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.
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.
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.
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.
