LONDON, Oct. 7, 2013 /PRNewswire/ -- The European centrifugal compressors market is expected to witness a period of steady growth as the region recovers from the economic downturn. The oil and gas, and power generation sectors are the key end users and increasing investments in gas-fired power plants are expected to drive the demand for centrifugal gas compressors in Europe.
New analysis from Frost & Sullivan (http://www.industrialautomation.frost.com), Strategic Analysis of the European Centrifugal Compressors Market, finds that the market earned revenues of $534.5 million in 2012 and estimates this to reach $583.0 million in 2017. The main end users covered in this research include the oil and gas, power generation, chemical processing, food and beverage, life sciences, and construction and mining.
"The current economic situation in Europe has prompted numerous end users to shift their manufacturing facilities to Eastern Europe," said Frost & Sullivan Industrial Automation and Process Control Research Analyst Niranjan Paul. "This gives centrifugal compressor manufacturers an avenue for revenue generation in these high-growth areas, especially as the market in Central and Western Europe reaches maturity."
The development of manufacturing facilities in the automotive as well as food and beverage industries will boost the centrifugal compressors market in Eastern Europe. Daimler, a leading automotive manufacturer, opened its first Mercedes-Benz manufacturing facility in Hungary in 2012 and is poised to undertake further extensions in Eastern Europe. Nestle S.A has also invested in expanding its factory in Hungary.
Despite these advancements, the economic slowdown has led several end users to move their production bases to low-cost regions such as Asia and Latin America, curbing market growth in Europe. Customer focus on the maintenance of existing equipment rather than the purchase of new systems has resulted in a decline in the sale of new compressors.
"To sustain profits, centrifugal compressor manufacturers must design energy-efficient and cost-effective compressors, particularly as end users are looking to optimise energy use," stated Paul. "European Union legislations targeting a reduction in carbon footprint will have a positive impact on the centrifugal compressors market."
The acquisition of niche market participants will also present opportunities for major manufacturers in this highly consolidated market.
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