Industrial Air Compressor Market Outlook:
Industrial Air Compressor Market size was over USD 35.5 billion in 2024 and is predicted to cross USD 61.9 billion by the end of 2037, witnessing more than 4.9% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of industrial air compressor is evaluated at USD 37.3 billion.
Driven by government standards for energy efficiency, the demand for more advanced industrial air compressors is particularly true in the HVAC, manufacturing, and process industries. The U.S. Department of Energy estimates compressed air accounts for up to 13% of industrial electricity consumption. The DOE supports variable-speed rotary compressors and offers incentives to buyers that may include tax rebates. According to the DOE, lubricated rotary, screw units make up around 71% of those sales. On the supply side, there continues to be stability in the raw materials used to manufacture compressors, particularly steel and nonferrous metals, although the prices were up 4.7% from a year ago.
Alliance Compressors invested $46 million into a new facility in Louisiana to add 31% more assembly capacity, along with financing from the state government. Some key component facts include imports of control electronics remain high, but R&D activities continue to grow, particularly with inverter controls and lubricants, and the Producer Price Index for compressor and compressor parts manufacturing increases from 304.688 in June 2024 to 306.956 in May 2025. The regulatory and supply environments support manufacturing growth and global trade of compressors and compressor-related systems.

Industrial Air Compressor Market - Growth Drivers and Challenges
Growth Drivers
-
Rising food & beverage industry demand: Air compressors are key components used in food processing plants for use in pneumatic conveying and packaging of products, cooling of production equipment, and fermentation. Food manufacturing is a significant business in the U.S. According to the U.S. Census Bureau, the food manufacturing industry shipped USD 1.13 trillion in 2024, a growth of 5.2% over 2023. The increase in the demand for packaged food, along with very strict requirements for cleanliness and hygiene, is a significant driver for air compressor adoption in the food and beverage industry, particularly oil-free air compressors, to provide contamination-free air for beverage bottling, the dairy industry, and bakery products.
-
Growth in mining and quarrying activities: Industrial air compressors are also commonly used to drive drilling machines and other equipment across mining for material extraction and hoisting. According to the World Mining Data report 2024, global mineral production growth was around 6% in the past year and correlated with increased demand for metals, particularly used for batteries for electric vehicles and electronics. In Latin America, Africa, and Australia, increased mining activities are resulting in mines adopting heavy-duty air compressors to allow reliable operation in tough operational conditions, growing demand in the market.
1. Industrial Air Compressor Trade Dynamics & Market Impact (2019–2024)
Import/Export Data (2019–2024, USD Billion)
Year |
Top Exporter |
Top Importer |
Value |
Key Driver |
2019 |
Germany |
USA |
2.5 |
Manufacturing boom |
2020 |
Japan |
China |
1.8 |
Medical equipment demand |
2021 |
USA |
EU |
2.8 |
Post-COVID recovery |
2022 |
China |
Southeast Asia |
3.2 |
Factory relocations |
2023 |
Italy |
Middle East |
1.6 |
Oil & gas investments |
Key Trade Routes
Route |
Value (2023) |
Share of Global Trade |
Germany-to-USA |
$1.3B |
19% |
Japan-to-ASEAN |
$0.8B |
13% |
China-to-Africa |
$0.8B |
10% |
2. Industrial Air Compressor Market: Price History & Future Trends (2019-2024)
Historical Price Trends (USD/Unit) & Unit Sales (000's)
Year |
North America |
Europe |
Asia |
Global Avg. |
Unit Sales |
2019 |
$12,501 |
$13,201 |
$9,801 |
$11,501 |
1,251 |
2020 |
$11,801 (-7%) |
$12,401 (-7%) |
$9,201 (-7%) |
$10,801 (-7%) |
1,101 (-11%) |
2021 |
$13,701 (+17%) |
$14,501 (+18%) |
$10,501 (+15%) |
$12,901 (+20%) |
1,351 (+24%) |
2022 |
$15,201 (+12%) |
$16,001 (+11%) |
$11,801 (+13%) |
$14,301 (+12%) |
1,481 (+11%) |
2023 |
$14,801 (-4%) |
$15,501 (-4%) |
$11,501 (-4%) |
$13,901 (-4%) |
1,521 (+4%) |
Key Price Influencers (2019-2024)
Factor |
Impact |
Raw Material Costs |
Steel prices ↑43% (2020-2022) |
Geopolitical Events |
Russia-Ukraine war ↑ energy costs by 36% |
Environmental Regulations |
EU Ecodesign ↑ compliance costs by 9% |
Regional Sales Breakdown (2023)
Region |
Unit Sales (000's) |
Avg. Price (USD) |
North America |
421 |
$14,801 |
Europe |
381 |
$15,501 |
Asia |
721 |
$11,501 |
Challenges
-
Infrastructure limitations & power grid barriers: In Europe, they are mounting rapid advances in electrification policy that favour electric compressors over diesel options. In many developing market regions, however, the lack of reliable three-phase power renders those electric compressor alternatives and solutions impractical, either due to performance or reliability issues. For example, India’s 2021 Bureau of Energy Efficiency (BEE) energy-efficiency mandates required shoppers to buy smarter, smart-ready, and smart-modviable models, however, rural factories with weak grids are stuck on the last generation of diesel compressors with little attitude and opportunity to troubleshoot their decision to stick with their less compliant technology.
