One of the most remarkable factors contributing toward air compressor market growth is the high energy efficiency quotient associated with these compressors. Technological advancements in this industry have resulted into revolutionary air compressors that are much lighter in weight and are highly energy efficient. The latest trend witnessed in this industry is the escalating manufacturing of compressors that are designed to reduce over 50% of energy consumption, owing to its vertical design and variable speed drive that enable the large energy savings. Backing up with an instance, Atlas Copco, a renowned air compressor market player has recently won a 2017 Red Dot Design Award for its outstanding product design featured in its 8-series portable air compressors. This new version of Atlas Copco’s portable air compressor was recognized for raising its bar with respect to design standards, size, weight, efficiency, and of course its performance. Such feats by prominent air compressor industry players has made it quite evident that product enhancement and design innovations are gaining huge traction in the industry.
U.S. Air Compressor Market Size, by Product, 2013 – 2024 (USD Million)
Further speaking of the competitive landscape, several companies are investing heavily in R&D activities to develop their product portfolio and achieve greater efficiency, as environmental protection norms have imposed stringent regulations on energy usage. Furthermore, the global air compressor industry is also likely to witness several mergers & acquisitions, given the robust demand for low price and energy efficient compressors. These M&A strategies have aided the industry players in upgrading their production capacities and expanding their global reach over other market players. Listing a few, Chicago Pneumatic, Ingersoll-Rand, Bauer Group, General Electric, Atlas Copco, and Kaeser Kompressoren, are some of the most prominent companies accumulating significant share of the air compressor industry.
Air compressors form an integral part of various sectors including home appliances, oil & gas, manufacturing, food & beverage, energy, semiconductors & electronics, and healthcare. Amongst these, the manufacturing sector held a major chunk of air compressor industry and accounted for USD 9 billion in 2016. Considering in terms of volume, home appliances segment held a major air compressor industry share and is expected to grow at an exponential rate in the ensuing years. Speaking of the home appliances, air compressors form the essential parts of refrigerators, air conditioners, ventilators, and other appliances. Industry experts estimate air compressor market size from this application to surpass USD 5 billion by 2024, given the extensive demand for home appliances & electronics in Asia Pacific.
Asia Pacific is a powerhouse of investments and rapid industrialization rates in the region is consecutively driving the growth of home appliances, manufacturing, energy, and electronics sectors. Statistics chronicled Asia Pacific to be the major air compressor market growth avenue, having had contributed to more than 50% of the overall share in 2016. Apart from the home appliance segment, Asia Pacific is also witnessing robust growth in the automobile industry. Several European automobile manufacturers have shifted their manufacturing units in this region, subject to cheap labor and ample raw material availability- a trend which has profoundly boosted the growth of automobile sector in the region. Figures supporting the fact include - Asia Pacific’s automotive sales surged by 7.6% since 2015 and recorded noteworthy sales of over 51.5 million units in 2016. As automobile air compressors find extensive usage in engines, vehicle air conditioning systems, and air breaks, the expanding automotive sector is slated to have a perpetual impact on air compressor industry outlook.
Defining the strategic landscape, the global air compressor market is highly characterized by technological product advancements with regards to the design, energy efficiency, portability, size, weight, reliability, and cost. High demand for sustainable products & strict regulations in this industry have further prompted air compressor market players to design eco-friendly compressors. U.S. is among one such regions witnessing prominent demand for eco-friendly and portable air compressors. In fact, these investments in designing green air compressors are benefiting the companies in terms of growing competitiveness. For instance, manufacturing eco-friendly compressors have taken Atlas Copco to 18th position on the sustainability list. Such trends have not only abetted the industry players to seize the untapped market potential but have also augmented the probability landscape of air compressor market. Global Market Insights, Inc., depicts the overall air compressor industry to attain a valuation of USD 40 billion by 2024 with a CAGR of 3% over 2017-2024.
Written By : Ojaswita Kutepatil