February 25, 2024
Compressor Market

The Global Compressor Market Is Projected To Driven By Rapid Industrialization

The global compressor market has witnessed remarkable growth over the past few decades owing to rapid industrialization and growing construction activities worldwide. Compressors are highly essential equipment used in various industries for compression of air or gas. They are widely utilized for operating pneumatic tools in industries like construction, automotive, and mining. The demand for compressors has significantly increased from the refrigeration and air conditioning industries as well.

The global compressor market size is estimated to be valued at US$ 42.6 billion in 2023 and is expected to exhibit a CAGR of 16% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends witnessed in the global compressor market is the growing demand for energy efficient and eco-friendly compressors. Stringent regulations regarding carbon emissions have compelled manufacturers to develop compressors that consume less energy and cause minimal pollution. Oil-free compressors have gained widespread acceptance as they eliminate the need for oil in compression processes and are more environment-friendly. The adoption of variable speed drive technology has also increased, which allows compressors to adjust flow and pressure based on demand for optimized performance. Rising focus on integrating IoT and AI capabilities is another trend being followed by major players to offer predictive maintenance solutions and remotely monitor compressor operations.

Porter’s Analysis

Threat of new entrants: The compressor market requires high initial investments for manufacturing facilities and R&D which acts as a barrier for new players.

Bargaining power of buyers: Buyers have moderate bargaining power due to the presence of multiple compressor manufacturers.

Bargaining power of suppliers: Suppliers of compressor components have low to moderate bargaining power due to availability of substitute components from different suppliers.

Threat of new substitutes: Technological advancements have led to introduction of substitutes like electric compressors, however compressed air still dominates certain applications.

Competitive rivalry: The global compressor market is a highly fragmented space with the presence of several global as well as regional players.

Key Takeaways

The Global Compressor Market Demand is expected to witness high growth driven by increasing demand from industries such as oil & gas, manufacturing, and construction. The global compressor market size is estimated to be valued at US$ 42.6 billion in 2023 and is expected to exhibit a CAGR of 16% over the forecast period 2023-2030.

Regional analysis: Asia Pacific dominates the global compressor market currently and is expected to continue its dominance holding over 45% market share during the forecast period. China and India are witnessing rapid industrialization which is driving the demand of compressors in the region. North America is also expected to grow at a significant rate during the forecast period on account of reshoring of manufacturing in countries like USA and Canada.

Key players operating in the compressor market are Atlas Copco, Ingersoll Rand, Elgi Equipments, KAESER, and Suzler. Small players are focusing on product innovation and expansion in developing countries of Asia Pacific and Middle East Africa region to gain higher market share.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it