Industrial Air Compressor Market

Rising automation and swift industrialization in emerging economies

Industrial air compressors are used in a variety of industries, including metals and mining, construction, oil and gas, pharmaceuticals, construction, automotive and transportation, packaging, power production, and healthcare. Furthermore, compressed air systems are used by 70% of all manufacturers. Due to rising investments and capacity expansions, the industrial air compressor market has enormous potential to grow because of the rapidly expanding industrialization and manufacturing activities. Several rising economies have accelerated their industrial and economic development, including those in Asia Pacific and Africa.

The annual energy investment is anticipated to rise back to pre-crisis levels, according to the World Energy Investment Report 2021 of the International Energy Agency. To power end-user industries, the composition has changed from the generation of conventional fuel. New power production projects are being conducted in Asia Pacific, Africa, and the Middle East, while new oil refineries are being built in Russia, China, Brunei, India, Saudi Arabia, and the US.

Additionally, major economies throughout the world, like China, India, South Korea, and Russia, are expanding their capacity and building new chemical factories. Compressors are therefore necessary for processing and operating mechanisms in the chemical and oil and gas refining industries. For instance, in oil and gas refineries, compressors are employed to maintain a constant flow of process gases across the area near the reactor. In many places, industries are developing more quickly as the world grows more urbanized. Demand has increased across a range of industries, particularly in emerging nations, including food and beverage, manufacturing, semiconductors, electronics, and so on.

These sectors frequently use centrifugal air compressors because they deliver enormous volumes of air at a reasonable price. Additionally, it has a longer operating lifespan, which further lowers the amount of capital investments.  

Thus, the increasing demand of air compressors from automobiles sector all over the globe, coupled with the demand from other end user industries like manufacturing and food & beverage is a major factor driving the growth of the Industrial Air Compressor market revenue.

The Global Industrial Air Compressor Market Industry is projected to experience robust growth, with estimates indicating a market value of 42.5 USD Billion in 2024 and a potential increase to 87.2 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate (CAGR) of 6.75 percent from 2025 to 2035. Such projections reflect the increasing reliance on compressed air across various sectors, including manufacturing, automotive, and energy. The anticipated growth in market size underscores the importance of industrial air compressors in supporting operational efficiency and productivity in a wide range of applications.

Technological innovations play a crucial role in shaping the Global Industrial Air Compressor Market Industry. The integration of smart technologies, such as IoT and AI, enhances the performance and reliability of air compressors. These advancements enable predictive maintenance, which minimizes downtime and extends equipment lifespan. For example, smart compressors can monitor performance metrics in real-time, allowing for timely interventions. As industries increasingly adopt these technologies, the market is expected to witness substantial growth, potentially reaching 87.2 USD Billion by 2035. The ongoing evolution of compressor technology indicates a promising future for the industry, as manufacturers strive to meet the demands of modern applications.

The Global Industrial Air Compressor Market Industry is significantly influenced by the expansion of the manufacturing sector across various regions. As manufacturing processes become more automated, the demand for reliable and efficient air compressors increases. Industries such as automotive, electronics, and food processing rely heavily on compressed air for various applications. The growth of these sectors is expected to drive the market, with a projected CAGR of 6.75 percent from 2025 to 2035. This trend suggests that as manufacturing activities ramp up globally, the need for industrial air compressors will continue to rise, further solidifying the industry's position in the market.

The Global Industrial Air Compressor Market Industry experiences a significant push towards energy efficiency, driven by stringent regulations and rising energy costs. Industries are increasingly adopting energy-efficient compressors to reduce operational costs and minimize their carbon footprint. For instance, energy-efficient models can reduce energy consumption by up to 30 percent compared to traditional compressors. This trend is expected to contribute to the market's growth, with the industry projected to reach 42.5 USD Billion in 2024. As companies seek to comply with environmental standards, the demand for advanced, energy-efficient air compressors is likely to rise, further propelling the market forward.

The Global Industrial Air Compressor Market Industry is witnessing a surge in the adoption of compressed air systems across diverse applications. Industries are increasingly recognizing the versatility and efficiency of compressed air systems for powering tools, equipment, and processes. This trend is particularly evident in sectors such as construction, mining, and pharmaceuticals, where compressed air is essential for operational efficiency. The growing awareness of the benefits of compressed air systems is likely to drive market growth, as companies seek to enhance productivity and reduce operational costs. As a result, the industry is poised for expansion, with significant potential for future developments.

