Compressors Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, China, Japan, UK, Germany - Size and Forecast 2024-2028

Compressors Market Size 2024-2028

The compressors market size is forecast to increase by USD 11.92 billion at a CAGR of 2.87% between 2023 and 2028. Market expansion hinges on several factors, including the rising uptake of compressors across diverse industries, the escalating demand for energy-efficient compressor solutions, and the expansion of oil terminals. However, challenges persist, such as the unpredictability of oil and gas prices, fluctuating costs of raw materials, and the inhibitive expense that obstructs the adoption of new technologies. Despite these obstacles, the increasing deployment and the demand for energy-efficient solutions underscore significant growth potential in the market. Addressing challenges related to price volatility and material costs while simultaneously focusing on driving down adoption barriers will be crucial for market players. By navigating these challenges adeptly and capitalizing on emerging opportunities, the compressor market can sustain its growth trajectory and meet the evolving demands of various industries effectively. Our report examines historic data from 2018 - 2022, besides analyzing the current and forecasted market scenario.

Market Forecasting and Size

Market  Forecast 2024-2028

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Market Dynamics

The market is intricately intertwined with a multitude of industries and technologies, ranging from the food & beverages industry to HVAC, chemicals and petrochemicals, pharmaceuticals, and renewable energy sectors like solar and wind power installations. As industrialization accelerates, driven by automation and the emergence of economies, the demand for compressors, especially oil-free variants, continues to surge across diverse applications. In the oil and gas industry, compressors are indispensable for maintaining operations in the oil and gas industry and supporting the vast gas pipeline networks. Fossil fuel-fired power generation plants also rely on compressors to enhance energy efficiency and reduce emissions. In the manufacturing sector, compressors play a pivotal role, particularly in the chemicals and petrochemical industry, where positive displacement and dynamic compressors are widely utilized. With the integration of IoT technology, compressors are becoming smarter and more efficient, catering to industries like the electronics industry and the steel industry. Moreover, as concerns regarding environmental impact grow, compressors are pivotal in mitigating volatile organic compounds emissions, highlighting their crucial role in fostering sustainable industrial practices.

Key Market Driver

The increasing adoption of compressors across various industries is a pivotal driver of the global market's growth. Compressors find widespread use in sectors such as food & beverages, HVAC, chemicals and petrochemicals, pharmaceuticals, and solar and wind power installations due to their versatility and efficiency in diverse applications. Industries like the oil & gas sector and the manufacturing sector rely heavily on compressors to enhance productivity and efficiency in processes ranging from gas pipeline networks to oil and gas production. The demand for oil-free compressors is particularly rising in industries sensitive to contamination risks, such as pharmaceuticals and food & beverages.

Additionally, the integration of automation and IoT technologies further optimizes compressor performance and reduces maintenance costs, driving market expansion. As emerging economies embrace industrialization, the demand for compressors is expected to surge, propelled by their ability to provide reliable energy for various applications while minimizing downtime and maintenance costs. These factors collectively contribute to the sustained growth of the compressor market in the foreseeable future.

Significant Market Trends

Rising demand for oil-free compressors will fuel the global market. Compressors are divided into lubricated compressors and non-lubricated compressors according to the type of lubrication. In recent years, oil-powered compressors gained a higher market share than oil-free compressors, but the growing need for pollution-free air in clean room applications is driving demand for oil-free compressors. Oil-free compressor eliminates the risk of product contamination. Additionally, stringent quality standards for the use of Class 0 certified compressors, especially in the F&B, pharmaceutical, electronic and electrical industries, create demand for oil-free compressors. Oil-free compressors use oil to seal the rotor and not cool the compressed air. Instead, it uses cooling water that flows through special pockets in the compressor housing.

Oil-free compressors are widely used in the electronics and medical device industries. Oil-free compressors prevent dirt and dust from entering the product surface, contributing to the production of high-quality, highly reliable electronic and medical products. Factors such as tightening government regulations on various manufacturing processes and the need to improve the quality of manufactured products are increasing the application of cleanrooms in the F&B, pharmaceutical, and aerospace industries. As oil-free compressors help maintain required cleanliness standards, their acceptance rate in cleanroom applications is expected to increase during the forecast period.  

