Compressor Market Analysis & Forecast: 2025-2032

Compressor Market trends – 2025 to 2032

Compressor Market is estimated to be valued at USD 47.05 Bn in 2025 and is expected to reach USD 66.65 Bn in 2032, exhibiting a compound annual growth rate (CAGR) of5.1% from 2025 to 2032.

Key Takeaways

• By Product Type, Positive Displacement compressors are expected to dominate the global market in 2025, driven by their extensive applications in sectors such as petrochemical, chemical, healthcare, and oil & gas industries. These industries require stationary and constant compression services, which are effectively provided by centrifugal compressors
• Based on Application Segment, the oil and gas industry is anticipated to lead the compressor market in 2025. This dominance is attributed to the rising production and consumption of natural gas for power generation, which in turn drives the demand for compressors in this sector
• By End-User Segment, the oil and gas industry is expected to dominate due to the increasing demand for natural gas and the expansion of refining capacities globally.
• On the basis of Region, North America is projected to lead the global compressor market in 2025, owing to the significant growth of the oil and gas industry in the U.S. and Canada. The region's extensive reserves of oil and natural gas and the increasing production activities are driving the demand for compressors.

Market Overview

The Compressor Market is driven by a number of factors, including the increase in energy-efficient compressors, increasing use of compressed air in industrial power tools, and the growing demand for environmentally friendly products. Moreover, the rise of manufacturing industries in developing countries like China and India has also contributed to the rising demand for air compressors.’

Current Events and Its Impact

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Role of AI (Artificial Intelligence) in Compressor Market

AI is increasingly playing a pivotal role in the compressor market, driving innovations and improvements across various sectors, from industrial manufacturing to household appliances. AI can optimize compressor energy consumption by dynamically adjusting operations based on real-time demand and operating conditions. In May 2024, Samsung launched three innovative refrigerators designed to enhance the living experience in Indian homes. Featuring Samsung’s advanced AI-powered Inverter Compressor, these refrigerators offer exceptional energy efficiency and performance.

Segmental Insights

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Compressor Market Insights, by Product Type:  Positive Displacement Lead Due to Wide Applicability in Continuous Industrial Operations

Positive Displacement Segment acquires the largest compressor market share of 43.2%. The demand for Positive Displacement (PD) compressors is driven by industries requiring high pressure and precise control, such as oil and gas, refrigeration, and chemical processing. PD compressors provide reliable performance in applications like gas compression for pipelines or natural gas transportation, where high pressure and efficiency are crucial. In the refrigeration industry, they are preferred for their ability to handle varying loads, ensuring energy efficiency in cold storage and HVAC systems. Additionally, PD compressors are used in pharmaceutical and food processing industries, where consistent air delivery under pressure is essential for quality control and production processes.

Compressor Market Insights, by End-User:  Oil and Gas Industry accounts for the largest share due to rising demand for natural gas and power generation applications

Within the global compressor market by end-user, the Oil and Gas Industry holds the largest share and is expected to dominate over the forecast period, driven by rising global demand for natural gas, particularly for power generation. Compressors play a critical role in extraction, processing, and transportation. Increased LNG infrastructure investments and higher consumption are further propelling compressor deployment. For example, during India’s 2024 heatwave, gas-based power generation surged by over 75%, significantly raising LNG imports and highlighting the growing demand for compression systems.

The Power Sector is also set for notable growth due to the rising global electricity demand and a shift toward cleaner energy. As more natural gas-fired power plants come online, demand for compressors that ensure pressure stability in gas turbines is increasing. For instance, nearly 890 GW of new gas-fired capacity will be added globally by 2040, underscoring the sector's reliance on compressors. This is further expected to propel the compressor market share.

Regional Insights

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North America Compressor Market Trends

North America dominates the overall market with a share of 35.80%. The United States and Canada are leading producers of oil and natural gas, driving demand for compressors in extraction, processing, and transportation. For instance, Canada produces approximately 18.4 billion cubic feet of natural gas per day, with substantial reserves in the Western Canadian Sedimentary Basin.

Recent developments underscore this trend. In May 2025, Saudi Aramco announced a $3.4 billion investment to expand its Motiva refinery in Texas, highlighting the U.S. as a favorable investment destination. Additionally, Baker Hughes reported a 17% increase in gas technology orders, driven by growing electricity needs from AI-driven data centers. These developments indicate a continued and growing demand for compressors in North America, reinforcing the region's leading role in shaping compressor market growth through 2025 and beyond.