The Global Industrial Air Compressor Market Industry is increasingly shaped by a focus on sustainability and adherence to environmental regulations. Governments worldwide are implementing stricter emissions standards, prompting industries to adopt greener technologies. This shift towards sustainable practices encourages the development of eco-friendly air compressors that minimize environmental impact. Companies are investing in technologies that reduce noise pollution and energy consumption, aligning with global sustainability goals. As industries strive to meet these regulations, the demand for environmentally friendly air compressors is likely to grow, positioning the market for continued expansion in the coming years.

By Region, the study segments the market into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. With a 45% market share in the regional sector, Asia-Pacific Industrial Air Compressor Market is the leading region. The expansion of the Asia Pacific air compressor market as well as the domestic manufacturing sector in nations like India and China, which includes the automotive and food & beverage industries, are being fueled by the increased investments in LNG, chemical, and mining projects.

Asia-Pacific is also experiencing strong economic growth, and to meet its energy needs and comply with decarbonization regulations, it is seeing a surge in investments in the hydrogen and green energy sectors. Moreover, China Industrial Air Compressor market held the largest market share owing to the growth of manufacturing sector.

Further, the major countries studied are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: Industrial Air Compressor Market Share By Region 2021 (%)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

North America Industrial Air Compressor market accounts for the second-largest market share due to its rising urbanization. The increasing demand for household equipment like refrigerators and air conditioners as well as growing living standards will have an impact on the need for air compressors. In addition, expanding mining and oil exploration activities, rising vehicle demand, and developments in the energy and power generation industries are all anticipated to support regional market expansion. The U.S.'s tremendously promising energy and healthcare sectors will increase product demand even further.

Due to the existence of big key players and the requirement for sufficient and clean energy for infrastructure development in the European region, the Europe Industrial Air Compressor market holds the third-largest market share. Further, the Germany market held the largest market share.

Due to the increased construction and measures taken by the governments of South America and the Middle East and Africa to build their infrastructure, the North America Industrial Compressor Market and the Middle East & Africa Industrial Compressor Markets have respectively experienced significant and positive growth, necessitating adequate power supply in these areas.

The market is fragmented, and there are several producers who hold most of the market share. To increase their revenue, major market players are concentrating on creating unique items. Major industry players are investing a lot of money in R&D to broaden their product offerings, which will promote further expansion of the Industrial Air Compressor market. Additionally, market participants are launching new products, entering into contracts, acquiring companies, increasing investments, and collaborating with other organizations in order to expand their footprint. To grow and compete in a more cutthroat and competitive market climate, Industrial Air Compressor competitors must provide affordable products.

Manufacturing locally to cut operating costs is one of the main business tactics used by manufacturers in the Industrial Air Compressor industry to benefit customers and build the Industrial Air Compressor market sector. Industrial air compressor utilization has significantly expanded in practically every end-use sector in recent years.

A well-known name in the industrial air compressor sector is a Sweden-based company named Atlas Copco AB. The business unit of the corporation called Compressor Technique converts industrial concepts into compressed air solutions using industrial compressors, gas and process expanders, air and gas treatment equipment, and air management systems. Its committed employees, in-depth knowledge, and first-rate service add lasting value across all industries. It also has a service network. The energy efficient compressors are a latest addition to the product line.

Oil-injected/oil-lubricated/oil-flooded screw air compressors, oil-free screw air compressors, scroll air compressors, tooth air compressors, piston air compressors, turbo air compressors, water-injected screw air compressors, and other compressed air accessories are all included in the company's line of energy-efficient compressed air products.

The major competitors continuously advancing the technology of their industrial air compressors to survive in the fiercely competitive market. Since 1965, Sullair LLC has provided cutting-edge compressed air solutions. One of the earliest companies to implement rotary screw technology in air compressors was this one. Additionally, the business has added another success to its portfolio of air compressors. Sullair released its next-generation 1600H Tier 4 Final portable diesel air compressor in March 2020. It was improved based on direct customer feedback.

Multiple service doors with strong, push-to-close latches are part of the upgraded package design, which helps to promote worker safety by preventing accidental door closure. A panel of judges from the equipment rental industry chose this product as the Compressors/Air Tools equipment category winner in the 2020 Innovative Product Awards presented by Rental Equipment Register (RER) magazine based on innovation, product design, safety, fulfilment of a need in the rental market, and influence on the industry.