressors from food & beverage industry. The growth of food & beverage industry in China has attracted significant foreign and domestic investments in the country. Further, oil-free compressors are less expensive, lightweight, lesser operating costs, and fewer probability of contamination of produce. Owing to these factors, the demand for oil-free compressors is expected to increase in the forecast period.
Based on pressure, China compressor market is segmented into medium-pressure, low-pressure, high-pressure, ultra-low pressure, and hyper-pressure. Among these, the medium-pressure compressor held the largest share in the market in 2018. Medium-pressure compressors find larger applications in HVAC-R and automotive categories. Additionally, in industrial processes, medium pressure compressors are used in order to supply a large amount of moderate pressure air for powering of pneumatic power tools like filling high-pressure air tanks, jackhammers, and tires pumps. Owing to large applications of medium pressure compressors in various industrial processes, the market for medium pressure compressors is growing in the country.
Based on the region, China compressor market is categorized into East, West, Central, and North East. Among these regions, the east region held the largest share in the market, owing to growing demand for compressors from the automotive and manufacturing industries. Compressors are used in manufacturing industries for various applications such as pressure testing components, paint and glue spraying, and in many other similar applications. Moreover, presence of a large number of automotive production centers is further driving the demand for compressors from the eastern region.
China Compressor Market Dynamics
The key trend observed in the China compressor market is the increasing demand for energy efficient air compressors. Energy efficient compressors help to reduce energy-related expenses, and is also beneficial for the environment emiting lower levels of greenhouse gases. In China, the power consumption of manufacturing industries accounts for around 70% of the national annual power output of the country. The government of China is focusing on energy savings and reducing greenhouse gas emissions from manufacturing industries. As a result, end-users of compressors in the country are demanding compressors that are designed to reduce energy consumption.
The key factor contributing to the growth of China compressor market is the growing construction sector. The construction sector in China is growing at a faster pace, due to the increasing population and growing urbanization across the country. With rising construction activities, demand for energy efficient HVAC equipment is increasing as a result of the changing lifestyle of the populace.
Moreover, according to the Council on Tall Buildings and Urban Habitat, China has a large number of skyscrapers in the world, which constitute to a total of 88 skyscrapers leading to an increased demand for HVAC equipment. Further, the country’s hotel industry is registering around 2,481 hotel projects that are in pipeline and is increasing with a 2% YoY growth rate. On account of this, the compressor market is expected to grow during the forecast period.
The key opportunity in the China compressor market includes the growing food & beverage industry. With a growing population and increasing disposable income, China is the fastest growing food & beverage industry. China consumer markets are constantly evolving in terms of the food & beverage industry due to evolving consumer preferences, and rising exposure to global cultures. Compressed air is an essential element in the manufacturing process essentially being utilized for packaging, and bottling of food & beverage products. In addition, compressed air is also used for cooling and fermentation purposes. Hence, the growing food & beverage industry is expected to create a market opportunity for compressors.
China Compressor Market Competitive Landscape
The market is highly competitive characterizing a fragmented market share. However, it has been noted that a rising number of small players are increasingly focusing on innovations and product development. The major players in the market are involved in mergers and acquisitions, product launches, and in partnerships. Some of the major players operating in the China compressor market are RECHI PRECISION CO., LTD, ELGI EQUIPMENTS LIMITED, Kaeser Kompressoren SE, Ingersoll-Rand plc, Atlas Copco AB, Kobe Steel Ltd., ANEST IWATA Corporation, Hitachi, Ltd., Zhe Jiang Hongwuhuan Machinery Co., Ltd, MAHLE GmbH, Hanon Systems, and Toyota Industries Corporation.
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