U.S. Air Compressor Market Size, Share & Trends Analysis Report By Type (Portable, Stationary), By Product, By Lubrication, By Operating Mode, By Power Range, By Application, And Segment Forecasts, 2024 - 2030

U.S. Air Compressor Market Size & Trends

The U.S. air compressor market size was estimated at USD 3.31 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 3.4% from 2024 to 2030. The market is driven by the advent of next-generation compressed air systems, which are environmentally sustainable and have low maintenance costs. Furthermore, the demand for advanced compressors that are cost-efficient and do not require supplementary devices for operation has increased across different end-use applications. Consumers' focus on reducing the total cost of ownership is providing new growth avenues for the introduction of energy-efficient air compressors. Additionally, the use of compressed air in power industrial tools is snowballing, thereby fuelling the market growth.

Some of the most common uses of air compressors include air tools, air conditioners, refrigerators, vehicle engines, HVAC systems, and industrial systems. Over the past years, there has been an upsurge in the awareness of air quality and related adverse impacts on the environment. Stringent government regulations about environmental air protection and carbon dioxide emissions compelled compressor manufacturers to develop energy-efficient products. The Environmental Protection Agency (EPA) is transitioning to low global warming potential (GWP) alternatives such as propane, ammonia, and isobutene, thereby replacing hydrofluorocarbons (HFCs) in industrial and residential HVAC systems. Additionally, the compressors are mandated to comply with the Occupational Health & Safety (OHS) regulations.

Oil-free compressors are gaining significant adoption as new regulations to curb emissions are being developed, and the government is focused on environmental security. Moreover, rapid industrialization and growth in semiconductor, food processing, and medical manufacturing are aiding the demand. The ability of these products to prevent shutdowns and avoid costly replacement of nitrogen blankets is contributing to revenue growth.

Market Concentration & Characteristics

The market growth is medium and is accelerating at a significant pace owing to a moderately fragmented market. U.S. air compressor manufacturers are actively implementing challenging strategic initiatives such as mergers & acquisitions, new product launches, and production expansion, among others.

The threat of direct substitutes is zero in the market. However, companies providing packages for filtration equipment and compressors could act as substitutes. Such manufacturers could gain more customers quickly by offering better value. Additionally, improved maintenance and after-sales services are also expected to play a crucial role in increasing the market shares of manufacturers. Thus, the threat of substitutes is low in the market.

The moderate fragmentation makes the air compressor market highly competitive. Companies are focused on mergers and acquisitions and research & development investments to introduce new products in the market. The drive to enhance product features and performance enables market participants to remain competitive. In November 2023, Copeland announced an undisclosed regional investment to expand the production of CO2 (R-744), a natural refrigerant, in Rushville, Indiana.

Type Insights

Stationary type segment accounted for 54.7% share of the revenue in 2023. Stationary air compressors are designed for industrial plants, auto repair shops, and manufacturing facilities. They are intended to be used in a fixed location and have a capacity ranging from 60 to 240 gallons. The rising use of stationary air compressors in mid-scale industries is propelling the segment growth.

The portable segment is expected to emerge as the fastest-growing segment during the forecast period. The key factors driving the industry-wide adoption of these compressors are aftermarket services, retrofitting, and cost-efficiency.

Product Insights

The screw/ rotary air compressor segment dominated the market and accounted for a significant revenue share in 2023. The segment is replacing more traditional piston compressors where high volumes of compressed gas are required including refrigeration cycles such as chillers, or air-driven tools such as impact wrenches and jackhammers.

The centrifugal air compressor product segment is expected to expand at the fastest CAGR during the forecast period. It has widespread industrial applications, including air separation, oil refining, and chemical processing. The high growth of the segment is also driven by its ability to operate without oil, range of rotational speeds, low maintenance, and high energy efficiency.

Lubricant Insights

Oil filled segment dominated the market in 2023. Oil-filled air compressors produce little noise or heat, have a longer lifespan due to thorough lubrication, and can be used for heavy-duty applications.

Oil-free air compressor segment is projected to expand at the fastest CAGR from 2024 to 2030. These compressors are more cost-efficient than their oil-filled counterparts, lightweight, and offer airflow (CFM) & pressure (psi) equivalent to oil-lubricated variants. The segment’s growth is driven by its increasing adoption in the manufacturing sector. Furthermore, the oil-free compressors do not require a compressor oil separator component, thereby reducing operating costs and downstream filter replacement costs.

