Industrial Air Compressor Market Size & Share, Growth Analysis 2035

Global Market Size, Forecast, and Trend Highlights Over 2023 - 2035

Industrial Air Compressor Market size is set to surpass USD 7 Billion by the end of 2035, growing at a CAGR of 8% during the forecast period, i.e., 2023 – 2035. In the year 2022, the industry size of industrial air compressors was around USD 3 Billion. The growth of the market can be attributed to the growing demand for HVAC systems. Air conditioning systems in large commercial buildings are powered by industrial air compressors, which chill and remove moisture from the indoor air. According to the International Energy Agency, approximately 2 billion air conditioning systems are now in use worldwide.

In addition to these, factors considered to promote the growth of the industrial air compressor market include the surging need for energy-efficient air compressors–The alarming rise in the levels of greenhouse gases, and the need for energy-efficient air compressors has increased. Carbon dioxide, methane, and nitrous oxide concentrations in 2021 were 415.7 parts per million (ppm), 1908 parts per billion (ppb), and 334.5 parts per billion (ppb), respectively. All three gases reached a new level of high in 2021 in the last 40 years.

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Industrial Air Compressor Market: Key Insights

Base Year	2022
Forecast Year	2023-2035
CAGR	~8%
Base Year Market Size (2022)	~ USD 3 Billion
Forecast Year Market Size (2035)	~ USD 7 Billion
Regional Scope	North America (U.S., and Canada) Latin America (Mexico, Argentina, Rest of Latin America) Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific) Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe) Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

Industrial Air Compressor Sector: Growth Drivers and Challenges

Growth Drivers

Rising Automation Across the Industries–Automation is occurring all across the world in all industries. Currently, automation is being used in some capacity by 66% of organizations in the world. Air compressors supply the required air pressure for control systems in automated machinery and processes. These mechanisms aid in the regulation of equipment functions and maintain the smooth operation of the machine.
Rapidly Growing Manufacturing– In 2021, global industrial output increased by 7.2%, approaching pre-pandemic levels. Air compressors are used in manufacturing to clean and remove trash, dust, and particles from panels or components before they undergo assembly or packing.
Growing Constructional Activities–With the high infrastructural development, the need for concrete and cement increases. Therefore, compressed air becomes necessary, since it uses to transfer the concrete powder through pipelines from storage silos to the processing units. The global demand for concrete may rise from 14.0 billion m3 today to nearly 20 billion m3 in 2050.

Challenges

High Saturation in the Market- The market for industrial air compressors may become saturated in some places, resulting in increased competition among manufacturers. This saturation has the potential to impede price growth and have an impact on profit margins.
Low Presence of Alternative Technologies
Strict Ecological and Emission Standards

Industrial Air Compressor Segmentation

Power (Up to 15 kW, 16-75kW, 75-500kW, More than 500kW)

The 75-500kW segment is expected to account for roughly 40% of the industrial air compressor market by 2035. The growth of the segment can be attributed to the increasing application of industrial air compressors with power of 75kW to 500kW in several industries, including water and wastewater treatment plants, power generation, and the chemical industry. The rising need for residential and industrial wastewater treatment in the world is expected to drive the segment’s growth. According to the latest research conducted by scientists at Utrecht University and the United Nations University, around half of the world's wastewater is treated.

Product Type (Dynamic, Positive Displacement)

The positive displacement sector is predicted to account for around 60% of the market by 2035. The versatility of the positive displacement compressor is a significant factor in the growth of the segment. It can work in both oil-free and lubricated conditions. Moreover, it can be divided into rotary and reciprocation compressors at the same time. Furthermore, it is expected the segment will garner a huge investment that will further aid its growth. The positive displacement finds its application majorly in the construction industry, therefore rising constructional activities are to boost the segment’s expansion.

Our in-depth analysis of the global market includes the following segments:

Product Type	Dynamic Positive Displacement
Lubrication	Oil-Free Oil-Flooded
Technology	Rotary Centrifugal Reciprocating
Power	Up to 15 kW 16-75kW 75-500kW More than 500kW
Application	Food & Beverage Construction Mining Oil & Gas Pharmaceutical Semiconductor & Electronics Agriculture Manufacturing

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Industrial Air Compressor Industry- Regional Synopsis

APAC Market Forecast

The industrial air compressor market in Asia Pacific is expected to be the largest, with a share of approximately 37% by the end of 2035. The growth of the market can be attributed majorly to the increasing investment in mining projects. The Indian government set up a District Mineral Foundation that encompassed 622 districts. As of 2022, the foundation has garnered an investment of USD 995 million for carrying out mining activities. On the other hand, the rapidly growing urbanization in the world is also expected to drive market growth in the region.

North American Market Statistics

The industrial air compressor market in North America is expected to be the second largest, with a share of around 26% by the end of 2035. The growth of the market can be attributed majorly to the growing demand for oil and gas. The EIA predicts that crude oil production in the United States is expected to rise by 720,000 barrels per day (bpd) in 2023, exceeding a previous prediction of 640,000 bpd. The oil and gas industry is one of the largest industries in North America, it utilizes air compressors for offshore drilling, extraction, and processing operations.

Key Questions Answered in the Report

1) What are the major factors driving the growth of the industrial air compressor market?

Ans: Increasing demand for automation in the industry, growing industrialization, and the need for HVAC systems are the major factors driving the market growth.

2) What would be the CAGR of the industrial air compressor market over the forecast period?

Ans: The market size of industrial air compressors is anticipated to attain a CAGR of around 8% over the forecast period, i.e., 2023 â€“ 2035.

3) Who are the major players dominating the industrial air compressor market?

Ans: The major players in the market are AireTex Compressor, Atlas Copco, Bauer Comp Holding GmbH, BelAire Compressors, Cook Compression, Frank Compressors, Galaxy Auto Service Equipment Co. Ltd., GENERAL ELECTRIC, Ingersoll Rand Inc., and MAT Holdings Inc.

4) Which segment captures the largest market size in the product type segment in the industrial air compressor market?

Ans: The positive displacement segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

5) Which region will provide more business opportunities for the growth of the industrial air compressor market in the future?

Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.