Industry gas Compressor Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented by Type (Positive Displacement and Dynamic Displacement), End-user Industry (Oil and Gas, Power Sector, Petrochemical and Chemical Industries, Industrial Gases, and Other End-user Industries), By Region, Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 16.37 Billion
CAGR (2026-2031)	4.48%
Fastest Growing Segment	Oil and Gas
Largest Market	Asia Pacific
Market Size (2031)	USD 21.29 Billion

Market Overview

The Global Industry gas Compressor Market will grow from USD 16.37 Billion in 2025 to USD 21.29 Billion by 2031 at a 4.48% CAGR. Industrial gas compressors are mechanical devices engineered to increase the pressure of various gases by reducing their volume, thereby facilitating storage, transport, and processing across the chemical, petrochemical, and oil and gas sectors. The market is primarily driven by the ongoing expansion of global natural gas infrastructure and the emerging requirements of the hydrogen economy, both of which necessitate robust compression systems for efficient pipeline transmission and liquefaction. Additionally, strict environmental regulations requiring emission reductions are compelling heavy industries to replace aging assets with energy-efficient models, further stimulating demand for advanced compression technologies.

However, the market faces a significant challenge arising from global economic volatility and high interest rates, which often delay final investment decisions for capital-intensive industrial projects. This hesitation in capital expenditure directly impacts the procurement of heavy machinery, including large-scale compressor units. According to the VDMA, in 2024, global turnover for machinery and equipment decreased by 1.5% to an estimated 3.26 trillion euros, reflecting the broader contraction in industrial spending that constrains the immediate expansion of the gas compressor sector.

Key Market Drivers

The proliferation of Liquefied Natural Gas (LNG) trade and terminal projects serves as a primary catalyst for the gas compressor market. As nations diversify energy sources to ensure security, the construction of liquefaction and regasification terminals has accelerated, necessitating high-pressure compression systems for gas transport and processing. This infrastructure build-out is critical for managing the volume reduction required for efficient LNG shipping. According to the International Gas Union, June 2024, in the 'World LNG Report 2024', global LNG trade grew by 2.1% in 2023 to reach 401 million tonnes, highlighting the escalating throughput that demands reliable compression solutions. This trade volume directly correlates with increased procurement of cryogenic and boil-off gas compressors as operators seek to maximize terminal efficiency.

Simultaneously, the emergence of the hydrogen economy and carbon capture applications is reshaping market requirements toward specialized high-pressure and oil-free compressors. Industrial players are transitioning toward low-carbon energy carriers, prompting significant capital flows into green hydrogen production facilities and carbon capture, utilization, and storage infrastructure. These applications require advanced compressors capable of handling low molecular weight gases and corrosive environments. According to the Hydrogen Council, May 2024, in the 'Hydrogen Insights 2024' update, committed capital for hydrogen projects globally has increased to USD 75 billion, underscoring the financial momentum supporting this sectoral shift. Furthermore, broader energy sector investments continue to underpin demand for conventional units. According to the International Energy Agency, in 2024, global investment in upstream oil and gas is projected to rise to USD 570 billion, ensuring sustained reliance on compression for traditional extraction and processing operations.

Download Free Sample Report

Key Market Challenges

Global economic volatility and persistently high interest rates are currently creating a substantial barrier to growth in the Global Industry Gas Compressor Market. These financial pressures directly increase the cost of capital for major infrastructure initiatives, particularly in the LNG, petrochemical, and hydrogen sectors which rely heavily on advanced compression systems. When borrowing costs rise, industrial operators often postpone Final Investment Decisions (FIDs) for new facilities or capacity expansions, causing a direct slowdown in the procurement of long-lead machinery.

This hesitation is evident in the downstream processing sectors that drive compressor demand. According to VDMA, in 2024, incoming foreign orders in the chemical plant engineering sector declined by 14% to 1.97 billion euros. This sharp reduction in capital commitment for chemical processing facilities illustrates a broader trend of deferred spending on heavy industrial assets. As primary projects are paused or scaled back to preserve liquidity, manufacturers of industrial gas compressors face reduced order backlogs and extended sales cycles, severely restricting immediate market revenue growth.

Key Market Trends

The integration of IIoT and Artificial Intelligence for predictive maintenance is fundamentally altering the operational landscape of the global industrial gas compressor market. Manufacturers are increasingly deploying smart sensors and AI-driven analytics to monitor equipment health in real-time, allowing operators to transition from reactive to condition-based maintenance strategies that minimize unplanned downtime. This digital evolution is particularly critical for complex applications where system reliability is paramount and supports the optimization of asset performance. According to Baker Hughes, February 2025, in the 'Annual Report 2024', the company explicitly targeted this digital transformation by launching CarbonEdge in 2024, an AI-powered solution designed to optimize operations and emissions management for industrial assets.

