Industrial Air Compressor Market Is Estimated To Witness High Growth Owing To Technological Advancements

The Industrial Air Compressor Market is estimated to be valued at US$ 21.05 Bn in 2024 and is expected to exhibit a CAGR of 4.7% over the forecast period 2024- 2031, as highlighted in a new report published by Coherent Market Insights’ The growth of the industrial air compressor market is driven by factors such as increasing demand from end-use industries such as manufacturing, oil & gas, power generation, mining, chemicals and others.

Technological advancements such as oil-free air compressors, variable speed air compressors, and intelligent air compressors are gaining popularity. These compressors provide benefits such as enhanced productivity, improved efficiency, remote monitoring capabilities, and reduction in energy consumption. For instance, oil-free air compressors prevent oil contamination of compressed air and thus find usage where oil contamination needs to be avoided such as in food & beverages industry.

Key Market Trends: Increasing adoption of oil-free air compressors across industries is a key trend in the industrial air compressor market. Oil-free air compressors prevent oil contamination and thus find increasing usage where oil contamination needs to be avoided such as in food & beverages, pharmaceuticals and semiconductor industries. Another trend gaining traction is the increasing demand for variable speed drive air compressors. Variable speed drive compressors maximize energy savings by adjusting the compressor motor’s speed based on air demand and allowing the compressor to run at different pressures. This leads to significant energy savings of around 30% compared to conventional compressors.

Industrial Air Compressor Market Opportunities: Oil-flooded compressors account for around 60% of the global industrial air compressor market share. They are preferred for high-pressure and continuous-duty applications due to their ability to provide clean, dry air. Oil-flooded compressors gradually introduce oil into the compression chamber to lubricate moving parts and reduce friction and heating. This enables them to operate for longer hours with less maintenance needs. However, their installation and operation costs are higher compared to oil-free compressors.

Oil-free compressors are growing in popularity, especially in applications requiring oil-free air such as food & beverage and pharmaceutical manufacturing. These compressors avoid the use of lubricants through advanced sealing and cooling technologies. They account for around 35% of the industrial air compressor market. The demand is driven by stringent regulations prohibiting oil contamination in downstream processes. However, oil-free compressors have higher purchase costs and require more frequent servicing.

Key Market Takeaways: The global industrial air compressor market size is valued at USD 21.5 Billion in 2024 and is anticipated to grow at a CAGR of 4.7% during the forecast period. This can be attributed to growing industrialization and the need for compressed air across various end-use industries.

By type, the positive displacement segment holds the major share owing to its widespread use across various applications. Within this segment, reciprocating compressors dominate due to their reliability and ability to deliver air at multiple pressure levels.

By application, the manufacturing segment holds the largest share due to extensive use of compressed air tools in industries such as automotive, electronics, metal fabrication, and construction. Within manufacturing, automotive accounts for over 20% of demand.

Regionally, North America dominates the global industrial air compressor market due to the strong presence of end-use industries in the US and Canada. The Asia Pacific region is expected to witness the highest growth during the forecast period led by countries like China and India.

Competitor Insights: Key players operating in the global industrial air compressor market include Atlas Copco, Elgi Equipments, Ingersoll Rand Inc., Doosan Portable Power, and Kobe Steel Ltd. Strategic partnerships and new product launches will be crucial for these players to gain shares in the growing market.

Recent Developments: In July 2023, Kaeser Compressors launched its Sigma Control 2 compressor controller. The new controller features a 15-inch color touchscreen, integrated artificial intelligence, and Industry 4.0 connectivity. It digitally monitors the compressor and alerts users of any issues, helping optimize performance and efficiency. More information in full report.