Air Oil Separators Market Report 2025

The air oil separators market size has grown steadily in recent years. It will grow from $1.86 billion in 2024 to $1.94 billion in 2025 at a compound annual growth rate (CAGR) of 4.5%. The growth in the historic period can be attributed to increasing demand for high-quality industrial machinery, increasing the probability of capturing even the minutest oil droplets, increasing demand for Air Oil Separator, and growth of the automotive industry.

The air oil separators market size is expected to see strong growth in the next few years. It will grow to $2.41 billion in 2029 at a compound annual growth rate (CAGR) of 5.6%. The growth in the forecast period can be attributed to Increasing stringency of environmental regulations, increasing acceptance of renewable energy sources, increased appetite for pleated air oil separators among consumer industries, increasing demand for energy efficiency, and rising adoption of electric vehicles. Major trends in the forecast period include technological innovation, advancements in manufacturing processes, technological advancements, product innovation, innovation in air oil separator technology, and innovation in design and functionality.

The forecast of 5.6% growth over the next five years reflects a modest reduction of 0.4% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US through higher prices for precision-engineered components sourced from Germany and Japan, leading to increased maintenance costs for industrial machinery. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The increasing popularity of packaged food is anticipated to drive the growth of the air oil separators market in the future. Packaged food refers to products that are enclosed in a container or package to prevent tampering or alteration. The growing demand for packaged food is attributed to its convenience, time-saving benefits, hygiene, food safety, and evolving consumer preferences. Air oil separators play a crucial role in removing oil and other contaminants from compressed air used in food processing and packaging. By ensuring a clean and uncontaminated air environment, these separators help maintain the safety and quality of packaged food products. For example, in 2022, according to the Food Export Association of the Midwest USA, a US-based non-profit organization, retail sales of packaged foods in Japan would reach $235.9 billion by 2026, marking a 9.1% increase or $19.6 billion from 2022. This trend is fueling the growth of the air oil separators market.

Leading companies in the air oil separators market are focused on creating innovative solutions, such as built-in baffles, to improve engine performance and durability. Built-in baffles are mechanical features that aid in separating oil from compressed air or gas streams. For instance, in September 2023, K&N, a US-based company, launched a new line of air oil separators. These separators are designed with large capacities, efficient filtration, easy installation, and premium materials to effectively remove oil from compressed air or gas streams, thereby protecting downstream equipment in various industrial settings. K&N’s new separators include built-in baffles that efficiently filter oil from crankcase pressure before recirculating it into the intake tract. This design helps reduce carbon deposits from vapors in the intake manifold and valves, offering superior engine protection and extending engine life.

In March 2022, HEINZMANN, a Germany-based company specializing in engine and turbine management systems, acquired IFT GMBH for an undisclosed sum. This acquisition is intended to enhance Heinzmann’s capabilities in engine management and emissions control technologies, particularly by integrating IFT's expertise in oil mist separators and blow-by filters for combustion engines. IFT GMBH, based in Austria, manufactures air oil separators and related filtration products.

Major companies operating in the air oil separators market are Atlas Copco, Ingersoll Rand Inc., MANN+HUMMMEL, Donaldson Company Inc., Meggitt Control Systems, Chicago Pneumatic, Sullair Australia, Walker Engineering, Fleetguard Filters Pvt Ltd., K&N Engineering, KELTEC Technolab, FAI Filtri Srl, Solberg Manufacturing, Walker Filtration Inc., Dongguan Sheglian Filter Manufacturing, Mikropor, PSI Global Ltd., Horizon Enterprise, Sotras Srl, Sofin Industrial Filters S.R.L., IAG Off-Road, Coburg Equipments Pvt Ltd., Smridhi Manufacturing Co. Pvt. Ltd., T.G. Filter Srl, JJ Filters.

North America was the largest region in the air oil separator market in 2024. The regions covered in the air oil separators market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the air oil separators market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The air oil separators market consists of sales of oil removal, compressor lubrication, and centrifugal separators. 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.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp rise in U.S. tariffs and ensuing trade tensions in spring 2025 are heavily impacting the oil and gas industry, especially in areas such as exploration equipment, pipeline development, and refining operations. Increased import duties on drilling rigs, steel pipes, and specialized machinery have significantly raised capital expenditures across both upstream and downstream segments. Midstream players are grappling with cost surges for essential components like valves, compressors, and storage tanks, causing delays and disruptions in expansion projects. Refiners, meanwhile, are contending with higher expenses for imported catalysts and control systems critical to operational efficiency. In addition, retaliatory tariffs from major trade partners have curtailed U.S. exports of liquefied natural gas (LNG) and crude oil, reducing global competitiveness. In response, companies are ramping up investments in domestic manufacturing alliances, digital asset management tools, and diversified energy portfolios to maintain resilience and protect profitability.

An air-oil separator, also known as an oil separator, is a device designed to extract oil particles from compressed air or gas streams. These separators are widely utilized across various industries to ensure that the air or gas being used or discharged is free from oil contamination.

The main types of air-oil separators are pleated, coalescing, and deep filters. Coalescing refers to the process where two or more entities merge to form a single unified whole. These separators are employed in applications such as oil-lubricated compressors and vacuum pumps, and are used by various sectors including oil and gas, power generation, automotive, aerospace, food and beverage, chemical, and other industrial fields.

The air oil separator market research report is one of a series of new reports that provides air oil separator market statistics, including air oil separator industry global market size, regional shares, competitors with an air oil separator market share, detailed air oil separator market segments, market trends, and opportunities, and any further data you may need to thrive in the air oil separator industry. This air-oil separator market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

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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