E-Compressor: The Next Frontier in Energy Efficiency
The E-compressor is a mechanical device that can convert gas under low pressure to gas under high pressure by reducing the volume of the gas whose pressure was increased in the first place. In a thermal management system, this can circulate the refrigerant under pressure. These E-compressors have modern innovative technology that can be powered through electricity when compared to the traditional compressors that require diesel and fossil fuel resources to power them up. These E-compressors are much quieter and more efficient when compared to the traditional compressors as they can be powered using electricity which reduces the harmful emission in the environment.
These E-compressors are widely used in different applications such as air conditioners, automobiles, refrigerators, and other use cases where compression of gas is required. The new widely adopted electric vehicle industry specifically needs the E-compressor to complete the production of the car and ensure the smooth functioning and operation of the vehicle. Electric vehicle manufacturers use E-compressors for the air conditioning system in the vehicle that cools the cabin for the driver while also cooling the battery installed in the electric vehicle that powers it to work.
Global Production Trends
The production of E-compressors has been steadily increasing over the years and the industry has been booming in recent times with its applications increasing in demand. For instance, factors such as rapid growth in the automotive industry need E-compressors for electric vehicles to provide efficient air conditioning and cooling to the electric vehicle battery to provide long-range drives and better performance. Also, it has benefits in various industries such as its efficiency and reduced emissions due to the use of electricity rather than fossil fuel resources which significantly reduce the carbon footprint in the environment. The production is predicted to rise with increasing applications of E-compressors.
In recent years, there has been a notable increase in the production of E-compressors in emerging economies with technological advancements in the field of electric compressor technology. They have a diverse set of end-users such as automotive and different industrial applications that can cater to all their needs for instance, by providing energy efficiency in electric compressors that are used in the different industrial applications which is being promoted heavily by the governments across the globe to save from energy crisis. Also, the shift of industries towards automation has significantly improved the technology they use and e-compressors are easy to integrate in the industrial use with the automation of industrial technology.
As E-compressors have so many features and benefits when compared to traditional compressors, therefore, the demand for them has seen rapid growth in various industries which has positively impacted the global production trends for them. These e-compressors are being widely adopted due to their improved technology, ease of integration with current automation of technology, and reduced emissions that save the environment. These qualities make e-compressors a perfect choice for different manufacturers across the globe to easily adopt and use in the new products they are about to launch.
E-compressor use cases
Renewable energy alternatives are a huge trend in the market these days as people are switching over to more sustainable options for responsible power generation and creating a sustainable future. Wind turbine generates electric power is one of the fastest-growing renewable energy resources among users and industries. However to use this energy resource, the precision, and reliability should be very high, and the use of e-compressors in these wind turbines provides efficient storage of energy and stabilization of the grid. Therefore, with a rise in demand for renewable wind turbine energy, the demand for e-compressors that can compress the air during low energy demand and release it during high energy demand is expected to grow proportionally.
Moreover, key players in the e-compressor industry provide them for different use cases such as in the automotive industry where electric vehicles use these electric compressors for the air conditioning system and cooling the battery. The air conditioner is one of the most used technologies worldwide which requires an e-compressor for efficient functioning and provide proper cooling to the user. These e-compressors can convert gas under low pressure to gas under high pressure by reducing the volume of the gas whose pressure was increased in the first place in the air conditioner which then efficiently provides cool air to the user. Therefore, the growth in demand for these use cases will project growth in the e-compressor market.
Voltas Ltd. is one of the key players that provide air conditioning and HVAC appliances. They make a lot of air conditioning appliances in different models that contain e-compressor technology. They supply advanced high-quality HVAC or heating, ventilation, and air conditioning devices in large quantities. They are an Indian multinational home appliances manufacturer that can enable e-compressor technology applications in a broad range of appliances they provide, such as air conditioners and heaters. Therefore, the growth in sales of this company has been significant over the years projects that the demand for the e-compressor is predicted to grow proportionally over the next few years.
Figure 1: Growth in Net Profit of HVAC Products of Voltas Ltd., From 2019-22 (In Rupees Crores)
Source: Voltas Ltd. Annual Reports (In Rupees Crores)
Market Dynamics and Drivers
Several factors drive the E-compressor market, including a rise in applications of E-compressor in renewable energy production by integrating them into wind turbines for energy storage and grid stabilization in recent times coupled with the rise in demand for EVs in the automotive industry has contributed significantly to boosting the overall E-compressor market.
So, with this rapid growth in electric vehicle technology and popularity, the need for e-compressors is rising proportionally. E-compressors are used in electric vehicles to provide efficient energy usage and reduce harmful emissions when compared to traditional compressors that use fossil fuel resources. Electric vehicles use this e-compressor not only for the air conditioning systems but also to cool the battery of the electric vehicle for the smooth operation of the vehicle. Therefore, with a rise in demand for these EVs in the market, the e-compressor market is also predicted to grow.
For instance, there has been a significant growth in sales for EVs in China over the past few years which is the largest automobile manufacturer across the globe. The sales went from around 1.1 million units of electric vehicles in 2020 to the sale of 8 million units of electric vehicles in 2023. This huge increase in sales of electric vehicles is expected to fuel the e-compressor market significantly.
Figure 2: Growth in Sales of Electric Vehicles in China, From 2020-23 (In Million Units)
Source: iea.org
Challenges and Constraints
Despite the huge advantages and use cases of E-compressors the companies that manufacture them require a lot of high-cost materials to build efficient and functioning e-compressors required by different end-user industries, hindering the market expansion.
Also, while manufacturing these e-compressors the workers need to be very precise and highly concentrated because one mistake can ruin a whole set of manufacturing. They are prone to various defects during manufacturing that negatively impact the end-user use case such as electric vehicles or air conditioners. These factors are predicted to contribute to hinder and affect the e-compressor market negatively over the next few years.
Emerging Opportunities and Innovations
Despite the challenges, the e-compressor market presents numerous opportunities for innovation and growth. Advances in its applications across various industries are the major reason for that. Also, the Asia Pacific region which has major key players offering the best electric vehicles such as Toyota, Honda, and Suzuki from Japan, TATA from India, and Hyundai from South Korea are making significant innovations in electric vehicle technology which is anticipated to increase its demand for e-compressors needed for smooth functioning of the vehicle proportionally in the market globally and in the Asia Pacific region. Also, the growing innovations in the automotive industry and electric vehicle’s popularity among people is what will create various new opportunities for innovation in the e-compressor market.
Key Developments
- In July 2023, Atlas Copco launched their all-new XATS 900E which is an electric portable compressor and can be versatile to use different applications. This compressor is highly efficient and quieter during the working while having a 160KW motor.
- In June 2023, Garrett Motion Inc. which is a technology leader in the automotive industry announced the launch of an advanced electric fuel cell compressor technology with BMW group that will produce zero-emission hydrogen fuel cell vehicles. This electric compressor will be installed into that vehicle to increase the overall efficiency of the hydrogen fuel cell vehicle.
- In February 2023, Sprintex announced at the World Hydrogen Expo that happened in Germany the launch of their new high-speed electric compressor for a wide range of applications including hydrogen fuel cells.
In conclusion, the e-compressor market presents significant opportunities for growth and innovation, driven by the increasing popularity of EVs and applications across various industries like harnessing renewable energy technologies and HVAC appliances. While facing challenges such as high complexity structures across various industry verticals and huge investments for research and development, the industry is poised to capitalize on technological advancements and innovations to meet the needs of a growing global demand for e-compressors.
