Screw Compressor Market Report 2025

The screw compressor market size has grown strongly in recent years. It will grow from $13.6 billion in 2024 to $14.81 billion in 2025 at a compound annual growth rate (CAGR) of 8.9%. The growth during the historic period is driven by expanding industrialization in emerging markets, heightened demand for energy-efficient equipment, increased use of automation in manufacturing, a greater need for dependable compressed air systems, and growing demand within the chemical processing sector.

The screw compressor market size is expected to see strong growth in the next few years. It will grow to $20.59 billion in 2029 at a compound annual growth rate (CAGR) of 8.6%. The anticipated growth during the forecast period is driven by the increasing adoption of smart and Internet of Things (IoT)-enabled compressors, a stronger emphasis on sustainability and energy efficiency, the growing replacement of outdated reciprocating compressors, rising demand for oil-free screw compressors in healthcare, and expanding needs within the pharmaceutical and biotechnology industries. Key trends expected include the development of eco-friendly, low-emission compressor models, modular and compact screw compressor designs, integration with smart factory systems, innovations in high-efficiency and ultra-quiet compressors, and the incorporation of data analytics platforms for performance monitoring.

The expansion of the oil and gas industry is anticipated to drive the screw compressor market forward. This industry encompasses the exploration, extraction, refining, transportation, and marketing of petroleum and natural gas products for energy and industrial purposes. The industry's growth is fueled by increasing energy demand to support industrialization, transportation, and improved living standards. Screw compressors play a vital role by supplying a dependable, continuous, and energy-efficient source of compressed air and gas essential for exploration, production, and processing operations. For example, in January 2023, the U.S. Energy Information Administration reported that crude oil production in the United States is expected to average 12.4 million barrels per day in 2023 and rise to 12.8 million barrels per day in 2024. Similarly, in September 2022, the same agency projected U.S. natural gas consumption to increase by 3.6 billion cubic feet per day from 2021, reaching a record-high annual average of 86.6 billion cubic feet per day in 2022. Hence, the growth of the oil and gas sector is propelling the screw compressor market.

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 players 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 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in screw compressor report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the screw 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 swift increase in U.S. tariffs and the ensuing trade tensions in spring 2025 are significantly affecting the machinery sector by increasing costs for steel, hydraulic systems, and precision bearings critical components often imported from tariff-affected regions. Manufacturers of construction, agricultural, and industrial machinery now face squeezed margins, as many long-term contracts prevent immediate price adjustments. The uncertainty has also delayed investment in automation and smart machinery technologies, slowing productivity gains. To adapt, firms are accelerating local supplier development, redesigning products to use alternative materials, and leveraging predictive maintenance to extend equipment lifespans amid higher replacement costs.

A screw compressor is a rotary compressor that compresses gas or air efficiently using two interlocking helical screws (rotors). It runs continuously, delivering a consistent flow of compressed air with minimal pulsation, making it ideal for industrial and high-demand uses.

The primary types of screw compressors are oil-injected and oil-free. Oil-injected compressors introduce lubricating oil into the compression chamber to seal, cool, and lubricate the screws during operation. These compressors are available in stationary and portable models and can be configured as single-stage or multi-stage systems. Capacities range from up to 50 horsepower, 51-250 horsepower, and above 250 horsepower. They are widely used across industries such as oil and gas, chemicals and petrochemicals, food and beverage, automotive, power generation, mining and metals, and others.

The screw compressor market research report is one of a series of new reports that provides screw compressor market statistics, including screw compressor industry global market size, regional shares, competitors with a screw compressor market share, detailed screw compressor market segments, market trends and opportunities, and any further data you may need to thrive in the screw compressor industry. This screw compressor 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 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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