The ASEAN air compressor market will exhibit a CAGR of 3.6% between 2019 and 2024, owing to the flourishing automotive industry, expanding construction sector, and surging focus on energy-efficient air compressors in the region. According to P&S Intelligence, the market will generate $1.13 billion revenue by 2024. In contemporary years, the introduction of the internet of things (IoT)-enabled air compressors has created immense growth opportunities for market players, as they help predict and detect maintenance needs in end use companies.
The surging construction activities in Thailand, Malaysia, Indonesia, Singapore, the Philippines, and Vietnam will drive the demand for air compressors in these countries, as compressors find wide applications in the development of bridges, subways, tunnels, ports, and highways. The increasing construction of these structures can be attributed to the rising infrastructure expenditure of the governments of the aforementioned countries. The Republic of the Philippines spent 4,687.16 PHP billion on infrastructure projects across sectors, as of August 24, 2021.
ASEAN Air Compressor Market Overview
In recent years, the surging preference for oil-free air compressors has become a prominent trend in the ASEAN air compressor market. The usage of oil-flooded air compressors in the manufacturing, oil and gas, food and beverage, textile, power, and chemical industries result in the contamination and condensation of air compressed through these compressors. To deal with this issue, these industries are shifting toward oil-free air compressors. For instance, food and beverage companies use oil-free compressors for cleaning and manufacturing, product handling, packaging, and peeling and cutting food products to avoid contamination of food products.
In the preceding years, the industrial manufacturing category accounted for the largest share in the ASEAN air compressor market, under the application segment. This was on account of the rising number of manufacturing facilities in Thailand, the Philippines, and Malaysia. Moreover, the mounting government support being provided to manufacturing industries will also contribute to the growth of this category in the foreseeable future. Government initiatives, such as the economic transformation program in Malaysia and Making Indonesia 4.0, are attributed to the growth of the manufacturing sector in these nations.
ASEAN Air Compressor Market Dynamics
Currently, the ASEAN air compressor market is extremely competitive due to the presence of numerous players, such as Elgi Equipments Limited, Hitachi Ltd., BAUER COMP Holding GmbH, Fusheng Co. Ltd., and Ingersoll-Rand plc. Presently, the market players are undertaking strategic measures, such as client wins, partnerships, and mergers and acquisitions, to gain a competitive edge. For example, in June 2019, Elgi Equipments Ltd. introduced the upgraded version of encapsulated screw air-compressors with heat recovery systems and variable frequency devices (VFD).
Geographically, the Philippines is expected to demonstrate the fastest growth in the ASEAN air compressor market in the coming years, primarily on account of the booming industrial sector in the country. In the upcoming years, the nation will witness a rapid rise in the construction of manufacturing plants of electronic products and foods and beverages. The boom in the food and beverage sector can be credited to the expanding consumer base of this ASEAN member. The World Bank states that the population of this country grew from 108,116,622 in 2019 to 109,581,085 in 2020.
Trends
Therefore, the booming construction sector and increasing use of oil-free compressors will support the market growth in the foreseeable future.
Due to the expanding construction and automotive industries, the demand for air compressors in the Association of Southeast Asian Nations (ASEAN) member countries is increasing. As a result, the ASEAN air compressor market is projected to witness an increase in its revenue to more than $1,130.0 million in 2024 from $902.9 million in 2018, at a 3.6% CAGR during 2019–2024 (forecast period). Moreover, with the increasing environmental concerns, the requirement for energy-efficient compressors is surging. Air compressors increase the pressure of a gas by decreasing its volume.
The ASEAN air compressor market is bifurcated into dynamic and positive displacement, on the basis of type. Of these, the positive displacement bifurcation held the larger share during 2014–2018 (historical period) due to the increasing demand for these variants in the automotive, industrial manufacturing, power, food & beverage, and construction sectors. The positive displacement bifurcation is further categorized into rotary and reciprocating, of which rotary is the larger and faster-growing kind.
Browse detailed – ASEAN Air Compressor Market Revenue Estimation and Growth Forecast Report
Food & beverage, industrial manufacturing, textile, power, oil & gas, automotive, chemical and cement, construction, heating, ventilation, air conditioning, and refrigeration (HVAC-R), and others are the classifications under the application segment of the market. In 2018, the market was dominated by the industrial manufacturing classification, owing to the rapid growth of this sector in India and China. The Make in India and Made in China 2025 initiatives are driving industrial manufacturing activities in these countries. Moreover, with the Industrial 4.0 revolution, the demand for energy-efficient air compressors in factories is rising.
