Air Compressor Market Size and Outlook 2031

Report Description

Forecast Period	2027-2031
Market Size (2025)	USD 37.29 Billion
CAGR (2026-2031)	6.18%
Fastest Growing Segment	Oil and Gas
Largest Market	Asia Pacific
Market Size (2031)	USD 53.44 Billion

Market Overview

The Global Air Compressor Market will grow from USD 37.29 Billion in 2025 to USD 53.44 Billion by 2031 at a 6.18% CAGR. An air compressor is a mechanical device that converts power into potential energy stored in pressurized air, serving as a vital utility for powering pneumatic tools and industrial processes. The market's growth is fundamentally supported by the expansion of the global manufacturing sector, particularly within the automotive and food and beverage industries, which necessitates reliable pneumatic energy sources. Furthermore, the enduring operational imperative to reduce electricity consumption drives the continuous demand for equipment replacement and upgrades, providing a stable foundation for market activity independent of transient technological trends.

However, a significant challenge impeding broader market expansion is the high initial capital investment required for efficient compression systems, which often deters cost-sensitive small and medium-sized enterprises. Despite this barrier, the sector has maintained positive momentum in specific regions. According to the VDMA, in 2024, exports of compressors, compressed air, and vacuum technology rose by 6.1 percent year-on-year to 960 million euros during the first two months, reflecting resilient international demand.

Key Market Drivers

The increasing adoption of energy-efficient and variable speed drive (VSD) compressors is a primary force reshaping the market, driven by escalating industrial electricity costs and stringent sustainability mandates. Manufacturers are aggressively prioritizing research and development to engineer systems that minimize carbon footprints while maximizing output, thereby compelling industries to replace legacy equipment with greener alternatives. This strategic focus is evident in the investment patterns of leading industry players. According to Atlas Copco Group, in March 2024, the company reported investing approximately SEK 6,166 million in research and development during 2023, largely directed toward enhancing the energy efficiency and electrification of their product portfolio. Such substantial capital allocation underscores the industry-wide pivot toward sustainable technologies as a critical competitive differentiator.

Concurrently, the expansion of global oil and gas exploration and LNG infrastructure remains a robust growth engine, particularly as energy security concerns drive new project commissions. This sector demands high-pressure, specialized compression systems for extraction, processing, and transport, sustaining order volumes even amidst broader economic fluctuations. According to Burckhardt Compression, in June 2024, sales for the fiscal year 2023 rose by 18.4% year-on-year to reach CHF 982.0 million, a performance attributed significantly to applications facilitating the transition to secure energy sources. This sectoral strength contributes to the overall market's vitality, which extends across various industrial verticals. Reflecting this broad-based demand, according to Ingersoll Rand Inc., in February 2024, the company achieved full-year revenues of $6.9 billion, representing a 16% increase compared to the previous year.

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Key Market Challenges

The high initial capital investment required for efficient compression systems serves as a substantial barrier to the expansion of the global air compressor market. Advanced pneumatic technologies often carry a premium price tag that exceeds the immediate budgetary capacity of small and medium-sized enterprises. This financial threshold forces many cost-sensitive businesses to defer purchasing decisions or continue operating outdated machinery, thereby lengthening the replacement cycle and stifling the volume of new equipment orders. Consequently, the market experiences slower turnover rates as companies prioritize liquidity over infrastructure modernization.

This reluctance to commit to large-scale capital expenditures is reflected in broader industrial performance data, which demonstrates a tangible contraction in equipment investment. According to the VDMA, in 2024, global sales of machinery and equipment decreased by 1.5 percent compared to the previous year, amounting to approximately 3.26 trillion euros. This decline in the capital goods sector underscores the direct correlation between high investment costs and reduced market activity. As industrial buyers become increasingly cautious with capital allocation, manufacturers of air compressors face extended sales lead times and a challenging environment for securing new contracts.

Key Market Trends

The Integration of Industrial IoT for Real-Time Monitoring and Predictive Maintenance is fundamentally altering the operational landscape of the global air compressor market, moving the industry beyond simple mechanical air provision to intelligent, data-driven ecosystem management. This trend focuses on embedding connectivity directly into compressor units to facilitate continuous data transmission regarding performance metrics such as temperature, pressure, and vibration. By leveraging these insights, manufacturers and operators can transition from reactive repairs to predictive maintenance strategies, significantly reducing unplanned downtime and optimizing asset lifecycle management. According to Ingersoll Rand, April 2025, in the announcement 'Ingersoll Rand Introduces Next Generation R-Series 90-160 kW Rotary Screw Air Compressors', the company integrated an advanced on-board IoT platform into its latest product line to provide continuous real-time monitoring, enabling immediate responses to abnormal operating conditions and ensuring maximum operational uptime for industrial users.

