Compressor Market Analysis & Forecast: 2025-2032

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) of 5.1% from 2025 to 2032.  It 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.

Global Compressor Market: Regional Insights

Among regions, North America is anticipated to witness strong growth in the global compressor market over the forecast period. The U.S. and Canada are one of the largest refiners and producers of oil and gas around the globe. Canada is one of the largest natural gas producer in the world. The country has extensive reserves of oil and natural gas. Thus, increasing growth of this industry is driving the demand for compressors across North America. Thus, the regions is likely to show strong growth in the global compressor market in the near future.

Furthermore, Asia Pacific is also expected to gain major share in the global compressor market over the forecast period. This can be attributed to presence of largest manufacturing industry in the region, growing power, chemical, steel, and cement industries in countries such as China; and presence of major market players in refining and petrochemical industries in the region. Moreover, governments in the region are cutting down on steel production capacity due to high pollution rate, this trend is likely to impact the global compressor market in the region.

Figure 1: Global Compressor Market Share (%), By Region, 2025

To learn more about this report, Request sample copy

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, which in turn is expected to propel growth of the global compressor market over the forecast period.
• Rise in demand from the petrochemical and refinery industry to augment the market growth: To setup a refinery, the expertise and experience in the sector is essential with high pressure of government regulations. The refining capacity however are increasing all over the world, and in the coming future, it is likely to continue to increase. As per the International Energy Agency, new additions of 1.2 million barrels is expected in the refining capacity in 2022. Moreover, favorable government policies with increasing inflow of Foreign Direct Investment in several sectors including petrochemicals, natural gas, and refineries are expected to benefit the compressor manufacturers around the world. Thus, the market is likely to gain significant growth in the coming future.

Global Compressor Market Opportunities:

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.

Global Compressor Market Trends:

• Major players are focused on inorganic growth strategies, such as partnerships, and joint ventures: Several key players in the market are focused on building partnerships, joint ventures, and strategic alliances for offering energy-efficient compressors to the end-users. For instance, in September 2020, Shaanxi Blower Co. Ltd. announced the successful completion of the test run of its new innovative super-large axial compressor. This new compressor has a high-efficiency blade profile with a hollow shaft, which ensures high operational efficiency. Thus, this trend is expected to continue in the global compressor market during the forecast period.
• Increasing launch of novel products by market players is a growing trend: Major players in the market are launching new products with enhanced features. For instance, in November 2021, Sundyne launched an enhanced “fit-for-purpose” centrifugal compressors. 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. For increasing incoming gas pressure to levels needed by turbines, several plants deploy Sundyne fuel gas boosters.

Global Compressor Market Restraints:

• Increasing growth of wind and solar power installations to impede market growth: With increasing awareness regarding environment, the demand for wind and solar power is increasing all over the world. The wind and solar PV power are likely to boost growth in renewable energy. Wind and solar are likely to produce more than 50% of the overall generation in Germany, Australia, the U.K., and Mexico. Moreover, due to the plummeting costs, the world is shifting toward renewables such as wind and solar. For instance, as per the International Renewable Energy Agency (IRENA), the global renewable energy share is likely to reach 30% by 2030 and increase to 50% by 2050. This in turn is expected to impact compressor demand adversely, which in turn is likely to hinder growth of the global compressor market during the forecast period.
• Rise in financial losses, equipment downtime, and air leaks issues to hamper the market growth: Leaks, poor practices, and artificial demand can cause additional financial losses, unnecessary additions of capacity, and equipment downtime. An average compressed system can lose between 25 to 35% of compressed air to leaks; thus cost control need routine monitoring and repairs. Leakage problems can lead to largest wastage of compressed air energy at any manufacturing plant. Thus, the financial losses resulting from these issues are expected to hinder growth of the global compressor market during the forecast period. However, increasing technological development in compressors is likely to provide solutions to overcome these issues, which will support growth of the market in the coming future.

Figure 2: Global Compressor Market Share (%), By Type, 2025

To learn more about this report, Request sample copy

Global Compressor Market Segmentation:

The global compressor market report is segmented into End User and Product Type.

• Based on End User, the market is segmented into Oil and Gas Industry, Power Sector, Manufacturing Sector, Chemicals and Petrochemical Industry, and Other End Users. Out of which, Oil and Gas Industry is expected to dominate the global market over the forecast period and this is attributed to the rise in production and consumption of natural gas for power generation. This in turn is driving the demand for compressors in the oil and gas industry, which is likely to drive growth of this segment.
• Power Sector segment is also expected to witness significant growth in the near future and this is owing to the increasing demand for electricity all over the world leading to construction of new power plants. This in turn is driving the demand for compressors in the power sector. As several governments are focused on generation of clean energy, power plants of natural gas, it is likely to lucratively impact the demand for compressors in this segment.
• Based on Product Type, the market is segmented into Positive Displacement, and Dynamic. Out of which, Dynamic Segment is expected to dominate the global market over the forecast period owing to the centrifugal compressor applications in various industries such as petrochemical, chemicals, healthcare, and oil & gas industry. These sectors usually require stationary and constant compression service, which is mainly rendered by centrifugal compressors. For instance, in August 2021, BHEL (India) made itself open for technical collaborations in order to upgrade centrifugal compressors for petrochemical industry.
• Positive Displacement is also expected to witness significant growth in the near future and attributed to the growing industrialization and urbanization driving the demand for power. Thus, growing demand for petrochemical industries, power plant having several applications of compressors is growing all over the world. The positive displacement compressors have several applications in these industries. Thus, with growing demand for these sectors, the demand for positive displacement compressors is also expected to grow significantly in the near future.

Global Compressor Market: Key Developments

• In October 2020, Aerzen Maschinenfabrik GmbH, announced that the rotary lobe compressors of the company are now optimized and extended with new sizes. The company further revealed the addition of new D19S rotary lobe compressor with max of 1140 m3/h and 45kW, the new size D29S with a max of 1740 m3/h and 75 kW to the product range.
• In January 2020, Ariel Corporation launched the next-generation “The Ariel Smart Compressor”, which is a manufacturer-installed electronic platform that is offered on select Ariel compressor models.
• In August 2020, Atlas Copco AB entered into a strategic alliance with Vericor Power Systems. With this alliance, the companies will be manufacturing integrally geared centrifugal compressors and companders that are powered by gas turbines of Vericor.
• 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.

Global Compressor Market: Key Companies Insights

The global compressor market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global compressor market are 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.

*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.