A booster compressor system is the equipment used for increasing the pressure of the air coming from an existing compression system by passing it through additional compression stages. It is often used in conjunction with primary compressors or standalone units to ensure an adequate supply of high-pressure air or gas. Booster compressors have a wide range of applications, including Industrial manufacturing, industrial pressure testing, oil & gas production, transportation, mining, etc.
Market Insights & Projections: Southeast Asia Booster Compressor Market (2023-28):
The Southeast Asia Booster Compressor Market is estimated to grow at a CAGR of around 5.63% during the forecast period, i.e., 2023-28. The growth of the market is attributed primarily to the rising demand for oil & gas backed by economic growth owing to increasing industrial activities, the growing population, and rising income levels, coupled with the ever-increasing adoption of clean energy capacities.
According to 2022 statistics by the International Energy Agency (IEA), energy demand in Southeast Asia increased on average by around 3% a year over the past two decades, and this trend is likely to continue till 2030. In view of this, countries like Malaysia, Indonesia, Vietnam, etc., are implementing various policy reforms to attract foreign investments in their oil & gas sectors in order to meet the future demand. For instance, in 2022, the National Assembly of Vietnam passed a revised petroleum law to attract investments, expected to come to force in 2023, which has resulted in the exploration of new offshore & onshore sites.
|Study Period||Historical Data: 2018-21|
|Base Year: 2022|
|Forecast Period: 2023-28|
|Country Covered||Singapore, Indonesia, Malaysia, Thailand, Philippines, Rest of South East Asia|
|Key Companies Profiled||
Atlas Copco, NextEra Energy, BAUER Kompressoren, Kaeser Kompressoren, Hitachi, Saucer Compressor, Gardner Denver Nash, Boge Kompresoren, Haskel, Generon, and Ingersoll Rand PLC.
|Unit Denominations||USD Million/Billion|
Further, governments in Southeast Asia are actively focusing on ensuring the energy security of their respective countries by reducing dependence on energy imports and exploring untapped oil & gas reserves. These factors are augmenting the demand for booster pumps in the region to maintain the flow of natural gas & other hydrocarbon fluids through pipelines while increasing their pressure to overcome pipeline friction.
Moreover, the increasing inclination toward sustainable solutions in the aftermath of climate change is leading to the development of renewable energy sources in Southeast Asia. Countries such as Indonesia, the Philippines, Singapore, etc., are expanding their renewable energy capacities by investing in different sources, such as wind, hydro, etc., in order to reduce their reliance on fossil fuels. As a result, booster compressors are projected to witness high demand in the coming years to facilitate the transportation of renewable energy sources like hydrogen and, consequently, spur growth in the Southeast Asia Booster Compressor Market.
Southeast Asia Booster Compressor Market Driver
Growing Investments in the Mining Sector - The vast presence of minerals such as nickel, coal, copper, gold, bauxite, etc. in the Southeast Asian region has made the region an important source of producer of these minerals, however, the sector has remained a small contributor to the revenue of governments’ revenues, in consequence, countries such as Indonesia, Philippines have started announcing new mining projects to realize the full potential of the mining sector. For instance, in 2022, the Philippines government approved the Tampakan copper-gold project, which is considered Southeast Asia’s biggest untapped copper-gold field. The project is expected to commence by 2026. Thus, the growth of the mining sector in the region is generating the demand for booster compressors owing to the requirement of booster compressors for facilitating powering equipment and maintaining adequate air pressure.
Additionally, governments in the region are taking measures to enhance investment in the mining industry owing to the high price of raw materials such as nickel and copper. For instance, according to Indonesian Investment Coordinating Board, in 2022, Indonesia’s mining sector received a foreign investment of USD 43 billion, registering an increase of 44% as compared to the previous year i.e. 2021. Through this government aims to capture increased value across the sectors and drive domestic industry growth.
Southeast Asia Booster Compressor Market Growth Opportunity
Various Government Policies to Boost the Manufacturing Sector - The growing policies and agreements in the region are accelerating the manufacturing sector in the region. This growth is particularly due to the Association of Southeast Asian Nations (ASEAN) Economic Community’s multiple free trade agreements between SEA nations, along with loosening tariffs in the region, attracting cross-border trade. For instance, in 2021, the Singapore Economic Development Board (EDB) and Enterprise Singapore (ESG) announced the formation of the Southeast Asia Manufacturing Alliance (SMA), to promote a network of industrial parks to manufacturers who are interested to invest in both Singapore and the region. These initiatives connect companies with a network of trusted partners to navigate and grow in the diverse region.
Furthermore, governments like Malaysia, Vietnam, and Indonesia, continue to reform the legal framework to improve the ease of doing business, while investing in infrastructure and sophisticated manufacturing capabilities. Such initiatives are the Seaport master plan 2021-2030 of Vietnam, and the Industry4WRD National Policy of Malaysia. These initiatives aim to enhance infrastructure connectivity, reduce logistics costs, and support the adoption of digital technologies in the manufacturing sector. As a result, these initiatives, agreements, and alliances are leading to the expansion of companies’ footprint to the region, this would turn into the lucrative growth of manufacturing facilities in the region and into the demand for booster compressors. As it is necessary for the manufacturing sector for applications such as powering pneumatic tools, air blowing and cleaning, air injection molding, leak testing, etc.
