Integrally Geared Centrifugal Compressor Market Report 2025

The integrally geared centrifugal compressor market size has grown strongly in recent years. It will grow from $1.61 billion in 2024 to $1.71 billion in 2025 at a compound annual growth rate (CAGR) of 6%. The growth during the historic period can be attributed to the increasing replacement of traditional compressors, a stronger focus on reducing lifecycle costs, rising demand within the power generation sector, expanding government initiatives aimed at energy conservation, and the growing adoption of digitalization and remote monitoring technologies.

The integrally geared centrifugal compressor market size is expected to see strong growth in the next few years. It will grow to $2.14 billion in 2029 at a compound annual growth rate (CAGR) of 5.8%. The projected growth during the forecast period can be attributed to rising demand for energy-efficient gas compression systems, increased investments in oil and gas infrastructure development, heightened focus on carbon emission reduction, expanding demand within the oil and gas industry, and accelerating urbanization and industrialization. Key trends expected during this period include improvements in impeller and diffuser designs, the development of high-speed gear systems, incorporation of smart sensors and monitoring technologies, innovations in modular compressor designs, and the adoption of digital twin technology.

The increasing demand in the oil and gas sector is anticipated to drive the growth of the integrally geared centrifugal compressor market moving forward. The oil and gas sector encompasses the exploration, extraction, processing, and distribution of petroleum and natural gas resources. This rising demand is largely driven by expanding transportation needs, as the number of vehicles and air travel grows, leading to higher fuel consumption globally. Integrally geared centrifugal compressors support this sector by providing efficient gas compression for processes like natural gas processing, pipeline boosting, and gas injection, thereby enhancing reliability and reducing operational footprints in critical applications. For example, in June 2023, the U.S. Energy Information Administration (EIA) projected that global oil consumption would increase by 6% from 2022 to 2028, reaching 105.7 million barrels per day. Concurrently, investments in upstream oil and gas activities such as exploration, extraction, and production are expected to rise by 11% annually, reaching a record $528 billion in 2023. Consequently, the growing demand in the oil and gas sector is fueling the expansion of the integrally geared centrifugal compressor market.

Leading companies in the integrally geared centrifugal compressor market are focusing on advancing high-efficiency compressors to deliver compact, energy-saving gas compression systems for industrial applications. A high-efficiency centrifugal compressor is a turbomachinery device designed to compress gases while minimizing energy use by optimizing impeller, diffuser, and gear designs to improve performance and lower operating costs. For instance, in May 2025, IHI Rotating Machinery Engineering Co. Ltd., a Japan-based manufacturer, launched the TRZ Series - an advanced line of high-efficiency integrally geared centrifugal compressors aimed at industrial use. This series offers enhanced efficiency, reduced operational expenses, and easier maintenance through features such as innovative impeller design, direct lubrication, and standardized parts. It is engineered to provide dependable, cost-effective, and sustainable air compression solutions for large-scale industrial operations.

In June 2025, Honeywell International Inc., a U.S.-based manufacturing company, acquired Sundyne Corporation for $2.16 billion. This acquisition is expected to positively impact Honeywell’s revenue growth, operating margins, and adjusted earnings per share within the first full year. Sundyne’s cutting-edge technologies and extensive customer base are poised to strengthen Honeywell UOP’s growth in refining, petrochemicals, LNG, and sustainable fuel solutions. Sundyne Corporation is a U.S.-based manufacturer specializing in integrally geared centrifugal compressors.

Major players in the integrally geared centrifugal compressor market are Hitachi Ltd., General Electric Co., Siemens Energy AG, Mitsubishi Heavy Industries Ltd., Baker Hughes Company, Johnson Controls Inc., Kobe Steel Ltd., Atlas Copco AB, IHI Rotating Machinery Engineering Co. Ltd., Ingersoll Rand Inc., MAN Energy Solutions SE, Howden Group, Kaeser Kompressoren SE, Burckhardt Compression AG, HMS Group, Kirloskar Pneumatic Company Limited, FS-Elliott Co. LLC., Hanwha Power Systems Co. Ltd., Boldrocchi Group, Borsig GmbH, Shenyang Blower Works Group Corporation, and Elliott Group.

North America was the largest region in the integrally geared centrifugal compressor market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in integrally geared centrifugal compressor report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the integrally geared centrifugal compressor market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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 hike in U.S. tariffs and the associated trade disputes in spring 2025 are notably impacting the aerospace and defense sector by raising costs for titanium, carbon fiber composites, and avionics materials largely sourced from global suppliers. Defense contractors, locked into fixed-price government contracts, absorb these added costs, while commercial aerospace firms face airline pushback on higher aircraft prices. Delays in component shipments due to customs bottlenecks further disrupt tight production schedules for jets and satellites. The industry is responding by stockpiling critical materials, seeking waivers for defense-related imports, and collaborating with allied nations to diversify supply chain.

An integrally geared centrifugal compressor is a type of turbomachinery that incorporates a central bull gear driving several pinion shafts, each linked to its own impeller stage. This setup enables optimized impeller speeds and enhances efficiency across the compression stages. The design also minimizes the overall footprint and boosts aerodynamic performance by allowing tailored speed adjustment for each stage.

The primary categories of integrally geared centrifugal compressors include radial compressors and axial compressors. Radial compressors, often known as centrifugal compressors, use impellers to push gas outward from the center of rotation, converting kinetic energy into pressure. They are engineered to compress various gases such as nitrogen, acid hydrocarbon gas, chlorine, air, fuel gas, hydrocarbon process gas, refrigerants, and more. These compressors find applications in air and gas compression, refrigeration, and are utilized across numerous industries including oil and gas, chemical and petrochemical, power generation, manufacturing, air suspension, and others.

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

The integrally geared centrifugal compressor market consists of sales of high-speed gearboxes, intercoolers, aftercoolers, compressor control systems, and impeller assemblies. 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 and 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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