The global marine compressor market is projected to grow at a CAGR of 2.78% to attain a market size of US $ 3.435 billion by the end of 2026. This market was worth US$2.836 billion in the year-end 2019. In ships and other vessels that go to sea, a marine compressor is one of the accompanying pieces of auxiliary equipment. In both the engine and deck departments, they are used to produce compressed air for various applications. Ships use compressors for a variety of reasons. In a compressor, air or any other fluid is compressed to reduce their volume and increase their pressure. As an essential component or feeder equipment, marine compressors are utilized in various systems. Their work ranges from small tasks such as cleaning the filters to larger ones such as starting the primary and secondary engines. Over the forecast period, marine compressors are expected to be used in a wide variety of applications.
Compressors for marines are normally divided into four groups based on their intended use: main, deck, emergency, and topping up. The design of marine air compressors takes into account the ship's environment. Typically, these machines must endure wet conditions, salt in the water, and exposure to the air. Using an air compressor that isn't built for these conditions can cause the device to malfunction or even be a safety hazard. Primary and auxiliary engines on a ship are started by the ship's main air compressor. An appropriate tank is used to store pressurized air, which is released to supply power for engine operation. In general, high capacity compressors are used, since starting the engines requires a significant amount of power.
The deck of a boat is home to numerous uses for marine air compressors. The capacity of these systems is usually lower owing to their small size. Pneumatic power tools can be operated with air compressors, which allow for some changes and repairs to be completed offshore while on board. They can help in case of an emergency by operating fire pumps. In an emergency situation, ships that are at sea generally must handle emergencies on their own, so having adequate systems to deal with situations like a fire is vital to the integrity of the ship and the crew's safety. In the event of an emergency, an emergency air compressor provides backup energy. They provide power for backup compressors if the main one fails. The purpose of marine air compressors is to compensate for any leaks in the system by topping them up. Monitor devices provide information on the current pressure within the system through their connection to these pressure sensors. The topping up compressor works to restore the desired level of pressure when it falls below a specific level.
Market Growth Will Be Driven by an Increase in the Number of Ships
An increase in the number of ships globally can be attributed to growing tourism, a rise in leisure activities, and an increase in international trade. These activities are spurring the companies to constantly add ships to their inventory to meet the increasing demand. In addition to the increase in ships, each ship will require a marine compressor, which further enlarges the maritime compressor market. Tourism in coastal and marine areas is projected to generate 26% of the ocean economy's value by 2030, at a growth rate of more than 3.5%. Tourism is a strong contributor to the economy and well-being of many regions, including the Caribbean and Southeast Asia, which both benefit from this growth, especially as more people in places like China and elsewhere are able to travel abroad. (Source: World Bank)
According to the United Nations Conference on Trade and Development (UNCTAD), the volume of global seaborne trade should increase by 3.5% annually over the next decade, up from 10.7 billion tons in 2017. The Shanghai Containerized Freight Index (SCFI) shows an import surge in September 2020, following the surge from July and August. There was a 3.3 % increase in spot rates on the West Coast of the United States to USD 3,758 per FEU, compared to USD 1,566 per FEU in September 2019. During the same time period, the East Coast spot rate jumped by 7.9 % to USD 4,538 per FEU, up 72.5 % over 2019. Yangzijiang Shipbuilding, a Chinese conglomerate, has been ordered to build 10 dual-fuel containerships with 14,000 TEU each for a USD 1.15 billion price tag.?As part of its agreement to acquire Huntington Ingalls' San Diego Shipyard, Titan Acquiring Holdings has purchased the company.
The use of marine compressors on ships and other ocean-going vessels provides several benefits. A compressor provides benefits including starting air for machines and engines, reducing volume and increasing air pressure, as well as acting as a control valve. It is expected that marine compressors will drive market growth during the forecast period because of the benefits associated with their use.
Market Growth Will Be Hindered by High Costs
Maritime compressors are highly expensive to install and maintain, which may limit their growth during the forecast period. Initial installation costs are extremely high since the compressor must be purchased along with skilled labour. Regular maintenance is also required to ensure the smooth functioning of the marine compressors, increasing the associated costs.
Sea Freight Rates May Also Hamper the Growth of the Market
As a result of equipment shortages and a reduction of vessel capacity, sea freight rates have increased considerably in recent years in developing economies, such as the Indian subcontinent. There is currently a shortage of empty containers due to the surge in demand for goods that need to be shipped by sea; this has consequently driven the freight rates up, which might restrain the market growth. The pandemic has caused an imbalance between supply and demand, which has resulted in price pressures among all oil-producing nations.
In addition, shortages of empty containers and surging demand for goods are other reasons for distribution going haywire, as well as the skyrocketing freight rates. In the first half of 2020, when production was stopped by the pandemic, companies stepped up manufacturing to keep up with demand. Similarly, due to the pandemic-related disruptions of the aviation industry, ocean shipping became the main transportation means for getting goods to market.
Impact of COVID-19 Pandemic
Covid-19 spurred a rise in the demand for sea cargo and freight as medical products such as disposable masks, gloves, Personal Protective Equipment kits, oxygen tanks, oxygen concentrators, etc. rose across the globe overnight, particularly in developing countries like India. To meet the increased demand for these products, governments of developing nations import them internationally. In order to import large amounts of products, sea routes were used, which augmented sea freight market growth, which in turn added to the market growth for marine compressors.