The global market for Compressors and Vacuum Pumps is forecast to reach US$48.5 billion by 2024, encouraged by the slow recovery in industrial Year on Year (YoY) production growth and the ensuing resurgence of operational focus on plant assets.
As the current global economy struggles to recover, posting growth although anemic amid daunting challenges on all fronts, there are crucial growth opportunities in store for the compressors and vacuum pumps market. The market will witness business opportunities despite the macroeconomic challenges that make the market tough to operate in and poised to gain will be companies focused on pursuing growth amidst the challenging global and domestic economic environment.
While the world GDP performance in the year 2016 ended on a lackluster note, hopes for a more moderate recovery in the year 2017 and 2018 remains intact, although threatened by downside risks such as uncertainty cast by the global ramifications of policy changes and ideologies of the new Trump administration in the U.S. and political uncertainties and geopolitical threats in Asia and the Middle East. Some of the factors encouraging a moderately higher recovery for 2017 include diminished apprehensions over China's near-term growth and upward growth revisions supported by fiscal stimulus policies; receding obstacles such as recovering commodity prices, oil prices, rebound in oil-drilling activity; and gradual normalization of economic conditions in most developing and emerging markets worldwide. Marginally recovering commodity and oil prices brightens the outlook for commodity and oil-exporting emerging markets.
Against this backdrop where global growth outlook is more optimistic for the year 2017 than what was witnessed for the year 2016, it's a fairly mixed market outlook for the compressors and vacuum pumps market. Challenges and opportunities will shape market prospects for companies in the coming years. While weak investments and volatile industrial output will frustrate baseline growth in the industrial and manufacturing sector, manufacturing companies' efforts to reduce costs, transform, innovate, improve performance for better chances of survival in a tough economy, will open opportunities for new and replacement demand for innovative, high performance and energy efficient compressors and vacuum pumps. As the manufacturing and industrial sectors refocus their strategies on upgrading productive plant assets, compressors and vacuum pump manufacturers are focusing squarely on product R&D for a more competitive survival in the market.
Other major factors driving growth in the market include strong demand for new generation energy efficient compressors and vacuum pumps; firmer oil prices and improved outlook for oil exploration, drilling and piped energy transmission; promising signs of recovery of the global mining industry from its prolonged period of slump; robust semiconductor and electronics manufacturing industry and favorable outlook for commercial aircraft production, among others.
Asia-Pacific represents the largest market worldwide. The region also ranks as the fastest growing market with a CAGR of 6.8% over the analysis period led by factors such as heathy economic growth; expanding manufacturing industry supported by the rise of Southeast Asian countries as hubs for low cost production activities; growing demand for energy and increased investments in energy exploration and distribution projects as part of energy self-sufficiency goals; growing automobile sales and increased demand for automobile grade compressors, among others.
Major players in the market include ANEST IWATA Corporation, Agilent Technologies, Inc., ATLAS COPCO AB, Bristol Compressors International, Inc., Burckhardt Compression AG., Busch, LLC, Calsonic Kansei Corp., Donper Group, Ebara Corporation, Embraco SA, Emerson Climate Technologies, Inc., Gardner Denver, Inc., GEA Group Aktiengesellschaft, Howden Group, Huayi Compressor Co., Ltd., Ingersoll-Rand Plc, Italvacuum, Kaeser Kompressoren GmbH, MATTEI COMPRESSORS, INC., Mitsubishi Heavy Industries Compressor Corporation (MCO), Pfeiffer Vacuum GmbH, PIAB AB, Secop GmbH, SIEMENS AG, Desser-Rand Group Inc., Sulzer Ltd., Sundyne Corporation, Tecumseh Products Company, ULVAC Technologies, Inc., and Zhejiang Kaishan Compressor Co., Ltd. (China), among others.