Compressors Market by End-user, Type, and Geography - Forecast and Analysis 2023-2027

The compressors market size is estimated to grow at a CAGR of 3.62% between 2022 and 2027 and the size of the market is forecast to increase by USD 14,834.55 million. The growth of the market depends on several factors, such as the increasing adoption of compressors in various industries, the growing need for energy-efficient compressors, and the expansion of oil terminals.

This report extensively covers market segmentation by end-user (oil and gas, process industry, and discrete industry), type (positive displacement and dynamic), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the Size of the Compressors Market During the Forecast Period?

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Technavio’s Exclusive Compressors Market Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Compressors Market Customer Landscape

Key Drivers, Trends, and Challenges

Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage. 

Key  Driver
 

The increasing adoption of compressors in various industries is the key factor driving the global compressors market. The use of compressors in various industries has increased significantly due to their versatility and efficiency in various applications. Industries such as automotive, chemical, petrochemical, and manufacturing have widely adopted the use of compressors in their processes for a variety of reasons. One of the main reasons for the increasing adoption of compressors is their ability to improve the productivity and efficiency of the industrial processes that move oil and gas from production wells to reservoirs.

Compressors are used for a variety of purposes, such as compressing gases and air, driving pneumatic tools and machinery, and providing energy for a variety of applications. Another reason compressors are so popular is that they reduce downtime and maintenance costs. Compressors are designed and manufactured to withstand harsh industrial environments and provide excellent long-term performance. It also requires minimal maintenance, lowering the compressor's total cost of ownership and saving both time and money.  Such factors are therefore expected to drive the growth of the market during the forecast period.  

Significant Trends

Rising demand for oil-free compressors will fuel the global compressors 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  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.

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. 

Who are the Major Compressors Market Vendors?

Vendors 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 18 market vendors, including:

• BAC Compressors
• 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 Management Ltd.
• Yantra Technologies

The report offers clients a deeper understanding of the market and its players through a combined qualitative and quantitative analysis of the vendors. The analysis classifies vendors into categories based on their business approach, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak to understand the dos and don’ts of business which in turn can help a client make the best decision.

Compressors Market Segmentation by End-user, Type, and Geography 

End-user Analysis: 

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 25,495.75 million in 2017 and continued to grow until 2021. 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. 

Type Analysis

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. 

Regional Analysis

APAC is estimated to contribute 35% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.

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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. 

Covid Recovery Analysis:

In 2020, the market faced huge challenges due to the COVID-19 outbreak. In 2020, it adversely affected the global economy, supply chains, and operations of the industrial, commercial, and service sectors. Several countries announced strict nationwide lockdowns to prevent the disease from spreading throughout the world. This brought a temporary halt to industries such as oil and gas, automotive, power plants, petrochemicals, and chemicals, which saw lower demand for compressors in 2020. However, from the fourth quarter of 2021, many countries launched massive COVID-19 vaccination campaigns and lifted restrictions on all sectors. This increased the demand for compressors in various industries where compressors are used. This propelled the growth of the market and is expected to grow during the forecast period.

Segment Overview

The compressors market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• End-user Outlook (USD Million, 2017 - 2027)
  • Oil and gas
  • Process industry
  • Discrete industry

• Type Outlook (USD Million, 2017 - 2027)
  • Positive displacement
  • Dynamic

• Region Outlook (USD Million, 2017 - 2027)
  • 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

Compressors Market Scope
Report Coverage	Details
Page number	169
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 3.62%
Market growth 2023-2027	USD 14,834.55 million
Market structure	Fragmented
YoY growth 2022-2023(%)	2.71
Regional analysis	APAC, North America, Europe, South America, and Middle East and Africa
Performing market contribution	APAC at 35%
Key countries	US, China, Japan, UK, and Germany
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	Atlas Copco UK, BAC Compressors, BOGE KOMPRESSOREN GmbH and Co. KG, 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 Management Ltd., and Yantra Technologies
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Compressors Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the compressors market between 2023 and 2027
• Precise estimation of the size of the compressors market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across APAC, North America, Europe, South America, and Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of compressors market vendors

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