Industry Overview
The global industrial air compressor market size was valued at USD 35.4 billion in 2023. It is likely to grow up to USD 67.6 billion by 2030 at a CAGR of 5.7% during the forecast period ranging between 2025 and 2030.
The growth of the market is directly attributed to the significant expansion of manufacturing sectors in developing countries such as China, India, and other regions in Southeast Asia. This is creating more demand for industrial air compressors because they are crucial for manufacturing processes. They are used by different businesses to increase productivity, reduce manual labor, and lower energy costs. Typically, an industrial air compressor comes with a specific mechanism that helps generate pressurized air to help machinery, including power tools, function. The mechanism typically converts energy from an engine or an electric motor into compressed air, which is stored in a tank. These compressors use different technologies, and each is suited for specific purposes and varies in efficiency, pressure, and capacity. These compressors are used across a wide range of industries involved in construction, manufacturing, food processing, and automotive repair for spray painting, powering different pneumatic tools, and equipment automation by using high-pressure air.
Global Industrial Air Compressor Market Report Coverage
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Report Metric
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Details
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Historical Period
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2018 - 2023
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Base Year Considered
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2024
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Forecast Period
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2025 - 2030
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Market Size in 2023
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U.S.D. 35.4 Billion
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Revenue Forecast in 2030
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U.S.D. 67.6 Billion
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Growth Rate
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5.7%
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Segments Covered in the Report
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By Product, By Technology, By Power, By Lubrication, By Application
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Report Scope
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Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling
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Regions Covered in the Report
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North America, Europe, Asia Pacific, Rest of the World
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Global Industrial Air Compressor Industry Dynamics
Global Industrial Air Compressor Market Trends/ Growth Drivers:
Growing demand for energy efficiency
All over the world, there is a rising demand for more energy-efficient solutions from industries that want to reduce environmental impact and operational costs. This is one of the most significant growth drivers for the global industrial air compressor market since these processors are furnished with innovative variable-speed technology. This optimizes the use of energy according to the demand in real-time by making automatic adjustments in the airflow, thereby reducing energy loss or wastage and cost of operation in the process. This helps businesses to meet their sustainability goals and abide by government regulations.
Moreover, the demand for such energy-efficient industrial air compressors is high, specifically in North America and Europe, due to their ability to reduce greenhouse gas emissions. This helps businesses emphasize sustainable development. A few other growth drivers of the market include the growing adoption and use of smart connected compressors that provide real-time data and help in increasing operational efficiency and predictive maintenance. Furthermore, the use them for packaging and processing purposes in the food and beverage industry, rising construction activities due to rapid urbanization drives all over the world, and government incentives to promote eco-friendly technologies are boosting the demand for these compressors, thereby driving the market growth further.
Global Industrial Air Compressor Market Challenges
High upfront costs and maintenance expenses
A major challenge that hinders the growth of the global industrial air compressor market is the high upfront cost and the recurring maintenance expenses of these machines, especially those that come with advanced technologies such as variable speed. This specific factor often deters small and medium-sized businesses from investing in and using these compressors. Moreover, continual maintenance, such as replacing filters and repairing leaks, is common to ensure high efficiency but it also adds to the operational costs. In addition, the need for skilled personnel to repair these compressors due to the complexity involved in the process further increases the costs. Other challenges to the market growth include stringent government regulations, variable prices of raw materials, and little awareness of the benefits of using advanced compressors in developing regions.
Global Industrial Air Compressor Market Opportunities
Development of eco-friendly and energy-efficient technologies
Despite the growth hindrances, the global industrial air compressor market offers significant growth prospects due to the growing demand for eco-friendly and energy-efficient compressors across a wide range of industries. This is mainly due to the growing interest and emphasis on sustainability by businesses to reduce emissions, operational costs, and energy consumption. Furthermore, notable innovations in technology such as variable-speed and oil-free compressors help industries to meet strict regulatory standards and reduce costs further. Moreover, the new demand created in the emerging markets due to the growth in industrial sectors such as construction, manufacturing, and food processing, as well as the integration of IoT for predictive maintenance and remote monitoring, increased the demand and created new growth opportunities for the market worldwide.
Recent Developments by the Key Players
Yorkshire-based Pennine Pneumatic Services Ltd (PPS) - a compressed air distributor, has collaborated with Atlas Copco Group, after being acquired by Atlas Copco UK Holdings Ltd and now is a part of the service division within Atlas Copco’s Compressor Technique business area.
Global Industrial Air Compressor Market Segmentation
VynZ Research provides an analysis of the key trends in each segment of the Global Industrial Air Compressor Market report, along with forecasts at the regional and country levels from 2025-2030. Our report has categorized the market based on Product, Technology, Power, Lubrication, Application.
Market Segmentation
Insight by Product
The portable air compressors segment is more dominant due to the larger market share
The global industrial air compressor market is divided by product into Portable and Stationary Air Compressors categories. Among them, the portable air compressors segment is more dominant due to the larger market share and is expected to grow more in the forecast period due to rising adoption and use in the construction sector, mining industries, and emergency services. This is mainly attributed to the flexibility of these compressors and ease of movement, as well as the ability to support activities in temporary locations and remote areas, making them an essential tool to cater to a wide range of on-site power requirements.
Insight by Technology
- Rotary
- Reciprocating
- Centrifugal Compressors
The rotary compressors segment dominates the market due to their high demand
The global industrial air compressor market is also categorized by different technologies into Rotary, Reciprocating, and Centrifugal Compressors segments. Among these three major segments, the Rotary compressors segments, particularly the scroll and screw types, dominate the market due to their high demand. It is also expected to grow at a higher rate due to its higher efficiency and durability. The screw compressors sub-segment, in particular, is, however, more preferred and extensively used in industries like food processing and automotive, where production happens in high volume. On the other hand, scroll compressors are typically used in electronics and healthcare sectors where quieter operations are appreciated.
Insight by Power
- Up to 20 kW
- 21-50kW
- 51-250 kW
- 251-500 kW
- Over 500kW
The 51 to 250 kW segment dominates the market due to higher capacity and power
According to the different power ranges, the global industrial air compressor market is segmented into Up to 20 kW, 21-50kW, 51-250 kW, 251-500 kW, and Over 500kW categories. Among these segments, the 51 to 250 kW segment dominates the market and is also expected to grow at a significantly high rate during the study period due to several operational benefits such as higher capacity and power to produce a higher volume of compressed air. This makes them suitable for a wide range of applications, including mining, industrial manufacturing, and large-scale construction.
Insight by Lubrication
The oil-free segment dominates due to the steadily growing demand for different applications
Based on the lubrication of the compressors, the global industrial air compressor market is divided into Oil-Free and Oil-Filled Air Compressors segments, where the former dominates due to steadily growing demand for different applications where pure air is required, such as food & beverage, pharmaceuticals, and electronics manufacturing. These compressors prevent contamination and, therefore, can be used in sensitive workplaces to align with strict safety standards and environmental regulations.
Insight by Application
- Food & Beverage
- Oil & Gas
- Energy & Mining
- Semiconductor & Electronics
- Manufacturing
- Construction & Municipal
- Pharma
- Agriculture
- Other
The manufacturing segment dominates the market due to the significant growth of this sector
Finally, the global industrial air compressor market is divided by diverse applications into Food & Beverage, Oil & Gas, Energy & Mining, Semiconductor & Electronics, Manufacturing, Construction & Municipal, Pharma, Agriculture, and other segments. Out of all these segments, the manufacturing segment dominates the market due to the significant growth of this sector which needs compressed air for different applications and processes such as controlling valves, operating pneumatic tools, powering machinery, and others.
Global Industrial Air Compressor Market: Geographic Overview
- North America
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia-Pacific (APAC)
- China
- Japan
- India
- South Korea
- Vietnam
- Thailand
- Malaysia
- Rest of Asia-Pacific
- Rest of the World (RoW)
- Brazil
- Saudi Arabia
- South Africa
- U.A.E.
- Other Countries
Global Industrial Air Compressor Market: Geographic Overview
North America dominates the global industrial air compressor market, led by the US, mainly due to the increased adoption and use of these compressors in different industries, especially in the manufacturing and construction sectors. Also, higher demand for energy efficiency propels further growth of the market in this region.
Europe is a promising region of the market, mainly dominated by the UK and Germany. This is due to the consistent growth in the adoption of industrial automation and eco-friendly technologies, in addition to strict environmental regulations that drive their demand.
The Asia Pacific region is expected to grow at a significant rate during the forecast period due to rapid industrialization initiated in developing countries like India and China, expansion of the manufacturing sector, and development in infrastructure.
Latin America is also experiencing a steady growth in the demand for industrial air compressors, especially in Brazil and Mexico, in the construction and automotive sectors. Also, rising industrialization drives and growing foreign investments that support market growth in this region.
The Middle East & Africa region is experiencing growth in the construction and oil and gas industries, especially in the UAE and Saudi Arabia. The market growth is attributed to the industrial diversification in this region.
Competitive Insights of Global Industrial Air Compressor Market:
- Atlas Copco
- Hitachi
- Doosan Infracore
- BOGE Kompressoren
- Ingersoll Rand
- Kobe Steel
- Volkswagen
- ELGi Equipments
- Kirloskar Pneumatic
PRIMARY RESEARCH INTERVIEWS - BREAKDOWN
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