A compressor is a mechanical device that increases the pressure of a gas by reducing its volume. Compressors are widely used in air conditioning, refrigeration, pressure, and other industrial applications. Compressors play an important role in residential, commercial, and industrial heating, ventilation, and air conditioning (HVAC) systems. They are used in refrigerators, freezers, air conditioners, water coolers, heat pumps, and more. With increase in temperatures globally and rise in disposable income, demand for cooling appliances like air conditioners and chillers have increased significantly over the years.
The global compressor market is estimated to be valued at US$ 42.6 Bn in 2023 and is expected to exhibit a CAGR of 16% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The Compressor Market is Expected to be Flourished by Significant rise in Air Conditioning Application
Rapid urbanization and growing population have resulted in increased demand for cooling appliances in residential and commercial sectors globally. This is driven by extreme weather conditions and changes in lifestyle. As per estimates, annual sales of room air conditioners surpassed 100 million units in 2019. Further, rising disposable incomes coupled with reduction in prices of cooling devices have augmented their adoption in developing regions of Asia Pacific and Middle East. Development of modern infrastructure including malls, warehouses, hospitals etc also require HVAC solutions resulting in demand for various types of commercial and industrial compressors. Hence, expanding air conditioning sector provides high growth prospects to compressor market over the forecast period. Another key growth driver is rising refrigeration demand from food processing and cold chain facilities especially in emerging economies where consumption of processed food is growing at faster pace. Rising investments by major companies in research and development of energy efficient and eco-friendly compressor technologies will further support market revenue.
Segment Analysis
The global compressor market is segmented on the basis of type, technology, industry, and geography. On the basis of type, the market is segmented into positive displacement and dynamic compressors. Within positive displacement, reciprocating compressors dominate with more than 35% market share owing to their suitability for low to medium pressure applications. On the basis of technology, the market is segmented into centrifugal compressors, rotary compressors, and reciprocating compressors. Reciprocating compressors dominate with more than 40% share due to their widespread use in home appliances and automotive industries. On the basis of industry, the compressor market is segmented into oil & gas, power generation, manufacturing, automotive, and others. Oil & gas dominates with over 25% share due to large-scale usage of compressors in natural gas transportation and storage applications.
PEST Analysis
Political: Favorable government regulations and policies to reduce carbon emissions are driving growth of energy-efficient compressors. However, trade barriers can negatively impact global supply chains.
Economic: Growing process industries, rising industrialization, and expansion of oil & gas sector are fueling demand. However, economic slowdowns impact capital expenditure.
Social: Increasing health & environmental awareness is positively impacting demand for pollution-free compressors. Rapid urbanization is also augmenting demand from construction and real estate industries.
Technological: Advancements in compressor materials, designs, and digitalization are improving efficiency. Introduction of electric compressors, oil-free compressors, and smart connected compressors presents new opportunities.
Key Takeaways
The Global Compressor Market Growth is expected to witness high. The global compressor market is estimated to be valued at US$ 42.6 Bn in 2023 and is expected to exhibit a CAGR of 16% over the forecast period 2023 to 2030.
Asia Pacific dominates with more than 35% share led by China owing to rapid industrialization and expansion of process industries. Europe is another major market with growth led by Germany on account of well-established automotive and manufacturing industries. North America is expected to emerge as the fastest growing region during the forecast period led by the US due to shifting focus towards shale gas production and increasing infrastructure investments.
Key players related content comprises Key players operating in the compressor market are Atlas Copco, Ingersoll Rand, Siemens, GE, Emerson, and Gardner Denver. Key players operating in the compressor market are Atlas Copco, Ingersoll Rand, Siemens, GE, Emerson, and Gardner Denver. Key players are focusing on new product launches, partnerships, and mergers & acquisitions to gain share and consolidate presence.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it