23 Jul, 2026
According to Straits Research, the global compressor market size was valued at $33.57 billion in 2025 and is projected to grow from $35.37 billion in 2026 to $53.69 billion by 2034, at a CAGR of 5.36% during the forecast period 2026–2034.
Compressors are primarily used in the economy's manufacturing, oil, gas, and power generation sectors. Gas is increasingly taking the place of oil and coal as the primary fuel for transportation and energy production. It is projected that businesses and governments worldwide will focus on expanding the gas infrastructure to fulfill the growing demand for gas. As a result, the compressor business will soon grow. However, the increasing use of renewable energy sources like solar and wind is anticipated to eventually reduce the demand for compressors during the forecast period due to the global trend toward using cleaner fuels for energy production and consumption in response to growing concerns about air pollution and global warming.
By 2025, natural gas demand is anticipated to rise by 1.7% annually, with consumption rising to 4,000 billion cubic meters (bcm) by that year. One of the regions with the most substantial growth rates worldwide, Asia-Pacific is expected to boost global consumption. The International Energy Agency predicts that through 2024, India's growth will be roughly 9% per year. (IEA). Natural gas demand will increase by 25 billion cubic meters nationwide (bcm). This hypothetical situation is based on the benefits of using natural gas rather than coal or oil for industrial applications like producing electricity and heating buildings, which lowers air pollution and CO2 emissions.
Natural gas is displacing coal and nuclear power more and more as part of global measures to decarbonize developing economies and diversify the world's energy supply. The development of new natural gas sources, such as shale gas reservoirs, and the resulting price pressure drive the global natural gas trade. As a result, transportation and storage amounts will increase during the forecast period.
It is expected that more capacity will be added soon, causing it to keep growing more quickly than demand. The construction of a refinery is a costly endeavor that necessitates increased regulatory pressure and industry expertise and experience. As a result of various governments implementing advantageous policies and an increase in foreign direct investment (FDI) in multiple industries, such as petrochemicals, natural gas, and refineries, compressor makers may see their market share growth. In February 2020, the Mexican government proposed spending more than USD 14 billion on Pemex's refining activities. By increasing investments, the nation's simple refineries will be upgraded to complex ones, improving its capacity to process heavy crude oil.
Asia-Pacific is the most significant revenue contributor and is expected to exhibit a CAGR of 4.05% during the forecast period. China has committed to expanding its oil and natural gas pipeline system over the next ten years to increase the proportion of clean fuels in its energy mix. The demand for compressors is anticipated to increase over the projected period because they are one of the essential equipment used to power long-distance natural gas pipelines. To build a more cohesive national gas network and boost the country's gas consumption, the Chinese central government merged various pipeline businesses to become PipeChina in October 2020.
North America holds a significant place in the compressor market. When energy demand is high, such as during cold and hot weather, or when pipeline supply capacity is limited or insufficient to meet the increased need for natural gas by other consumers, certain power stations in the United States store natural gas on-site as LNG. The liquefied natural gas is then stored in cryogenic tanks after being taken from natural gas pipelines and liquefied on a modest scale. As of 2021, more than 110 LNG facilities were operational in the US, according to the Federal Energy Regulatory Commission (FERC). Additionally, it is anticipated that the new LNG liquefaction trains at Sabine Pass and Calcasieu Pass in Louisiana will begin operating by the end of 2022.
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