Centrifugal Compressor Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented by End User (Oil and Gas, Power Sector, Petrochemical and Chemical Industries, Other), By Region, Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 15.61 Billion
CAGR (2026-2031)	5.21%
Fastest Growing Segment	Oil and Gas
Largest Market	Asia Pacific
Market Size (2031)	USD 21.17 Billion

Market Overview

The Global Centrifugal Compressor Market will grow from USD 15.61 Billion in 2025 to USD 21.17 Billion by 2031 at a 5.21% CAGR. The Global Centrifugal Compressor Market involves dynamic machines that utilize a rotating impeller to accelerate gas, converting kinetic energy into potential energy for continuous, high-pressure applications. The primary drivers supporting market growth include rapid industrialization in emerging economies and the expanding infrastructure for liquefied natural gas (LNG) transport and storage. Furthermore, the increasing necessity for reliable power generation systems to address global energy deficits acts as a fundamental catalyst for sector expansion, distinct from transient market trends.

One significant challenge impeding market growth is the high initial capital investment required for installation and ongoing maintenance, which can be prohibitive for cost-sensitive operations. This financial burden is often exacerbated by volatility in raw material prices, potentially delaying new projects. According to VDMA, in 2024, exports of compressors, compressed air, and vacuum technology from Germany rose by 6.1 percent in the first two months year-on-year, demonstrating sustained industrial demand despite these economic hurdles.

Key Market Drivers

The Expansion of Liquefied Natural Gas (LNG) Infrastructure and Trade acts as a primary catalyst for the centrifugal compressor market, driven by the critical need for refrigeration in liquefaction plants and import terminals. As nations invest in new capacity to diversify gas imports, the deployment of high-efficiency compression trains has become essential for maintaining continuous, high-pressure flows. According to the International Energy Agency (IEA), in the 'Gas Market Report' published in 2025, global LNG supply growth was forecast to accelerate to 5 percent in 2025, supported by the ramp-up of major export projects. This infrastructure expansion directly drives procurement of the specialized compressors required for processing and transporting liquefied gas across global supply chains.

Simultaneously, the Rising Focus on Carbon Capture, Utilization, and Storage (CCUS) Projects is creating a significant new demand vertical. Stringent regulatory mandates are compelling industries to adopt CCUS systems, where centrifugal compressors are vital for compressing captured CO2 to supercritical states for pipeline transport. According to the Global CCS Institute, in December 2024, the global pipeline of CCS projects surged by 60 percent year-over-year to 628 facilities. This momentum across energy sectors is evident in manufacturer performance; for instance, according to Baker Hughes, in January 2025, the company’s Industrial & Energy Technology segment reported $13.0 billion in orders for the full year 2024, highlighting the sustained demand for advanced gas technology equipment.

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Key Market Challenges

The substantial capital investment required for the acquisition and maintenance of centrifugal compressors poses a formidable barrier to market expansion. These complex systems necessitate a significant upfront financial commitment, which can be prohibitive for cost-sensitive industries and emerging enterprises. This financial burden is frequently aggravated by fluctuating raw material costs, leading to unpredictable project budgets and extended return on investment timelines. Consequently, organizations often delay procurement or cancel planned infrastructure upgrades to preserve liquidity, directly stalling the momentum of market growth and limiting the adoption of advanced compressor technologies.

This reluctance to invest in heavy machinery due to economic pressures and high costs is reflected in recent industry performance metrics. According to the VDMA, in the first three quarters of 2024, exports by German mechanical engineering companies fell by 5.2 percent compared to the same period in the previous year. This contraction in trade volume underscores the tangible impact of high cost structures and investment caution, demonstrating how financial hurdles are actively constraining broader market activity beyond transient fluctuations.

Key Market Trends

The Development of Specialized Hydrogen Compression Solutions is swiftly becoming a defining trend as the global energy sector pivots toward decarbonization. Centrifugal compressor manufacturers are reengineering aerodynamic flow paths and utilizing advanced metallurgy to manage the low molecular weight and high diffusivity of hydrogen gas, which presents unique challenges such as embrittlement and leakage. This technical evolution is essential for supporting the burgeoning infrastructure for hydrogen liquefaction, storage, and transport. The commercial momentum for these specialized systems is evident in recent manufacturer performance. According to Chart Industries, July 2025, in the 'Second Quarter 2025 Financial Results', sales in the company's hydrogen segment increased by 29.3 percent when compared to the second quarter of 2024, reflecting the accelerating deployment of cryogenic and compression equipment for the hydrogen value chain.

