The rapid expansion in the construction sector is one of the primary factors responsible for the mushrooming demand for compressors in China. Because of the rising urbanization and the soaring population, the construction sector is expanding rapidly. Moreover, with the launch of several construction projects, the demand for highly energy-efficient heating, ventilation, and air-conditioning (HVAC) equipment is growing rapidly. The changing lifestyles of people and the rising average temperatures are also fueling the sales of HVAC systems in the country.
As per the Council on Tall Buildings and Urban Habitat, there are numerous skyscrapers in China. There are currently as many as 88 skyscrapers in the country. This is pushing up the requirement for HVAC systems, which is, in turn, propelling the demand for compressors in the country. Furthermore, the hotel industry in the country is recording nearly 2,481 hotel projects that are currently in pipeline and is growing with a year-on-year (YoY) growth rate of 2%.
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Besides the aforementioned factors, the boom in the automotive industry, because of the surging disposable income of people and the ballooning automobile manufacturing, is also positively impacting the demand for compressors in the country. This is because compressors are used extensively in vehicle manufacturing processes including product finishing, tire inflation, plasma cutting and welding, and car painting. For example, motor vehicle manufacturing increased from 7.7 million units to 29.7 million units in the country from 2013 to 2017.
Due to the above-mentioned factors, the China compressor market is exhibiting huge expansion. The value of the market is predicted to rise from $12.7 billion in 2018 to $15.7 billion by 2024. Furthermore, the market is predicted to progress at a CAGR of 3.5% between 2019 and 2024. Depending on dynamic compressor type, the market is divided into axial flow and centrifugal segments. Between these, the centrifugal compressor recorded higher growth in the market during the last few years.
