Compressed Air Treatment Equipment Market Size, Share & Industry Analysis, By Product Type (Filters, Air Dryers, and Others), By End User (Food & Beverage, Pharmaceuticals & Healthcare, Automotive, General Manufacturing, and Others), and Regional Forecast, 2026 – 2034

The global compressed air treatment equipment market size was valued at USD 10.69 billion in 2025. The market is projected to grow from USD 11.33 billion in 2026 to USD 19.24 billion by 2034, exhibiting a CAGR of 6.8% during the forecast period.

The market is witnessing steady growth as industries increasingly focus on improving air quality, system reliability, and operational efficiency. Compressed air treatment equipment is used to remove moisture, oil, particulates, and contaminants from compressed air systems to support industrial processes and applications requiring high air purity, including breathing air systems. The growth of the industry is driven by rising automation, stricter quality standards, and the need to protect sensitive equipment and processes. The integration of advanced control systems is enabling better monitoring, performance optimization, and maintenance of compressed air treatment solutions.

Key players such as Atlas Copco, Ingersoll Rand, Parker Hannifin, Kaeser Kompressoren, and Donaldson Company continue to expand their product portfolios and energy-efficient solutions to address the evolving industrial air quality requirements.

COMPRESSED AIR TREATMENT EQUIPMENT MARKET TRENDS

Rising Adoption of Energy-Efficient Air Treatment Solutions is a Key Market Trend

The market is witnessing a strong trend toward energy-efficient and high-performance filtration and drying solutions. Industrial users are increasingly adopting measures to reduce compressed air losses, optimize operating costs, and improve air quality to protect downstream equipment and processes. The product demand is increasing for advanced dryers, high-efficiency filters, and condensate management systems that help minimize moisture, oil carryover, and particulates. In addition, the growing use of smart monitoring and connected maintenance features is enabling better system reliability and reduced unplanned downtime, particularly in continuous-process industries.

• For example, Atlas Copco has continued expanding its compressed air treatment solutions portfolio focused on energy efficiency and uptime optimization.

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MARKET DYNAMICS

MARKET DRIVERS

Growing Industrial Automation and Quality Requirements to Drive Market Growth

Major contributors to market growth include rising quality requirements and the expansion of industrial automation. This is due to the increased use of compressed air in the manufacturing process through pneumatic tools, robotics, packaging lines, and others, where poor-quality air can cause damage or contamination of equipment and products and disrupt production. Industries such as food and beverage, pharmaceuticals, electronics, and automotive are increasingly using treated air to maintain hygiene, safety, and overall quality standards. The increase in activities within the manufacturing sector is driving the need for additional compliance, which is resulting in increased investment in the filtration, drying, and moisture control processes.

• For example, Ingersoll Rand has indicated that businesses must use clean, dry compressed air to protect their production equipment and support quality-critical applications.

MARKET RESTRAINTS

High Maintenance Needs and Total Cost of Ownership Challenges May Limit Adoption

High maintenance requirements and total cost of ownership considerations can restrain market expansion, particularly among small and cost-sensitive industrial users. Filters require periodic replacement, dryers require servicing to maintain performance, and condensate management systems add operational complexity. In some facilities, poor maintenance practices reduce system efficiency, leading to higher energy consumption and shorter equipment life, which can discourage the adoption of advanced air treatment solutions. In addition, upfront equipment costs for high-capacity systems may delay upgrades for smaller plants.

• For example, industry guidance commonly emphasizes that inadequate maintenance of filters and dryers increases energy costs and reduces system reliability.

MARKET OPPORTUNITIES

Expansion of Food, Pharma, and Electronics Manufacturing to Create Growth Opportunities

The growth of hygiene-sensitive and precision manufacturing sectors creates a huge opportunity for suppliers of compressed air treatment equipment. The expansion of food processing, pharmaceutical manufacturing, and electronics production are creating a greater demand for high-quality compressed air, particularly oil-free, moisture-free, and particulate controlled compressed air. This is driving the increased use of activated carbon filters, desiccant dryers, as well as new integrated treatment packages. Furthermore, there are opportunities for connected air treatment systems that can enhance uptime and energy efficiency for the long term as predictive maintenance and digital monitoring become more common within industrial facilities.

