India Industrial Compressor Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

India Industrial Compressor Market Size

India Industrial Compressor Market Trends & Growth Drivers

Industry 4.0 Is Key Trend

• The Industry 4.0 revolution is characterized by the integration of factory machines with the internet of things (IoT), which helps in real-time data analysis and maintenance prediction in production and supply chains.
• Automation is being adopted in industrial compressors to increase efficiency and work quality.
• Compressor makers are incorporating smart technologies to fulfill the growing demands of industrial entities.
• For instance, a smart compressor was launched by ELGi in India that provides 24/7 remote monitoring, helping increase energy efficiency and maintenance predictability.

Government Initiatives for Domestic Manufacturing Drive Market

• The Make in India and Production-Linked Incentive initiatives encourage companies to develop, manufacture, and assemble products in India.
• They aim to promote domestic manufacturing across various sectors, including automobiles and components, aerospace, biotechnology, chemicals, electronics, and defense.
• This has led to investments by numerous international companies to set up manufacturing facilities in India, which is helping drive the market revenue.
• Due to these government efforts, Foreign Direct Investment (FDI) increased in the manufacturing sector by 55%, reaching USD 148.97 billion during 2014–2023.
• Various countries are collaborating with India on manufacturing. For instance, Make in India Mittelstand (MIIM) is a partnership between India and Germany to encourage German SMEs to manufacture in India, having attracted investments of over EUR 1.4 billion by August 2021.

High Initial Costs Are Biggest Market Restraint

• Industrial compressors have a high initial cost, which has become a barrier for SMEs, as they have tight budgets.
• Companies also face budget challenges while replacing old compressors with modern ones due to the high upfront cost.
• Manufacturing companies even hesitate to purchase advanced compressors due to uncertainties about the return on investment.

India Industrial Compressor Market Analysis

Product Insights

• The positive displacement category will hold the larger share of the market, of 70%, in 2024.
• These compressors use less energy, which makes them highly efficient for SMEs in increasing the pressure of a gas or air.
• Positive-displacement compressors are available in a wide range of configurations, such as reciprocating, rotary screw, rotary vane, diaphragm, and scroll, which allows consumers to choose as per the actual application.
• In particular, SMEs’ demand for these variants is driven by their availability in diverse prices, capacities, and power and energy efficiency ratings.

The products covered in this report are:

• Dynamic (Faster-Growing Category)
  • Axial flow
  • Centrifugal
• Positive Displacement (Larger Category)
  • Reciprocating
  • Rotary

Lubrication Insights

• The oil-flooded category will hold the larger share, of 65%, in 2024 and grow at the higher compound annual growth rate, of 6.7%, in the forecast period.
• These variants are cost-efficient and reliable for heavy-duty applications in a host of industries, such as manufacturing, automotive, aerospace, mining, and food and beverages.
• Oil-flooded compressors provide optimal sealing between the rotors, which reduces air leakage and enhances efficiency. 

The lubrications analyzed in this report are:

• Oil-Free
• Oil-Flooded (Larger and Faster-Growing Category)

Portability Insights

• The stationary bifurcation will hold the larger share, in 2024 and witness a higher CAGR in the forecast period.
• This category is propelled by the growth of industrial sectors, including automotive and manufacturing, where high pressures and large volumes of air are needed.
• As a result, the compressors need to be heavy-duty, which are bolted in one place and connected with pipes to provide compressed air to multiple workstations.

The portability segment has the following categories:

• Portable
• Stationary (Larger and Faster-Growing Category)

Propulsion Insights

• The electric motor category will hold the larger share, in 2024.
• Electric motors are more energy-efficient compared to internal combustion engines, which lowers operating costs, especially when compressors are operated for a long time.
• Moreover, an electric motor needs lower maintenance as it has fewer moving parts, which leads to less wear and tear.
• Carbon emissions are zero, which makes them environment-friendly and ideal for indoor industrial applications.

The propulsions covered in this report are:

• ICE
• Electric Motor (Larger and Faster-Growing Category)

Pressure Insights

• The medium category will generate the highest revenue in 2024.
• Medium-pressure variants can be used in many applications in the automotive and manufacturing sectors.
• The high category is expected to witness the highest CAGR, of 6.7%, in the forecast period.
• The aerospace and oil and gas sectors, which are witnessing robust expansion in the country, require high air and gas pressures for numerous applications, thus driving this category in the future.

The pressures included in this report are:

• Ultra-Low
• Low
• Medium (Largest Category)
• High (Fastest-Growing Category)
• Hyper

Application Insights

• The automotive application will hold the dominant share in 2024 and grow at the highest CAGR, in the forecast period.
• India’s automotive sector is the third-largest in the world, with an output 28.43 million vehicles from April 2023 to March 2024.
• This market will be influenced by the growing demand for EVs, which is encouraging companies to augment their electric automobile output and set up dedicated EV plants across the country.
• India aims to double its automobile sector size to INR 15 lakh crore by the end of 2024, which will boost this market at a significant rate.
• In an EV plant and any automobile plant, in general, compressors are used for painting, tire filling, moving stuff via pneumatic suction devices, vacuum-cleaning intake valves and pipelines, driving conveyors, and many other purposes.

The applications included in this report are:

• Chemicals and Petrochemicals
• Food and Beverages
• Oil and Gas
• Pharmaceuticals
• Construction
• Automotive (Largest and Fastest-Growing Category)
• Packaging
• Power Generation
• Healthcare
• Metals and Mining
• Electricals and Electronics
• Others

Regional Analysis

• North India will hold the largest market share, of 45%, in 2024, and it will be the fastest-growing region, with a CAGR of 7.0%, in the forecast period.
• Uttar Pradesh, Uttarakhand, Haryana, Punjab, Delhi, and Himachal Pradesh are all major industrial hubs.
• These regions produce a large number of two-wheelers, three-wheelers, cars, commercial vehicles, and construction vehicles.
• Maruti Suzuki India Limited has its largest car manufacturing unit in India in Manesar, Haryana.
• By March 2024, India had become the second production base of Suzuki Motors after Japan to manufacture 30 million automobile units.
• With plans to increase production, the company has purchased land to construct its third plant in North India, at IMT Kharkhoda.
• With a project cost of INR 18,000 crore and a completion year of 2025, the plant will produce 250,000 cars annually. It total, Suzuki has planned four plants in the area with a cumulative capacity of 1 million units every year.
• Other major industries in the region are electricals and electronics, pharmaceuticals, food and beverages, machine tools, and construction, all of which require compressors for various purposes.

The regions included in this report are:

• North (Largest and Fastest-Growing Region)
• South
• East
• West

India Industrial Compressor Market Share

The Indian industrial compressor market is fragmented in nature due to the presence of both international and domestic players. It is also driven by the Indian government’s initiatives for attracting international players to invest in compressor manufacturing. This also encourages companies to advance their products to meet the varying and evolving demands of various applications across industries.

India Industrial Compressor Market News

• In June 2024, Ingersoll Rand Inc. announced plans to acquire Air and Power Solutions, Del PD Pumps & Gear Pvt Ltd., and Fruvac Ltd. from ILC Dover for USD 150 million. Air and Power Solutions is a provider of power generation and compressed air solutions, while Fruvac provides vacuum pumps and peripheral parts.
• In February 2024, Elgi Equipments Limited announced its partnership with D.V.P. Vacuum Technology S.p.A., under which Elgi will manufacture, assemble, test, and market D.V.P.’s vacuum products in India.
• In August 2023, Atlas Copco AB announced plans to expand its factory in Talegaon, which will produce air and gas compressor systems for the domestic and international markets.