Industrial Air Compressor Market Analysis

Global Industrial Air Compressor Market Overview:

Industrial Air Compressor Market Size was valued at USD 39.75 Billion in 2023. The Industrial Air Compressor market industry is projected to grow from USD 42.54 Billion in 2024 to USD 71.20 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.00% during the forecast period (2024 - 2032). Given that the product is heavily used in the automotive industry for manufacturing, the increasing demand for automobiles around the world is anticipated to increase demand for industrial air compressors.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

May 2024: Ingersoll-Rand launched its new line of Smart Air Compressors, featuring IoT connectivity and advanced predictive maintenance capabilities. This line aims to enhance operational efficiency and reduce downtime in industrial settings. 

Industrial Air Compressor Market Trends

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  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 demand for industrial air compressors is also being driven by government programs to support industrial automation and a focus on industrial automation for the best possible resource utilization. These programs can be used to power conveyors, pneumatic tools, packaging, automation equipment, and more.

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.

Figure 1: Industrial Air Compressor Market share of various end use industries

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

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.

Industrial Air Compressor Market Segment Insights

Industrial Air Compressor Product Type Insights

The Industrial Air Compressor market segmentation, based on product type, includes dynamic air compressors, and positive air compressors. The positive displacement Industrial Air Compressor segment held the majority share in 2021, contributed around ~66% in respect to the Industrial Air Compressor market revenue.  This trend is anticipated to continue in the near future. These compressors can be further divided into rotary and reciprocating compressors. Depending on the needs of the application, these compressors can either be oil-free or lubricated. Construction, automotive and transportation, packaging, food and beverage, metals and mining, as well as other end-user industries, frequently use positive displacement air compressors. Positive displacement air compressor demand is predicted to increase because of increased investments in these areas. The performance of dynamic compressors is influenced by external factors, such as variations in inlet temperatures. The axial or radial design of the dynamic compressors determines whether they work at constant pressure.

May 2022: On May 25, 2022, Mitsubishi committed a staggering sum of USD 113 million to the establishment of its electric HVAC systems in its Turkish production facilities. The company stated that around 1,200,000 units of power would be produced by this highly developed HVAC system, increasing the requirement for the installation of many positive displacement industrial air compressors with an approximate power range of (100 to 110) hp. The organization's revenue growth in the Power industry will consequently be accelerated.

Industrial Air Compressor Seal Insights

The Industrial Air Compressor market segmentation, based on seal, includes oil-lubricated, and oil-free air compressors. The oil-lubricated segment had the biggest market share in 2021 when it came to seal type. Since they are less expensive than oil-free compressors and can typically complete the compression process in a single stage, they are growing in popularity. This compressor is frequently used in industries including oil and gas, textiles, rubber and plastics, metals and mining where cleaner compressed air is not necessary. Hence, rising applications of oil- lubricated air compressors in industries including oil and gas, textiles, rubber and plastics, metals and mining positively impacts the market growth.

Industrial Air Compressor Pressure Insights

The Industrial Air Compressor market data has been bifurcated by pressure into Up to 20 bar, 20-100 bar, and above 100 bar sub-segments respectively. The Up to 20 bar sub-segment held a major market share of 48% in 2021. The market for pressure range of 0-20 bar is anticipated to grow rapidly over the projected period and be the largest owing to increased investments.

Figure 2: Industrial Air Compressor Market, by Share, 2021 & 2030 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Pharmaceutical firms and those in the food and beverage industry are both making significant investments in industrial air compressors. Over the projected period, expansion in these sectors is anticipated to increase demand for compressors with this range of pressure capabilities. As a high-pressure air compressor, the 20-100 bar segment is expanding steadily.

