logo
logo

Boom in Automotive Sector To Fuel Compressor Sale in India

avatar
Ritik Sinha
img

SIAM states that the automotive industry of India manufactured 22,652,108 vehicles, including quadricycles, passenger vehicles, two-wheelers, three-wheelers, and commercial vehicles, in April–March 2020. The association further states that 3,062,221 passenger vehicles, 624,939 commercial vehicles, 611,171 three-wheelers, 18,349,941 two-wheelers, and 3,836 quadricycles were produced in the country in FY 2020–2021. The flourishing automotive sector, owing to the easy availability of raw materials and labor, will result in the large-scale deployment of compressors in India. 


Additionally, the flourishing manufacturing sector, on account of the increasing inflow of FDI, will drive the Indian compressor market at 6.2% CAGR during 2020–2030. The market was valued at $1,943.4 million in 2019, and it is expected to generate $2,891.9 million revenue by 2030. The manufacturing sector uses industrial air compressors for tool powering, stamping, and clamping. Nowadays, the rapid shift toward energy-efficient compressors, owing to the mounting focus of public and private organizations on production efficiency and energy savings, has become a prominent market trend.   


In the last few years, medium-pressure compressors were preferred over high-pressure, hyper-pressure, low-pressure, and ultra-low-pressure compressors because medium-pressure variants find their applications in vehicles, home air conditioners, and refrigerators. A boom in the automotive and home appliances industries will, therefore, increase the deployment of medium-pressure compressors in India in the future. All these types of compressors are available in portable as well as stationary forms. In contemporary times, stationary compressors observe higher penetration due to their wide application base in the automobile sector. 


The positive displacement category, within the type segment, accounted for a larger share in the Indian compressor market in 2019, and it is expected to retain its industry dominance in the coming years as well. This can be ascribed to the better rotor profiles and innovative designs of positive displacement compressors. These compressors are mostly used in chemical, automotive, steel, and semiconductor companies. However, the dynamic category is expected to exhibit faster growth throughout this decade, owing to the increasing use of energy-efficient solutions in the cement, oil and gas, and steel sectors. 


In recent years, compressor manufacturers have focused on product launches to meet the needs of the agriculture, mining, research, healthcare, textile, food and beverages, oil and gas, automotive, chemical and cement, manufacturing, power, and construction sectors of the country. For instance, in June 2019, Atlas Copco AB unveiled a new range of low-investment belt-driven 15–22 kW compressors. This new range is designed to offer high performance with low noise. Other manufacturers opting for product launches include Ingersoll Rand plc, Kobe Steel Ltd., and Elgi Equipments Limited.


According to P&S Intelligence, the compressor market in the northern region of India will demonstrate the highest growth in this decade. This will be on account of the presence of numerous automotive and manufacturing companies in Uttar Pradesh, Himachal Pradesh, Punjab, Haryana, and Uttarakhand. Moreover, the increasing government support for industrial corridors, such as Amritsar–Delhi–Kolkata industrial corridor and Delhi–Mumbai industrial corridor, and SMEs will also steer the market growth in the region. 


Thus, the booming automotive and manufacturing sectors are expected to accelerate the use of compressors in India.


collect
0
avatar
Ritik Sinha
guide
Zupyak is the world’s largest content marketing community, with over 300 000 members and 3 million articles. Explore and get your content discovered.