Centrifugal Compressor Market Size, Share & Industry Analysis, By Type (Oil-free and Oil-filled), By End User (Manufacturing, Oil & Gas, Food & Beverage, Energy, Healthcare, and Others), and Regional Forecast, 2025-2032

The global centrifugal compressor market size was valued at USD 4.01 billion in 2024. The market is projected to grow from USD 4.21 billion in 2025 to USD 7.38 billion by 2032, exhibiting a CAGR of 8.37% during the forecast period.

A centrifugal compressor is a device that increases the pressure of a gas by converting its kinetic energy into potential energy. It is used in numerous industrial applications, such as oil & gas, manufacturing processes, power plants, pneumatic tools, and refrigeration. They are well known for their reliability, efficiency, and functionality. The market is poised for a significant growth rate driven by the growing demand for this product for a variety of applications on the industrial level.

Ingersoll Rand Inc. is one of the major players in the market. The company delivers various centrifugal compressor solutions that incorporate the latest technology. TURBO-AIR and MSG centrifugal compressors are advanced products that ensure efficient performance for industrial and process applications.

MARKET DYNAMICS

MARKET DRIVERS

Expansion of Oil & Gas Industry to Influence Market Growth

The expansion of the oil & gas sector is boosting the demand for centrifugal compressors. These compressors are cast-off in gas reinjection, gas compression, and gas transportation. In addition, these products are considered to be consistent in the oil and gas sector. Moreover, the market will also grow due to the rise in oil & gas exploration and production activities at a global level. This kind of positive growth influences regions with vast oil and gas reserves. Moreover, it is boosting oil and gas sector progressively considering quantities of savings, and rising exploration activities.

Growing Demand for Energy-Efficient Solutions to Boost Market Growth

Energy consumption by various end-users has seen a surge in recent years. This is driven by the growing urbanization and industrialization globally. Centrifugal compressors have become popular in the majority of industrial areas due to their energy efficiency. Companies are progressively seeking more sustainable sources of energy that are also more cost-effective. This is owing to the growing demand for electricity in multiple countries globally.

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MARKET RESTRAINTS

Availability of Alternative Products to Restrain Market Growth

Centrifugal compressors are not the only compressors available for industrial applications. Axial compressors are the alternative products that can hinder the demand for centrifugal compressors. Axial compressors covers applications, such as blast furnaces, air separation plants, high-speed ship engines, and small-scale power stations. Few applications differ from those of centrifugal compressors, thereby increasing the demand for alternative products and hindering the market’s growth.

MARKET OPPORTUNITIES

Advancements in Technology Will Drive Market Growth

In the modern era, manufacturers are working on energy-efficient products and delivering devices that can be sustainable and productive. Many key players are already providing advanced centrifugal compressors. For example, centrifugal compressors deliver 80-85% efficiency and can compress at over 280 m3/sec speeds. Moreover, predictive analytics, smart sensors, and IoT connectivity have improved the performance of these devices. Hence, developments in technology are boosting the centrifugal compressor market growth.

MARKET CHALLENGES

Micro Disadvantages in Centrifugal Compressors to Challenge Market Growth

Micro disadvantages, such as sensitivity, vibrations, and choking have become challenging for the market’s growth. Centrifugal compressors are sensitive to changes in gas composition, which can degrade the quality of their performance. They also require anti-vibration mounting that helps reduce the noise of the device on equipment. In addition, these compressors can experience stalling and surging if there are issues in their airflow dynamics. These factors become challenging in recent products.

CENTRIFUGAL COMPRESSOR MARKET TRENDS

Focus On Environmental Awareness to Drive Demand for Advanced Centrifugal Compressor Products

With rising environmental awareness over the last few years, most countries have presented goals to lower their CO2 emissions by shifting from coal-based to gas-based power generation. The growth in natural gas generation and its consumption for producing electricity is likely to remain strong. This is predicted to fuel the demand for centrifugal compressors in the oil & gas industry.

Impact of COVID-19

The COVID-19 pandemic badly impacted the global centrifugal compressor market due to disruptions in the global supply and demand. In addition, a pause in the operations of industrial sectors, such as manufacturing and packaging led to the low production of these compressors. The major factors causing disruptions in industrial operations were inaccessibility to raw materials, unavailability of workers, closure of borders, and drop in import and export of goods.

SEGMENTATION ANALYSIS

By Type

Oil-filled Centrifugal Compressor Dominates Market Due to its Demand in Multiple Applications

Based on type, the market is segmented into oil-free and oil-filled.

The oil-filled segment is dominating the market as oil-filled centrifugal compressors are compatible with various industrial applications where oil infection is not an issue. Their applications cover construction, manufacturing, and general industrial processes.

Oil-free is one of the fastest-growing segments driven by improvements in the technology of oil-free compressors. This has upgraded their reliability and efficiency in real-time applications. This factor will help the market grow in the coming years.

By End User

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Manufacturing Segment Dominates Market Owing to Increasing Applications

The market is segmented into manufacturing, oil & gas, food & beverage, energy, healthcare, and others, based on end-user.

Manufacturing is the dominating segment driven by the increasing use of industrial machinery. The growing demand for centrifugal compressors in power plants, petrochemical processes, and gas turbines is influencing the market’s growth.

Oil & gas is the fastest-growing segment due to the expansion of oil exploration activities.

Moreover, the food & beverage segment holds an ample share of the global market owing to the growth in food demand.

CENTRIFUGAL COMPRESSOR MARKET REGIONAL OUTLOOK

The market has been studied geographically across five main regions: North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Asia Pacific

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Asia is Dominating Global Market Due to Rapid Industrialization

Asia Pacific is the dominant region in the market share driven by rapid industrialization in recent years. Heavy electricity consumption in modern commercial and industrial buildings is positively influencing the demand for centrifugal compressors. Countries, such as China, India, and Japan are more active in developing industrial components due to the expansion of industries, such as energy and food & beverage.

China

High Focus on Energy Efficient Products to Boost Market Growth in China

China is leading the Asia Pacific centrifugal compressor market, contributing to around half of Asia’s revenue. This is due to the country’s focus on electrification and energy efficiency. In addition, its manufacturing dominance and strong supply chain are backing its growth in the market. This is creating demand for energy efficient products, such as centrifugal compressors.

North America

Demand from Manufacturing Sector to Positively Influence Market Growth

The market in North America is witnessing substantial growth owing to the region’s strong manufacturing sector. North America has robust manufacturing capabilities as multiple domestic and international players use centrifugal compressor devices.

U.S.

Rapid Growth in Manufacturing Sector to Boost Market Growth in U.S.

The U.S. is the dominating country in the North American region. This is owing to the growing demand for centrifugal compressors in manufacturing and food & beverage applications. As per the data published by the U.S. Department of Commerce, the main measure of economic activity is that the U.S. is the second-largest manufacturing country globally behind China. In 2023, manufacturing contributed USD 2.3 trillion to the country’s GDP, which was 10.2% of its total GDP.

Europe

Europe Emerges as Fastest-Growing Region Driven by High Energy Demand

Europe is one of the fastest-growing regions globally. This is owing to the growing demand for energy for multiple applications. Many sectors are also focusing on using clean energy sources to reduce their carbon footprint. Germany dominates the European market due to the high demand for energy transition, which leads to growth in industrial manufacturing.

Latin America

Industrial Expansion to Contribute to Regional Market Development

Latin American countries are actively participating in the market. This is owing to the expansion of the industrial sectors, especially the power industry. The region has sought to improve its energy-efficient products in recent years. This is owing to the rising demand for electricity in industrial spaces. Brazil and Mexico play an important role in fulfilling the energy demand in Latin America.

Middle East & Africa

Demand for Oil & Gas Exploration to Boost Market Growth

The Middle East and Africa is witnessing a significant growth in the global market, propelled by rising focus on oil & gas exploration. Centrifugal compressor plays an important role in oil & gas applications in the region owing to the availability of oil sources in GCC countries. Hence, GCC has been considered the dominant countries in recent years. South Africa is also accounting for an ample market share  due to growth in the country’s industrial sectors, such as manufacturing.

COMPETITIVE LANDSCAPE

Key Industry Players

Growing Involvement of Market Players in Technological Advancements to Boost Market Share

The global market is highly fragmented, with key players and some medium-scale regional players delivering a wider range of compressors. Manufacturers are demonstrating their technological advancements, helping countries regulate their requirements and making it easier for them to boost the efficiency of applications.

For Instance, On 11^th October 2024, FS-Curtis launched a new NxHE two-stage rotary screw compressor to enhance plant efficiency and minimize maintenance.

List of the Key Companies Profiled in the Report:

• Ingersoll Rand Inc. (U.S.)


• Baker Hughes Company (U.S.)


• Siemens Energy AG (Germany)


• GE (U.S.)


• MAN, Energy Solutions (Germany)


• Flowserve (U.S.)


• Mitsubishi Heavy Industries Ltd (Japan)


• Atlas Copco AB (Sweden)


• Kawasaki Heavy Industries (Japan)


• ELGi-compressor (India)


• Kametstal (Ukraine)


• Kaishan (U.S.)

KEY INDUSTRY DEVELOPMENTS

• In October 2023, Kaishan USA, one of the leading manufacturers of industrial air compressors, introduced a new series of industrial, oil-free rotary screw air compressors, the KROF, at the CABP Expo 2023/Process Expo 2023.


• In March 2023, ELGi introduced the new GP35FP portable air compressor at the CONEXPO-CON/AGG 2023. It will display the D185T4F model again. The company showcased its commitment to the construction industry through this achievement.


• In May 2023, Kametstal completed the renovation of the SM-6000 centrifugal compressor. It is intended to be a long-term safe process. The unit compresses about 20,000 cubic meters of nitrogen, which is then delivered to the explosion furnace's crushed coal fuel injection unit.


• In May 2022, Elgi Equipments, one of the leading air-compressor manufacturers, introduced its energy-efficient, high-performance, and reliable electric and diesel portable air compressors at the EXCON 2022.


• In June 2019, Kirloskar Group introduced India’s first oil-free centrifugal compressor chillers, which had multiple options. This series was designed and manufactured using the magnetic levitation technology.

REPORT COVERAGE

The report provides a detailed market analysis and focuses on key aspects, such as leading companies, product/service process, competitive landscape, and leading source of manufcaturers. Besides, it offers insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the market's growth in recent years.

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Report Scope & Segmentation