air compressor market overview: 
 
The global air compressor market is set to grow from an estimated USD 39.57 billion in 2025 to USD 49.76 billion by 2030, representing a Compound Annual Growth Rate (CAGR) of approximately 4.69% over the 2025-2030 forecast period. This growth is underpinned by expanding industrial activity, stricter energy efficiency regulations, and rising demand from major end-user sectors such as oil & gas, manufacturing, chemicals, and power. 
 
Asia-Pacific emerges as both the largest and fastest‐growing geographic market for air compressors, driven by rapid industrialization and growing automation in countries such as China and India. 
 
Key Trends in the Air Compressor Market 
 
Rising Demand from Oil & Gas and Natural Gas Sectors 
 
The natural gas sector is among the leading growth engines for the air compressor market. With global natural gas production reaching around 4,043.8 billion cubic meters in 2022, there is increasing need for air compressors in exploration, drilling, gas processing, pipeline transportation, and associated operations. The oil & gas end-user segment holds approximately 34% of total market share as of 2024, reflecting its heavy reliance on compressor systems for upstream, midstream, and downstream operations. 
 
Shift Towards Energy Efficiency and Environmental Concerns 
 
Industrial and regulatory pressure is pushing manufacturers and end-users to adopt more energy efficient air compressors. This includes growing interest in oil-free positive displacement compressors, improved control systems, and dynamic compressors (axial and centrifugal) that can sustain high flow rates with better performance in continuous duty applications. Environmental regulations in Europe, North America, and parts of Asia are accelerating this shift. 
 
Growth in Manufacturing Industry and Automation 
 
The manufacturing industry segment is expected to grow at about 5% CAGR during 2024-2029. This is driven by the need for compressed air in varied tasks: powering pneumatic tools, stamping, clamping, cleaning, and other process operations. Expansion of manufacturing in emerging economies, along with rising adoption of automation and smart manufacturing, contribute significantly. 
 
Air Compressor Market Regional Strength 
 
Asia-Pacific leads both in market size and growth rate. China and India are key contributors. In India, in particular, industrial modernization (e.g. under programmes like "Make in India"), power sector growth, and chemical manufacturing are boosting demand for air compressors. Meanwhile, mature markets like North America and Europe are focusing more on upgrading existing systems, increasing energy efficiency, and meeting regulatory standards. 
 
Explore in-depth insights and regional perspectives, including localized editions like the Japanese market version: https://www.mordorintelligence.com/ja/industry-reports/air-compressor-market?utm_source=globbook 
 
Air Compressor Market Segmentation 
 
By Type 
 
Positive Displacement: Includes reciprocating, rotary (vanes, screws, scrolls). This segment held roughly 56% of the market share in 2024, owing to its wide use in many industries that require stable pressure and precise control. 
Dynamic Compressors: Comprised of axial and centrifugal types. This segment is projected to grow fastest over the forecast period, especially in large industrial settings like power plants and oil & gas processing, due to its advantages in handling high volume, continuous duty operations. 
 
By End-User 
 
Oil & Gas: Currently the dominant end user, accounting for about 34% share. Used in exploration, drilling, processing, and transportation of hydrocarbons. 
 
Manufacturing Industry: Poised to show strong growth (~5% CAGR), driven by the need for compressed air in many production operations and rising output in sectors such as plastics, rubber, metal works, and electronics. 
 
Power Sector: Regular user of air compressors for supporting auxiliary equipment, combustion air, emissions control, and related pneumatic systems. 
Chemicals & Petrochemicals: Uses compressed air in material handling, processing, conveying, drying, etc. 
 
Other End Users: Includes sectors such as food & beverage, pharmaceuticals, automotive, construction that employ compressed air for various smaller scale or niche applications. 
 
By Geography 
 
Asia-Pacific: China and India are leading markets. India is among the fastest-growing. 
 
North America: Mature market, with strong share due to industrial base; United States leads, Canada showing fastest growth in region. 
 
Europe: Driven by Germany, France, UK with high demand for energy efficient and regulatory compliant systems. 
 
Middle East & Africa: Growth tied to oil & gas operations, and infrastructure development in countries like Saudi Arabia, UAE. 
 
South America: Steady growth, especially in Brazil, Argentina, driven by mining, oil & gas, manufacturing expansion. 
 
Air Compressor Market Key Players 
 
Atlas Copco Group 
Ingersoll Rand Inc. 
Siemens AG 
Gardner Denver Inc. 
Sullair LLC (a part of Hitachi Group) 
Sulzer Ltd 
ELGi Equipments Ltd 
Conclusion: 
Demand from oil & gas, manufacturing, and power sectors will remain the main pillars of this expansion. Asia-Pacific stands out as the region with both the largest market share and the fastest growth, supported by strong policy support, industrialization, and rising automation. Manufacturers and stakeholders should focus on energy‐efficient, regulatory-friendly models, robust service support, and regional customization if they want to succeed in this evolving market. The segmentation by type and end-user offers clear paths for specialization, while the competitive landscape underlines the importance of combining innovation, reliability, and local presence.