Compressor Market Booms: £200 Billion Forecast by 2050

Compressor Market Booms: £200 Billion Forecast by 2050

The global compressor market is set to experience a dramatic expansion, reaching a valuation of £200 billion by 2050, according to a new report by Astute Analytica. This represents a significant increase from the £34 billion market in 2023, with a projected compound annual growth rate (CAGR) of 6.82% during the forecast period.

The surge in demand for compressors can be attributed to several key factors, including rapid industrialisation and economic growth in major economies like China and India. China, with its extensive manufacturing hubs and ongoing development of a national gas network, is driving the demand for efficient machinery across various sectors. Similarly, India's booming automotive industry and ambitious target of reaching a £800 billion manufacturing sector by 2025 are contributing to a substantial increase in compressor demand.

The North American market is also witnessing strong demand, driven primarily by advancements in shale gas extraction and construction activities. The US, in particular, requires compressors for long-distance natural gas pipelines and a wide range of industrial applications.

Key Market Highlights:

Market Forecast (2050): £200 billion

CAGR: 6.82%

Largest Region (2023): Asia Pacific (38.27%)

By Component: Compressor and Equipment (81.80%)

By Type: Positive Displacement (PD) Compressors (75.73%)

By Application: Positive Displacement (PD) Compressors (75.73%)

By Lubrication Type: Oil Injected Compressor (66.82%)

By Power Source: Electric (66.45%)

By Mobility: Stationary Compressor (63.79%)

By Industry: Manufacturing (24.68%)

By Distribution Channel: Offline (74.81%)

The Rise of Smart Compressors:

The integration of smart technologies in compressors is gaining momentum, with approximately 1.2 million new installations in 2024 expected to feature these advancements. Smart compressors, utilising the Internet of Things (IoT) and Artificial Intelligence (AI), monitor and optimise performance in real-time, enhancing efficiency and reducing operational costs.

This shift is driven by a desire for predictive maintenance, greater efficiency, and reduced operational costs.

The Dominance of Positive Displacement Compressors:

Positive Displacement (PD) compressors, with their consistent and reliable performance across various applications, hold a commanding 75.73% revenue share in the market. Their efficiency in handling different gases and pressures makes them a preferred choice in industries such as oil and gas, manufacturing, and HVAC. The oil and gas sector, for example, purchased 1.5 million units of PD compressors in the past year alone.

Oil-Injected Compressors Leading the Way:

Oil-injected compressors, known for their high efficiency, reliability, and cost-effectiveness, dominate the compressor industry with a market share exceeding 66.82%. Their ability to operate at lower temperatures reduces wear and tear, extending the lifespan of the equipment. The global market for oil-injected compressors is currently valued at approximately £17 billion, with an annual production volume of around 6 million units.

Asia Pacific Region: A Market Powerhouse:

The Asia Pacific region holds a dominant position in the compressor market, fuelled by robust GDP growth and expanding industrial production. China's vast industrial base and India's rapidly growing manufacturing sector drive significant demand for compressors. Additionally, Japan's advanced manufacturing capabilities contribute to the region's overall strength in the industry.

Electric Compressors: Future Advancements:

The electric compressor market is witnessing several advancements aimed at improving performance, efficiency, and sustainability. These include the integration of smart control systems, variable-speed compressors, advanced refrigerant systems, and noise reduction technologies.

Key Players in the Global Compressor Market:

The compressor market is dominated by a number of prominent players, including:

Aerzener Maschinenfabrik GmbH

Ariel Corporation

Atlas Copco AB

Baker Hughes Company

BAUER COMPRESSORS, INC.

Burckhardt Compression AG.

Doosan Corporation

Ebara Elliott Energy

ELGi EQUIPMENTS LTD

Gardner Denver

General Electric

IHI Corporation

Hitachi Group

Ingersoll Rand

KAESER COMPRESSORS

Kawasaki Heavy Industry

Kobelco Compressors

Mitsubishi Heavy Industry

Mitsui E&S Group

Siemens Energy (Siemens AG)

Sulzer Ltd

Toshiba Corporation

Sullair

Anest-Iwata

CompAir

Boge Air

The report provides a detailed analysis of the compressor market, covering various segments, key players, trends, and future prospects.

About Astute Analytica:

Astute Analytica is a global analytics and advisory company providing comprehensive market research and consulting services. The company specialises in generating accurate estimates and projections for clients across various industries, including technology, healthcare, chemicals, semiconductors, and FMCG.