Air Compressor Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Air Compressor Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Air Compressor Market size is expected to grow from USD 36.11 billion in 2023 to USD 45.41 billion by 2028, at a CAGR of 4.69% during the forecast period (2023-2028).

Due to the COVID-19 pandemic, the market was negatively impacted because of the lack of demand from industries and end-users. For instance, Atlas Copco, one of the major players in the market, witnessed a decline in its compressor segment from SEK 48.286 million in 2019 to SEK 47.329 million in 2020. Still, the company reported that it witnessed an incline in revenue after the second quarter of 2020. Factors such as the growing market of oil and gas, especially gas production in countries like the United States, China, and India, and increasing energy consumption globally are expected to drive the air compressor market during the forecast period. The F&B market is growing the demand for air compressors for processes like processing, packaging, cutting, shaping, and many more. However, a few significant restraints to the air compressor market are its high power consumption and the heat it releases, leading to environmental concerns.

Key Highlights

• Positive displacement air compressors are expected to grow at a significant rate due to the increase in market share application of appliances like air conditioners, refrigerators, larger industrial applications, such as in metallurgy and mining, papermaking and printing, electronic and electrical, electric power, and mechanical and electrical machinery.
• The technical advancement in the air compressor industry is leading to the development of products that requires less operational and maintenance investment. Like, oil-free systems are expected to get the opportunity in the industries which would reduce expenses related to maintenance during certain intervals.
• Asia-Pacific is estimated to witness a significant growth in the air compressor market due to the ongoing growth in the oil and gas industry of India, China, and Japan. A broad industrial base for semiconductor and electronics manufacturing in China and Taiwan is projected to drive the market further.

Air Compressor Market Trends

Positive Displacement Compressors Expected to Hold Significant Market Share

• In a positive displacement air compressor, the gas is drawn in during the suction stroke of the piston, compressed by decreasing the volume of the gas by moving the piston in the opposite direction, and discharged when the gas pressure exceeds the pressure acting on the outlet valve. Reciprocating compressors are useful for supplying small amounts of gas at high pressures.
• Although the discharge pressure range of rotary-type positive displacement compressors is limited, their demand is expected to grow due to the growing food and beverage industry. Because of the internal cooling system, these air compressors are designed for continuous use and range in power from 5 horsepower up to 350 horsepower.
• With technical advancements and rapidly growing demand in the automobile industry, the market share of air compressors is expected to grow significantly. With the help of air compressors, parts can be assembled rapidly and precisely in this sector.
• Air conditioners are one of the significant applicants for air compressors. With the advancement in living standards globally, air conditioner sales have driven the air compressor market. According to the Air-conditioning, Heating, and Refrigeration Institute, the number of air-conditioners imported by the United States increased from 3.92 million in 2012 to 6.05 million units in 2022, representing an increase in the consumption of air conditioners directly aiding the air compressor market.
• Based on multiple growing industries using the positive displacement air compressor, positive displacement air compressors will likely hold a significant market share during the forecast period.

Asia-Pacific to Dominate the Market

• Asia-Pacific is witnessing tremendous growth in industrialization in different industries, including small-scale to large-scale. The manufacturing sector significantly contributes to the region's GDP.
• With the growing refining and gas market in countries such as India and China, an increase in the market for air compressors is adamant. Considerable investments in the gas pipeline industry are set to boost the air compressor market.
• Stationary air compressors, including small-size compressors in refrigerators and air conditioners, hold a significant share of the compressor market, and the growing F&B industry is expected to boost the air compressor market.
• The energy and power industry is set to grow in the region due to high investment in power plants from developing nations, such as China and India. It is set to drive industrial growth, which is expected to boost the demand for industrial compressors.

Air Compressor Industry Overview

The air compressor market is fragmented. Some of the key players in this market (not in particular order) include Atlas Copco Group, Ingersoll Rand Inc., Siemens AG, Gardner Denver Inc., and Sullair LLC (Hitachi Group).

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