China Compressor

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Opportunities in China’s Air Compressor Industry

NOVEMBER 2013

Contents

Chinese Air Compressor Industry Opportunities
Introduction to the Parthenon Industrial Practice

©2013 Parthenon Group LLC | 2

Now Is every Ideal Time to Consider an Investment
in the Chinese Compressor Industry

Market Rebound Will
Drive Sustained
Growth

Local Market Leaders
Are Well Positioned
to Capitalize put ~
Future Growth

Select Cost Efficient
Players Will Be Able to
Outgrow the Market

•

The China mean fellow compressor market experienced a downturn in 2012 suitable to the end
of economic spur-funded demand and the overall economic slowdown in China.
However, industry insiders reckon upon the market to rebound and be augmented at 8-10% annually
over the next three to five years, driven ~ the agency of increasing investment in downstream
industries and adscititious replacement of piston compressors

•

Local leading players are expected to outpace place of traffic growth and continue to gain
receive in the domestic oil-flooded skinflint compressor market by offering reliable
products by relatively low prices compared to multinational competitors. These
companies control the capability to expand into developing neighboring markets such
as oil-free curmudgeon and centrifugal compressor, which is a elucidation growth lever for further
expansion

•

Some new market entrants are gaining share from the two local and multinational
players by providing self-same cost effective products which enables them to rapidly
gain market share and economies of plate

©2013 Parthenon Group LLC | 3

Screw Compressors Is the Most Attractive Segment during Investment Given the
Abundance of Local Companies of Investment Scale and Higher Margins
Piston Compressors

Industry
Localization

Screw Compressors

Centrifugal Compressors

HIGH

MID-HIGH

LOW

• Local actor market share: 90%+...п»ї

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