The Development Trend of the Chinese Air Compressor Industry

Traditional enterprises have a single product structure, low technical-added-value, serious product homogenization, and fierce price competition. Some well-known companies are gradually focusing on the development and production of technically difficult and high-value-added products.

Through the use of permanent magnet inverter motors and secondary compression technology, Chinese enterprises continue to improve the level of energy consumption of screw compressors, products have met or even exceeded the national level of energy consumption standards, higher than those of overseas products, but they have not been satisfied with meeting the standards, but beyond.

China’s exports have a surplus of 720 million U.S. dollars in 2020. However, the average unit price of imports was nearly ten times that of exports, which left a large room for Chinese companies.

Industrial energy saving and green technology innovation in China’s 14th National Five-Year Plan have become the base color of China’s industrial development. Industrial enterprises apply green energy-saving air compressors, in line with China’s development needs and the 2030 Carbon Peak/2060 Carbon Neutral target.

Compressor power consumption stands at 15% of the total power consumption of large industrial equipment, accounting for about 9% of the country’s power generation, so the Energy-saving ones are pretty popular in the market, products such as #Luoyou and #Kaiba permanent magnet variable frequency compressors, and have been gradually replacing traditional air compressors. Please refer to my other article Energy Saving is the Essential Factor in Compressed Air System concerning power consumption for details.

On the other hand, marketing is about managing the customer’s finances, calculating the value of the concession, the cost performance ratio (performance/price), and the price/cost ratio (value/cost) to finally achieve a “small input, big output” result.

In my view, the compressor market in Latin America, the Middle East, and Africa will grow rapidly in the coming years.

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    Johnny Wayne

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