Major Market Challenge

Fluctuating prices of raw materials can majorly impede the growth of the market. Raw material price volatility affects production costs. As a result, many major players enter into long-term contracts with their suppliers to reduce the impact of commodity price fluctuations on their businesses. However, smaller providers do not enter into such agreements as they would require a large investment. Therefore, fluctuations in commodity prices affect their business. The main raw materials used to manufacture compressors are stainless steel, iron, bronze, and copper. The prices of these commodities vary depending on factors such as inflation, production, and availability.

Furthermore, a shortage of raw materials has significantly hampered the growth of the market. The motors used to make compressors require rare earth magnets such as neodymium. Boron is required to convert the magnets into permanent magnet motors. These magnets are twice as strong as common ferrite-based magnets. Rare earth metals are difficult to mine and produce. Such metals are found in limited quantities and are mainly found in China. Price fluctuations, therefore, affect the cost of such magnets and permanent magnet motors. China is a major supplier of rare earth magnets. Most compressor suppliers source industrial-quality motors from component suppliers. The factors mentioned above reduce the profitability of vendors and adversely affect the market during the forecast period. 

Market Segmentation

By End-user 

The oil and gas segment will contribute a major share of the market, as this industry is the greatest contributor to the compressor market. The oil and gas segment showed a gradual increase in market share with USD 26.13 billion in 2018. In the oil and gas industry, compressors are used in upstream, midstream, and downstream operations. Compressors are used in petroleum refineries for desulfurization and reforming and in natural gas plants for compressed gas transportation and gas injection. Pressure fluctuations in oil and gas facilities can cause explosions that destroy equipment and injure workers. Therefore, oil and gas industry suppliers offer compressors with multivariable transmitters to maintain optimum pressure in oil and gas processing plants.

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Compressors ensure optimum pressure when transporting and storing natural gas, especially when emptying or filling underground storage facilities. They are used in liquefied natural gas (LNG) pipelines, tanks, and loading facilities. Pipelines and storage facilities involve the movement of multiple products and commodities. LNG must be handled carefully during transportation to avoid spills that could lead to explosions, fires, or damage to the containers used for transportation. Compressors maintain optimum pressure and temperature for LNG transportation. The widespread application of compressors in the oil and gas industry is expected to drive market growth during the forecast period. 

By Type 

Positive displacement is a widely used technology in the compressor market. This technology is used to compress gas by confining a certain amount of gas and then compressing it by mechanical means. Positive displacement compressors can generate high pressures and are used in various industries such as oil and gas, pharmaceutical, F&B, and manufacturing. Positive displacement compressors are expected to play a key role in this growth as they offer higher efficiency and reliability than other compressors. Reciprocating and rotary compressors used a positive displacement process. Reciprocating compressors are widely used in the oil and gas industry due to their high efficiency and reliability. They work on the principle of a piston moving back and forth in a cylinder. Capable of delivering high pressure, these compressors are used in a variety of applications such as gas transportation, refrigeration, and gasoline refineries. Rotary compressors are used in the pharmaceutical, F&B, and HVAC industries. A rotary compressor works on the principle of a rotating element that compresses the gas trapped inside a chamber. These compressors are efficient, lightweight, and compact, making them ideal for portable units such as refrigerators and air compressors. One of the main advantages of positive displacement compressors is their high efficiency. They are known for their high compression ratios that allow for significant energy savings. It also has a simple and robust design that is easy to use and maintain. They are also known for their durability and reliability, making them ideal for harsh environments. In addition, positive displacement compressors are very versatile and can be used in a variety of applications such as gas pressurization, gas transport, gas storage, and gas compression. Therefore, the factors mentioned above are expected to drive the growth of the positive displacement segment of the market during the forecast period. 

By Region

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North America is estimated to contribute 38% to the growth by 2028. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period.
Demand for compressors from the Asia-Pacific oil and gas industry is expected to increase during the forecast period due to the number of offshore and onshore oil and gas activities. While most regions were affected by lower oil prices, APAC did not see a significant decline in investment in the oil and gas industry. A major factor behind the growth of the oil and gas industry can be attributed to the increase in manufacturing activity and the accompanying increase in energy demand. The development of the oil and gas industry, therefore, makes it necessary to transport these oils and gases to final storage, increasing the demand for compressors. Such factors are, therefore, expected to drive the growth of the market during the forecast period. APAC's automotive industry is expected to grow during the forecast period, owing to factors such as expanding consumer base and increasing disposable income. As a result, automakers from other regions are setting up production facilities in APAC. Myanmar plans to increase investment in coal-fired power plants by 2030 to supply electricity. Therefore, developments in industries including automotive and renewable energy are expected to increase the demand for compressors, which is expected to drive the growth of the market during the forecast period. 

