Compressors Market Report 2026

The compressors market size has grown marginally in recent years. It will grow from $112.65 billion in 2025 to $114.87 billion in 2026 at a compound annual growth rate (CAGR) of 2%. The growth in the historic period can be attributed to expansion of industrial manufacturing activities, growing demand for compressed air systems, rising use in oil and gas operations, availability of diverse compressor technologies, increasing infrastructure development.

The compressors market size is expected to see steady growth in the next few years. It will grow to $129.3 billion in 2030 at a compound annual growth rate (CAGR) of 3%. The growth in the forecast period can be attributed to increasing hydrogen economy investments, rising focus on energy efficiency regulations, expansion of smart industrial facilities, growing adoption of digital maintenance solutions, demand for low-emission compressor systems. Major trends in the forecast period include increasing adoption of energy-efficient compressors, rising demand for oil-free compressor technologies, growing use in hydrogen and gas applications, expansion of smart compressor monitoring systems, enhanced operational reliability.

The growing automotive industry is expected to drive the growth of the compressor market going forward. The automotive industry comprises a wide range of organizations and firms engaged in the design, development, manufacture, marketing, sale, and maintenance of motor vehicles. Compressors are utilized in automotive engines to enhance performance through superchargers and turbochargers, which increase the volume of air entering the engine’s combustion chamber. For example, in March 2024, the European Automobile Manufacturers' Association (ACEA), an Italy-based motor vehicle manufacturing association, reported that EU car production experienced strong growth in 2023, exceeding 12 million units and rising by 11.3% compared to the previous year. Therefore, the expanding automotive industry is driving the compressor market.

Prominent entities in the compressor market are strategically introducing innovative compressor models such as the GA+ and GA next-generation compressors to drive market revenues. These smart industrial air compressors, such as the next-generation GA and GA+ fixed-speed models, promise enhanced performance, energy savings, reliability, and connectivity, particularly tailored for mid-size, fixed-speed industrial requirements. Atlas Copco's recent launch in February 2023 exemplifies this trend, showcasing the GA+ models equipped with a Smart Unload algorithm that monitors real-time pressure, optimizing unloading timings for substantial energy conservation. Notably, these new compressors outperform their predecessors by delivering increased air capacity while significantly reducing energy costs. Additionally, innovative hybrid bearing technology extends the drivetrain's lifespan by an impressive 33%, ensuring longer-lasting and efficient operations.

In June 2025, Atlas Copco Group, a Sweden-based industrial manufacturing company, acquired Kyungwon Machinery Industry Co. Ltd. Through this acquisition, Atlas Copco aims to strengthen and expand its product portfolio in the industrial air compressor segment, enhancing its technological capabilities and increasing its presence in the Asian compressor market. Kyungwon Machinery Industry is a South Korea-based manufacturer specializing in air compressors, including oil-injected and oil-free screw air compressors, as well as oil-free scroll air compressors.

Major companies operating in the compressors market are Atlas Copco AB, Ingersoll Rand Inc., Mitsubishi Heavy Industries Ltd., Siemens Energy AG, Baker Hughes Company, Hitachi Ltd., Burckhardt Compression Holding AG, ELGi Equipments Ltd., Ariel Corporation, Kobe Steel Ltd., Kaeser Kompressoren, Gardner Denver Inc., Howden Compressors, Aerzen, Anest Iwata Corporation, ABAC Air Compressors, Ceccato Aria Compressa S.p.A, Kaishan Group, Sauer Compressors, Rotair S.p.A, Ing. Enea Mattei S.p.A, Flowserve Corporation, General Electric Company, Accudyne Industries LLC.

Asia-Pacific was the largest region in the compressors market share in 2025. North America was the second largest region in the global compressors market. The regions covered in the compressors market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the compressors market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The compressor market consists of sales of rotary screw compressor, centrifugal compressors, and reciprocating compressor. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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