Application Insights

The manufacturing sector held the largest revenue share in 2023 owing to the crucial role of air compressors in manufacturing applications, including spray painting of vehicles, air guns for cleaning machinery, sandblasters in machine shops, pneumatic nail guns, welding & cutting equipment, fabrication, component ejection from molds, packaging devices, molding gas tanks, and many more. In addition, modern manufacturing operations are adopting robotics and increasingly use automation to increase productivity. Air compressors are widely used in these automated systems, which is further driving the segment's growth.

Semiconductors & electronics are expected to expand at the fastest CAGR from 2024 to 2030. The manufacturing of semiconductor and electronics require high-purity compressed air to avoid contamination. Semiconductors and electronics utilize air compressors for various manufacturing gas purifiers, regulators, high-purity valves, and filters.

Operating Mode Insights

The electric segment led the market in 2023. Electric air compressors are available in consumer-grade, professional-grade, and industrial-grade. Industrial-grade air compressors provide a steady flow of pure air for longer durations and are typically used in major manufacturing plants. These compressors are robust as they are built with high-quality components that can sustain hard environments in heavy-duty industries.

The internal combustion engine is projected to expand at the fastest CAGR from 2024 to 2030. The segment has widespread application in the aerospace and automobile industries. Its rising adoption in ICEs for powering electrical grids is fostering the segment’s growth.

Power Range Insights

The 51-250 kW segment dominated the market in 2023. The segment has high use in industries including construction, manufacturing, and automotive. The above-mentioned applications require mid-range compressors for various tasks, such as assembly lines, pneumatic tools, and other production processes, thereby driving segment growth.

The 251-500 kW power air compressor segment is projected to grow the fastest CAGR from 2024 to 2030. The segment growth is attributed to the rising demand for high-capacity compressors in energy and oil & gas production.

Key U.S. Air Compressor Company Insights

The key players are undertaking strategies including geographical expansion, collaborations, and mergers & acquisitions to strengthen their foothold and expand their regional and global presence. Furthermore, product approvals and R&D activities are also a part of the key initiatives of key companies to gain more substantial product penetration. For instance, in April 2023, Honeywell acquired Compressor Controls Corporation at USD 670 million. This acquisition aimed to strengthen Honeywell's dominance in automation, industrial control, and process solutions, which will enable end users to accelerate their energy transition.

Recent Developments

• In October 2023, Kaishan USA launched KROF, a new series of oil-free, industrial rotary screw air compressors. KROF provides high-quality air that is suitable for sensitive applications with strict air purity requirements.

• In June 2023, Power Equipment Direct collaborated with ABAC Air Compressors to launch AS Series of rotary screw air compressors in the U.S. Power Equipment Direct has a different assortment of rotary screw compressors including base-mount, tank-mount, and tank-mount with dryer configurations.  

U.S. Air Compressor Market Report Scope

U.S. Air Compressor Market Report Segmentation

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the U.S. air compressor market report based on type, product, lubrication, application, operating mode, and power range:

• Type Outlook (Revenue, USD Billion; Volume, Units, 2018 - 2030)

  • Stationary

  • Portable

• Product Outlook (Revenue, USD Billion; Volume, Units, 2018 - 2030)

  • Reciprocating

  • Rotary/Screw

  • Centrifugal

• Lubrication Outlook (Revenue, USD Billion; Volume, Units, 2018 - 2030)

  • Oil Free

  • Oil Filled

• Application Outlook (Revenue, USD Billion; Volume, Units, 2018 - 2030)

  • Healthcare & Medical

  • Manufacturing

  • Oil & Gas

  • Home Appliances

  • Food & Beverage

  • Energy

  • Semiconductor & Electronics

  • Others

• Operating Mode Outlook (Revenue, USD Billion; Volume, Units, 2018 - 2030)

  • Electric

  • Internal Combustion Engine

• Power Range Outlook (Revenue, USD Billion; Volume, Units, 2018 - 2030)

  • Up to 20 kW

  • 21-50kW

  • 51-250 kW

  • 251-500 kW

  • Over 500kW