India Compressor Market Overview
India compressor market has reached $1.83 billion in 2018, and is expected to grow at a CAGR of 7.0% during 2019-2024. The market is predominantly driven on account of growing demand from automotive sector, coupled with overall rise in manufacturing sector.
Based on type, the market is categorized into positive displacement and dynamic, wherein dynamic compressor category is registering positive growth year-over-year (YoY), attributed to rising number of industries including oil & gas, steel, and cement in the country. Moreover, increasing government initiatives pertaining to providing energy efficient solutions, and rising power demand are the other factors augmenting the market growth of dynamic compressors. Additionally, owing to increasing requirement in relation to high-capacity compressors, demand for centrifugal compressors can also be witnessed in the country.
On the basis of lubrication type, the market is split into oil-flooded and oil-free compressors. Indian consumers are primarily price driven, with their primary focus on optimal solutions for manufacturing operations. This has led to high demand for oil-flooded compressors in the past years. However, with time, the trends are shifting toward oil-free compressors in response to the availability of oil free compressors with a close operational efficiency as that of oil-flooded compressors.
Based on application, the market is categorized into industrial manufacturing, automotive, chemical and cement, HVAC-R, oil and gas, power, food and beverages, textile, and construction; of these, automotive application accounted for highest market share in 2018. Owing to growing demand for passenger vehicles, primarily electric vehicles, the automotive sector is recording potential growth YoY. In addition, due to environmental regulations, lower gas-emitting, less noisy, and energy efficient compressors are in huge demand.
On the basis of region, the northern region accounted for largest market share in 2018. The northern region is witnessing huge demand for compressors, predominantly rising automotive sector, wherein National Capital Region (NCR) held the largest market share. NCR produces over 30% of passenger cars and more than 50% two wheelers in India. Furthermore, industrial sector in the NCR region is exhibiting highest growth rate in terms of both set-up of new production facilities and revenue generation.
India Compressor Market Dynamics
India compressor market driven by several factors, predominantly growing automotive sector in the country. The country became the 4th largest in the world with 9.5% YoY growth in during 2016-2017, and is expected to reach at a value of $300 billion by 2026, as compared to $74 billion in 2015, registering a CAGR of 15%. Increasing disposable income, availability of cheap skilled labor, low cost steel production, and increasing foreign direct investment (FDI) are the factors supporting the growth automotive sector in the country.
Compressed air plays an important part in production process of different automobiles. The uses of compressed air include product finishing, tire inflation, cutting and welding, car painting, and in engine construction. It is also used to turn metal sheets into critical vehicle components, assembling of vehicle components, and cleaning and painting using dry oil-free compressor.
The shift toward energy efficient compressors is currently trending in India compressor market. Due to increasing focus toward production efficiency and energy savings, demand for energy efficient compressors predicted to increase in the coming years. It would result in reduction of energy costs and also to protect environment from emission of greenhouse gases. As a result, major players in the compressor market have introduced compressors which are more efficient as compared to conventional compressors. For instance, in October 2018, Atlas Copco AB launched ZR 90-160 VSD+, oil-free rotary screw compressor, which delivers up to 35% energy savings.
India Compressor Market Competitive Landscape
The top 4 players including Atlas Copco Group, ELGI Equipments Limited, Ingersoll Rand PLC, and Kirloskar Pneumatic Co. Ltd., in the Indian compressor market have acquired highest market share in 2018. Competition in India compressor market is primarily characterized by brand reputation, price, and product quality. During 2014-2016, the market players saw a decrease in the sale of compressors, due to global oil crises in the same period. Although, with the recovery of compressor market in 2017, competition is likely to increase significantly among the players in the coming years.
Mitsubishi Heavy Industries Ltd., Elgi Equipments Limited, Kaeser Kompressoren SE, Ingersoll-Rand plc, Atlas Copco AB, Kobe Steel, Ltd, ANEST IWATA Corporation, Burckhardt Compression Holding AG, Kirloskar Pneumatic Company Limited, and Indo-Air Compressors Pvt. Ltd., are some of the major players in the India compressor market.