Simultaneously, the sector is experiencing a Rising Demand for Compact and Portable Electric Compressor Solutions, driven by increasingly stringent environmental regulations and the need for emission-free operations in urban construction and sensitive environments. Unlike traditional diesel-powered portable units, these electric alternatives offer zero-emission performance and significantly lower noise levels, making them essential for indoor applications and metropolitan job sites where combustion engines are restricted. This shift is further accelerated by the development of high-capacity battery technologies that allow for extended runtimes without compromising pneumatic power. According to Hitachi Global Air Power, July 2025, in the press release 'Hitachi Global Air Power Launches Sullair OFE1550 Oil Free Electric Portable Air Compressor', the organization introduced a new electric portable unit capable of delivering 1550 cfm of Class 0 oil-free air, specifically engineered to support critical purity applications in the food and beverage sectors while eliminating onsite exhaust emissions.

Segmental Insights

The Oil and Gas industry is positioned as the fastest-growing segment in the Global Air Compressor Market, driven by increasing capital expenditure on pipeline infrastructure and extraction projects. Compressed air plays a vital role in critical operations ranging from vapor recovery and gas injection to equipment instrumentation. Furthermore, strict compliance with safety and operational standards maintained by the American Petroleum Institute encourages the adoption of compliant compression systems. This reliance on durable machinery to maintain continuous production flow significantly accelerates market demand within this sector.

Regional Insights

Asia Pacific holds the largest share of the global air compressor market, driven primarily by rapid industrialization in China and India. The region benefits from extensive manufacturing activities across the automotive, food and beverage, and electronics sectors, which creates sustained demand for compressed air systems. Additionally, infrastructure development and increased investments in energy projects support this regional growth. Government initiatives focusing on energy efficiency, monitored by agencies like the Bureau of Energy Efficiency in India, further encourage the adoption of compliant machinery. Consequently, the presence of major production facilities establishes Asia Pacific as the dominant market leader.

Recent Developments

In April 2025, Ingersoll Rand launched the Next Generation R-Series 90-160 kW rotary screw air compressors, designed to optimize performance and reliability in demanding industrial environments. The new units featured an advanced airend profile for improved airflow capacity and V-Shield technology to ensure a leak-free design with stainless steel-braided oil hoses. Integrated with an IoT-connected platform, the compressors enabled continuous real-time monitoring to prevent unexpected downtime and enhance operational efficiency. This product introduction highlighted the manufacturer's dedication to providing high-quality, energy-saving solutions that lower the total cost of ownership for customers in the global air compressor market.
In December 2024, the Atlas Copco Group completed the acquisition of Metalplan Equipamentos LTDA, a prominent manufacturer of screw compressors and air treatment products based in São Paulo, Brazil. The acquired entity, which generated revenues of approximately 58 MBRL in the preceding year, was integrated into the Industrial Air division within the Compressor Technique Business Area. This strategic collaboration aimed to significantly expand the group's manufacturing footprint and service capabilities across the Latin American region. The move strengthened the company's position in the global air compressor market by adding a complementary brand with a strong local reputation.
In June 2024, ELGi Equipments unveiled its advanced range of energy-efficient compressed air solutions at the INTEC trade fair in India. The display included the launch of the EG SP "Super Premium" range of oil-lubricated screw air compressors, which were designed to provide up to 15% improvement in energy efficiency for the 90–110 kW power band. The company also introduced the EG PM range equipped with permanent magnet synchronous motors, offering enhanced free air delivery and lower life cycle costs. These product advancements underscored the company's focus on delivering sustainable and reliable technology to the global air compressor market.
In March 2024, Hitachi Global Air Power announced the launch of the Sullair TS 190-260 Series industrial air compressors to address the industry's need for greater energy efficiency. This new product line featured a completely redesigned two-stage air end with patent-pending inter-stage cooling technology, which allowed for a more compact footprint while maximizing performance. The company emphasized that the series was engineered to meet increasing customer demands for durability and sustainability in industrial settings. Third-party verification data indicated that these compressors delivered superior efficiency ratings compared to similar models, reinforcing the manufacturer's commitment to innovation in the global air compressor market.

