Centrifugal Air Compressor Market - Forecasts from 2023 to 2028

The global centrifugal air compressor market was valued at US$10.538 billion in 2021

The centrifugal air compressor market is projected to grow at a high pace during the projected period. A centrifugal air compressor refers to a class of turbomachinery that is dynamic axisymmetric work-absorbing. These air compressors accelerate a gas from the impeller’s center to develop pressure, with the help of centrifugal force, and then slow it down through expansion in a diffuser. The process converts velocity energy into pressure energy. The centrifugal air compressor market can be classified in the following ways: by product, casing, end-user, and geographic region. The major drivers for the growth of this market include increased demand from several industries and technological advancements.

Market Drivers:

Demand from the petrochemical industries

Centrifugal air compressors have multiple applications in the oil & gas industries which further helps to boost the centrifugal air compressor industry value. Some of the areas of applications of centrifugal compressors in these industries include petroleum refining to boost the pressure of processed gases, pipeline transportation to maintain air pressure for gas transportation through pipelines, in gas injection to promote the recovery of crude oil by injecting gas into oil layers to increase the gas pressure, etc. Therefore, as the petrochemical industries continue to grow, the demand for centrifugal air compressors will also grow rapidly leading to the expansion of the centrifugal air compressor market size.

Technological advancements

Another key driving factor for the centrifugal air compressor market relates to the developments in product features and characteristics due to rapid technological advancements in the industry. As a result of these innovations, there is an increasing rate of adoption of centrifugal compressors as compared to reciprocating compressors. This is due to its characteristics such as a longer product lifecycle, lower lifetime costs, and a higher turndown ratio which reduces the probability of compressed air treatment system blow-offs during low-flow conditions. These product developments have made centrifugal air compressors a favorable choice for multiple industrial applications.

Market Restraints

The high initial cost of the product

A significant challenge faced by this industry relates to the high initial costs of installation of centrifugal air compressors which acts as a hindrance to the growth of the industry as it negatively impacts the demand. The initial installation and maintenance of centrifugal air compressors incur a large investment which can be a deterrent to its demand as many manufacturers may not be willing to make such commitments. Further, the high costs also drive away the potential demand from smaller industrial operations, especially in the early stages. Although, these centrifugal compressors offer a lower lifetime cost than other compressors such as reciprocating compressors.

Renting of centrifugal air compressors

Another additional barrier to the growth of the industry is the practice of renting centrifugal air compressors by small and medium-scale industries that require these machines for shorter durations for their air treatment processes, as it is more financially viable to rent centrifugal compressors than to purchase them. This negatively impacts the demand for centrifugal air compressors as smaller-scale business units save significant operational costs by renting these compressors instead of buying them.

Products offered in the global centrifugal air compressor marketplace

Atlas Copco offers its range of oil-free air centrifugal compressors that are designed to provide energy-efficient flow and power consumption. These compressors are demanded in several industries such as textiles, petrochemicals, food & beverage, etc. The product is claimed to provide 100% oil-free air, under its Class Zero range of compressors. These centrifugal compressors are more beneficial for the environment than other such products in the market and help in the reduction of energy costs.

Ingersoll Rand offers its MSG TURBO-AIR 2000 Centrifugal Air Compressor under its range of centrifugal air compressors. The product comes with a built-in aftercooler, thereby saving the costs of purchasing separate pipeline coolers, and packaged valves for ease of installation and maintenance. The product is ISO Certified Class 0, which implies that it produces completely oil-free air. The product enables the reduction of the total cost of ownership to the purchasers due to its energy efficiency.

Asia Pacific is anticipated to be the major centrifugal air compressor marketplace. The Asia Pacific region is expected to constitute a significant share of the centrifugal air compressor industry and similar trends are expected to be followed in the forecast period. This market share is owed to the growth in the manufacturing sector in the major economies of the region such as Japan, and India as well as the growth of the electronics industry and increased demand for semiconductors in regions such as China, and South Korea. Furthermore, the rising industrial growth of major end-use sectors like oil and gas, in populated economies like China and India, is expected to raise the demand and market for centrifugal air compressors in the region.

Europe and North America markets are projected to grow moderately

It is anticipated that North American and European centrifugal air compressor markets will experience moderate growth too. The market for centrifugal air compressors in Europe is expected to boost in the coming years due to the rising production of natural gas in Russia and natural gas power plant operations in the surrounding regions, as well as the increasing power demand which is expected to boost the demand for centrifugal air compressors significantly.

Key Developments

• In May 2023, Atlas Copco Group, involved in the business of compressor techniques, announced the acquisition of Maziak Compressors Services Ltd., a Britain-based air compressor distributor. The acquired company enjoys a strong foothold in the distribution of its products in several industries such as food & beverage, electronics, manufacturing, etc. which is expected to help the acquirer improve its overall market presence in these industries as well as in the Eastern English regions where Maziak holds considerable market share.
• In January 2020, Sundyne, a leading brand in the production and supply of mission-critical flow control equipment, was announced to be sold by its parent companies BC Partners and The Carlyle Group to Warburg Pincus, a private equity firm. Sundyne is a market leader in the design and manufacture of centrifugal compressors and pumps. The acquisition is expected to expand the brand’s presence in multiple industries where it operates with the help of the acquirer’s funds and strategic expertise.
• In January 2023, Ingersoll Rand, a renowned manufacturer of mission-critical flow control solutions, announced the acquisition of the air treatment business of SPX FLOW for US$525 million. The acquisition of SPX’s air treatment business is expected to benefit Ingersoll through the addition of complementary products into the acquirer’s portfolio of energy-efficient air compressors.

Market Segments:

By Product

• Portable
• Stationary

By Casing

• Horizontal Split
• Vertical Split

By Application

• Food & Beverages
• Oil & Gas
• Energy
• Semiconductor
• Manufacturing
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Indonesia
• Taiwan
• Others