by Compressors are machines that help transfer energy from a power source to a mechanical motion for compression of gases and liquids. They are used across various industries such as oil & gas, power generation, mining, manufacturing, and others. Compressors come in different types including centrifugal compressors, positive displacement compressors, and dynamic compressors. Centrifugal compressors are highly efficient and widely used in large volume applications. Positive displacement compressors like reciprocating compressors and rotary screw compressors are preferred for their ability to deliver high pressures.
The global Compressor Market is estimated to be valued at US$ 42.6 Bn in 2023 and is expected to exhibit a CAGR of 5.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the compressor market is the increasing adoption of oil-free compressors. Oil-free compressors do not require oil lubrication and are preferred in applications where oil carryover is unacceptable such as in the food & beverage industry. They ensure contaminant-free compressed air and help avoid issues related to oil leaks or contamination. Leading compressor manufacturers are focusing on developing oil-free compressor technologies using rolling piston, sliding vane, and scroll mechanisms to cater to the growing demand.
Porter’s Analysis
Threat of new entrants: The compressor market has moderate barriers to entry as setting up a compressor manufacturing facility requires sizable initial investments. However, there is high threat from global players expanding their operations.
Bargaining power of buyers: The bargaining power of buyers is moderate as compressors have applications across many industries like oil & gas, construction, power generation, etc. However, customers have alternatives from global brands.
Bargaining power of suppliers: The bargaining power of suppliers is low as raw materials required for compressor manufacturing such as steel, copper, etc. are commodity products available from numerous suppliers globally.
Threat of new substitutes: There is low threat from substitutes as compressors have critical applications that cannot be replaced. However, some stationary compressors are replaced by portable compressors in certain applications.
Competitive rivalry: The global compressor market is highly competitive with the presence of numerous global and regional players. Key players focus on new product development and expansion to competitive environments.
Key Takeaways
The global compressor market is expected to witness high growth. North America dominated the market in 2023 owing to high demand from oil & gas industry in the US and Canada while Asia Pacific is expected to grow at the fastest pace during the forecast period.
Regional analysis: North America held the largest share of the global compressor market in 2023 and is expected to maintain its dominance during the forecast period. This can be attributed to high demand for compressors from oil & gas industry for production and transportation in the US and Canada. Asia Pacific compressor market is poised to witness the highest growth during the forecast period led by increasing investments in manufacturing, construction and power sectors in China and India.
Key players: Key players operating in the 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. Players focus on expansion into high growth regions and development of energy efficient compressors.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
