Air Compressor Market Size, Share & Trends Analysis Report By Product (Stationary, Portable), By Type, By Lubrication, By Application, By Region, And Segment Forecasts, 2023 - 2030

Industry Insights

The global air compressor market size was valued at USD 33,625.7 million in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 3.4% over the forecast period. With the burgeoning need to control the spread of the COVID-19 infection, governments worldwide implemented strict national lockdowns in 2020. This, in turn, hampered the growth of various sectors and industries. Likewise, the market for air compressors was also affected by the pandemic, witnessing a significant decline in sales and profits. Furthermore, the increasing cases of COVID-19 in various countries due to the second wave resulted in partial lockdowns across the globe. This has subsequently impacted the investments in the oil and gas industry along with the market's growth.

However, post-COVID-19, an increasing focus on energy efficiency, energy recovery, and reduction of CO2 emissions is expected to propel the demand for air compressors. The increased demand for services and monitoring of compressed air installations is also expected to drive revenue growth during the forecast period. Furthermore, a rise in demand for air compressors from the food & beverage market due to stringent regulations on food safety & health is anticipated to drive the market. An increase in investments in oil & gas extraction activities in North American and Middle Eastern countries is also expected to contribute to the growth of the air compressor market.

The growing adoption of variable-speed systems, low maintenance cost, effective operation, and retrofitting for existing systems are some factors propelling the demand for air compressors across key end-use industries. Energy-efficient compressors are witnessing a surge in demand owing to their cost-effective operations. However, the growing number of gas compressor stations has increased concerns about air quality. Hence, air monitoring systems are widely being installed for measuring the impact of air and gas compressors. Additionally, the subsequent introduction of non-oil and gas-based projects, and continuous investments in the industry, are driving the demand for air compressors.

Prominent players are developing eco-friendly and low-maintenance systems to encourage end users to opt for next-generation products. Companies like Ingersoll Rand Plc and Atlas Copco Inc. have developed next-generation systems with high-performance capabilities to differentiate their products in a highly competitive market. Some of the key features offered by these air compressors include increased efficiency and reduced noise levels.

The demand for innovative compressors that offer high cost-saving techniques and eliminate the need for supplementary devices has witnessed significant growth across various applications. The increasing focus of consumers on the total solution and lifecycle cost is providing new growth avenues for energy-efficient air compressors. Additionally, the increasing use of compressed air in industrial power tools is also driving market growth.

Type Insights

The stationary air compressor segment accounted for over 50% market share in 2022 due to the high adoption of these compressors in the manufacturing sector. Additionally, in the oil and gas sector, these compressors are widely used for operating pneumatic equipment for pipelines, oil extraction & refining, and other processes.

The portable air compressor segment is expected to register the highest CAGR over the forecasted period owing to the rising adoption of these products in construction and mining activities. Portable air compressors are a reliable power source for machines and tools in the construction industry and several others. Furthermore, these compressors require lesser maintenance and are easy to handle, due to which their demand is increasing in low-duty applications.

Product Insights

Based on the product, the market has been segmented into rotary/screw, reciprocating/piston, and centrifugal. The rotary segment will dominate the market share over the forecast period. This can be attributed to the high adoption of rotary air compressors in large industrial applications, such as papermaking and printing, metallurgy and mining, electric power, electronic and electrical, and mechanical and electrical machinery.

The centrifugal segment is anticipated to register the highest CAGR over the forecast period. These compressors are energy efficient, have fewer rubbing parts, and have higher airflow than other compressors. Furthermore, they are widely used in applications such as gas turbines, oil refineries, petromanufacturing, food and beverage, and manufacturing plant. All these factors are anticipated to boost the segment growth over the forecast period.

Lubrication Insights

Based on lubrication, the market has been bifurcated into oil-filled and oil-free. The oil-filled segment is expected to dominate and reach USD 2,455.6 million by 2030. Oiled-filled air compressors are widely adopted for commercial applications in the energy, manufacturing, and manufacturing industries. They are durable and produce low noise compared to the oil-free compressor.

The oil-free segment is expected to register the highest CAGR over the forecast period owing to the implementation of new regulations for curbing emissions and the rising focus of governments on environmental safety. Moreover, factors such as rapid industrialization and growth of the manufacturing, food processing, and semiconductor sectors are also propelling the demand for air compressors.

