Know The Growth Opportunities and Upcoming Challenges in Screw Compressor Market
A screw air compressor is a rotating type of compressor that compresses air due to a screw action. Air comes into the compressor through the inlet valve into a housing that has two interlocking screw rotors. As these screws rotate, the volume of air gets reduced and the air pressure increases and the compressed air exits through an outlet valve. A screw compressor can be used to compress any type of gas and is generally known to be a smooth and silent performer during operation. As a result, a screw compressor is widely used in various industries like refrigeration, natural gas, automobile, chemical, pharmaceutical, water treatment, and so on. Thus, the screw compressor is completely dependent on the power and energy sector globally.
The current pandemic situation has impacted on each and every industry globally. Sectors like energy and power are also adversely affected by the slowdown caused by the coronavirus. In the shorter term, there will be substantial slowdown in power, infrastructure and energy sector projects and hence the screw compressor market will see a slowdown. However, over the medium term to long term, the demand for screw compressors shall again continue to rise according to the rise in global demand.
Opportunities for the air compressor and the screw compressor market:
1. Pharmaceutical Industry – Post Covid-19, governments all over the world shall focus on better healthcare, better hospitals, and better medicines. As a result, there shall be new API and intermediate plants coming up globally that will give a boost to the air compressor market.
2. Government Spending – The pandemic has led to a peculiar situation in which the entire global economy is shut down. To kick-start economies, governments all over the world shall provide a massive infusion of funds to the infrastructure sector. Governments all over the world shall look at giving a boost to the global economy by focusing on renewable fuels, especially providing incentives for Electric Cars. This shall lead to a rise in power demand globally. Since the power sector is one sector that uses large quantities of screw compressors, the market for compressors shall see a tremendous opportunity in the future.
3. Focus on Gas – Globally, the focus shall shift to using clean fuels that shall lead to increased use of natural gas in industries. Now natural gas is one of the biggest sectors employing gas compressors, this focus on natural gas shall provide a boost to the screw compressor markets.
4. Focus on efficiency – Energy efficiency shall be one of the key focus areas in the post-COVID-19 world. Since screw compressors are some of the most energy-efficient ways of getting compressed gas, increasingly people shall use screw compressors in place of traditional piston type of compressors.
Thus, while there is no doubt that the pandemic shall adversely affect the screw compressor industry in the short term, if one looks at the larger picture and looks at the medium to long term view, the screw compressor sector shall see tremendous growth opportunities.