Gas Compressors Market Expected to Reach $9.5 Billion by 2034

According to a new report published by Allied Market Research, titled, “Gas Compressors Market," The Gas Compressor Market Size was valued at $6.3 billion in 2024, and is estimated to reach $9.5 billion by 2034, growing at a CAGR of 4.3% from 2025 to 2034.

Gas compressors are machines engineered to elevate the pressure of gases by means of lowering their volume through mechanical means. These compressors enhance the density and energy of gases, by using positive displacement or dynamic compression methods. This makes them useful for a wide range of business applications. Gas compressors play a vital role in maintaining optimal conditions in refrigeration systems and facilitating the extraction and transportation of natural gases, thereby ensuring the efficient utilization of gases across a wide range of industrial processes and sectors.

The end user industry of gas compressors is oil & gas, chemical, automotive, and others. In addition, there have been various investments and initiatives in the chemical and energy sectors, which is expected to create opportunities in the gas compressors market. For instance, the Office of Fossil Energy (FE) of the U.S. Department of Energy (DOE) stated to allocate $160 million in federal funds in January 2021, to assist re-calibration of massive fossil fuel and power infrastructure of the country for decarbonized energy and commodity production. The funds are to be used to assist a variety of research initiatives aimed at developing hydrogen compressors. Such factors are expected to drive the gas compressors market growth.

Competitors in the gas compressors market adopt strategic moves such as collaboration, mergers, acquisitions, and partnerships to strengthen their market position. For instance, in October 2020, Toyota Motor Corporation and Hitachi Ltd. partnered to develop cars that are expected to be fitted with hybrid systems, which generate electricity from storage batteries and hydrogen fuel cells.

Furthermore, in June 2022, Ariel Corporation and Hoerbiger entered an agreement to collaborate on providing non-lube compressor solutions designed to meet the hydrogen compression needs of the emerging gas compressors. Ariel Corporation, known for manufacturing separable reciprocating gas compressors, and Hoerbiger, a global leader in reciprocating gas compressors components technology, aim to contribute to the development of hydrogen infrastructure by offering efficient and reliable compression solutions for diverse applications in the evolving hydrogen mobility sector. Hence, these innovations in automotive sectors are expected to have a positive impact on the growth of the Gas Compressor Industry thus fostering the Gas Compressor Market Trends.

However, high initial cost of the acquisition of gas compressors hinders the expansion of the Gas Compressor Market. Large capacity gas compressors typically cost between $50,000 and nearly $100,000. The intricate engineering and advanced technologies incorporated into modern gas compressors contribute to their elevated initial capital expenditure, rendering them financially burdensome for companies, particularly those with budget constraints. This high cost of entry deters potential buyers, especially small and medium-sized enterprises (SMEs), from investing in state-of-the-art compression systems that otherwise enhance operational efficiency and productivity. Such factors are expected to restrain the growth of the gas compressors market.

Furthermore, the gas compressors market is experiencing growth due to an increase in demand for energy in industries such as oil & fuel, petrochemicals, and energy power generation. Gas compressors play a critical function in facilitating the transportation, processing, and storage of gases with increase in demand for energy. This makes them critical in diverse applications. The expansion of industrial infrastructure, consisting of refineries, chemical plants, and power facilities, contributes to the expanded demand for gas compressors, driving the Gas Compressor Market Growth. Moreover, the surge in exploration and production activities, inclusive of shale gas extraction and offshore drilling, similarly amplifies the need for gas compression structures. Such factors are expected to offer different lucrative opportunities for the Gas Compressor Market growth during the forecast period.

In addition, rapid industrialization and government initiatives for upliftment of manufacturing sector in automotive and chemical industries drive the growth of the gas compressors market in Asia-Pacific. For instance, in March 2022, Sinopec, China’s second-largest oil company invested $476 million in hydrogen technology R&D and has planned a number of pilot green hydrogen projects. The company is expected to prioritize the development of renewable-energy projects, particularly those involving hydrogen, in its transition to a low-carbon business structure.

The gas compressors market is segmented on the basis of technology, lubrication type, end-user industry, and region. By technology, the Gas Compressor Market is categorized into positive displacement and dynamic displacement.  By lubrication type, it is bifurcated into oil-based and oil-free.  By end-user industry, the Gas Compressor Industry is classified into oil & gas, chemical, automotive, and others. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa.

Competitive Gas Compressor Market Analysis and profiles of the major players in the Gas Compressor Market Share, such as ARIEL CORPORATION, Atlas Copco AB, BAUER COMPRESSORS, INC., Burckhardt Compression Holding AG, HAUG Sauer Kompressoren AG, Hitachi Ltd., IDEX CORPORATION, Ingersoll Rand Inc., KAESER KOMPRESSOREN, and Siemens Energy are provided in the report. Major players have adopted product launch and acquisition as key developmental strategies to improve the product portfolio of the gas compressors market.