Gas Compressors Market Expected to Reach $9.4 Billion by 2032

According to a new report published by Allied Market Research, titled, “Gas Compressors Market," The Gas Compressors Market Size was valued at $5.9 billion in 2022, and is estimated to reach $9.4 billion by 2032, growing at a CAGR of 4.8% from 2023 to 2032.

Gas compressors are machines engineered to elevate the pressure of gases by means of lowering their volume through mechanical means. By using positive displacement or dynamic compression methods, these compressors enhance the density and energy of gases, making them useful for a wide range of business applications. From keeping most efficient conditions in refrigeration structures to aiding in the extraction & transportation of natural gases, gas compressors are essential in ensuring the efficient utilization of gases in diverse processes across multiple 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 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 growth of gas compressors industry.

However, the market expansion is hindered by the high initial cost of the acquisition of gas compressors. Large capacity gas compressors typically cost between $50,000 to 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 gas compressors market.

Furthermore, the gas compressors market is growing due to an increase in demand for energy in industries such as oil & fuel, petrochemicals, and energy power generation. As the demand for energy is growing, gas compressors play a critical function in facilitating the transportation, processing, and storage of gases, making 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 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 lots of opportunities for 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.

Key Findings of the Study

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the gas compressors market analysis from 2022 to 2032 to identify the prevailing gas compressors market opportunity.
• By technology, the positive displacement segment was the highest revenue contributor to the market and the dynamic displacement segment is expected to be the fastest-growing segment exhibiting the highest CAGR during the forecast period.
• By lubrication type, the oil-free segment was the highest revenue contributor to the gas compressors market share and is expected to be the fastest-growing segment exhibiting the highest CAGR during the forecast period.
• By end-user industry, the oil & gas segment was the highest revenue contributor to the market and automotive segment is expected to be the fastest-growing segment exhibiting the highest CAGR during the forecast period.
• By region, Asia-Pacific was the highest revenue contributor to the market and is expected to grow at a CAGR during the forecast period.
• The report includes the analysis of the regional as well as global gas compressors market trends, key players, market segments, application areas, and market growth strategies.