Industrial Air Compressor Market End User Insights

Based on End User, the Industrial Air Compressor industry has been segmented into oil & gas, Chemicals & Petrochemicals, Food & Beverage, Metals & Mining, Construction, and Automotive. The majority (40%) of the end-user sector was made up of the Chemicals & Petrochemicals segment. The chemicals & petrochemicals sector is predicted to use industrial air compressors most frequently over the course of the projection period due to the rising demand for these products originating from emerging economies. Additionally, the chemical and petrochemical industries alone account for over 60% of air compressor uses worldwide.

The second fastest growing sub-segment in the Industrial Air Compressor industry by end user is oil & gas sector. In the US, Saudi Arabia, China, Brunei, India, and Russia, new oil refineries are being built. Compressors are needed in the oil and gas refining industry for processing and operating mechanisms. For instance, in oil and gas refineries, compressors are employed to maintain a constant flow of process gases across the area near the reactor. The necessity for powerful and efficient air compressors in the food and beverage industry makes it one of the sectors that dominates the market for industrial air compressors. The market is driven by rising investments in and demand for oil-free compressors from the food and beverage industry as well as rising demand from the HVAC industry. As a result of the market's requirement for such products due to rising urbanization, the metals and mining segment is also having an impact.

Industrial Air Compressor Market Regional Insights

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, MRFR 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 Industrial Air Compressor 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.

Industrial Air Compressor Key Market Players & Competitive Insights

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.

List of the Key Companies in the Industrial Air Compressor market includes

• Atlas Copco (Sweden)


• Danfoss (Denmark)


• Ingersoll-Rbd Plc (Ireland)


• GE Oil and Gas (US)


• Hitachi Ltd (Japan)


• Sullair LLC (US)


• Gardner Denver (US)


• Elloitt Group Ltd. (US)


• Kirloskar Pneumatics Co. Ltd. (India)


• Sulzer AG (Switzerland)

Industrial Air Compressor Industry Developments

August 2022: In order to gauge the efficiency range of its industrial air compressors, Elliot Group successfully released its Gemini-Industrial Air Compressor performance monitoring system on August 25th, 2022. According to the corporation, this new generation compressor controlled, monitoring, and analysis system should produce more reliable and efficient plants as well as optimal compressor performance. Additionally, it would result in improved machine diagnostics, operational management, and functional review capabilities.

June 2022: Doosan Portable Power unveiled the HP1600/VHP1400 portable industrial-air compressor on June 28th, 2022, as a remedy for heavy-duty abrasive blasting tasks. The manufacturer claimed that this product would make maintenance easier, performance more adaptive, and travelling more comfortable. The HP1600/VHP1400 is 5 feet shorter than its predecessor (previously used air compressor). Due to their shorter length, two of these machines can fit on several moving axle trailers. The huge fork pockets that are situated on either side of the axles make it easier to load and unload the trailer.

May 2022: On May 25, 2022, Mitsubishi committed a staggering sum of USD 113 million to the establishment of its electric HVAC systems in its Turkish production facilities. The company stated that this extremely sophisticated HVAC system would generate about 1,200,000 units of electricity, which would raise the demand for installing many industrial air compressors with an approximate range of (100 to 110) hp. The organization's revenue growth in the Power industry will consequently be accelerated.

Industrial Air Compressor Market Segmentation

Industrial Air Compressor Market Product Type Outlook

• Dynamic


• Positive Displacement

Industrial Air Compressor Market Seal Outlook

• Oil-Lubricated


• Oil-Free

Industrial Air Compressor Market Pressure Outlook

• Up to 20 bar


• 20-100 bar


• Above 100 bar

Industrial Air Compressor Market End User Outlook

• Oil & Gas


• Chemicals & Petrochemicals


• Food & Beverage


• Metals & Mining


• Automotive


• Construction

Industrial Air Compressor Market Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Middle East & Africa
  
  
  
  • Saudi Arabia
  
  
  • UAE
  
  
  • Qatar
  
  
  • South Africa
  
  
  
  


• South America
  
  
  
  • Brazil
  
  
  • Argentina
  
  
  • Rest of South America