Southeast Asia Booster Compressor Market Restraint
Stringent Environmental Regulations to Reduce Pollutant Emissions - Increasing stringent environmental regulations and compliances across Southeast Asia would hinder market progress. Environmental regulations include limitations on the emission of pollutants such as nitrogen oxides(NOx), carbon monoxide(Co), and volatile organic compounds (VOCs). Countries like Singapore, and Malaysia are implementing new regulations to control carbon emissions for financial institutions and listed companies, demonstrating the goal to align with emerging international standards.
For instance, in 2023 the Monetary Authority of Singapore proposed a slate of environmental, social, and governance (ESG) regulations for companies. As a result, the increasing environmental regulations would compel booster compressor manufacturers to develop technologies and design features that could reduce the emission. Moreover, since these regulations vary across countries, it could lead to complexities for manufacturers in addressing specific requirements of different countries and result in delays or additional costs, thereby negatively impacting the Southeast Asia Booster Compressor Market.
Southeast Asia Booster Compressor Keyword Market Trend
Surging Adoption of Renewable Energy Resources - The increasing adoption of renewable energy resources such as hydrogen, offshore wind farm, air compression for energy storage, etc., are escalating the growth of booster compress in the region. The adoption of renewable technologies is owing to the rising environmental concern and governmental policies, to lower carbon emissions and mitigate climate change. Countries like Indonesia, Singapore, Vietnam, etc., and to are implementing several schemes and policies to promote the adoption of renewable energy resources. For instance, in 2022, the Japanese Industry Minister and Indonesian Energy Minister signed a memorandum of cooperation (MoC) at a bilateral meeting held in Jakarta on 10/01/2022.
The MoC is aimed at collaborating in the development & deployment of decarbonization technologies such as hydrogen, ammonia, and carbon capture utilization and storage (CCUS). These initiatives would lead to the mounted deployment of renewable energy resources in the region. As these sources expand, the demand for booster compressors in various renewable energy applications increases in the coming years. Booster compressors enable efficient energy storage, hydrogen production, offshore wind farm operations, and gas pipeline compression, supporting the smooth integration and utilization of renewable energy within the energy landscape.
Southeast Asia Booster Compressor Market (2023-28): Segmentation Analysis
The Southeast Asia Booster Compressor Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–28. Based on the analysis, the market has been further classified as:
Based on Cooling Type:
Of both, water-cooled boosters are witnessing high demand and significantly contributing to the growth of the Southeast Asia Booster Compressor Market, driven by their capability to operate at higher pressures & temperatures, which makes them suitable for larger applications that require high-pressure gas in industries like the oil & gas, power generation, etc. Growing investments in oil & gas, mining, power generation, and other industries, which involve the application of high pressure, has pushed the market growth for water cooled compressors. In addition, the excellent efficiency of these compressors in high-temperature environments is also increasing their adoption across the region and, subsequently, fueling the overall market growth.
Based on Compression Stage:
Here, multi-stage booster compressors are witnessing substantially growing demand in Southeast Asia, as they are prominently used for compressing gas in natural gas pipelines, oil refineries, & chemical plants. The high importance of compressing gas to ensure optimal performance of operations with safety facilitates the deployment of these booster compressors, further supporting the market. In addition, advantages like higher efficiency, higher pressure ratios, lower maintenance requirements, use of intercoolers & after coolers, and greater flexibility are also amplifying their demand in Southeast Asia and, consequently, benefitting the market growth.
Southeast Asia Booster Compressor Market (2023-28): Regional Analysis
Geographically, the Southeast Asia Market expands across:
Of all countries in Southeast Asia, Malaysia is expected to hold the major share of the Booster Compressor Market during 2023-28. It owes to increasing investments in the country's oil & gas sector, i.e., leading to new upstream explorers. In 2023, Petronas launched the Malaysia Bid Round (2023), offering 10 exploration blocks and two clusters of Discovered Resource Opportunities (DRO), which would result in more oil & gas exploration activities in the country.
Furthermore, Malaysia is heavily investing in infrastructure development, including transportation systems, power plants, and industrial complexes. The government has set an infrastructure development budget of around USD 20.43 billion for 2023, under which approximately 7,615 development projects are planned, which represents an increase of nearly 25.7% from 2022. As a result, upcoming oil & gas explorations and infrastructure development projects are set to escalate the demand for booster compressors in Malaysia and, in turn, propel the overall market growth.
Gain a Competitive Edge with Our Southeast Asia Booster Compressor Market Report
Frequently Asked Questions
A. The Southeast Asia Booster Compressor Market is expected to grow at a CAGR of around 5.63% during 2023-2028.
A. Growing investment in the mining sector is expected to drive the Southeast Asia Booster Storage Market during 2023-2028.
A. The key players in the Southeast Asia Booster Compressor Market include Atlas Copco, NextEra Energy, BAUER Kompressoren, Kaeser Kompressoren, Hitachi, Saucer Compressor, Gardner Denver Nash, Boge Kompresoren, Haskel, Generon, and Ingersoll Rand PLC.
A. Water cooled booster compressors are the most sought after products in the Southeast Asia Booster Compressor Market.
A. Stringent Environmental Regulations to Reduce Pollutant Emissions are the major growth restraint for the Southeast Asia Booster Compressor Market.
Southeast Asia Booster Compressor Market Research Report (2023-2028) - Table of Contents