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Atlas Copco UK: The company offers different types of compressors such as compressed air dryers, air and gas compressors, oil-free air compressors, oil-lubricated air compressors, and air compressor parts.

BOGE KOMPRESSOREN GmbH and Co: The company offers different types of compressors, such as piston compressors, screw compressors, scroll compressors, turbo compressors, and different types of compressed air accessories.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:

Atlas Copco AB, BAC Compressors, BOGE, Danfoss AS, Dearing Compressor and Pump Co., Doosan Portable Power Co., Elgi Equipments Ltd, Fusheng Precision Co. Ltd., Hanbell Precise Machinery Co. Ltd., Hitachi Ltd., Indo-Air Compressors Pvt. Ltd., Ingersoll Rand Inc., KAESER KOMPRESSOREN SE, Kaishan Compressor USA, Kirloskar Pneumatic Co. Ltd., Kobe Steel Ltd., Parker Hannifin Corp., Siemens Energy AG, Sulzer Ltd., and Yantra Technologies

Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• End-user Outlook 
  • Oil and gas
  • Process industry
  • Discrete industry
• Type Outlook 
  • Positive displacement
  • Dynamic
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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• CNG Compressors Market: CNG Compressors Market Analysis APAC, North America, Europe, Middle East and Africa, South America - US, Canada, China, Australia, India - Size and Forecast 

Market Analyst Overview

The HVAC industry is influenced by various industries and factors, including the automotive, transportation, chemicals, petrochemicals, cement, electronics, food and beverages, metals and mining, oil and gas, pharmaceuticals, and pulp and paper sectors. With a focus on energy conservation and efficiency, compressor manufacturers are increasingly developing air-cooled industrial air compressors and electric-operated variants to address climate targets and reduce carbon emissions. Automation and IoT integration further enhance efficiency in manufacturing, HVAC, and power generation. As emerging economies industrialize and urbanize, the demand for compressors in the middle-class and residential sectors and the Chemicals and petrochemicals industry rises. With applications ranging from oil refineries to packaging, compressors play a pivotal role in various stages of upstream, midstream, and downstream operations, supporting gas lift, gas flow, and gas pipeline networks while addressing challenges related to greenhouse gas emissions and volatile organic compounds. The Pharmaceuticals industry is a vital component across various industries, including automotive and transportation, cement, chemical plants, and the electronics industry. As energy efficiency becomes paramount, the demand for dynamic compressors and electric-operated air compressors in the HVAC and manufacturing sectors surges. In the oil & gas industry, compressors play a pivotal role in gas gathering, gas lift systems, and oil-filled air compressor applications for enhanced oil recovery (EOR). With the focus on energy conservation standards and climate targets, industries like Solar and wind power installation, fossil fuel-fired power generation are transitioning to gas-based energy generation, necessitating efficient compressors. 

Furthermore, with the rise of the Internet of Things (IoT), energy-efficient compressed air and Stationary air compressor solutions are gaining prominence in power generation projects and the manufacturing sector, contributing to sustainable industrialization amidst urbanization trends. The compressors market is experiencing a transformative shift, catering to diverse sectors such as automotive and transportation, cement, and the chemicals and petrochemical industry. With the implementation of the Climate Target Plan, there's a growing emphasis on energy efficiency, driving the adoption of electric-operated air compressors across industries like the HVAC and food & beverages sector. Gas fields and the gas pipeline network rely on compressors for efficient gas lift systems, while the power sector benefits from compressors in coal-based electricity and solar and wind power installations. In the oil and gas industry, compressors are integral to the upstream, midstream, and downstream sectors, facilitating operations in the oil and gas pipeline network and maintaining reservoir pressure. Across sectors like the steel industry and pulp and paper industry, reciprocating and rotary/screw compressors play a vital role in production processes, highlighting the indispensable nature of compressors in modern industrial applications.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the size of the market growth and trends and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Market growth and forecasting across APAC, North America, Europe, South America, and Middle East and Africa
• A thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive market growth analysis of factors that will challenge the growth of market  companies

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