The global air compressor market size was valued at USD 34,464.12 million in 2022. It is estimated to reach USD 45,760.14 million by 2031, growing at a CAGR of 3.2% during the forecast period (2023–2031).
An air compressor is a mechanical machine that converts energy from one form to another, which is then stored in pressured air using an electric motor or diesel engine. Powered machine tools, ventilation systems, HVAC control systems, and other industrial and non-industrial uses for powered air employ pressurized air. Air compressors use the kinetic energy stored in the compressed air to deliver the required energy to various machinery, tools, and equipment across multiple industry verticals. Moreover, continuous compression supports the transfer of gases and liquids, the production of goods connected to petrochemistry, and cooling applications. It has various uses, including cleaning, vacuum packaging, spray painting, etc. Likewise, many end customers use air compressors for dehydration, air blowing, powering tools, cleaning, and medical equipment.
Air compressors are used in several industries, such as electrical power, oil and gas, petroleum, chemical, and manufacturing. These industries have adopted cost-effective manufacturing techniques to overcome the drawbacks of traditional production methods. The demand for energy-efficient compressors among these industries is high owing to benefits such as effective energy distribution and cost-effectiveness. In addition, many developing countries, such as China, have introduced stringent regulations for environmental protection, increasing the demand for energy-efficient air compressors.
In order to achieve optimum energy efficiency in a compressor, end-user prefer replacing the on-and-off control compressor with the Variable-Speed Drive (VSD) based control system, which supplies the required flow and keeps the pressure in the pipes stable. Industries, including manufacturing, are adopting cost-effective manufacturing methods to increase profitability. Rising demand for these systems from effective energy distribution due to cost-optimizing features is anticipated to fuel the industry's growth. Furthermore, energy-efficient motors reluctance motors drive the compressor shaft for energy optimization. This methodology/technology offers higher efficiencies than the IE3 premium motors. Therefore, the increasing need for energy-efficient compressors will drive market growth over the forecast period.
Portable compressors are frequently utilized in mining and construction projects. Portable air compressors and generators without oil are dependable power sources for construction industry equipment. Due to the ease of shipping the equipment, they are also widely used in numerous industrial applications. Portable air compressors provide ease for roofers, carpenters, and many other workers who move from job site to job site to run their pneumatic tools no matter where they go. In addition, DIY projects and hobbies may also rely on portable air compressors for various projects and repairs. Different portable compressors are on the market to serve numerous needs, driving the global market growth.
The price of an air compressor fluctuates based on the cost of raw materials such as copper, aluminum, and so on. Price fluctuations adversely affect the demand for air compressors across all industries. Moreover, intense competition in the market often impels vendors to slash retail prices. The raw materials used in air compressors are commonly used in manufacturing other products, thus, leading to higher demand and scarcity of raw materials. In addition, bearings, gauges, crankshafts, rotors, and switches are some of the finished and semi-finished products using the same raw materials. The primary raw materials utilized in the manufacturing of air compressors are copper, steel, and aluminum. The prices of raw materials are significantly increasing, which is anticipated to restrain the market growth over the forecast period.
The industrialization-driven global economy and technological advancements have formed an interdependent market. The advanced and improved machines used in the manufacturing sector demand power generated from compressed air for operation. The rising number of industries in Latin America, Africa, and Asian countries provides a significant growth opportunity for air compressor manufacturers. These regions are opting for innovative, tech-enabled air compressors. In addition, the increased demand for rotary and reciprocating air compressors can be attributed to the increasing demand from manufacturing, oil and gas, and energy verticals. The North American market is leveraging the benefits of automation in the manufacturing industry through air compressors.
Furthermore, manufacturers offer a wide variety of air compressors with benefits such as an easy operation to cater to the needs of different industrial applications. Technological improvements have led to the introduction of oil-free compressors that offer pure air, primarily used in pharmaceuticals verticals and hospitals. Thus, industrialization and continued improvements in air compressors are expected to propel the demand for air compressors over the forecast period. Such innovations in air compressors initiated on a timely basis by the vendors encourage end-users to adopt these compressors readily.
The global air compressor market is segmented by type, product, application, and lubrication.
Based on type, the global air compressor market is segmented into portable and stationary.
The stationary segment owns the highest market share and is expected to grow at a CAGR of 2.9% over the forecast period. Unlike portables, the stationary air compressor is fixed in one place and is preferred for long-term projects. They can produce pressurized compressed air for various purposes and run on electricity, diesel, or gasoline engines. Also, the stationary air compressor is in high demand for automotive, machinery, and other industrial heavy-duty applications. Stationary air compressors dominated the industry as they provide high CFM (Cubic Feet per Minute) compared to portable compressors. However, compared to portable compressors, stationary compressors are predicted to grow more slowly because of the unique mounting requirements.
Based on product, the global air compressor market is divided into reciprocating, rotary, and centrifugal.
The rotary segment is responsible for the largest market share and is anticipated to grow at a CAGR of 3.0% over the forecast period. Rotary is a type of compressor that uses a rotary-type, positive-displacement mechanism. These compressors supply high-quality compressed air or gas reliably to production processes for industry, trade, and workshop applications. Compressors' maintenance and operating costs contribute significantly to the total life cycle costs, longer product life cycles, and customer preferences for better energy savings. This has increased revenue share for rotary compressors compared to reciprocating compressors.