Key Market Players

Atlas Copco AB
Ingersoll Rand Inc
Gardner Denver Holdings Inc
Sullair LLC
Quincy Compressor LLC
ELGI EQUIPMENTS LIMITED
DOOSAN PORTABLE POWER
Sullivan-Palatek Inc.
Rolair Systems
Kaeser Kompressoren SE

By Power Range	By Application	By Region
Up to 50 HP 50 HP - 150 HP and Above 150 HP	INDUSTRIAL Manufacturing Residential Oil and Gas Mining	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Air Compressor Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Air Compressor Market, By Power Range:

Up to 50 HP
50 HP - 150 HP
and Above 150 HP

Air Compressor Market, By Application:

INDUSTRIAL
Manufacturing
Residential
Oil and Gas
Mining

Air Compressor Market, By Region:

North America

United States
Canada
Mexico

Europe

France
United Kingdom
Italy
Germany
Spain

Asia Pacific

China
India
Japan
Australia
South Korea

South America

Brazil
Argentina
Colombia

Middle East & Africa

South Africa
Saudi Arabia
UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Air Compressor Market.

Available Customizations:

Global Air Compressor Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

Global Air Compressor Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Market Players

3.4. Overview of Key Regions/Countries

3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Air Compressor Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Power Range (Up to 50 HP, 50 HP - 150 HP, and Above 150 HP)

5.2.2. By Application (INDUSTRIAL, Manufacturing, Residential, Oil and Gas, Mining)

5.2.3. By Region

5.2.4. By Company (2025)

5.3. Market Map

6. North America Air Compressor Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Power Range

6.2.2. By Application

6.2.3. By Country

6.3. North America: Country Analysis

6.3.1. United States Air Compressor Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Power Range

6.3.1.2.2. By Application

6.3.2. Canada Air Compressor Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Power Range

6.3.2.2.2. By Application

6.3.3. Mexico Air Compressor Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Power Range

6.3.3.2.2. By Application

7. Europe Air Compressor Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Power Range

7.2.2. By Application

7.2.3. By Country

7.3. Europe: Country Analysis

7.3.1. Germany Air Compressor Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Power Range

7.3.1.2.2. By Application

7.3.2. France Air Compressor Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Power Range

7.3.2.2.2. By Application

7.3.3. United Kingdom Air Compressor Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Power Range

7.3.3.2.2. By Application

7.3.4. Italy Air Compressor Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Power Range

7.3.4.2.2. By Application

7.3.5. Spain Air Compressor Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Power Range

7.3.5.2.2. By Application

8. Asia Pacific Air Compressor Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Power Range

8.2.2. By Application

8.2.3. By Country

8.3. Asia Pacific: Country Analysis

8.3.1. China Air Compressor Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Power Range

8.3.1.2.2. By Application

8.3.2. India Air Compressor Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Power Range

8.3.2.2.2. By Application

8.3.3. Japan Air Compressor Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Power Range

8.3.3.2.2. By Application

8.3.4. South Korea Air Compressor Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Power Range

8.3.4.2.2. By Application

8.3.5. Australia Air Compressor Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Power Range

8.3.5.2.2. By Application

9. Middle East & Africa Air Compressor Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Power Range

9.2.2. By Application

9.2.3. By Country

9.3. Middle East & Africa: Country Analysis

9.3.1. Saudi Arabia Air Compressor Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Power Range

9.3.1.2.2. By Application

9.3.2. UAE Air Compressor Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Power Range

9.3.2.2.2. By Application

9.3.3. South Africa Air Compressor Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Power Range

9.3.3.2.2. By Application

10. South America Air Compressor Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Power Range

10.2.2. By Application

10.2.3. By Country

10.3. South America: Country Analysis

10.3.1. Brazil Air Compressor Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Power Range

10.3.1.2.2. By Application

10.3.2. Colombia Air Compressor Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Power Range

10.3.2.2.2. By Application

10.3.3. Argentina Air Compressor Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Power Range

10.3.3.2.2. By Application

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)

12.2. Product Launches (If Any)

12.3. Recent Developments

13. Global Air Compressor Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry

14.2. Potential of New Entrants

14.3. Power of Suppliers

14.4. Power of Customers

14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Atlas Copco AB

15.1.1. Business Overview

15.1.2. Products & Services

15.1.3. Recent Developments

15.1.4. Key Personnel

15.1.5. SWOT Analysis

15.2. Ingersoll Rand Inc

15.3. Gardner Denver Holdings Inc

15.4. Sullair LLC

15.5. Quincy Compressor LLC

15.6. ELGI EQUIPMENTS LIMITED

15.7. DOOSAN PORTABLE POWER

15.8. Sullivan-Palatek Inc.

15.9. Rolair Systems

15.10. Kaeser Kompressoren SE

16. Strategic Recommendations

17. About Us & Disclaimer

Report Description

Table of content

Figures and Tables

Frequently asked questions

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