Air Oil Separators Market Report 2026

The air oil separators market size has grown strongly in recent years. It will grow from $1.94 billion in 2025 to $2.05 billion in 2026 at a compound annual growth rate (CAGR) of 5.6%. The growth in the historic period can be attributed to industrial compressor usage growth, oil and gas expansion, manufacturing automation, equipment efficiency needs, maintenance cost reduction.

The air oil separators market size is expected to see strong growth in the next few years. It will grow to $2.55 billion in 2030 at a compound annual growth rate (CAGR) of 5.6%. The growth in the forecast period can be attributed to stringent air quality regulations, industrial energy efficiency demand, growth in compressed air systems, predictive maintenance adoption, industrial expansion in emerging markets. Major trends in the forecast period include high-efficiency filtration media, extended service life separators, low-pressure drop designs, compliance with emission standards, compact separator integration.

The growing popularity of packaged food is expected to drive the growth of the air oil separators market in the coming years. Packaged food refers to products contained in packaging that cannot be opened or altered without obvious tampering. Its increasing popularity is driven by convenience, time savings, hygiene, food safety, and evolving consumer preferences. Air oil separators remove oil and other contaminants from compressed air used in food processing and packaging, ensuring clean and safe air throughout production and maintaining the quality and safety of packaged food products. For example, in 2025, the Food Export Association of the Midwest USA reported that total U.S. processed food exports to Japan reached $2.6 billion in 2024. Therefore, the rising demand for packaged food 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 2024, Vance Street Capital LLC, a U.S.-based private equity firm, partnered with Keltec Technolab Inc, a U.S.-based manufacturer of aftermarket filtration solutions, to support the company’s growth in the industrial filtration market. Through this collaboration, Vance Street Capital aims to assist Keltec in expanding both organically and through strategic acquisitions, strengthening its product portfolio, and increasing market reach by leveraging Vance Street’s operational expertise and investment capabilities. Keltec Technolab Inc specializes in manufacturing filtration components, including air and oil separators, for compressed air systems used across industrial, pharmaceutical, and aerospace applications.

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 2025. The regions covered in the air oil separators market report are Asia-Pacific, South East Asia, 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, Taiwan, 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.

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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