-
Clean-air regulations are driving the adoption of oil-free technology despite the costs: The oil-free compressor market was valued at US$403 million in 2024 and is projected to grow at approximately 3.4% annually. This growth is fueled by environmental regulations, especially in the pharmaceutical and food sectors; thus, oil-free screw or centrifugal compressors with cleaner emissions meet air-quality compliance standards. However, they remain 16% to 31% more expensive to purchase than oil-lubricated versions. While SMEs in developing markets recognize the attractive ROI opportunities offered by oil-free compressors in the long run, they are ultimately hindered by the budget required to switch to oil-free screw or centrifugal options.
Industrial Air Compressor Market Size and Forecast:
Report Attribute | Details |
---|---|
Base Year |
2024 |
Forecast Year |
2025-2037 |
CAGR |
4.9% |
Base Year Market Size (2024) |
USD 35.5 billion |
Forecast Year Market Size (2037) |
USD 61.9 billion |
Regional Scope |
|
Industrial Air Compressor Market Segmentation:
Lubrication Type Segment Analysis
The oil-lubricated compressors segment is predicted to gain the largest market share of 56.4% during the projected period by 2037, due to cost-effectiveness and endurance in demanding applications, including metal fabricating and chemical processing. Even if there are environmental problems, the development of effective lubrication systems and oil-separation technologies has helped to minimize their detrimental impact. EERE claims that higher pressure uses benefit most from oil-lubricated systems, which also provide the best operating life.
Technology Type Segment Analysis
The rotary screw compressors segment is anticipated to constitute the most significant growth by 2037, with 41.6% market share, mainly due to the more efficient, require less maintenance, and operate continuously, found in automated industrial applications. The need for a steady, energy-efficient air supply is driving their expanding use in the chemical, automotive, and food and beverage sectors. With their varied speed ability and excellent duty cycles, rotary compressors are crucial for industrial decarbonization, thereby reducing energy waste, according to the U. S. Department of Energy (DOE).
Our in-depth analysis of the global industrial air compressor market includes the following segments:
Segment |
Subsegment |
Lubrication Type |
|
Technology Type |
|
End use |
|

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Industrial Air Compressor Market - Regional Analysis
Asia Pacific Market Insights
Asia Pacific industrial air compressor market is expected to hold 34.2% of the market share, generating revenues to the amount of $9.8 billion, and driven by rapid industrialization, energy-intensive projects, and mining investments such as India's slightly less than $1.1 billion mineral fund. Demand emanates from oil, chemical, construction, and manufacturing domains, while also moving toward automation and green solutions. IoT-enabled compressors for predictive maintenance have come into the limelight; however, sustainability directives emphasizing energy-efficient and oil-free technologies bolster the region's market leadership.
China, driven by automation, refinery expansion, and green regulations, will lead the APAC industrial air compressor industry by revenue in 2037. The government also funds compressor sustainability initiatives with ¥11 billion per annum; by 2023, some 1.6 million chemical companies will operate environmentally ahead systems. Needs are further generated via policies of Coal-to-Gas and smart-factory transitions. Improving energy-efficiency investments and standing as a steadily growing manufacturing concern, China cements its dominance under corroborated backing by global research.
Driven by Make in India, SME automation, and environmental demands, India is predicted to have the highest industrial air compressor CAGR (2025–2037). India is poised to surpass China and Japan owing to its young workforce, tech-driven manufacturing growth, robust environmental regulations, and growing industrial GDP (7–8%); government funding reached $1.3 billion yearly, and PLI projects increased domestic output. IoT compressor adoption increased 101% between 2021 and 2024, driven by the chemical, automotive, and pharmaceutical sectors.
APAC Industrial Air Compressor Market Insights (2024)
Country |
CAGR (2024–2030) |
Latest Technologies |
Key Developments |
Major Players |
China |
8.5% |
Oil-free VSD compressors |
Growth in EVs & lithium battery manufacturing |
Atlas Copco |
Japan |
6.0% |
Ultra-quiet compressors (≤60 dB) |
Focus on hydrogen energy infrastructure |
Kobe Steel |
India |
11.2% |
Solar hybrid compressors |
"Make in India" boosting local production |
Elgi Equipments |
South Korea |
7.8% |
Oil-less turbo compressors |
Smart factory adoption (Industry 4.0) |
Doosan |
Vietnam |
13.5% |
Energy-efficient rotary screw compressors |
FDI-driven manufacturing growth |
CompAir (Gardner Denver) |
Thailand |
9.0% |
Heat recovery compressors |
EV production hub (30% of ASEAN output) |
BOGE Kompressoren |
Indonesia |
8.3% |
Heavy-duty diesel compressors |
Nickel mining boom |
Mitsubishi Heavy Industrie |
North America Market Insights
The North American market is expected to hold 28.3% of the market share, driven by demand from manufacturing, oil & gas, and food & beverage sectors. The U.S. dominates with 75% market share, supported by shale gas expansion and $2.9 trillion manufacturing output (2023). Canada follows, leveraging its oil sands industry, while Mexico grows at 6.8% CAGR due to nearshoring trends. Key technologies include oil-free VSD compressors (35% market share) and IoT-enabled smart compressors (20% adoption). Major players like Atlas Copco and Ingersoll Rand are investing in energy-efficient and hydrogen-ready compressors, with $420 million in R&D spending in 2024. Regulatory push for low-emission compressors (DOE 2027 standards) further accelerates innovation.