Asia Pacific Compressor Market Trends

The Asia Pacific region is poised to capture a significant share of the global compressor market over the forecast period. This growth is primarily driven by rapid industrialization, particularly in countries such as China and India, which are hubs for power, chemical, steel, and cement production.

Additionally, the growing demand for liquified natural gas is also propelling the compressor market share. In May 2025, Japan's top oil refiner, Eneos Holdings, announced its plan to increase investment in low-carbon energy sources such as liquefied natural gas (LNG) and sustainable aviation fuel (SAF), while scaling back its hydrogen initiatives. This strategic shift is expected to drive demand for compressors in the energy sector. These developments indicate a continued and growing demand for compressors in the Asia Pacific region, reinforcing its key role in shaping compressor market growth through 2025 and beyond.

China’s Compressor Market Trends

China plays a pivotal role in the Asia Pacific compressor market, driven by its position as the world’s largest steel producer and chemical manufacturer. Despite government efforts to curb overcapacity and reduce environmental impact by scaling back steel production, China’s industrial output remains substantial. According to the World Steel Association, China’s steel production exceeded 1 billion tonnes in 2024, underscoring the significant demand for compressors that are essential to operations across the steel and chemical industries.

Beyond steel, China continues to make robust investments in energy infrastructure and petrochemical sectors. Expansion of liquefied natural gas (LNG) import capacity and refinery upgrades are a key focus, necessitating the deployment of advanced compressor systems to support these growing operations. In May 2025, China National Petroleum Corporation (CNPC) announced plans to expand its natural gas processing facilities, a development expected to further boost compressor market demand within the oil and gas industry. These ongoing industrial and energy sector expansions highlight China’s central role within the Asia Pacific compressor market. As a result, China is set to remain a major growth engine for the region’s compressor industry through 2025 and beyond.

Global Compressor Market Trends:  Increasing Launch of Novel Products

Various key players in the market are launching new products with enhanced features. For instance, in November 2021, Sundyne launched an enhanced “fit-for-purpose” centrifugal compressor. Cogeneration power plants need gas pressures in the range of 250-750 pound per square inch in their turbines for optimal operation. Interstate gas pipelines transport gas at different pressures, which ranges anywhere from 30 to 125 psig. This is further propelling the compressor market growth.

Global Compressor Market Drivers:  Increasing demand from natural gas sector to propel the market growth

The demand for natural gas is increasing all over the world, as the consumption of this gas is growing, especially in Asia Pacific region. According to Coherent Market Insights, the demand for natural gas is likely to increase by 1.7% year-on-year during 2025 with consumption reaching 4,000 billion cubic meters by 2022. Coal and nuclear energy are increasingly being replaced by natural gas, as countries around the world are focusing on decarbonization and diversifying the energy supply in several regions worldwide. Extracting new sources of natural gas, like shale gas deposits are increasing the price pressure, which is driving the international trade of natural gas. This in turn is driving the demand for compressors in this industry.

Global Compressor Market Opportunities : Growing Need For Energy-Efficient Compressors

The growing need for energy-efficient compressors is expected to create growth opportunities in the global compressor market during the forecast period. Air/gas compression is an energy-intensive process that significantly impacts the consumption of energy and the efficiency of production/manufacturing systems. For instance, centrifugal compressors work better in applications that need high capacities above 12,000 cfm. Thus, relatively use more energy compared to smaller compressors. Thus, increasing need for energy efficient compressors is likely to lead to development of novel products, which in turn is expected to benefit the market in the coming years.

Increasing focus of manufacturers on energy efficiency is also expected to provide business opportunities in the global compressor market during the forecast period. Amidst the increasing end-user demands and changing standards of energy efficiency in several countries, manufacturers are taking initiatives to become more energy-efficient. With growing research and development activities for increasing efficiency of compressors, the market is likely to witness ample of growth opportunities in the near future.

Market Report Scope

Compressor Market Report Coverage

Global Compressor Market: Key Developments

• In May 2025, ELGi Compressors Europe, a subsidiary of Elgi Equipments Limited, a global leader in air compressor manufacturing, introduced the new ELGi CARE Service Programs. These all-inclusive, five-year service plans are designed to prioritize customer needs, ensuring optimal uptime, reliability, and operational efficiency of compressed air systems.
• In April 2025, ZF, a worldwide leader in automotive technology, unveiled the e-comp Scroll, a cutting-edge air compressor developed specifically for electric commercial vehicles.
• In February 2025, BendPak launched the GoAir Mini, a space-saving air compressor designed for home garages and workshops. With a 120 PSI output, it’s ideal for releasing four-post lift locks and powering pneumatic tools like nailers, staplers, airbrushes, and small impact tools. The GoAir Mini can be mounted on a BendPak lift column or wall.
• In August 2021, Baker Hughes Co. received a Chevron Australia Pty Ltd contract for delivering subsea compression manifold technology for the Jansz-lo Compression (J-IC) Project.