A key trend in the ASEAN air compressor market is the shift from steam and gas turbines as the prime mover to variable-frequency drives (VFD). Electric motors integrated with the VFD technology are replacing turbines as they reduce the downtime of compressors, since they have a lower maintenance requirement. Additionally, the VFD technology offers stronger process control and precise speed and reduces the noise, electricity bills, and capital investments. For instance, compared to the 36% efficiency of a gas-turbine air compressor, one equipped with the VFD technology offers 95% efficiency.
Drivers
A major driver for the ASEAN air compressor market is the growth in the automotive industry. Due to the increase in the purchasing power of people, China and India have become two of the largest producers of vehicles in the world. This is driving the demand for air compressors, which are used in automobile plants for car painting, tire inflation, and engine construction. In addition, the perpetually hot and humid climate of much of South and Southeast Asia leads to a high demand for compressors in vehicle AC units.
Similarly, the construction of residences, commercial properties, and factories is growing in ASEAN countries on account of their burgeoning population. In addition, Japan is set to host the 2020 Olympics (rescheduled to 2021), while India will be the sole host of the 2023 ICC Cricket World Cup. Events such as these are further propelling construction activities, thereby driving the demand for compressors, which are used to power hammers, pneumatic drills, nail guns, pneumatic rail guns, paint sprayers, sandblasters, staplers, and pressure washers.
Opportunities
China had been the largest nation in the ASEAN air compressor market till 2018, as it is the largest manufacturing country in the world, driven by the Made in China 2025 initiative. Similarly, China is the largest automotive producer in the world, and it is also witnessing large-scale construction activities, which are propelling the air compressor demand here. India is expected to grow the fastest in the market during the forecast period because of the rising automotive production and expanding industrial, consumer electronics, and food & beverage sectors.
Therefore, with growth in industries, sales of air compressors will keep growing in ASEAN countries.
ASEAN Air Compressor Market Segmentation
Type
- Positive Displacement
- Reciprocating
- In-line
- V-shaped
- Tandem piston
- Single-acting
- Double-acting
- Diaphragm
- Rotary
- Screw
- Vane
- Lobe and scroll
- Reciprocating
- Dynamic
- Centrifugal
- Axial flow
Lubrication Type
- Oil-Free
- Oil-Flooded
Portability
- Portable
- Stationary
Pressure
- Ultra-Low-Pressure
- Low-Pressure
- Medium-Pressure
- High-Pressure
- Hyper-Pressure
Application
- Construction
- Power
- Industrial Manufacturing
- Heating, Ventilation, Air Conditioning, and Refrigeration (HVAC-R)
- Chemical and Cement
- Oil & gas
- Automotive
- Food & Beverage
- Textile
- Others (Healthcare, Research Laboratories, and Agriculture)
Oil-Free Piston Air Compressor
Application
- Construction
- Industrial Manufacturing
- Food & Beverage
- Chemical and Cement
- Healthcare
Pressure
- Ultra-Low-Pressure
- Low-Pressure
- Medium-Pressure
- High-Pressure
Country
- Indonesia Air Compressor Market
- By type
- By lubrication type
- By portability
- By pressure
- By application
- By oil-free piston air compressor
- By application
- By pressure
- Malaysia Air Compressor Market
- By type
- By lubrication type
- By portability
- By pressure
- By application
- By oil-free piston air compressor
- By application
- By pressure
- Philippines Air Compressor Market
- By type
- By lubrication type
- By portability
- By pressure
- By application
- By oil-free piston air compressor
- By application
- By pressure
- Singapore Air Compressor Market
- By type
- By lubrication type
- By portability
- By pressure
- By application
- By oil-free piston air compressor
- By application
- By pressure
- Thailand Air Compressor Market
- By type
- By lubrication type
- By portability
- By pressure
- By application
- By oil-free piston air compressor
- By application
- By pressure
- Vietnam Air Compressor Market
- By type
- By lubrication type
- By portability
- By pressure
- By application
- By oil-free piston air compressor
- By application
- By pressure
- Rest of ASEAN Air Compressor Market
- By type
- By lubrication type
- By portability
- By pressure
- By application
- By oil-free piston air compressor
- By application
- By pressure
