Industrial Air Compressor Market Size & Share, by Lubrication Type (Oil-lubricated and Oil-free); Technology Type; and End use - Global Supply & Demand Analysis, Growth Forecasts, Statistical Report 2025-2037

  • Report ID: 5149
  • Published Date: Jun 30, 2025
  • Report Format: PDF, PPT

 

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 Size
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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

  • North America (U.S. and Canada)
  • Asia Pacific (Japan, China, India, Indonesia, Malaysia, Australia, South Korea, Rest of Asia Pacific)
  • Europe (UK, Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Latin America (Mexico, Argentina, Brazil, Rest of Latin America)
  • Middle East and Africa (Israel, GCC, North Africa, South Africa, Rest of the Middle East and Africa)

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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

  • Oil-lubricated
  • Oil-free

Technology Type

  • Rotary Screw
  • Centrifugal
  • Reciprocating
  • Axial

End use

  • Automotive
  • Chemical & Petrochemical
  • Food & Beverage
  • Power Generation
  • Semiconductors & Electronics
  • Pharmaceuticals
  • Mining & Construction
  • Others
Vishnu Nair
Vishnu Nair
Head - Global Business Development

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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
IoT-enabled smart compressors
High-pressure compressors (40+ bar)

Growth in EVs & lithium battery manufacturing
The government push for energy-efficient models

Atlas Copco
Ingersoll Rand
Sullair (Hitachi)

Japan

6.0%

Ultra-quiet compressors (≤60 dB)
Hydrogen-ready compressors
Miniaturized compressors for robotics

Focus on hydrogen energy infrastructure
Automation in electronics manufacturing

Kobe Steel
Anest Iwata

India

11.2%

Solar hybrid compressors
AI-driven predictive maintenance
Portable screw compressors

"Make in India" boosting local production
Rising demand in pharmaceuticals & textiles

Elgi Equipments
Kirloskar Pneumatic

South Korea

7.8%

Oil-less turbo compressors
3D-printed compressor parts
Low-NOx emission models

Smart factory adoption (Industry 4.0)
Semiconductor industry expansion

Doosan
Hanwha Power Systems

Vietnam

13.5%

Energy-efficient rotary screw compressors
CNG compressors
Modular compressor systems

FDI-driven manufacturing growth
Textile & footwear industry demand

CompAir (Gardner Denver)

Thailand

9.0%

Heat recovery compressors
Automotive-grade air compressors
Desiccant air dryers

EV production hub (30% of ASEAN output)
Food processing industry growth

BOGE Kompressoren

Indonesia

8.3%

Heavy-duty diesel compressors
Mining-specific compressors
Remote monitoring systems

Nickel mining boom
Infrastructure development projects

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.

Industrial Air Compressor Market Share
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Key Industrial Air Compressor Market Players:

    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:

    • Company Overview
    • Business Strategy
    • Key Product Offerings
    • Financial Performance
    • Key Performance Indicators
    • Risk Analysis
    • Recent Development
    • Regional Presence
    • SWOT Analysis

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

Frequently Asked Questions (FAQ)

The industrial air compressor market size was USD 35.5 billion in 2024.

The global industrial air compressor market size was USD 35.5 billion in 2024 and is likely to reach USD 61.9 billion by the end of 2037, expanding at a CAGR of 4.9% over the forecast period, i.e., 2025-2037.

Bauer Kompressoren, BOGE Kompressoren, ELGi Equipments, Atlas Copco, Ingersoll Rand, Gardner Denver (part of Ingersoll Rand), and Kaeser Kompressoren are some key players in the market.

The oil-lubricated segment is expected to hold a leading share during the forecast period.

Asia Pacific is projected to offer lucrative prospects with a share of 34.2% during the forecast period.
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