• Kaeser Compressors is continuing to promote integrated compressed air treatment systems that are created to provide support to quality-critical industrial environments.

Segmentation Analysis

By Product Type

Filters Segment Accounted for the Largest Share Driven by their Vital Role in Industrial Applications

Based on product type, the market is divided into filters, air dryers, and others.

In 2025, the filters segment accounted for the highest compressed air treatment equipment market share. The dominance of filters is driven by their essential role in removing particulates, oil aerosols, and contaminants from compressed air systems across industrial applications. Unlike dryers and other auxiliary equipment, filters require frequent replacement and maintenance, generating recurring demand. Industries with strict air quality and hygiene requirements increasingly deploy multi-stage filtration systems to protect downstream equipment and ensure product quality, reinforcing the strong market position of filters.

• For example, manufacturers such as Atlas Copco and Parker Hannifin emphasize high-efficiency filtration solutions to meet industrial air quality standards.

The air dryers segment is anticipated to rise with a CAGR of 7.2% over the forecast period.

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By End User

General Manufacturing Segment Led the Market Due to Widespread Use of the Equipment

Based on end user, the market is segmented into food & beverage, pharmaceuticals & healthcare, automotive, general manufacturing, and others.

In 2025, the general manufacturing segment held the highest market share. Compressed air is widely used across general manufacturing for powering pneumatic tools, automation systems, material handling, and production equipment. The need to ensure clean, dry, and reliable compressed air to prevent equipment damage and production downtime is driving strong demand for air treatment solutions within this segment. The continuous expansion of manufacturing capacity and increasing automation levels further support sustained investment in compressed air treatment equipment.

• For instance, Ingersoll Rand highlights the importance of properly treated compressed air in maintaining operational efficiency and equipment reliability across manufacturing facilities.

The pharmaceuticals & healthcare segment is projected to grow at a CAGR of 7.7% over the forecast period.

Compressed Air Treatment Equipment Market Regional Outlook

By geography, the market is categorized into Europe, North America, Asia Pacific, South America, and the Middle East & Africa.

Asia Pacific

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Asia Pacific held a dominant position in the market in 2024 and continued to maintain its leading share in 2025, with a market valuation of USD 3.95 billion. The regional compressed air treatment equipment market growth is driven by rapid industrialization, expanding manufacturing capacity, and increasing automation across key economies. Many key industries rely heavily on compressed air systems, supporting strong demand for filtration, drying, and moisture management equipment. Ongoing investments in industrial infrastructure and the relocation of manufacturing operations to the region further reinforce Asia Pacific’s dominance.

Japan Compressed Air Treatment Equipment Market

The Japan market is estimated to reach a value of around USD 0.65 billion in 2026, accounting for roughly 5.7% of global revenues.

China Compressed Air Treatment Equipment Market

The China market is estimated to touch a value of around USD 1.58 billion in 2026, accounting for roughly 14.0% of the global market.

India Compressed Air Treatment Equipment Market

The India market is estimated to reach around USD 0.41 billion in 2026, accounting for roughly 3.6% of the global market.

North America

North America is expected to reach a market valuation of USD 2.88 billion in 2026. The market is driven by the high adoption of industrial automation and strict quality standards across manufacturing sectors. The region benefits from strong demand for energy-efficient air treatment solutions in food and beverage, pharmaceuticals, and automotive manufacturing.

U.S. Compressed Air Treatment Equipment Market

Based on North America’s strong contribution and the dominance of the U.S. within the region, the U.S. market is analytically estimated to touch around USD 2.47 billion in 2026. The market is supported by strong demand from general manufacturing, automotive, and food and beverage industries, along with increasing investments in energy-efficient and high-quality compressed air systems.

