Market Insight-Global Ship Compressor Market Overview 2022
The global Ship Compressor market size is projected to reach US$ 471.31 Million by 2028, from US$ 359.66 million in 2021, at a CAGR of 3.88% during 2022-2028.– Bossonresearch.com
Figure Global Ship Compressor Market Size (million USD)
Source: Bossonresearch.com, 2022
Driving Factors
Wide range of uses for ship compressors
Ship compressors are auxiliary machinery used by ships and other vessels when entering the ocean. Ship compressors provide several benefits to ships and other vessels entering the ocean. They have advantages such as starting air for machines and engines, high energy efficiency, reduced volume, increased air pressure, and act as control valves. Benefits associated with ship compressors are expected to drive market growth over the forecast period.
These ship compressors are used to produce compressed air, which is used in various applications in the engine and deck sectors. The main function of a ship compressor is to compress air or any other fluid to reduce its volume and increase its air pressure. Ship compressors are used for basic equipment or feeder equipment for different systems. They are used in several processes, from the small process of cleaning filters to larger tasks such as starting the main and auxiliary engines. The application of air compressors in ships includes using compressed air to blow off sea valves, oil residue tanks, whistles, pneumatic tool torpedo launches, submarines diving and floating, etc.
Increase in the number of ships worldwide
Increase in the number of ships globally will accelerate the demand for ship compressors in the coming years. Over the past few years, the global merchant fleet has witnessed a steady growth trend. The increase in the number of ships globally is mainly due to the increase in tourism, recreational activities, maritime transport, and international trade. To meet the stimulating demand of these events, these companies are adding more ships to their inventories every year. The increase in the number of ships being used in various applications will further expand the market for ship compressors as each ship requires a compressor.
According to Clarksons Research, the annual growth rate of the global merchant fleet has been steady over the past few years. In the five years from 2017 to 2021, the cargo transport sector will grow by an average of 3.4% in gross tonnage. At the end of 2016, the merchant shipping capacity was 1.201 billion gross tons of cargo. Over the five years from 2016 to the end of 2021, this total rises to 1.374 billion metric tons, with annual growth rates varying between 3.1% and 4.2%. In the last two years, 2020 and 2021, the growth rates were 3.1% and 3.3%, respectively, confirming the steady pattern of annual growth. For all four types of ships, the annual growth rate of merchant shipping capacity in 2022 is likely to be within 3% to 4% or close to 4%.
Source: Clarksons Research BSA 2022 forecasts
Alphaliner, a French shipping consultancy, also pointed out in a report that the current order volume for container ships is about 900, which has already created the largest order scale in the history of liner shipping; the combined capacity of new shipbuilding orders exceeds the fourth and fifth place in the world. and the sum of the existing fleet of the sixth largest liner company.
Technological progress in the ship compressor industry
Technological advancements in the ship compressor industry will further lead to the development of compressors that require less investment in operation and maintenance, which in turn supports the market growth of the ship compressor market.
Impact of COVID-19
Due to the Covid-19 pandemic, as the global demand for medical products such as disposable masks, gloves, personal protective equipment kits, oxygen cylinders, oxygen concentrators, etc. has risen overnight, the demand for sea freight and freight has increased exponentially, especially in developing countries such as India. Governments of developing countries import these products across borders to meet growing demand. In order to import products in large quantities, sea routes are adopted, rapidly increasing the sea transportation market, thereby boosting the market growth of the ship compressor market.
Develop in the direction of multiple varieties and specifications
Ship compressors are important marine auxiliary machines, and they have a wide range of uses, both for military and civilian ships. Compressed air is inseparable from 10,000-ton ocean-going ships, fish ships, cargo ships, liquefied gas ships, warships, and submarines. However, for different ships and different use occasions, the types and specifications of ship compressors are not the same.
With the diversification of international trade, the development of the shipping industry and the development of the ocean, in addition to the increasing demand for compressors, the requirements for diversification of their specifications are also getting higher and higher, which will surely promote the development of ship compressors to more varieties. , Multi-standard direction development.
Manufacturers pay more attention to service in the manufacturing process
With the adjustment of the global marine industry, ship compressor manufacturers pay more attention to service in the manufacturing process. Manufacturers strive to provide customers with knowledge-intensive and high-value-added service items from market research, after-sales, to product scrapping and recycling. This is a key content for ship compressor companies to achieve sustainable development. Most of the modern service industry uses human capital and knowledge capital as its main input, which plays an important role in supporting ship compressor companies to improve their competitiveness while solving development and upgrading problems.
Sea freight returns to a reasonable range
Since 2020, due to factors such as growth in global demand, decline in ship turnover, port congestion, and poor logistics, international container shipping rates have once soared, and the market has appeared "unbalanced". Since the beginning of this year, the international container shipping rate has fluctuated from a high level and has been adjusted back. As of September 30, 2022, the Global Container Freight Index launched by the Baltic Shipping Exchange and Freightos shows that the average global container freight rate is US$4,262 per 40-foot container (FEU), a year-on-year decrease of more than 60%, the long-term contract agreement and the spot freight rate began to appear upside down. According to data from the Shanghai Shipping Exchange, on November 18, 2022, the Shanghai Export Container Freight Index closed at 1306.84 points, continuing its downward trend since the third quarter. As the traditional peak season for the global container shipping trade in the third quarter, instead of showing high growth, shipping rates showed a sharp drop.
