Screw Compressor Market – Trends Forecast Till 2031

Market Snapshot

Market Overview

The global Screw Compressor Market size was estimated at USD 12,478.0 million in 2024 and is projected to reach USD 18,517.1 million in 2031 at a CAGR of 6.8 % during the forecast period 2025-2031.

The screw compressor market revolves around the production and use of compressors that operate using a rotary-type positive displacement mechanism. These compressors are widely used in various industries including manufacturing, oil and gas, automotive, and food and beverage due to their high efficiency, continuous operation capability, and low maintenance requirements. Screw compressors are available in oil-injected and oil-free variants, each suited to different applications depending on the need for air purity and operational load.

The market scope covers a broad array of end-use sectors and includes components such as motors, air ends, filters, and control systems. Both portable and stationary screw compressors are in demand, with applications ranging from powering pneumatic tools to large-scale industrial processes. The market is also influenced by aftermarket services including maintenance, repairs, and component replacements. As industries modernize, the adoption of energy-efficient screw compressors is becoming a key consideration for reducing operational costs and meeting environmental regulations.

Trends shaping the screw compressor market include the integration of IoT and smart monitoring systems, enabling predictive maintenance and improved energy management. There's a noticeable shift towards oil-free and variable-speed compressors, driven by stricter environmental regulations and a push for cleaner production methods. Additionally, the increasing automation of manufacturing processes is boosting the demand for reliable and energy-efficient compressed air systems.

Key drivers of growth in the screw compressor market include the rising demand from industrial sectors, growing infrastructure development, and the need for energy-efficient solutions. Government regulations promoting cleaner technologies and energy conservation are also encouraging industries to upgrade to advanced compressor systems. Furthermore, the ongoing expansion of sectors like mining, construction, and power generation, especially in emerging economies, is expected to sustain strong market momentum in the coming years.

Impacts USA tariff rates on the Screw Compressor Market

In April 2025, the U.S. administration enacted substantial tariff increases on imports from multiple Asian countries, including a  tariff on Indian goods and a tariff on Chinese products. These measures have directly affected the screw compressor market, particularly in the United States, where manufacturers rely heavily on components sourced from these regions. The elevated tariffs have led to increased production costs, prompting some U.S. companies to seek alternative suppliers or consider relocating parts of their supply chains to mitigate financial impacts. This shift has disrupted established procurement strategies and introduced uncertainties in production timelines. Additionally, the tariffs have strained trade relations, leading to retaliatory measures that further complicate international trade dynamics. The cumulative effect has been a slowdown in the U.S. screw compressor market's growth, with companies exercising caution in expansion and investment decisions.

Delvens Industry Expert's Standpoint

Experts in the Screw Compressor Market highlight several key trends driving growth and innovation. The screw compressor market is driven by the demand for efficient, low-maintenance compressors used across industries such as manufacturing, oil and gas, and food and beverage. With applications ranging from industrial processes to powering tools, the market is expanding as companies seek energy-efficient solutions and adhere to environmental regulations. Key trends include the rise of oil-free and variable-speed compressors, as well as the integration of smart technologies for predictive maintenance. Growth is fueled by industrial expansion, infrastructure development, and the push for cleaner, energy-saving technologies, particularly in emerging economies.

Analyst view on the impacts of U.S. tariff rates on the Screw Compressor Market

Looking ahead, the screw compressor market is anticipated to experience a period of adjustment as it navigates the complexities introduced by the new tariff structures. Companies may increasingly invest in domestic manufacturing capabilities to reduce dependency on imported components, potentially leading to a resurgence in local production. However, this transition will require significant capital investment and time to establish efficient operations. In the interim, the market may witness a consolidation phase, with larger firms better equipped to absorb increased costs and adapt to the evolving trade environment. Innovation in product design and supply chain optimization will become critical as companies strive to maintain competitiveness. Furthermore, the market may explore new international partnerships and diversify sourcing strategies to mitigate risks associated with geopolitical tensions. While challenges persist, these strategic adaptations could position the screw compressor industry for sustainable growth in the long term.

Market Portfolio

Key Findings

• From 2025 to 2030, the food and beverage sector is expected to experience the fastest growth in the screw compressor market. This is driven by increased automation, stricter hygiene standards, and a strong focus on energy efficiency. As automated processes for packaging, bottling, and food production expand, the need for clean, contaminant-free compressed air becomes critical. Screw compressors deliver the precise air quality and pressure required for these operations, while also offering energy-saving benefits that help reduce overall costs. The rising demand for packaged and processed foods further supports the adoption of efficient, customized air compression systems. Screw compressors also play a vital role in beverage manufacturing—providing compressed CO₂ for carbonation in drinks like beer and soda—and are essential for cleaning and sterilizing equipment to meet hygiene regulations. Their oil-free design ensures no contamination risk, aligning with the industry's rigorous safety and quality standards.