Analyst Opinion (Expert Opinion)

• One of the most significant trends shaping the compressor market is the increasing focus on energy efficiency, which has become a key consideration for end-users across industries. According to the U.S. Department of Energy, compressed air systems can account for up to 30% of the total energy consumption in industrial facilities. This is a major cost driver, particularly in manufacturing and process industries, leading to a rising demand for more energy-efficient compressor technologies. In fact, reports from the International Energy Agency (IEA) highlight that energy efficiency in industrial compressors could lead to energy savings of 15-20% globally, making it a priority for organizations seeking to reduce their operating costs.
• Technology is revolutionizing the compressor market, particularly with the integration of the Internet of Things (IoT) and artificial intelligence (AI) into compressor systems. IoT-enabled compressors can now collect real-time data on performance metrics, operational efficiency, and potential maintenance needs. This has paved the way for predictive maintenance models, which help reduce downtime and extend the lifespan of equipment.
• For instance, Kaeser Compressors has developed the Sigma Air Manager 4.0, which uses AI-driven algorithms to analyze data from IoT-enabled compressors, allowing for the optimization of air compressor systems and improved performance monitoring. By implementing this system, users can see efficiency improvements of up to 10%, along with a 20% reduction in maintenance costs. This technology is expected to play an increasingly pivotal role, especially in industries like automotive manufacturing, pharmaceuticals, and food processing, where the uptime of compressors is crucial.

Detailed Segmentation

• Global Compressor Market, By End User
  • Oil and Gas Industry
  • Power Sector
  • Manufacturing Sector
  • Chemicals and Petrochemical Industry
  • Other End Users
• Global Compressor Market, By Product Type
  • Positive Displacement
  • Dynamic
• Global Compressor Market, By Geography
  • North America
  • Europe
  • Asia Pacific
  • South America
  • Middle East and Africa
• Company Profiles
  • Aerzener Maschinenfabrik GmbH,
  • Ariel Corporation
  • Atlas Copco AB
  • Baker Hughes Co.
  • Bauer Compressors Inc.
  • Burckhardt Compression Holding AG
  • Ebara Corporation
  • Ingersoll Rand INC
  • Siemens Energy AG
  • Sulzer AG

Sources

Primary Research Interviews from the following stakeholders

• Interviews with compressor manufacturers, industrial equipment suppliers, end-user companies across oil & gas, manufacturing, HVAC, and automotive sectors, as well as industry experts specializing in compressor technology and applications.
• Specific stakeholders: Mechanical engineers, product managers, procurement heads, maintenance supervisors, and R&D specialists.

Databases

• IHS Markit
• Engineering Village

Magazines

• CompressorTech2
• Industrial Equipment News
• Plant Engineering
• Hydrocarbon Processing
• Power Engineering

Journals

• Journal of Mechanical Engineering Science
• International Journal of Refrigeration
• Applied Thermal Engineering
• Journal of Manufacturing Processes
• Journal of Engineering for Gas Turbines and Power

Newspapers

• The Wall Street Journal
• Financial Times
• The New York Times
• Bloomberg
• The Guardian

Associations

• American Society of Mechanical Engineers (ASME)
• Compressor Engineering Association (CEA)
• International Organization for Standardization (ISO) – relevant committees
• Air Conditioning, Heating, and Refrigeration Institute (AHRI)
• Society of Petroleum Engineers (SPE)

Public Domain Sources

• U.S. Energy Information Administration (EIA)
• International Energy Agency (IEA)
• U.S. Department of Energy (DOE)
• European Environment Agency (EEA)
• National Institute of Standards and Technology (NIST)

Proprietary Elements

• CMI Data Analytics Tool, and Proprietary CMI Existing Repository of information for last 8 years

*Definition: A compressor is a device that uses a reciprocating, rotary or centrifugal pump to increase the suction pressure of gas or other fluids from a storage tank or a piping system. They are used in a variety of applications such as manufacturing, oil & gas, food & beverage, transportation and energy. They are primarily driven by an electric motor, gas turbine, gas engine or steam turbine.