Russia Reciprocating Compressor Market: Snapshot
The oil and natural gas industry in Russia accounts for the majority of the country’s GDP and export earnings and the performance of this sector directly impacts the market for reciprocating compressors in Russia.
The Russian oil and natural gas sector boasts of the increased presence of blue chip companies. This has substantially raised the demand for equipment that is directly or indirectly involved in subsea applications in exploration and production (E&P) practices. Subsequently, the Russia market for reciprocating compressors has received a significant boost. The market is projected to rise from a value of US$227.1 mn in 2015 to reach US$352.6 mn by 2024. If these values hold true, the reciprocating compressors market is forecast to expand at a CAGR of 4.9% from 2016 to 2024.
Local manufacturers of reciprocating compressors in Russia have faced numerous hurdles owing to the lack of sustainability to cope up with international standards and quality benchmarks. Furthermore, the fragile political scenario has resulted in a significantly lower demand from local compressor manufacturers.
Transparency Market Research states that the reciprocating compressors market in Russia is anticipated to pick up pace only if manufacturers across the globe advance their technological innovations and develop maintenance-free compressors with greater efficiency.
Oil and Gas Industry Leading End User despite Various Challenges
The oil and gas industry is by far the leading end user of reciprocating compressors in Russia and the share of this segment is pegged to be over 42% by 2024. This sector is also anticipated to register the highest CAGR during the forecast period – a healthy 6.4% from 2016 to 2024. However, the oil and gas sector in Russia has been facing a storm of challenges mainly due to the stagnant European market, expensive Asian projects, and strict Western sanctions. This has resulted in limited investments and innovations within key technological segments of the oil and gas industry.
The LNG industrial sector has been identified as highly opportunistic by Transparency Market Research. On the other hand, end users such as chemical, petrochemicals, industrial metallic tools, and metal processing are predicted to register mediocre growth over the course of the forecast period.
Industrial Process Gas Reciprocating Compressors Segment to Retain Lead Through 2024
Among the major types of compressors, industrial process gas reciprocating compressors took the lead in the Russia reciprocating compressor market in 2015 and this segment is likely to retain its top position through 2024. LNG reciprocating compressors, on the other hand, are likely to emerge as the fastest growing segment by type, expanding at a 5.3% CAGR from 2016 to 2024.
Some of the prominent players with a strong foothold in the Russia reciprocating compressors market are Atlas Copco AB, Kobelco Compressors Corporation, Dresser Rand Group Inc., Howden Group Ltd., and General Electric (Oil & Gas) Co. Other key players include Leobersdorfer Maschinenfabrik GmbH & Co.KG, Burckhardt Compression AG, Neuman & Esser Group, KwangShin Machinery Co. Ltd., BORSIG ZM Compression GmbH, Ariel Corporation, and SIAD Macchine Impianti S.p.A.
The Russia reciprocating compressor market report provides an analysis of the reciprocating compressor market in Russia for the period 2014 to 2024, wherein 2015 is the base year and 2016 to 2024 is the forecast period. Data for 2014 has been included as historical information. The report covers all the prevalent trends and technologies playing a major role in growth of the reciprocating compressor market over the forecast period. It also highlights various drivers, restraints, and opportunities expected to influence the market growth during the said period. Furthermore, analysis covering localization trends, investor support programs, laws and regulations has been added exclusively in the qualitative section of the report. The study provides a holistic perspective on market growth, throughout the above forecast period in terms of revenue estimates (in US$ Mn), for the Russian market. The report provides cross-sectional analysis of the Russia reciprocating compressor market in terms of market estimates and forecasts for all the segments. This research report provides in-depth analysis of the Russia reciprocating compressor market on the basis of compressor type and end-use industries
Reciprocating compressor market in Russia is anticipated to expand at a significant pace, led by the presence of large number of oil reservoirs and refineries. Growth factors such as rise in oil prices and some key initiatives by the Ministry of Industry and Trade of the Russian Federation and Association of Compressors have further supported the market growth of reciprocating compressors in Russia. The overall market is anticipated to reach US$ 352.6 Mn by 2024 expanding at a CAGR of 4.9% from 2016 to 2024.
The Russia reciprocating compressor market on the basis of compressor types can be segmented into industrial process gas reciprocating compressor, liquefied natural gas (LNG) reciprocating compressor, and boil of gas (BOG) reciprocating compressor. Industrial process gas reciprocating compressor is further classified into API 618 compressor primarily used for downstream process and high-speed compressors used for upstream and midstream processes. The Russia reciprocating compressor market segmentation by end-use industry includes chemical industry, oil & gas industry, LNG industry, petrochemical industry and others. Oil & gas industry is further classified depending upon the operational activities covering upstream, downstream and midstream activities. LNG industry is further classified based on plant size into small and medium sized plants, and big and giant sized plants.
The report also includes competitive profiling of major players along with the value chain analysis for reciprocating compressors. Key business strategies adopted by leading players, their market positioning, and various recent developments have also been identified in the research report. This research report also provides market positioning analysis of major players in the Russia reciprocating compressors market based on their 2015 revenues. Some of the prominent players dominating the reciprocating compressors in the Russia include Atlas Copco AB, Kobelco Compressors Corporation, Dresser Rand Group Inc., Howden Group Ltd., and General Electric (Oil & Gas) Co. These players hold significant market share in the Russian reciprocating compressor market collectively holding approximately 40% of the market share in 2015. The other key players profiled in the research study include Leobersdorfer Maschinenfabrik GmbH & Co.KG, Burckhardt Compression AG, Neuman & Esser Group, KwangShin Machinery Co. Ltd., BORSIG ZM Compression GmbH, Ariel Corporation, and SIAD Macchine Impianti S.p.A.
The Russia reciprocating compressor market is segmented as below:
Russia Reciprocating Compressor Market: By Type
- Industrial Process Gas Reciprocating Compressor
- API 618
- High-speed Reciprocating Compressor
- LNG Reciprocating Compressor
- BOG Reciprocating Compressor
Russia Reciprocating Compressor Market: By End-use Industry
- Oil & Gas
- Small and Medium sized Plants
- Big & Giant Sized Plants