Oil-Free Air Compressor Market Analysis by Product (Portable, and Stationary); by Power (Below 15KW, 15KW – Below 55KW, 55KW – 1 0 KW, and Above 160KW); by Technology (Rotary, Reciprocating, and Centrifugal); and by Application (Home Appliances, Food & Beverage, Electronics, Automotive, and Healthcare) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 4758 | Published Date: Mar 29, 2023
The global oil-free air compressor market size is estimated to reach ~USD 29 Billion by the end of 2035 by growing at a CAGR of ~6% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of oil-free air compressor was ~USD 17 Billion. The growth of the market can be attributed to growing prevalence of oil leakage from air compressor. An air compressor may experience significant mechanical failure, air leakage, or oil leaks. About 2 million litres of water could become contaminated by just about 2 litre of oil. Oil pollution could have a severe impact on the aquatic ecosystem since it spreads across the surface in a thin layer, preventing oxygen from reaching the aquatic plants and animals. Hence, the demand for oil-free air compressor is growing, that is anticipated to boost the market’s growth.
Additionally, high temperatures could cause the oil lubricants used in air compressors to breakdown, emitting deadly levels of carbon monoxide. Moreover, strict government regulation in order to stop CO2 emission is also estimated to boost the demand for oil-free air compressor. The Indian government has pledged to cut CO2 emissions by 50% by 2050 and to zero by 2070. Oil-free compressors consists of benefits, such as: reducing hazardous emissions since the compressed air is as pure as possible and free of any particulate pollution, defending the environment against pollution, and notably lowering running. Hence, given this non-hazardous, secure method of air compression, numerous producers, manufacturers, and healthcare specialists are switching to oil-free air compressors.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~6% |
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Base Year Market Size (2022) |
~ USD 17 Billion |
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Forecast Year Market Size (2035) |
~ USD 29 Billion |
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Regional Scope |
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Growth Drivers
In 2021, there were about 88 million barrels of oil produced day globally. With approximately 94 million barrels produced, oil production in 2019 reached a record high.
About 36 new medications were authorized by the Center for Drug Evaluation and Research in 2022. (CDER). Each year, the number of new pharmaceutical goods approved for sale varies greatly. In 2016, little over 19 unique pharmaceuticals were released; in 2018, approximately 59 new products were released. About 49 new medications received clearance in 2021. Hence, the demand for oil-free air compressor is growing. Oil-free air compressors are employed in a variety of pharmaceutical applications, including the transportation of capsules and packing as well as the provision of factories with a consistent flow of breathable, clean air. Oil less compressors play a crucial role in the manufacturing of medicines, capsules, and other consumable goods, among other pharmaceutical industry activities. Given the stringent purity requirements for these products, using oil-free air compressors helps to prevent contamination in automated production lines and reduce rejection rates for packaging applications.
In 2022, the US auto industry sold almost 3 million vehicles. Almost about 12 million cars and light trucks were sold in total that year in the US. The number of vehicles sold in the US peaked in 2016 at around 16 million.
For the fiscal year 2020, India, a country in south Asia, produced more than 209 thousand metric tons of milk powder. Compared to the about 137 thousand metric tons in the fiscal year 2015, this was a significant increase. Food products, such as cocoa powder or powdered milk, are pushed along pipes using compressed air. However, the powder is expected to be combined with oil contamination, ruining the product. Hence, the demand for oil-free air compressor is estimated to increase.
In 2020, about 215 million of people consumed veggies in jars or cans in the United States. Compressed air is separated into oxygen and nitrogen during the air separation process. The food is then preserved using nitrogen in larger storage facilities, on ships, and in cans. As the nitrogen comes into direct touch with the foodstuff, the air must be completely devoid of oil. Hence, this is estimated to boost the preference for oil-free air compressor.
Challenges
The global oil-free air compressor market is segmented and analyzed for demand and supply by application into home appliances, food & beverage, electronics, automotive and healthcare. Out of which, the automotive segment is anticipated to garner the highest revenue by the end of 2035. The growth of the segment can be attributed to growing production for automobile all around the world. Around 8 million motor vehicles were created in the US in 2021. Over 79 million motor vehicles were built worldwide in the same year. Global motor vehicle manufacturing rose by more than about 2% in 2021 compared to the previous year. Hence, the demand for paint is growing, further boosting the market growth. Paint is applied using robots or paint guns and is propelled onto clean metal surfaces such as vehicle bodywork using compressed air. Oil in compressed air reduces adhesion or results in beading, which lowers the finish's quality. Hence, the demand for oil-free air compressor is high. Moreover, to stop the paint from coagulating, compressed air stirs it. Furthermore, it mixes the paint, ensuring consistency all throughout the bath. However, paint disintegrates into oil in compressed air, which negatively impacts paint adhesion and quality. Hence, the preference of automobile sector for oil-free air compressor is more.
