The Global Centrifugal Air Compressor market is forecast to grow at a CAGR of 2.3%, reaching USD 13.0 billion in 2031 from USD 11.6 billion in 2026.
A centrifugal air compressor is a dynamic axisymmetric work-absorbing turbomachinery. These air compressors accelerate a gas from the impeller’s center to develop pressure with the help of centrifugal force and then slow it down through expansion in a diffuser. The process converts velocity energy into pressure energy.
The driving factors of the centrifugal air compressor need are the rising production of natural gas globally and rising power demand for projects like natural gas power plants. Industries like semiconductors, food, and beverages are also expected to fuel the market growth in the coming years. Technological advancement is also boosting the centrifugal air compressor to meet the growing demand of several industrial sectors.
Centrifugal Air Compressor Market Drivers:
Rising demand from the petrochemical industries is anticipated to propel the centrifugal air compressor market.
Centrifugal air compressors have multiple applications in the oil & gas industries, which further helps to boost the centrifugal air compressor industry value. Centrifugal compressors are used in various industries for different applications. For example, in petroleum refining, they are used to increase the pressure of processed gases. In pipeline transportation, they help maintain air pressure for gas transportation through pipelines. They are also used for gas injection to aid in the recovery of crude oil by increasing gas pressure in oil layers.
Therefore, as the petrochemical industries continue to grow, the demand for centrifugal air compressors will also grow rapidly, leading to market expansion. In 2023, Howden planned to supply compressors for Europe's largest renewable hydrogen plant.
Centrifugal Air Compressor Market Segment Analysis
Increasing technological advancements will bolster the centrifugal air compressor market expansion.
Another key driving factor for the centrifugal air compressor market relates to the developments in product features and characteristics due to rapid technological advancements in the industry. As a result of these innovations, there is an increasing rate of adoption of centrifugal compressors as compared to reciprocating compressors. This is due to its characteristics, such as a longer product lifecycle, lower lifetime costs, and a higher turndown ratio, reducing the probability of compressed air treatment system blow-offs during low-flow conditions. These product developments have made centrifugal air compressors a favourable choice for multiple industrial applications.
Asia Pacific is expected to dominate the marketplace.
Asia Pacific is anticipated to be the major global centrifugal air compressor marketplace. The region is expected to constitute a significant share of the centrifugal air compressor industry, and similar trends are expected to be followed in the forecast period. This market share is owed to the growth in the manufacturing sector in the major economies of the region, such as Japan and India. The electronics industry’s growth and increased demand for semiconductors in regions such as China and South Korea also drive the market growth.
Furthermore, the rising industrial growth of major end-use sectors like oil and gas in populated economies like China and India is expected to raise the demand and market for centrifugal air compressors. For instance, the National Development and Reform Commission predicts that the oil and gas pipeline network will reach 2,40,000 kilometers by 2025, while natural gas pipelines will reach 1,23,000 kilometers. Further, according to IBEF data of February 2024, India's oil demand is expected to increase by 2x to reach 11 million barrels per day by 2045, with diesel and gasoline accounting for 58% of the demand by 2045. Natural gas consumption is also projected to grow by 25 billion cubic meters, with an average annual growth of 9% until 2024.
Centrifugal Air Compressor Market Restraints.
The high initial cost of the product could hamper the demand for centrifugal air compressor growth.
The industry faces challenges due to the high initial costs of installing centrifugal air compressors, which can hinder growth and negatively impact demand. Manufacturers may not commit to large investments, and the high costs may deter smaller industrial operations, especially in the early stages. Despite this, centrifugal compressors offer a lower lifetime cost than reciprocating compressors, making them a viable option for smaller operations.
Renting centrifugal air compressors can hinder the global market demand.
The industry's growth is hindered by the trend of renting centrifugal air compressors by small and medium-scale industries, which require them for shorter periods for air treatment processes. Rather than purchasing, this financial decision reduces demand as smaller businesses save considerable operational costs by renting these compressors.
Centrifugal Air Compressor Market Players and Products:
Oil-free air centrifugal compressors- Atlas Copco offers a range of oil-free air centrifugal compressors designed to provide energy-efficient flow and power consumption. These compressors are in demand in industries such as textiles, petrochemicals, food & beverage, etc. The product is claimed to provide 100% oil-free air under its Class Zero range of compressors. These centrifugal compressors are more beneficial for the environment than other such products in the market and help reduce energy costs.
MSG® TURBO-AIR® 2040 Centrifugal Air Compressor- Ingersoll Rand offers its MSG TURBO-AIR 2040 Centrifugal Air Compressor under its range of centrifugal air compressors. The product comes with a built-in aftercooler, thereby saving the costs of purchasing separate pipeline coolers and packaged valves for ease of installation and maintenance. The product is ISO Certified Class 0, which implies that it produces completely oil-free air. Due to its energy efficiency, the product enables the reduction of the total cost of ownership to the purchasers.
Centrifugal Air Compressor Market Key Developments.
April 2023 - MHI Compressor International Corporation partnered with Rotating Machinery Services, Inc., a leading provider of engineering, repair, and maintenance services for critical rotating equipment.
Market Segmentation:
Centrifugal air compressor market is segmented and analyzed as below:
By Product
Portable
Stationary
By Casing
Horizontal Split
Vertical Split
By Application
Food & Beverages
Oil & Gas
Energy
Semiconductor
Manufacturing
Others
By Geography
North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
Germany
France
United Kingdom
Spain
Others
Middle East and Africa
Saudi Arabia
UAE
Others
Asia Pacific
China
Japan
South Korea
India
Indonesia
Taiwan
Others