Affected by the recent structural changes in the market, the lack of confidence continues to spread, and the global container liner freight rate has declined rapidly, and the spot market has even fallen by more than 80% from its peak relative to its peak. Carriers, freight forwarders and cargo owners are increasingly playing games on freight rates. The relatively strong position of the carrier began to compress the profit margin of the freight forwarder. At the same time, the spot price and the long-term contract price of some main routes have been inverted, and some enterprises have proposed to seek renegotiation of the long-term contract, which may even lead to some breaches of transportation contracts. However, as a market-oriented agreement, it is not easy to modify the agreement, and even faces a huge risk of compensation.
The global shipbuilding cycle has bottomed out and is starting to show signs of recovery
According to the research of the China Merchants Bank Research Institute, the dismantling volume and order cancellation volume of global ships are at the lowest level in ten years, showing the characteristics of the cycle bottoming out. The completion of the industry's capacity clearance has created conditions for recovery, and the replacement of old ships, environmental protection policies and changes in trade structure have begun to drive weak recovery in demand. The number of global shipbuilding companies has dropped from 678 in 2007 to 274 in 2021, and the major shipyards are scheduled to reach 2025. The utilization rate of China's shipbuilding capacity has returned to normal levels for the first time in ten years. The concentration of global industries has increased significantly, and the competition pattern has been optimized.
However, global economic fluctuations and downside risks, as well as continued geopolitical conflicts, have made the industry's external environment more complex and severe, and the industry may experience fluctuations in the process of recovery.
Trends in the newbuilding market
1) China, South Korea and Japan undertake major new shipbuilding orders
In 2021, most of the new shipbuilding orders in the world will be undertaken by shipyards such as China, South Korea, and Japan. According to the data of Vessels Value, the total orders of the three countries above exceed 1,200, accounting for 85% of the global market, of which Chinese shipyards account for more than 40%, ranking first in the global market.
2) Since the beginning of 2021, the price of the global new shipbuilding market has increased significantly
From the perspective of new ship market prices, according to statistics from Clarksons Research, in 2021, the overall global new ship price will generally rise by nearly 1/3, and the new ship price of container ships around 15,500 TEU will increase by nearly 50%. This is mainly due to the rising demand in the global shipping market and the rising cost of steel, driving the rapid rise in the price of new ships in the global shipbuilding market.
Referring to the change trend of China's new shipbuilding price index CNPI, the overall trend will gradually decline from February 2019 to February 2021, and it will increase rapidly from March 2021, reaching 1011 points in February 2022.
3) The value of new orders for container ships accounted for the highest proportion
From the perspective of the deadweight tonnage of new orders in the shipbuilding market, in 2021, new container and bulk carrier orders will account for more than 30%, followed by new oil tanker orders will account for about 18%.
4) Ships enter the 4.0 era of digital shipbuilding
The industrial intelligent operation platform composed of SaaS, PaaS and IaaS provides services such as R&D design collaboration, whole production process management and control optimization, supply chain collaboration, industrial knowledge base, knowledge sharing and transaction, and ship intelligent operation, and the shipyard realizes real-time online industrial chain organization and management , the transaction cost is reduced by 20%, the development cycle is shortened by 20%, and the design efficiency is increased by 20%. With the help of the platform's industrial chain collaboration cloud, the shipyard realizes cross-enterprise management of large-scale product design and manufacturing, and uses big data analysis to help shipbuilding companies reduce shipping costs.
Global Ship Compressor Market: Competitive Landscape
Currently, the global ship compressor market is highly competitive, and the entire market is not concentrated. In 2021, the indicators CR5 and HHI used to measure the degree of market concentration will be 47.86% and 4.68% respectively, which are at a relatively low level. Players in the Marine Compressors market are implementing various growth strategies to gain a competitive advantage over competitors in this market. For example, on December 2, 2022, Atlas Copco has completed the acquisition of the assets in Suzhou Since Gas System Co., Ltd. (Since Gas), a China-based manufacturer of on-site gas generation equipment. Ship compressor market major Participants include Sauer Compressors, Kaeser Kompressoren SE, Sperre, Burckhardt Compression, GEA, MacGregor, Ingersoll Rand, Kobelco, TMC Compressors, Tanabe, Atlas Copco, Donghwa Pneutec, Corken, Teknotherm Marine, Wenling Toplong Electrical.
Key players in the Ship Compressor Market include:
Sauer Compressors
Kaeser Kompressoren SE
Sperre
Burckhardt Compression
GEA
MacGregor
Ingersoll Rand
Kobelco
TMC Compressors
Tanabe
Atlas Copco
Donghwa Pneutec
Corken
Teknotherm Marine
Wenling Toplong Electrical
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