Compressors are used in a wide range of applications in the oil and gas, energy, and petrochemical industries. The growing hydrogen, carbon capture, biofuels, and other energy transition markets present new opportunities for compressor companies. Many of these industries are being built from the ground up, offering years of growth for compressors and related equipment as the necessary infrastructure is built to handle growing demand.
Upstream and midstream oil & gas
Compressor technologies can be grouped into four categories: rotary, reciprocating (recips), centrifugal, and internally geared (Exhibit 1).
Exhibit 1: Segmentation of compressor technologies
ADI Analytics has performed numerous studies for clients across the oil and gas industry, where compressors find a number of uses. Across the value chain, most oil and gas process applications utilize centrifugals and recips (Exhibit 2). When looking at processes across the oil and gas value chain, centrifugals dominate most process application, but recips have important niche end-uses (Exhibit 3).
Exhibit 2: Segmentation of installed base of compressors by technology (Source: Trade Journals, ADI Analytics)
Exhibit 3: Illustrative list of oil and gas applications for centrifugal and reciprocating compressors
New growth markets
With the energy transition underway, compressors have a number of growth markets including hydrogen and carbon capture utilization and storage (CCUS) in addition to increased demand in traditional markets including natural gas and chemicals. Several key drivers are shown in Exhibit 4 that are promoting growth in compressor markets. A large theme amongst these drivers is the energy transition. As the energy transition moves forward, new industries such as CCS and hydrogen are emerging and growing as a solution for both decarbonization and clean energy. These industries are being built from the ground up and offer years of growth for compressor industries.
Exhibit 4: Key drivers for compression markets
Furthermore, the emerging hydrogen industry presents some key challenges that offer opportunities for innovation and differentiation among compressor OEMs. Hydrogen is so light that centrifugals must run at much higher speeds than required for heavier gases. Additionally, hydrogen causes metal to become brittle over time, affecting not only compressors, but pipelines as well. Industry will have to address these challenges going forward, but the potential is significant.
Summary
Although every project and market is different, ADI Analytics has the experience to help you assess and evaluate your particular market and your product’s competitive positioning. Over the years, ADI Analytics has researched and assessed the markets for various compressor technologies and continues to help clients assess this market.
These assessments include deep dives on particular segments, an evaluation of players in the space and competitive standing as well as proprietary market sizing models, analytics, and databases coupled with primary and secondary research drawing on a large number of sources and experience.
-Dustin Stolz
About ADI Analytics
ADI is a prestigious, boutique consulting firm specializing in oil and gas, energy transition, and chemicals since 2009. We bring deep expertise in a broad range of markets where we support Fortune 500, mid-sized and early-stage companies, and investors with consulting services, research reports, and data and analytics, with the goal of delivering actionable outcomes to help our clients achieve tangible results.
We also host the ADI Forum that brings c-suite executives together for meaningful dialogue and strategic insights across the oil & gas, energy transition, and chemicals value chains. Learn more about the ADI Forum.
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