The demand for compressors in China is expected to register exponential growth in the coming years, primarily due to the rapid advancements in the country’s construction sector. The burgeoning construction activities have contributed toward the rising demand for energy-efficient heating, ventilation, and air-conditioning (HVAC) systems, thereby fuelling the growth in the demand for compressors.
As per the Council on Tall Buildings and Urban Habitat, China’s hotel industry is advancing at a 2% year-on-year (YoY) growth rate, which is boosting the demand for compressors in the country.
The other major factor raising the sale of these devices in China is the rising population, increasing urbanization across the country, and thriving automotive industry, which is set to witness massive growth in the coming years due to the soaring vehicle production and rising disposable income of the people.
As a result, the China compressor market is predicted to generate revenue of $15.7 billion by 2024, which would be a huge increase from its valuation of $12.7 billion in 2018. The market is expected to advance at a CAGR of 3.5% during the forecast period (2019–2024).
There are two types of compressors available in China, dynamic compressors and positive displacement compressors. Of these, the positive displacement variants recorded the larger sale in 2018, which is attributed to the high demand for rotary compressors, owing to the rising production of air conditioners across the country, because of the surging construction of commercial and residential buildings. PwC, in its Global Construction 2030 report, has said that China would be one of the three countries, which would result in the humongous growth of the worldwide construction sector till 2030.