The Southeast Asia Booster Compressor Market is projected to grow at a CAGR of around 5.63% during 2023-28, cites MarkNtel Advisors in their recent research report. The market is driven by the increasing demand for oil & gas and as well as the mounting adoption of clean energy resources across the region to mitigate climate change & reduce carbon emissions. Indonesia, Malaysia, & Vietnam are highly investing in renewable sources like solar, wind, & hydro to increase their clean energy capacity and minimize the use of carbon-emitting fuels. As a result, the demand for booster compressors is rising at a strong pace to facilitate the transportation of renewable energy sources like hydrogen. Additionally, the growing importance of compressed air as an energy storage solution for renewable resources is another prominent aspect positively impacting the market growth.
Several policy reforms are being implemented in Southeast Asia, particularly by countries like Malaysia & Indonesia, to attract investments in the oil & gas sector and cater to their growing demand. For instance, the Ministry of Energy and Mineral Resources (ESDM) of Indonesia plans to offer around 10 oil & gas working areas in 2023, including Natuna D Alpha in the South China Sea, in an attempt to boost oil & gas production and make discoveries. These developments indicate a positive outlook for the booster compressor market in the region for the upstream operation of the oil & gas industry, further states the research report, “Southeast Asia Booster Compressor Market Analysis, 2023.”
Water Cooled Boosters hold a Significant Share of the Southeast Asia Booster Compressor Market
Water-cooled boosters can operate at higher pressures & temperatures, which make them appropriate for applications that involve high-pressure gas in industries like oil & gas, power generation, etc. Hence, increasing investments in the expansion of these end-user verticals are pushing the demand for water-cooled boosters in Southeast Asia. Moreover, their excellent efficiency in high-temperature environment is another prominent aspect accelerating their adoption in the region and fueling the overall market growth.
With Rising Investments in Oil & Gas and Infrastructure Development, Malaysia to Dominate the Market
The government of Malaysia allocated a budget of approximately USD 20.43 billion for infrastructure development in 2023, which includes projects associated with transportation systems, power plants, and industrial complexes, indicating a strong demand for booster compressors in industries like construction, power generation, maintenance, etc., for concrete pumping, pipeline purging, energy storage, pneumatic controls, etc. Moreover, the emergence of new upstream exploration in Malaysia, backed by growing investments in the oil & gas sector, is another prominent aspect projected to promulgate the demand for booster compressors in the country and, consequently, fuel the overall market growth in the years to come.
With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including (Atlas Copco, NextEra Energy, Bauer Kompresoren, Kaeser Kompresoren, Hitachi, Saucer Compressor, Gardner Denver Nash, Boge Kompresoren, Haskel, Generon, Ingersoll Rand PLC, and others.) are looking forward to strengthening their market position.
Key Questions Answered in the Research Report: