Air Compressor Market Size and Share Analysis by Type (Portable, Stationary), Product (Reciprocating, Rotary, Centrifugal), Application (Manufacturing, Semiconductor & Electronics, Food & Beverage, Healthcare, Home Appliances, Energy, Oil & Gas), Lubrication (Oil Filled, Oil Free) - Global Industry Growth Forecast to 2030

Market Overview

The global air compressor market size stood at $30,366.3 million in 2021, which is expected to reach $45,888.0 million by 2030, advancing at a CAGR of 4.7% during 2021–2030. This will prominently be due to the rising demand for environment-friendly air compressors all over the world, presence of advanced manufacturing facilities, rapid industrialization, and technological advancements.

Industrial air compressors are used in a variety of sectors, including metals & mining, construction, oil & gas, healthcare & pharmaceuticals, automotive & transportation, packaging, and power & energy. Moreover, compressed air systems are used by 70% of all manufacturers, to power conveyors, pneumatic tools, packaging machines, and paint sprayers.

Due to the rising investments and capacity expansions, which are driving the industrialization rate and the manufacturing output, the portable air compressor category has an enormous potential to grow. Several growing economies, including those in APAC and Africa, have accelerated their industrial and economic development. The demand for industrial air compressors is also being driven by the government programs to support industrial automation, for the best possible resource utilization.

Portable Category To Witness Faster Growth

Stationary variants held the larger share, of around 60.0%, in 2021, on account of their higher adoption in the automotive and many other heavy engineering industries. In comparison to portable variants, stationary ones offer higher cubic feet per minute of airflow, which is highly important in manufacturing industries, thereby increasing the air compressor market demand.

The portable category is expected to witness the higher CAGR, of nearly 4.9%, during 2021–2030, primarily due to the advent of technologically advanced portable variants that are not only noise-free but also generate clean air. Their ease in moving the compressed air to a different location is projected to fuel the growth of this category.

In addition, they are witnessing a rising demand due to their lower maintenance costs and highly efficient operations. Furthermore, the active participation of the key players in the launch of portable air compressors is propelling the category growth. For instance, in February 2021, Sullair LLC announced the launch of a mid-range series of Tier 4 Final-compliant portable, lubricated, rotary screw air compressors, which incorporate the electronic spiral valve technology.

Rotary Category Leads Market

The rotatory category accounted for the largest revenue share, of approximately 45.0%, in 2021, due to the high efficiency and robust build of these variants.In addition, the several standards set by government organizations all over the world to increase the output efficiency and energy optimization of the rotatory type spur the category growth. Furthermore, the innumerable benefits associated with a rotatory compressor, such as its longer life and high battery energy savings, enhance the sales potential.

The centrifugal category accounted for the second-largest revenue share, of over 30.0%, in 2021, and it is expected to show the highest CAGR, of almost 5.1%, during the forecast period. This is credited to the lower price of these systems in comparison to others and their wide use in harsh applications, such as gas boosting, gas evacuation, wellhead casing gas reduction, and oil recovery.

Air Compressors Are Extensively Used in Manufacturing Plants

The manufacturing category accounted for the largest revenue share, of approximately 30.0%, in 2021, on account of the development of highly advanced manufacturing facilities all over the world and high manufacturing standards for atomization. The surging use of air compressors over the past few years in a number of manufacturing applications, such as sandblasters in machine shops, pneumatic nail guns, welding & cutting equipment, molding gas tanks, and spray painting of vehicles, further intensifies the category growth. In addition, the rising demand for energy-efficient and cost-effective air compressors and the inclination of industries toward the procurement of new equipment strengthen the air compressor market growth.

The semiconductor & electronics industry is expected to register the highest CAGR, of around 6.4%, during the forecast period, as a result of the high demand for oil- and liquid-free air compressors in the semiconductor industry for the cleaning of sensitive circuit boards, removal of the chemical deposits on wafers, after the etching phenomenon; and cleaning of air knives during LCD panel manufacturing. The electronics industry needs to meet various stringent hygiene standards, such as having a 100% contamination-free manufacturing process, which can be achieved by the use of oil-free compressors that offer an up to 15-bar pressure.

Oil-Free Category To Witness Faster Growth

The oil-filled category held the larger share, of around 65.0%, in 2021. This was on account of the higher product life, noise-free operation, ability to withstand extreme environmental conditions, higher output, and prolonged durability of oil-filled compressors. These features lead to their extensive adoption in countless applications in the chemical, energy, and manufacturing industries.

The oil-free category is expected to experience the higher CAGR, of around 5.1%, during 2021–2030, primarily due to these variants’ lower weight and cost-effectiveness, due to the absence of the oil separator element, which is present in the other types. In addition, the steps taken by government bodies to curb global emissions are responsible for their fast growth in usage.

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APAC Is Leader of Market

APAC dominated the air compressor market in 2021, with a value of around $9,911.4 million. This is primarily attributable to the presence of a large number of prominent players in China and India and the strong industrial base for the semiconductor industry in Taiwan and China. In addition, the rising adoption of atomization and automation in industries, such as manufacturing, semiconductor & electronics, food & beverage, healthcare, home appliances, energy, and oil & gas, are the other key factors driving the regional market growth.

Furthermore, the active involvement of key players in the establishment of manufacturing facilities as well as supply chain operations in the region propels the APAC market growth.

In the region, China and India together account for an around 65% market share, owing to the presence of advanced manufacturing facilities and the implementation of policies to reduce energy use. For instance, in January 2021, the Indian government announced the launch of a voluntary energy efficiency policy, to reduce the climate impact and energy use associated with air compressors. Under the policy, India is set to reduce emissions by 15 million metric tonnes by the end of 2030.

Europe accounted for the second-largest revenue share, of nearly 30.0%, in 2021, on account of the stringent government policies regarding the operational efficiency of compressors and the development of compliance standards. Furthermore, Germany and the U.K. together hold an approximately 55% revenue share in the region, due to the high investments in renewable power generation and the presence of major manufacturing hubs in these countries.

Recent Strategic Developments of Key Players

The competition among players is increasing as a result of the growing demand for air compressors all over the world. Furthermore, the market is expected to favor new entrants, due to technological advancements.

Furthermore, to capture a larger share, companies are expanding geographically and widening their product portfolio through new launches, mergers & acquisitions, and agreements & partnerships. For instance:

• In November 2021, Atlas Copco AB announced the acquisition of S.T.E.R.I. Srl (STERI), which is an air compressor distributor based in Italy. The acquired business is now part of the compressor technique service division of Atlas Copco AB.
• In October 2021, Ingersoll Rand announced the acquisition of Air Dimensions Inc., which is primarily involved in designing, manufacturing, and selling vacuum diaphragm pumps for environmental applications, such as CO2 emission monitoring and biogas production, apart from other chemical processes.

Top Air Compressor Manufacturers Are:

• ELGi Equipments Limited
• Atlas Copco AB
• Sulzer Ltd.
• Hitachi Ltd.
• Ingersoll Rand
• Sullair LLC
• Mitsubishi Heavy Industries Ltd.
• Doosan Infracore Portable Power
• Kirloskar Pneumatic Company Limited
• Elliott Group Ltd.
• Siemens AG

Market Size Breakdown by Segment

The study offers a comprehensive market segmentation analysis along with market estimation for the period 2017-2030.

Based on Type

• Portable
• Stationary

Based on Product

• Reciprocating
• Rotary
• Centrifugal

Based on Application

• Manufacturing
• Semiconductor & Electronics
• Food & Beverage
• Healthcare
• Home Appliances
• Energy
• Oil & Gas

Based on Lubrication 

• Oil Filled
• Oil Free

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America  
  • Brazil
  • Mexico
• Middle East and Africa  
  • Saudi Arabia
  • South Africa