Predictive analytics and smart maintenance are key drivers providing business development, finds Frost & Sullivan's Industrial Automation and Process Control team
SANTA CLARA, California, April 14, 2017 /PRNewswire/ -- With favorable oil prices and new regulations driving investment in the oil and gas industry, the North American oil and gas compressors market is poised for growth. Refinery upgrades, an extensive replacement market and the explosion of Internet of Things (IoT) will spur further demand and augment growth. As commodity prices stay low, compressor manufacturers must reduce operation costs and increase profitability by developing energy-efficient solutions for end users, investing in product development and leveraging new technologies.
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North American Compressors Market in the Oil and Gas Industry, Forecast to 2023, recent research from Frost & Sullivan's Industrial Automation & Process Control Growth Partnership subscription, finds that in spite of the heavy drop in growth in 2016, the North American compressors market is expected to return to its nominal state by 2019 and exceed USD 1.2 billion in revenue by 2020.
"As industrial IoT adoption increases, compressor manufacturers in the oil and gas industry need to leverage their domain expertise to provide customized solutions for end users," said Frost & Sullivan Industrial Automation & Process Control Industry Analyst Anand Gnanamoorthy. "Predictive analytics and smart maintenance offer unique cost saving advantages, revolutionize the way compressors are operated, and are key technology drivers that manufacturers should embrace to lower operational costs, and gain market share and revenues in a highly competitive and commoditized ecosystem."
The top five North American compressor market players, Siemens, General Electric, Atlas Copco, Elliott Turbo and Ingersoll Rand, contributed 63.1 percent of total market revenues. Their growth strategies include:
"While cost is a major competitive factor in the North American compressors market for oil and gas, quality is a key parameter as compressors are used in critical processes and any failure will result in loss of production," noted Gnanamoorthy. "Companies need to differentiate themselves in the market by being positioned as product quality leaders."
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North American Compressors Market in the Oil and Gas Industry, Forecast to 2023
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