• In 2025, oil-injected screw compressors are expected to capture the largest market share among compressor types. These systems use oil for lubricating internal components, reducing friction and wear, and thus ensuring durability and reliable operation in heavy-duty and continuous-use scenarios. Their widespread application across industries—including chemicals, petrochemicals, automotive, and food & beverages—fuels strong market demand. Additionally, oil-injected compressors are more affordable upfront compared to oil-free models, making them an attractive option for small and mid-sized businesses operating within tight budgets. Their low maintenance requirements and energy-efficient performance further enhance their appeal. Reduced downtime, thanks to fewer oil and filter replacements, also contributes to cost-effectiveness. Although oil-free models are preferred in sensitive environments, the overall reliability and lower cost of oil-injected compressors make them a dominant choice across many sectors.

• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. North America region is projected to hold the largest market share. Factors such as Rising demand for energy-efficient solutions, technological advancements in compressor design, increasing industrial automation, expansion of oil & gas and petrochemical industries, growth in food & beverage and pharmaceutical sectors, implementation of stringent environmental regulations, advancements in IoT and smart control systems, rapid industrialization in emerging economies, development of oil-free and variable speed drive compressors, supportive government policies and infrastructure development have triggered the Screw Compressor Market in the region.

Regional Analysis

North America to Dominate the Market

• North America remains a significant market for screw compressors due to strong industrial activity across sectors such as oil and gas, manufacturing, food processing, and automotive. The region’s focus on energy efficiency and the modernization of industrial infrastructure supports the adoption of advanced screw compressor technologies. Moreover, environmental regulations and the shift toward low-emission and oil-free compressors are shaping purchasing decisions, especially in the U.S. and Canada, where sustainability targets are becoming increasingly important for both public and private sector projects.
• Europe holds a mature and technologically advanced market for screw compressors, largely driven by industries such as pharmaceuticals, chemicals, and automotive manufacturing. Countries like Germany, Italy, and the UK have a long-standing industrial base that values efficient, reliable, and low-maintenance compression systems. In addition, stringent EU regulations on emissions and energy consumption are encouraging the shift toward energy-efficient and environmentally friendly compressor solutions, supporting innovation and the adoption of oil-free screw compressors across diverse applications.
• The Asia-Pacific region is witnessing robust growth in the screw compressor market, propelled by rapid industrialization, urban development, and increasing demand for energy-efficient systems. China, India, Japan, and South Korea are key contributors, with heavy investments in manufacturing, construction, and infrastructure. The expanding food & beverage, textile, and electronics sectors further support market growth. Government initiatives to improve industrial energy efficiency and reduce carbon footprints are also fueling the adoption of next-generation screw compressors in the region.
• Latin America’s screw compressor market is evolving gradually, driven by the growth of manufacturing, mining, and oil & gas activities in countries like Brazil, Mexico, and Argentina. While economic and political instability pose some challenges, increasing foreign investment and infrastructure development are fostering industrial expansion. The demand for durable, low-maintenance compressors is rising as industries look for cost-effective ways to improve operational efficiency and productivity.
• The Middle East & Africa region presents emerging opportunities for the screw compressor market, particularly in oil-rich nations such as Saudi Arabia and the UAE, where energy infrastructure and industrial diversification are key priorities. The oil and gas sector continues to be a dominant user of screw compressors, but there’s also growing demand from sectors like water treatment, food processing, and construction. Investment in economic diversification and industrial automation is slowly enhancing the region’s demand for modern, efficient compression systems.

Competitive Landscape

• Atlas Copco AB
• Ingersoll Rand
• Hitachi, Ltd
• ELGi
• Man Energy Solutions
• KOBELCO COMPRESSORS CORPORATION
• KAESER COMPRESSORS
• Chart Industries
• Kirloskar
• Sollant
• BOGE
• BAUER COMP
• Saimona Compressed Air
• Fusheng Co., Ltd.
• Doosan Bobcat

Recent Developments

• In October 2024, ELGi North America enhanced its EG Series portfolio with the launch of the EG Super Premium 90-110 range of oil-lubricated screw air compressors, along with the EG PM 11–45kW model featuring a Permanent Magnet Synchronous Motor.
• In June 2024, Ingersoll Rand Inc. completed the acquisition of ILC Dover (“ILC”) and also acquired Complete Air and Power Solutions (“CAPS”), Del PD Pumps & Gear Pvt Ltd. (“Del Pumps”), and Fruvac Ltd. (“Fruitland Manufacturing”) in a series of deals valued at approximately USD 150 million.
• In May 2024, Atlas Copco introduced the GA 11–30 FLX, a dual-speed compressor designed to maximize air output across all set pressures. This innovation boosts energy efficiency and promotes more sustainable operations.
• In 2023, Atlas Copco acquired UK-based Maziak Compressor Services Ltd., a distributor of air compressors, nitrogen generators, process cooling equipment, and associated services. The company has been integrated into Atlas Copco’s Compressor Technique Business Area under the Service division.

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