The global centrifugal air compressor market was valued at USD 8.4 billion in 2024 and is projected to reach approximately USD 12.9 billion by 2034, growing at a CAGR of 5.5% during the forecast period (2025–2034). This impressive growth trajectory is driven by expanding industrialization, increasing infrastructure investments, and technological innovations across global markets.
A centrifugal compressor is a type of dynamic compressor that increases the pressure of air or gas by converting kinetic energy into potential energy. It does so using a rotating impeller that accelerates the gas before it passes through a diffuser, where the high velocity is transformed into pressure. These compressors are widely used in HVAC systems, manufacturing, gas compression, and refrigeration applications due to their efficiency, reliability, and capacity for continuous operation.
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Market Value (2024): USD 8.4 Billion
Forecast Value (2034): USD 12.9 Billion
CAGR (2025–2034): ~5.5%
Dominant Region: Asia Pacific
Leading Segment: Oil-filled compressors in manufacturing applications
✅ 1. Urbanization and Infrastructure Boom
The rapid pace of urbanization and infrastructure development, particularly in emerging economies, is creating a massive demand for compressed air systems. Residential buildings, airports, transport networks, and commercial complexes require dependable compressed air solutions—boosting the demand for centrifugal compressors.
According to a UNEP 2025 report, global building floor space grew by 2% between 2022 and 2023. As more centralized HVAC systems are installed in malls, hospitals, and data centers, the use of centrifugal compressors in cooling and air handling is set to rise.
✅ 2. Automation Trends Across Industries
The rise in industrial automation, especially in manufacturing and electronics, is driving demand for reliable compressed air. Centrifugal compressors, known for delivering high volumes of air consistently, are becoming increasingly essential in automated production lines.
❌ High Initial Investment
Despite their long-term operational efficiency, centrifugal compressors require high upfront costs, which can deter adoption among SMEs and budget-sensitive industries. The complexity of multi-stage systems, specialized components, and customization requirements for industries like petrochemicals or oil & gas make initial deployment expensive.
🚀 Innovation and New Product Launches
Product innovation is a promising growth lever. For instance, in May 2025, IHI Rotating Machinery Engineering Co., Ltd. launched its TRZ Series, a high-efficiency centrifugal compressor with discharge air volumes up to 12,320 m³/h. The innovation expands IHI’s industrial air compressor range and caters to varied pressure and capacity needs, improving energy efficiency for end users.
⚠️ Limited Performance at Low Loads
Centrifugal compressors are not ideal for variable load environments. At low loads, they may waste energy or even become unstable, risking flow reversal (surge). These limitations require careful integration of surge protection mechanisms, which adds to operational complexity and cost.
🛢️ By Lubrication:
Oil-Filled (Dominant): Ideal for general industrial applications where oil contamination isn’t an issue. More cost-effective in cnstruction and maintenance.
Oil-Free: Suited for sensitive applications like food processing, healthcare, and electronics.
🏭 By Application:
Manufacturing (Leading Segment): Drives demand for compressed air in tools, automation systems, and noise-sensitive environments.
Other key sectors include semiconductor & electronics, oil & gas, healthcare, foundries, and home appliances.
🌏 Asia Pacific Leads the Market
With robust industrial growth in countries like China, India, and Southeast Asia, Asia Pacific is set to dominate the market. Large-scale construction, petrochemical, and manufacturing activities fuel the demand for high-capacity compressors.
For example, India’s National Highway network expanded significantly from 65,569 km in 2004 to over 146,000 km in 2024, indicating large-scale infrastructure growth that fuels compressor demand.
🌎 North America Holds Strong Potential
Driven by strict environmental regulations and advancement in manufacturing automation, North America is expected to witness consistent demand, especially in sectors like pharmaceuticals, oil & gas, and clean energy.
Some of the leading market participants include:
Atlas Copco AB
Ingersoll-Rand PLC
Gardner Denver Holdings Inc.
Mitsubishi Heavy Industries Compressor Corp.
Baker Hughes (GE)
Sundyne
Zhejiang Kaishan Compressor Co.
Howden Group
Sullair LLC
Hanwha Power Systems
Hitachi
MAN Energy Solutions
These companies are focusing on product efficiency, cost optimization, and regional expansion to strengthen their market position.
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