Europe

The Europe market is poised to record a valuation of USD 3.03 billion in 2026. The region holds a substantial share of the compressed air treatment equipment market, supported by stringent environmental regulations, energy efficiency standards, and strong focus on industrial process optimization. Many countries continue to invest in advanced air treatment technologies to improve productivity and comply with sustainability requirements across manufacturing industries.

U.K. Compressed Air Treatment Equipment Market

The U.K. market is estimated to reach a value of around USD 0.41 billion in 2026, representing roughly 3.6% of global revenues.

Germany Compressed Air Treatment Equipment Market

The Germany market is projected to reach USD 0.64 billion in 2026, equivalent to around 5.6% of global sales.

South America and Middle East & Africa

The South America and Middle East & Africa regions are expected to witness moderate growth in this market during the forecast period. South America is projected to reach a market valuation of USD 0.68 billion in 2026. Growth in the region is supported by gradual industrial development, expanding automotive and food processing sectors, and increasing awareness of compressed air quality standards.

The Middle East & Africa market is expected to reach a valuation of USD 0.80 billion in 2026. The expansion of industrial facilities, infrastructure projects, and energy-intensive manufacturing in GCC countries is supporting an increasing demand for compressed air treatment equipment.

GCC Compressed Air Treatment Equipment Market

The GCC market is projected to reach around USD 0.37 billion in 2026, representing roughly 3.2% of the global market.

COMPETITIVE LANDSCAPE

Key Industry Players

Leading Players’ Focus on Energy-Efficient Filtration and Integrated Air Treatment Solutions to Strengthen Market Position

The majority of manufacturers in the compressed air treatment industry are either globally recognized compressor producers or specialist manufacturers that focus solely on providing air treatment solutions. Key market players such as Atlas Copco, Ingersoll Rand, Parker Hannifin, Kaeser Kompressoren, and Donaldson Company predominantly compete in the compressed air treatment equipment sector based on their large product ranges of filters, compressed air dryers, and condensate management systems. As a result, these companies have developed strong global sales networks and possess established relationships with many of their customers and use continuous product innovation to improve overall energy efficiency and reliability of their systems. In addition, many participants are now investing more heavily into developing integrated compressed air treatment solutions as well as digital monitoring technology for industrial users to improve compressed air quality, reduce energy use, and increase equipment uptime across many different manufacturing areas.

LIST OF KEY COMPRESSED AIR TREATMENT EQUIPMENT COMPANIES PROFILED

• Atlas Copco (Sweden)
• BOGE Compressors (Germany)
• Donaldson Company (U.S.)
• ELGi Equipments (India)
• Gardner Denver (U.S.)
• Ingersoll Rand (U.S.)
• Kaeser Kompressoren (Germany)
• Parker Hannifin (U.S.)
• SPX FLOW (U.S.)
• Sullair (U.S.)

KEY INDUSTRY DEVELOPMENTS

• August 2024: Gardner Denver launched the PureAir T and TVS 90 to 355 kW Series, featuring advanced software and oil free compression technology, to improve performance, efficiency, and reliability in industrial compressed air applications.
• June 2024: ELGi Equipments introduced new compressed air products at INTEC 2024 in India, including the EG SP Super Premium, EG PM, TS15LD piston, EN11 7.5 VFD screw, and AB Series oil free compressors to enhance productivity and durability.
• March 2024: Atlas Copco launched next generation GA and GA Plus fixed speed industrial air compressors, offering higher air output, lower energy consumption, and longer drivetrain life through improved compression elements and high efficiency motors.
• February 2024: Ingersoll Rand completed the acquisition of Friulair S.r.l. for about USD 146 million, expanding its compressed air dryer, filter, and aftercooler product portfolio and strengthening air treatment capabilities.
• July 2023: ELGi Compressors Europe launched the Air~Alert smart remote monitoring platform, offering real-time data analytics and alerts for compressed air systems to boost operational reliability.

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