The air compressor market is forecasted to grow at a 4.10% CAGR during the forecast period, attaining USD 26.423 billion in 2030 from USD 21.612 billion in 2025.
Air compressors are machines designed to store compressed air by reducing volume and increasing pressure inside a tank or cylinder. These machines are commonly used across various industries and applications to generate pressurized air for powering pneumatic tools, machinery, and equipment. The air compressor market is extensive and diverse, catering to various customers with different needs and requirements. As industrialization expands globally, there is a rising demand for compressed air in manufacturing processes.
Increased infrastructure investments, technological advancements, growing awareness about energy efficiency, etc., are some of the factors leading to the global air compressor market growth. For instance, in August 2022, the Chinese government announced they would make around US$ 1 trillion of government funds available for construction projects. Similarly, in September 2021, the UK government announced that around £31 billion is expected to be spent on social and economic infrastructure in the coming years.
The construction sector heavily relies on compressed air for a wide range of applications, making air compressors essential tools. The construction industry is involved in building and developing infrastructure, such as roads, bridges, buildings, airports, etc. These projects require compressed air for various tasks like pneumatic drilling, cutting, nailing, and painting, among others. With so many advantages, the growing construction industry is a growth driver for the air compressor market. According to the National Statistics Office, the total construction output in the UK increased by 3.7% in December 2022. Similarly, according to the U.S. Census Bureau, the total construction spending in the country in 2022 was estimated to be nearly US$ 1,809.8 billion. This was a 7.7% increase from 2021.
It is a widely used source of power in manufacturing, powering various equipment and machinery in industrial plants. It offers flexibility and reliability, making it ideal for manufacturing processes that demand high speed, precise control, and productivity. According to data from the World Bank, the worldwide manufacturing value added has risen from US$ 12.33 trillion to US$ 16.05 trillion between 2015 and 2021, and the proportion of this value added to the GDP has increased from 16% to 17% during the same period. Thus, as global construction and manufacturing activities continue to increase, the growth of the air compressor market will also increase.
The growing industrial growth in the region, coupled with product innovations and launches of air compressors, are majorly driving the overall market growth in the region. India’s growing investments in the automotive sector to propel overall productivity, coupled with booming demand for fuel-efficient vehicles, have provided a positive scope for the country's market outlook for air compressors. According to the International Organization of Motor Vehicle Manufacturers, India’s automotive production in 2022 stood at 5.45 million units, which represented a 24% increase over 2021’s 4.39 million units.
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