Simultaneously, there is a distinct market focus on Low-Emission and Hermetically Sealed Designs driven by tightening methane abatement regulations. Industrial operators are prioritizing compression technologies that eliminate fugitive emissions to meet rigorous environmental standards, necessitating the replacement of legacy seal systems with advanced hermetic solutions. This shift toward sustainability-focused machinery is generating substantial commercial momentum as companies upgrade their fleets to comply with decarbonization mandates. According to Burckhardt Compression, June 2025, in the 'Annual Report 2024', the company reported sales of CHF 1,095.6 million, a 12.6% year-on-year increase, which it attributed to its strong positioning in markets aligned with global energy transition and sustainability megatrends.

Segmental Insights

The Oil and Gas segment is currently the fastest-growing category within the Global Industrial Gas Compressor Market. This robust expansion is primarily driven by increasing investments in upstream exploration and the extensive development of midstream infrastructure to address rising global energy consumption. Compressors are essential for critical operations such as enhanced oil recovery and the maintenance of well pressure during extraction. Additionally, the expanding trade in Liquefied Natural Gas (LNG) necessitates specialized compression systems for liquefaction and pipeline transportation. These combined factors establish the Oil and Gas sector as the primary engine of market momentum.

Regional Insights

Asia Pacific commands the leading position in the Global Industrial Gas Compressor Market, primarily due to accelerated industrialization in major economies like China and India. The region witnesses sustained demand from critical sectors such as petrochemicals, manufacturing, and power generation, where compression technology is vital. Furthermore, a strategic transition from coal to cleaner natural gas fuels the expansion of gas transportation and storage infrastructure. Significant investments in new pipeline projects and liquefied natural gas (LNG) terminals support this shift, ensuring the region remains the central hub for market growth.

Recent Developments

• In July 2025, Ingersoll Rand completed the acquisition of Termomeccanica Industrial Compressors and its subsidiary Adicomp for approximately €160 million. The acquired Italian companies were recognized for their expertise in designing and manufacturing oil-injected screw compressors for gas and air applications, as well as engineered-to-order packages for renewable natural gas. This strategic move was intended to strengthen the acquirer's position in high-growth sustainable energy markets and expand its compression capabilities. The integration allowed the company to broaden its technology portfolio and enhance its service offerings across the global industrial gas sector.
• In March 2025, Atlas Copco inaugurated a new manufacturing facility in Talegaon, Pune, India, following an investment of approximately US$17 million. The plant was established to produce air and gas compressor systems, including technology for compressed natural gas, biogas, and hydrogen applications, catering to both local and international markets. The facility incorporated sustainable features such as rooftop solar panels and rainwater harvesting systems. This expansion aimed to increase the company's production capacity and reduce lead times for customers in the growing industrial and renewable energy sectors.
• In January 2025, Baker Hughes secured a significant order from Tecnicas Reunidas to supply gas compression technology for the third expansion phase of the Jafurah gas field in Saudi Arabia. The contract included the delivery of six electric motor-driven gas compression trains and six propane compressors, along with balance of plant equipment. This project utilized the company's advanced compression solutions to support the efficient production of unconventional gas. The award reinforced the company's long-standing relationship with the operator and utilized its expanded manufacturing capabilities in Dammam to support the region's energy development goals.
• In November 2024, Voith and Mehrer Compression GmbH entered into a strategic partnership to advance product development and marketing in the hydrogen gas sector. The collaboration aimed to combine Mehrer’s expertise in oil-free process gas compressors with Voith’s industrial-scale capabilities to develop sustainable hydrogen compression solutions. The companies focused on creating high-pressure hydrogen systems capable of reaching 900 bar for applications such as pipeline compression and filling station infrastructure. This alliance was designed to enhance efficiency and safety in the hydrogen supply chain while expanding the portfolio of mechanical compressors available for the evolving energy market.

Key Market Players

• Ariel Corporation
• Atlas Copco AB
• Bauer Compressors Inc.
• Burckhardt Compression Holding AG
• General Electric Company
• HMS Group
• Howden Group Ltd
• Ingersoll Rand Inc.
• Siemens Energy AG

By Region

North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Industry gas 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