Air Compressor Market Analysis Report By Product, By Application, By Lubrication, By Type And Segment Forecasts From 2019 To 2025

Industry Insights

The global air compressor market size was valued at USD 31.26 billion in 2018 and is expected to grow with a CAGR of 3.8% over the forecast period, from 2019 to 2025. Growing demand for air compressors in the food & beverage industry owing to strict norms for food safety is expected to drive the market growth. In North American and Middle East countries, high investment for the oil and gas exploration process is expected to further augment the market growth.

The demand for air compressors is propelling across several industries due to its several advantages such as effective operation with affordable cost, low maintenance, increasing penetration of variable-speed systems, and retrofitting of existing systems. Moreover, these energy-efficient air compressors are gaining traction due to their cost-effective solution. For instance, governments across the globe have announced strict norms for gaseous emissions, which have fueled the demand for energy-efficient products.

Market players are striving to develop low-maintenance and eco-friendly products to encourage end-users for adopting these products. Companies like Ingersoll Rand, Inc. and Atlas Copco are engaged in developing energy-efficient products with high-performance features and capabilities to sustain in a competitive market. For example, in 2019, Allmand Bros., Inc. introduced mobile generators and air compressors at the ARA show in California.

These air compressors are used in the food processing industry and play a vital role in shaping, processing, packaging, and cutting to ensure uncontaminated and safe operations. Hence, the product is anticipated to witness high demand in the food and beverage industry.

Type Insights

On the basis of types, the market is segmented into portable and stationary. In 2018, the portable compressors segment held more than 40% market share in terms of revenue and is projected to exhibit a higher CAGR from 2019 to 2025. These products are majorly used in the mining & construction industry. In construction and other industries, portable products are a reliable power source for machines and tools. Moreover, benefits such as low maintain ace and easy handling are expected to drive the segment growth in low-duty applications.

The stationary segment is expected to witness considerable growth, as it requires different installation considerations for the mounting process of this system. These air compressors are widely used in the manufacturing process. In the oil and gas sector, stationary air compressors are used in pneumatic equipment for pipeline transportation, oil extraction and refining, and other processes.

Product Insights

Based on the product, the market is fragmented into reciprocating/piston, rotary/screw, and centrifugal. The centrifugal product segment is projected to grow with the fastest CAGR during the forecast period. The Centrifugal system is energy-efficient and has fewer parts that come in contact with each other’s to cause kinetic friction with high airflow. It has a wide range of applications including gas turbines, petrochemicals, chemical plants, food & beverage, and oil refineries.

The rotary segment is expected to hold the largest market share during the forecast period. Rotary compressors are widely used for larger industrial applications like papermaking & printing, metallurgy & mining, electric power, electronic and electrical, and mechanical machinery.

Lubrication Insights

By lubrications, the air compressors market is fragmented into oil-filled and oil-free. The oil-free systems are gaining traction across the globe due to the increasing focus of governments towards reducing carbon emissions for environmental security. Moreover, the growth of manufacturing, food processing, and semiconductor coupled with rapid industrialization is driving demand. In the semiconductor & electronic industry, an oil-free system delivers pressured air in an automatic control system in order to eliminate fine dust from liquid-crystal screen surfaces and measuring instruments.

The oil-filled segment is projected to lead the market throughout the forecast period and is expected to reach around USD 25 billion. Oil products need to form lubrication for cooling, sealing, and internal components. In addition, proper lubrication requires less energy consumption by keeping optimum temperatures in the air compressors. Moreover, lubrication requirements differ as per the type of gas that is being compressed.

Application Insights

Based on application, the market is segmented into food & beverage, metal & mining, manufacturing, home appliances, semiconductors & electronics, energy, healthcare, and others. Other applications include chemicals, oil & gas, and construction. Among applications, home appliances are expected to emerge as the fastest-growing segment during the forecast period.

In 2018, the manufacturing application segment dominated the market and accounted for over 31% of the revenue market share. In the same years, the oil and gas segment held the second-largest market share, as this product is used in this industry for the re-injection of reservoir pressure preservation. Moreover, growth in shale gas production and natural gas and oil exploration is expected to propel the product demand during the forecast period.

Regional Insights

In 2018, Asia Pacific held the largest market share of more than 31% in terms of revenue. This is due to the growing spending on infrastructure development and industrialization. The Asia Pacific air compressor market is majorly driven by the increasing demand for products across several applications such as oil & gas, food & beverage, home appliances, and manufacturing industries. In addition, the existence of a large number of screw manufacturers in India and China coupled with the growth of the semiconductor and electronics industry in Taiwan and China is projected to further boost the market growth in Asia pacific. In the semiconductor & electronic industry, demand for low output compressors is increasing as it helps to handle delicate electronic components and printed circuit boards. Therefore, the development of electronic manufacturing facilities in this region is fueling the market growth.

Europe and North America air compressors market is expected to witness comparatively slower growth. However, growing investments in the Eastern European region are expected to propel the demand for air compressors in the next few years.

Impact of COVID-19

The outbreak of COVID-19 has witnessed a slight impact on air compressor market growth. In this situation, the sustainability of this industry is majorly attributed to growing demand across several industries such as healthcare, chemical manufacturing, oil and gas, and others. Governments across several counties have restricted to reduce the spread of COVID-19. However, the presence of well-established players such as Sullair, Gardner Denver, Inc., and Ingersoll-Rand plc is expected to surge the market growth. For instance, in 2020, Sullair has launched Perkins portable diesel air compressor with excellent durability and high performance. Moreover, to retain customer trust in an unprecedented situation, market players are adopting several strategies.

Key Companies & Market Share Insights

Key players included in this market areFrank Compressors; Gast Manufacturing, Inc.; Compressor Products International (CPI); Atlas Copco; Bauer Group; Cook Compression; BelAire Compressors; Kaeser Compressors; MAT Industries, LLC; Sullair LLC.GENERAL ELECTRIC; Galaxy Auto Service Equipment Co. Ltd.; AireTex Compressor;and Ingersoll Rand Plc.

In order to gain higherrevenue share, companies are focusing on expanding their product portfolio. Companies are also implementing strategies like mergers, acquisitions, and collaborations to strengthen their footprints in the market. For example, recently Atlas Copco acquired a large number of companies including Glauber Equipment. Pressure Compressor, and Mobilaris MCE AB to gain maximum market share and strengthen their footprints in competitive market.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Million Insights has segmented the global air compressor market report on the basis of type, product, lubrication, application, and region:

• Type Outlook (Revenue, USD Billion, 2015 - 2025)
    • Portable
    • Stationary

• Product Outlook (Revenue, USD Billion, 2015 - 2025)
    • Reciprocating/Piston
    • Rotary/Screw
    • Centrifugal

• Lubrication Outlook (Revenue, USD Billion, 2015 - 2025)
    • Oil-filled
    • Oil-free

• Application Outlook (Revenue, USD Billion, 2015 - 2025)
    • Manufacturing
    • Semiconductors & Electronics
    • Food & Beverage
    • Healthcare/Medical
    • Home Appliances
    • Energy
    • Oil & Gas
    • Others

• Regional Outlook (Revenue, USD Billion, 2015 - 2025)
    • North America
        • The U.S.
        • Canada
    • Europe
        • The U.K.
        • Germany
    • Asia Pacific
        • China
        • India
    • Latin America
        • Brazil
        • Mexico
    • Middle East & Africa