Customization Proves Key to Success in the Chinese Process Gas Compressors Market, Finds Frost & Sullivan
-- Offering competitive pricing and value-added services is crucial for product differentiation
SHANGHAI, Feb. 26, 2015 /PRNewswire/ -- The Chinese process gas compressors market is set to take off as manufacturers in the country look to switch from a labor-intensive to a technology-intensive automated production system. The replacement market for process gas compressors is also likely to open up by the end of the forecast period (2021) as older compressors, which do not meet specifications, are eventually replaced.
New analysis from Frost & Sullivan, Chinese Process Gas Compressors Market (https://www.frost.com/ne46), finds that the market earned revenues of $828.3 million in 2014 and estimates this to reach $1,243.3 million in 2021. The study covers reciprocating, rotary and centrifugal compressors.
For complimentary access to more information on this research, please visit: http://corpcom.frost.com/forms/CHN_PR_JZheng_NE46-10_19Feb15.
"The Chinese government has deployed many oil and gas pipeline-related projects to transfer oil and natural gas from resource-rich provinces and countries, thus widening the scope of the process gas compressor market," said Frost & Sullivan Industrial Automation and Process Control Research Associate Zi Ning Chong. "In addition, with approximately 30 to 50 large oil and gas, power generation, and chemical national projects set up between 2011 and 2015, the adoption of process gas compressors is escalating."
However, the government has either abandoned or postponed the launch of some projects in other industries in order to prevent overcapacity. This has lowered potential sale volumes. Further, fraudulent imitations of overseas process gas compressors by domestic manufacturers in China have dissipated consumers' confidence and limited demand.
Intense competition and the ensuing pricing pressures faced by suppliers also restrain profitability. Moreover, oil-free compressors are twice the price of oil-injected compressors. Hence, many industries are unable to afford process gas compressors.
"Unless small manufacturers specialize in niche markets, they will be phased out by large multinational manufacturers," cautioned Chong. "The strategic pricing of higher-efficiency compressors, development of integrated solutions for specific segments, and delivery of value-added services will be the way forward for success in the Chinese market."
Chinese Process Gas Compressors Market is part of the Industrial Automation & Process Control (http://www.industrialautomation.frost.com) Growth Partnership Service program. Frost & Sullivan's related studies include: Southeast Asian Industrial Valves and Actuators Market, Australia-New Zealand Industrial Valves and Actuators Market, Chinese Industrial Air Compressors Market, and Southeast Asia and Australia New Zealand Automation and Controls Market for Power Generation. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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Chinese Process Gas Compressors Market
NE46-10
Contact:
Julie Zheng
Corporate Communication – China
P: +86.21.5407.5780 ext. 8698
E: julie.zheng@frost.com
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