Application Insights

Based on application, the market has been segmented into manufacturing, semiconductors and electronics, food and beverage, home appliances, healthcare/medical, oil and gas, and energy. Other applications include construction, manufacturing, and metal and mining. The manufacturing segment accounted for the largest share of the market in 2022. This can be attributed to the rapid industrialization in developing economies such as India, China, and Brazil, coupled with increasing demand for advanced and energy-efficient air compressors in the manufacturing sector.

The oil and gas segment is expected to register the highest CAGR over the forecast period. This can be attributed to the increased demand for air compressors to re-inject reservoir pressure preservation. According to a Russian Regulation, 95% of the associated petroleum gas must be compressed for the initial treatment of crude oil before transportation by pipeline. Such legislation is expected to drive the segment during the forecast period.

Regional Insights

Asia Pacific accounted for over 30% of the market share in 2022, owing to continuous government investments in infrastructure development and rapid industrialization. The market growth is driven by the demand for air compressors from various applications, such as food and beverage, manufacturing, home appliances, and oil and gas. Furthermore, the presence of several manufacturers of compressors in India and China, along with the large industrial base for electronics and semiconductor manufacturing in China and Taiwan, is expected to drive market growth.

North America and Europe are anticipated to grow steadily over the forecast period. However, increased investments in Eastern Europe are expected to augment the growth opportunities for industrial air compressors. Moreover, the increasing focus of consumers on easy-to-use and energy-efficient products is projected to boost market growth.

Air Compressor Market Share Insights

The market can be described as a competitive market characterized by the presence of several large market players, such as Atlas Copco; AireTex Compressor; BelAire Compressors; Bauer Group; Compressor Products International (CPI); Galaxy Auto Stationary Equipment Co. Ltd.; Ingersoll Rand Plc; Kaeser Compressors; GENERAL ELECTRIC; and Sullair LLC. Companies focus on expanding their product portfolio to gain a larger market share. These players are pursuing various organic and inorganic growth strategies, such as M&A and collaborations, to strengthen their position in the global market. Some of the prominent players operating in the global air compressor market are:

• AireTex Compressor

• Atlas Copco

• Bauer Group

• BelAire Compressors

• Cook Compression

• Compressor Products International (CPI)

• Frank Compressors

• Galaxy Auto Stationary Equipment Co. Ltd.

• Gast Manufacturing, Inc.

• GENERAL ELECTRIC

• Ingersoll Rand Plc

• Kaeser Compressors

• MAT Industries, LLC

Recent Development

• In July 2023, Chart Industries, Inc. entered into a strategic partnership with Avina Clean Hydrogen Inc. The objective of this partnership was to supply Chart Industries’ Howden compressors for Avina's green hydrogen facility in Southern California.

• In June 2023, Atlas Copco expanded its manufacturing base in Wuxi, China. The facilities were planned with the intent to cater to compressor R&D and manufacturing operations.

• In May 2023, Atlas Copco announced that it had acquired Maziak Compressor Services Ltd. This transaction was aimed at boosting Atlas’ presence in the UK region.

• In April 2023, BAUER unveiled three new series of industrial air compressors. This series comprises the K22, BK 23, and BM series, which feature directly coupled units and deliver a flawless balance of compact design and efficient performance.

• In February 2023, BAUER announced the launch of the BM series of compressors. These compressors are able to achieve air pressures of up to 40 bar in two-stage models and 100 bar in three-stage models.

• In September 2022, Cook Compression introduced the COOK CLEAN sealing system, aligned with the increasing focus on decarbonization goals in the energy industry. The innovative system is purposed to lower fugitive emissions from packing cases to near-zero levels in reciprocating compressors.

Air Compressor Market Report Scope

Global Air Compressor Market Report Segmentation

This report forecasts revenue growth at global, regional & country levels, and provides an analysis on the latest trends and opportunities in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the air compressor market on the basis of type, product, lubrication, application, and region:

• Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Portable

  • Stationary

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Reciprocating/Piston

  • Rotary/Screw

  • Centrifugal

• Lubrication Outlook (Revenue, USD Million, 2018 - 2030)

  • Oil-Filled

  • Oil-Free

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Manufacturing

  • Semiconductors & Electronics

  • Food & Beverage

  • Healthcare/Medical

  • Home Appliances

  • Energy

  • Oil & Gas

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa