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World Oil-free Compressors Market
Frost & Sullivan, April 2010, Pages: 82
This study covers the state of the World oil-free compressors market, examining drivers and restraints for growth, pricing, distribution, technology, demand, end-user and geographical trends. Following from these, market growth for regional and market segments are forecasted. In addition, an in-depth analysis of the competitive situation including market participant’s market shares is performed. The base year is 2009 with forecasts running through 2016. The market is further divided into three subsegments including reciprocating, rotary screw and centrifugal oil-free compressors. Detailed analysis of each subsegments is included.
Demand for Improved Technology
Driven by the need to increase energy efficiency, quality, reliability, performance and safety, the major industries such as food and beverage, life sciences, and power generation are constantly looking at replacing existing technologies with upgraded ones. Suppliers of oil-free compressors are faced with a big challenge of introducing newly developed compressors, as oil-free compressors are a mature technology characterized by incremental improvements in specific components and subcomponents. New technology to help the end-users improve energy efficiency and air quality, reduce compressor’s life cycle cost, and provide a better working environment should be the focus of the oil-free compressors suppliers, and this will require greater focus on R&D. The impact of this challenge is expected to be high in the short and medium terms of the forecast period, with several manufacturers making an effort to accelerate the performance of the oil-free compressors, and, consequently, over the long term, the impact is expected to become medium.
Overcapacity, Flat Pricing, and Weak Demand
Pre-recession, the oil-free compressors suppliers increased their production capacity, with an expectation of higher demand in the future. With the demand slipping coupled with higher plant capacity, the suppliers of oil-free compressors have to increase their production to optimum level, in order to run the plants efficiently. Hence, they are forced to reduce the prices of oil-free compressors to gain market share. Consequently, there is a strong pressure for the suppliers to reduce cost, in order to meet the expected price level. The impact of this challenge is expected to be high in the short term, and medium during the medium and long terms of the forecast period. Suppliers are anticipated to witness a upturn in demand cycle, though the demand during the short term may not be at the level it was seen during the pre-recessionary period.
Need for Broad Service Portfolio and Strong Service Network
Service is one of the top criteria in choosing oil-free compressor suppliers. Without an extended service portfolio and well-trained engineers, suppliers have a limited chance to become leaders in the oil-free compressor market. Most key market participants have well-trained and experienced in-house staff who are able to provide complete and customized service support to their customers. Tier II and Tier III participants consisting of local and niche manufacturers should also try to offer these services . The impact of this challenge is high in the short term, where the oil-free compressor suppliers have to expand their services to continue a long-term relationship, and over the medium and long terms of the forecast period, the impact is expected to be medium.
The most important challenge is the prevailing high competition,which poses a barrier for new entrants into the market. The oil-free compressors market is currently dominated by a few multinational vendors, who account for approximately per centof the market, indicating a highly consolidated market structure. These vendors possess vastindustry experience and market presence, broad product and service portfolio and inimitable brand names. Hence, for a new entrant in the market, developing new products and competing with the existing multinational vendors is a significant challenge. The impact if this challenge is expected to be medium throughout the forecast period, as the new entrants will find it difficult to understand the market dynamics and align their strategies toward the growthpath.
Breadth of Product Solutions for Diverse Applications
The varying process requirements of end-users create the need for customized solutions. The best option for the end-users is to associate with a company that provides all types of products required for their plants, along with providing full service contracts. Moreover, end-users demand products with high air quality, great reliability, performance, and low energy efficiency, at a reasonable price. Currently, not many suppliersare able to offer this and as a result, only a few participants are gaining market share. Unfortunately, many suppliers are not able to penetrate the market, and hence it is very importantfor the existing suppliers to meet all the end-user requirements. The impact of this challenge is expected to be medium throughout the forecast period, as along with the extending offers of the companies, the end-user requirements are also expected to grow.
1. World Oil-free Compressors Market
- Analysis of World Oil-free Compressors Market
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