The global oil-free air compressor market is also segmented and analyzed for demand and supply by power into below 15KW, 15KW – below 55KW, 55KW – below 160 KW, and above 160 KW. Amongst which, the 15KW – below 55KW segment is anticipated to have a significant growth over the forecast period, backed by its growing usage in industries such as chemicals, electronics, pharmaceuticals, and food & beverages. Moreover, there has been growing investment made in electronics sector which is also estimated to boost the segment growth. Additionally, there has been an increase in public awareness of poor air quality and its detrimental effects on the ecosystem. Manufacturers of oil-free air compressors are compelled to create energy-efficient devices as a result of the government's strict rules regarding environmental air protection and CO2 emissions.
Our in-depth analysis of the global oil-free air compressor market includes the following segments:
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By Product |
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By Power |
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By Technology |
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By Application |
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The market share of oil-free air compressor in North America, amongst the market in all the other regions, is projected to have the highest growth by the end of 2035, backed by growth in industries such as manufacturing, healthcare, energy, and oil & gas, along with growing investment in these sectors. These compressors are highly favored for reasons that include such efficient operation at lower prices, superior performance at varying speeds, and a decreased need for repair and maintenance. Also, the oil-free air compressor market in the United States and Canada has remained close to saturation and would keep showing the same pattern without any obvious fall. Further, the growing automobile industry is this region is also estimated to boost the market for oil-free air compressor. Moreover, the demand for backed food such as cake, breads, biscuits, and more is growing. In 2020, about 325 million Americans ate bread. In 2024, this number is anticipated to rise to approximately 334 million. After baking, baked foods are removed from the oven and cooled using compressed air. Air contamination ruins the finished product, resulting in rejections and production losses. Hence, the demand for oil-free air compressor is high.
The European oil-free air compressor market is estimated to be the second largest, to grow at a highest share. Conventionally, Europe has been among the most secure markets for oil-free air compressors. Despite varied sales across the region as a result of the unstable economic climate, it continues to be one of the largest markets for oil-free air compressors. With a number of manufacturing hubs, Germany and the United Kingdom continue to be the most promising nations for forthcoming sales and demand of oil-free air compressors. When compared to traditional air compressors, the oil-free air compressor uses less energy, which results in low carbon emissions and cost effectiveness over the course of the product life cycle. These compressors are projected to be more widely adopted in a variety of end user sectors in accordance with industry standards owing to their improved operational efficiency. The need for low-maintenance compressors has increased in Europe as a result of growing environmental consciousness and laws.
Additionally, the market in Asia Pacific region is also estimated to have a significant growth over the forecast period. A multitude of new laws that are intended to ensure better air quality have been created as a response of growing environmental concerns. As a result, it is anticipated that there would be a significant increase in the demand for oil-free air compressor. Additionally, it is anticipated that increased interest in CO2 emissions reduction, energy recovery, and enhanced energy efficiency is anticipated to increase product demand in the region. Also, the market is expanding as a result of the growing demand for value-added services and the necessity to monitor compressed air systems.
Improvements to its "fit-for-purpose" centrifugal compressors, which are used as fuel gas boosters for turbines generating electricity at refineries, chemical plants, hospitals, universities, and other industrial co-gen facilities, were announced by Sundyne, a global leader in the design and manufacture of mission critical pumps and compressors.
The newest effort by Atlas Copco to lessen the environmental impact of its activities is the investment in solar cells in India. Leading supplier of sustainable productivity solutions Atlas Copco begun relying nearly entirely on solar energy to run its compressor manufacturing in Chakan, India. The action helps Atlas Copco achieve its objective of continuously reducing the environmental effect of its operations. The construction of solar boilers on the roof of the service centre of the significant compressor plant in Antwerp, Belgium, is one of the most recent instances.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Smruti Ranjan, Rajrani Baghel
Ans: The major factors driving the growth of the market are growing extraction of oil & gas, surge in manufacturing of medicines, surge in demand for automobile, and others.
Ans: The market size of oil-free air compressor is anticipated to attain a CAGR of ~6% over the forecast period, i.e., 2023 – 2035.
Ans: Oil-free compressor have shorter life-span, high maintenance cost, compared to oil lubricated air compressors, oil-free air compressors produce more heat and nice are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Atlas Copco, FS Elliott Co. LLC, Hanwha Techwin Co., Ltd., Ingersoll Rand, and more.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by product, technology, power, application, and by region.
Ans: The 15KW – below 55KW segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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