The petroleum and natural gas compression engine market is driven by the growing demand for compressed natural gas (CNG) as a fuel source, particularly in emerging economies such as China, India, and Brazil.
Additionally, the growing oil & gas industry across the globe has also contributed to market growth, as it requires high-quality compression engines for exploration, transportation, processing, and refining activities.
Some of the key factors driving growth in the petroleum and natural gas compression engine market include increasing demand for CNG as a fuel source, technological advancements that have led to improved efficiency and reduced operating costs of compression engines, and the growing oil & gas industry across the globe. However, the high cost of investment required for manufacturing these engines and stringent regulations and environmental concerns related to their use could pose a challenge to the market growth.
The petroleum and natural gas compression engine is a type of machine used for compressing gases, such as petroleum and natural gas. These engines are commonly used in the oil & gas industry to facilitate exploration, transportation, processing, and refining activities.
Some of the key advantages of the petroleum and natural gas compression engine market include improved efficiency, reduced operating costs, and better performance for a wide range of applications. Additionally, these engines are also easier to maintain and operate compared to other types of compression machines. Furthermore, manufacturers are investing in R&D efforts to develop next-generation compression engines that are more efficient and offer reduced emissions.
The petroleum and natural gas compression engine market offers a wide range of services, including design, manufacturing, installation, operation & maintenance, and repair & replacement. Additionally, these engines can also be customized as per specific requirements and are available in different configurations to suit diverse applications.
During the period covered by the analysis, 2021-2031, the global market for petroleum and natural gas compression engines is anticipated to expand at a compound annual growth rate of 5.2%. In the year 2021, the market is anticipated to have a value of USD 9.02 billion, and it is anticipated that this value will increase to USD 12.14 billion by the year 2031.
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This expansion can be attributed to several factors, including the expanding oil and gas industry around the world as well as the rising demand for compressed natural gas (CNG) as a fuel source.
The primary restraint for the petroleum and natural gas compression engine market is its high cost of investment, which can be a major barrier to entry for new players. Additionally, stringent regulations and environmental concerns related to these engines could also pose a challenge to market growth.
However, manufacturers are investing in R&D efforts to develop next-generation compression engines that are more efficient and offer reduced emissions, which may help to overcome these restraints in the long term. As such, the petroleum and natural gas compression engine market is expected to continue growing steadily over the coming years.
Some of the key players in the petroleum and natural gas compression engine market include GE Oil & Gas, Siemens, Worthington Cylinders, Atlas Copco, and Gardner Denver. These companies are focused on developing more efficient and cost-effective engines to stay competitive in this rapidly-evolving market.
SEGMENT ANALYSIS
The centrifugal type is expected to be a leading segment of the petroleum and natural gas compression engine market
Based on type, the centrifugal type is expected to be a leading segment of the petroleum and natural gas compression engine market during the forecast period. This segment is likely to grow at a CAGR of 5.5% between 2021 and 2031, driven by increasing investments in oil and gas exploration activities around the world.
The petroleum refineries factories segment is anticipated to dominate the market
The application segment is expected to be divided into CNG filling stations, petroleum refineries factories, processing/chemical plants, and other applications. The petroleum refineries factories segment is anticipated to dominate the market with a share of over 35% in 2021, followed by the CNG filling stations segment. This can be attributed to the growing number of CNG filling stations being set up around the world, to meet the increasing demand for CNG as a cleaner and more cost-effective fuel source.
APAC will dominate the petroleum and natural gas compensation engine market
The global petroleum and natural gas compression engine market is expected to be dominated by the Asia Pacific region, followed by North America. The strong growth of the oil and gas industry in countries such as China, India, Japan, Malaysia, Indonesia, and Singapore are driving demand for compression engines in this region. Additionally, rising concerns about environmental pollution are also expected to boost demand for CNG as a cleaner and more sustainable fuel source, which is further expected to drive market growth in the Asia Pacific region.
Oil and gas industry will dominate the petroleum and natural gas compression engine market
The end-user segment of the petroleum and natural gas compression engine market is expected to be dominated by the oil and gas industry, followed by power generation. Both of these segments are anticipated to grow at a steady rate over the next decade, driven primarily by increasing investments in new infrastructure development projects around the world.
Covid 19 Impact
The impact of the ongoing COVID-19 pandemic on the global economy, including that of the oil and gas industry, is expected to be significant. As such, there are likely to be some short-term disruptions in growth for the petroleum and natural gas compression engine market. However, given the continued demand for oil and gas in many countries, as well as the growing investments in renewable energy sources, we expect that the market will continue to grow steadily over the coming years. Overall, manufacturers are expected to adapt quickly to changing market conditions, which should help them maintain growth despite these challenges.
Recent Developments in the petroleum and natural gas compression engine market
• In July 2021, Pakistan and Russia agreed to build a 1,100 kilometre gas pipeline from Port Qasim in Karachi to Lahore by the end of 2023 by signing the deal. A 56-inch-diameter pipeline with a 700–800 million cubic feet per day (mmfcd) capacity that can increase to 2,000 mmcfd with gas compressors is one of the proposed USD 2.5 billion projects.
In January 2022, In order to provide compression solutions for the IOCL's future polypropylene facility in Bihar, India, TECNIMONT SpA and Tecnimont Private Ltd awarded Burckhardt Compression (Burckhardt) a contract for the supply of gas compressors. For the compression systems, the company will offer EPC and commissioning services.
Petroleum and Natural Gas Compression Engine Market Scope
| Metrics | Details |
| Base Year | 2023 |
| Historic Data | 2018-2022 |
| Forecast Period | 2024-2031 |
| Study Period | 2018-2031 |
| Forecast Unit | Value (USD) |
| Revenue forecast in 2031 | USD 12.14 billion |
| Growth Rate | CAGR of 5.2 % during 2021-2031 |
| Segment Covered | by Type, By Application, End-User, Regions |
| Regions Covered | North America, Europe, Asia Pacific, South America, Middle East and Africa |
| Key Players Profiled | GE Oil & Gas, Siemens, Worthington Cylinders, Atlas Copco, and Gardner Denver. |
Key Segments of the Global Petroleum and Natural Gas Compression Engine Market
Type Overview, 2021-2031 (USD Billion)
- Centrifugal Type
- Reciprocating Type
- Other
Application Overview, 2021-2031 (USD Billion)
- CNG Filling Station
- Petroleum Refineries Factory
- Processing/Chemical Plants
- Others
End-User Overview, 2021-2031 (USD Billion)
- Oil and Gas Industry
- Power Generation Sector
- Processing/Chemical Plants
- CNG Filling Stations
- Others
Regional Overview, 2021-2031 (USD Billion)
North America
- U.S
- Canada
Europe
- Germany
- France
- UK
- Rest of Europe
Asia Pacific
- China
- India
- Japan
- Rest of Asia Pacific
South America
- Mexico
- Brazil
- Rest of South America
Middle East and South Africa
- UAE
- South Africa
Frequently Asked Questions (FAQ) :
The global Petroleum and Natural Gas Compression Engine market size projected to reach USD 12.14 billion by 2031.
The Petroleum and Natural Gas Compression Engine market is growing at a CAGR of 5.2% during the projection period
The key market players listed in the Petroleum and Natural Gas Compression Engine report are GE Oil & Gas, Siemens, Worthington Cylinders, Atlas Copco, and Gardner Denver.