Based on application, the global air compressor market is bifurcated into manufacturing, semiconductor and electronics, food and beverage, healthcare, home appliances, energy, oil and gas, and others.
The manufacturing segment owns the highest market share and is estimated to grow at a CAGR of 2.6% during the forecast period. Air compressors play a crucial role in manufacturing applications. For instance, oil-free air is often required as a power source for machinery, and compressed air is blown in the furnace at steel manufacturing plants for heating and cooling the rolled steel. The manufacturing sector utilizes air compressors for several applications, such as spray painting of vehicles, sandblasters in machine shops, air guns for cleaning machinery, pneumatic nail guns, fabrication, assembly, welding and cutting equipment, component ejection from molds, molding gas tanks, packaging devices, and many more. The global market's need for compressed air manufacturing is driven by rising atomization standards in the manufacturing sector and the construction of newer, more machined industrial facilities.
Based on lubrication, the global air compressor market is divided into oil-filled and oil-free lubricants.
The oil-filled segment is the highest contributor to the market and is projected to grow at a CAGR of 2.9% over the forecast period. Oil-filled compressors are expensive and heavier. An oil-filled air compressor demands frequent lubrication of the piston chamber for the smooth movement of the piston. However, these compressors offer noise-free operation and higher service life. Oil-filled compressors dominated the industry owing to their wider adoption for commercial applications in the manufacturing, energy, and chemical industries. These compressors are durable and produce less noise compared to an oil-free compressor. However, high maintenance cost is acting as a barrier to its adoption. Oil-free air compressors are lighter in weight and are less expensive than oil-filled compressors. The costly nature of oil-filled compressors is posing an obstacle to their adoption. Moreover, consumers are replacing the existing air compressors with oil-free.
Based on region, the global air compressor market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
Asia-Pacific is the most significant shareholder in the global air compressor market and is anticipated to grow at a CAGR of 4.3% during the forecast period. The Asia-Pacific region is expected to grow fastest because countries like China, India, and Japan are undergoing industrialization. The growing atomization and mechanization of industrial facilities throughout the developing countries in the region are primarily responsible for the market's growth. Statistics from the World Bank show that China's manufacturing sector generated roughly 27% of the country's overall GDP. In addition, manufacturing made up around 17% of the GDP in India. Make in India initiatives have also drawn manufacturing hubs to the country, flourishing the demand for air compressors. More than 90% of the world's microchips are produced in Taiwan.
Consequently, air compressor utilization would increase in the market due to rapid growth in the manufacturing and semiconductor sectors. The manufacturers are also paying close attention to the lucrative markets of India and Japan; their efforts are mainly focused on building production facilities and setting up established supply chains in the area. Additionally, in the recent past, most consumers from various end-use industries have sought out investments in the Asia-Pacific region's emerging economies, which is pivoting the development of manufacturing clusters throughout those regions and driving up sales of goods for the manufacturing industry. The development of the Asia-Pacific area will be aided by Australia's developed and highly functional mining sector.
Europe is estimated to grow at a CAGR of 2.0% over the forecast period. Europe is one of the most reliable markets for air compressors. Due to uncertain economic conditions, there have been mixed sales across the region, and it has remained a prominent market for air compressors. Germany and the U.K. have the most promising countries for sales and massive demand for air compressors due to the presence of manufacturing hubs. In addition, the European Union's execution of legislation about the operational effectiveness of compressors and the growing development of compliance criteria in Europe are encouraging the market's sales of new goods.
Additionally, producers are introducing new, highly developed products that comply with current regulatory standards to attract more customers to their products, driving the market growth. Manufacturers must abide by a variety of laws, including the Pressure Equipment Directive (PED), Electromagnetic Compatibility Directive (EMCD), Ecodesign for Compressors, Machinery Directive (M.D.), Low Voltage Directive (LVD), and Outdoor Noise Directive (OND), among others, to begin operations in the European Union. Because of this, all the manufacturers are investing heavily in their R&D departments to create and produce beneficial items for the European market, fueling regional market growth.
North America held a significant share of the overall market owing to the demand for air compressors from major industries in the region, such as manufacturing, healthcare, energy, and oil and gas. The U.S. and Canadian air compressor markets have stayed near saturation and will continue to exhibit the same trend without any evident decline.
In Latin America, Mexico has higher penetration with more untapped markets owing to booming industrialization in the country. The automotive and aerospace manufacturing sector is the main attraction for air compressor vendors to capture the underlying opportunity in Mexico, driving the growth of Latin American markets.
The Middle East and Africa are anticipated to grow faster due to the region's increasing oil and gas production activities. The Kingdom of Saudi Arabia and Turkey will primarily cater to market development in the Middle East and Africa. The pressure on resource-rich nations like the Kingdom of Saudi Arabia to efficiently increase their production by utilizing top-notch technology and effective equipment is increased by the growing demand for crude oil and the restricted supply, thereby boosting the market's growth.
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