Simultaneously, the Shift Toward Oil-Free Centrifugal Compressor Designs is gaining traction, driven by the need for superior purity in process air and reduced maintenance requirements. Industries such as pharmaceuticals, food and beverage, and electronics are increasingly specifying oil-free configurations to eliminate the risk of downstream contamination and remove the costs associated with oil filtration and disposal. This preference for cleaner, more sustainable operational footprints is directly influencing procurement patterns. According to Ingersoll Rand, February 2025, in the 'Fourth Quarter and Full-Year 2024 Results', the company reported an 8 percent increase in orders to $1.8 billion, a growth trajectory partially attributed to the successful deployment of its patented oil-free compression technologies in high-growth sustainable end markets.

Segmental Insights

The Oil and Gas segment currently stands as the fastest-growing category within the Global Centrifugal Compressor Market, primarily driven by heightened capital investments in upstream and downstream operations. This expansion is largely fueled by the rising global reliance on natural gas, which necessitates extensive infrastructure for liquefaction and pipeline transportation. Additionally, the continuous modernization of refineries to align with evolving environmental standards supports the deployment of these compression units. Consequently, the sustained focus on operational efficiency in energy processing ensures this segment outpaces demand from the power generation and industrial sectors.

Regional Insights

Asia Pacific holds the leading position in the Global Centrifugal Compressor Market due to extensive industrialization in China and India. This dominance is largely attributed to surging investments in the oil and gas sector, including downstream refining and natural gas pipeline infrastructure. For instance, ambitious targets by institutions like India’s Ministry of Petroleum and Natural Gas for network expansion directly drive equipment procurement. Additionally, the region’s rising energy needs have necessitated a shift toward efficient power generation and petrochemical processing. These factors, combined with strong domestic manufacturing policies, anchor the region’s status as the primary global market hub.

Recent Developments

• In May 2025, IHI Rotating Machinery Engineering Co., Ltd., a subsidiary of IHI Corporation, announced the launch of the TRZ Series, a new line of high-efficiency centrifugal compressors. The series was engineered to cover a broad range of motor outputs and discharge air volumes, addressing the requirements of the global industrial market. Key improvements included newly developed impellers for enhanced aerodynamic efficiency and a direct lubrication system for bearings to reduce mechanical losses. The launch aimed to provide optimal solutions for diverse production needs while contributing to energy savings and reduced operating costs.
• In November 2024, Hanwha Power Systems entered into a collaboration with TC Energy by signing a Memorandum of Understanding to develop a supercritical CO2 power generation system. The project focused on deploying Hanwha’s integrally geared turbomachinery technology to recover waste heat from a gas turbine compressor station in West Virginia. This initiative aimed to demonstrate the commercial viability of using carbon-free power generation solutions within the gas pipeline infrastructure, highlighting the role of advanced compression technology in enhancing energy efficiency and reducing carbon intensity.
• In August 2024, FS-Elliott launched the P650 centrifugal air compressor as part of its Polaris series, designed to meet the rigorous demands of industrial air separation and manufacturing applications. The new model featured an advanced aerodynamic design aimed at delivering high efficiency and reliability while maintaining a compact footprint. This product release expanded the company's portfolio of oil-free centrifugal compressors, specifically targeting customers requiring higher flow rates and improved energy performance to lower overall lifecycle costs in their compressed air systems.
• In January 2024, MAN Energy Solutions and Aker Carbon Capture signed a Memorandum of Understanding to collaborate on carbon capture, utilization, and storage (CCUS) and CO2 compression initiatives in the North American market. The partnership aimed to leverage MAN Energy Solutions' expertise in compressor technology and system integration alongside Aker Carbon Capture's amine technology to deliver standardized, modularized solutions. This collaboration was designed to accelerate the adoption of carbon removal technologies in industrial sectors by optimizing energy consumption and reducing delivery times for carbon capture facilities.

Key Market Players

• Atlas Copco AB
• Ingersoll Rand Inc.
• Baker Hughes Company
• Sundyne
• Elliott Group
• Howden Group
• Mitsubishi Heavy Industries Ltd
• HMS Group
• Borsig GmbH

By Region

North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Centrifugal 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