The U.S. industrial air compressor market was valued at $2.9 billion in 2024, accounting for 75% of North America's market share, with a steady 5.2% CAGR projected through 2030. Key drivers include strong demand from manufacturing (35% of sales), oil & gas (25%), and food & beverage (18%) sectors, supported by the country's $2.9 trillion industrial output. Energy-efficient VSD compressors dominate 40% of new installations, while IoT-enabled smart compressors are growing at 15% annually. Leading players like Atlas Copco, Ingersoll Rand, and Sullair are investing $300M+ in R&D for oil-free and hydrogen-compatible models, aligning with DOE 2027 efficiency standards. The market is further boosted by reshoring trends, with 62% of manufacturers expanding U.S. operations.
Canada's air compressor market will have a 6.2% global share, driven by the oil sands sector (30% of demand), mining (22%), and food processing (18%), supported by $150 billion in energy sector investments. Energy-efficient oil-free screw compressors hold 35% market share, while IoT-connected models are growing at 12% annually. Key players like Atlas Copco Canada and Sullair are focusing on arctic-grade compressors for harsh climates, with $80 million in annual R&D spending. Strict carbon emission regulations and 30% tax credits for green upgrades are accelerating the adoption of low-emission models. The market benefits from increased manufacturing FDI, with 40% of compressors now domestically produced.
Europe Market Insights
The European industrial air compressor market was valued at €4.2 billion ($4.5 billion) in 2024, with a projected 4.8% CAGR (2024-2030), driven by stringent energy efficiency regulations and industrial automation. Germany dominates with 28% market share, followed by France (18%) and Italy (15%), supported by the region's €5.3 trillion manufacturing sector. Oil-free compressors account for 38% of sales, while IoT-enabled smart compressors are growing at 20% annually to meet Industry 4.0 demands. Key players like Atlas Copco, Kaeser, and BOGE are investing €500+ million in R&D for hydrogen-ready and ultra-low noise (<70 dB) models. The market is boosted by the EU's Ecodesign Directive, mandating 30% energy savings in new compressors by 2025. Renewable energy projects and electric vehicle production are creating 12% YoY demand growth for high-pressure compressors.

Key Industrial Air Compressor Market Players:
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The global air-compressor is growing, with European and U.S. giants like Atlas Copco and Ingersoll Rand at the front, pushing new ideas and snapping up rivals. Japanese companies center their work on oil-free machines that save power. Meanwhile, challengers like India's ELGi and South Korea's Hanwha win customers by keeping prices lean. Rising orders in Asia-Pacific and Africa digital tools (IoT-linked gear), greener models, and wider regional footprints; on top of that, mergers and steady R&D spending are driving the market.
Here is a list of key players operating in the global industrial air compressor market:
Company Name |
Country of Origin |
Market Share (Approx.) |
Atlas Copco |
Sweden (Europe) |
21% |
Ingersoll Rand |
USA |
19% |
Gardner Denver (part of Ingersoll Rand) |
USA |
13% |
Kaeser Kompressoren |
Germany (Europe) |
9% |
Sullair (Hitachi Group) |
Japan |
8% |
Bauer Kompressoren |
Germany (Europe) |
xx% |
BOGE Kompressoren |
Germany (Europe) |
xx% |
ELGi Equipments |
India |
xx% |
Chicago Pneumatic (Atlas Copco) |
USA |
xx% |
FS-Curtis |
USA |
xx% |
Hanwha Power Systems |
South Korea |
xx% |
Aerzener Maschinenfabrik |
Germany (Europe) |
xx% |
Boge Kompressoren (Australia) |
Australia |
xx% |
Here are a few areas of focus covered in the competitive landscape of the market:
Recent Developments
- In March 2024, Hitachi Global Air Power launched the Sullair TS 190-260 two-stage rotary-screw compressors, which have exceptional efficiencies and compactness due to patented inter-stage cooling. In chemical facilities, these compressors reduce total emissions and operating costs by 16-21%. The adoption of the system is beginning to accelerate in the chemical market as the urgency to employ energy-savvy high-purity compressed air continues to grow.
- In March 2025, AERZEN introduced an advanced and oil-free DS and partially load-optimized SI compressor series. These products are designed purposely for applications not tolerate energy consumption or contamination. AERZEN expects demand for advanced compressors with VSD (Variable Speed Drive) to grow 11-16% within the next 2 years as the chemical industry continues to increase compressor consumption with precision and sustainable outcomes. Systems can now achieve an emerging set of environmental standards and variable demand in chemical processes.
- Report ID: 5149
- Published Date: Jun 30, 2025
- Report Format: PDF, PPT
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