Screw Compressor Market Report 2026

The screw compressor market size has grown strongly in recent years. It will grow from $14.81 billion in 2025 to $16.11 billion in 2026 at a compound annual growth rate (CAGR) of 8.8%. The growth in the historic period can be attributed to industrialization growth, expansion of oil and gas operations, manufacturing capacity expansion, need for continuous air supply, reliability of rotary compression technology.

The screw compressor market size is expected to see strong growth in the next few years. It will grow to $22.31 billion in 2030 at a compound annual growth rate (CAGR) of 8.5%. The growth in the forecast period can be attributed to energy efficiency regulations, smart compressor adoption, growth in process industries, industrial automation expansion, focus on carbon footprint reduction. Major trends in the forecast period include growing demand for energy efficient compressors, rising adoption of oil free screw compressors, integration of smart monitoring and diagnostics, expansion of portable screw compressor usage, focus on reduced maintenance designs.

The expansion of the oil and gas industry is expected to drive the growth of the screw compressor market going forward. The oil and gas sector encompasses the exploration, extraction, refining, transportation, and distribution of petroleum and natural gas products for energy and industrial applications. Industry growth is primarily fueled by rising global energy demand to support industrialization, transportation, and increasing living standards. Screw compressors play a critical role by supplying a reliable, continuous, and energy-efficient source of compressed air and gas essential for operations across exploration, production, and processing facilities. For instance, in August 2023, according to the U.S. Energy Information Administration (EIA), U.S. crude oil production was projected to surpass 12.9 million barrels per day in late 2023 and exceed 13 million barrels per day in early 2024. Therefore, the growth of the oil and gas industry is driving demand for screw compressors.

Leading companies in the screw compressor industry are introducing innovative products such as battery-powered portable compressors to improve energy efficiency and mobility. These portable compressors operate on rechargeable batteries rather than electricity or fuel, allowing cordless use across diverse locations. In May 2023, Atlas Copco AB, a Swedish industrial equipment manufacturer, introduced the B-Air 185-12, the world's first battery-powered portable screw compressor. This innovative model features a 57 kWh battery capable of providing a consistent flow rate between 5.3 and 3.7 cubic meters per minute at pressures ranging from 5 to 12 bar. Equipped with a variable speed drive and a permanent magnet motor, it achieves up to 70% greater energy efficiency compared to traditional diesel compressors. Designed to function without fuel or external power sources, it is ideal for remote or off-grid applications. The compressor operates reliably under extreme conditions, tolerating temperatures from -25°C to +45°C and altitudes up to 4,500 meters. Additionally, it produces low noise and zero local emissions, making it suitable for environmentally sensitive and urban areas.

In April 2025, Atlas Copco Group, a Sweden-based manufacturing firm, acquired Kyungwon Machinery Industry Co Ltd. for an undisclosed sum. This acquisition aims to bolster Atlas Copco’s footprint in advanced industrial markets and broaden its portfolio of compressor solutions in South Korea and across Asia. Kyungwon Machinery Industry Co Ltd., headquartered in South Korea, specializes in producing oil-injected and oil-free screw air compressors.

Major companies operating in the screw compressor market are Hitachi Ltd., Daikin Industries Ltd., Kobe Steel Ltd., Atlas Copco Group, Emerson Electric Co., Ingersoll Rand Inc., Kaeser Kompressoren SE, Fusheng Group, ELGi Equipments Ltd., IHI Corporation, Quincy Compressor, Anest Iwata Corporation, Boge Kompressoren GmbH, Airmech Solutions, Brehob Corporation, BAC Compressor, Indo-Air Compressors Pvt. Ltd., Adekom Limited., ALUP Kompressoren GmbH, Maruti Air Compressor.

Europe was the largest region in the screw compressor market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the screw compressor market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the screw compressor market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The screw compressor market consists of revenues earned by entities by providing services such as installation services, maintenance and repair services, spare parts supply, energy efficiency optimization, and technical consulting and support. The market value includes the value of related goods sold by the service provider or included within the service offering. The screw compressor market also includes sales of compressor systems and components, diesel-powered screw compressors, stationary screw compressors, integrated control systems, and electric-powered screw compressors. 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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