Screw compressor Market

Growing demand for energy-efficient compressors is driving the market growth

Market CAGR for the screw compressor market is boosted by the increasing demand for energy-efficient compressors. The screw compressor has an increased demand due to its energy-efficient compressors along with an increase in industries like pharmaceutical, F&B, and textile sectors. It has two helical rotors that are utilized in compressing outer air to a set pressure, clean, ensuring dry, and compressed air. 

It has increased demand in sectors like chemicals and petrochemicals processing, metals & mining, food & beverages, automotive, power plants, and oil & gas, where a large volume of high-pressure air is required, especially to function machine tools.

Screw compressors are twin-shaft lobe machines that depend on the principle of positive displacement with internal compression. Its energy-efficient compressors have low operation and maintenance costs. The screw compressors are mainly utilized for the production of compressed air with improved efficiency, popularly used for transferring gas, and flaring elimination, and developed to work under extreme weather conditions. 

It has large ability in terms of energy consumption and is designed to provide zero loss of capacity with time; with the rising natural gas demand because of the adoption of sustainable living, the market is growing. The government is taking the initiative by investing in research and development to develop energy-efficient methods for production. The screw compressors also have large applications, such as increasing product utilization by the food and beverage packaging sector with increasing research and development, hence increasing the market growth.

Passenger cars are one of the largest contributors to air pollution. Hence the automobile powered by air can be a viable alternative to a gasoline-powered vehicle which can compress the plentiful and free of pollutants air at minimal costs. CAVs are eco-friendly and give an effective means of producing and transferring electricity. The compressor does not stop completely while the reservoir pressure meets the necessary pressure, and automotive pressure is dropped out of the idling positions to install the load/unload systems in screw processors.

Technological innovations play a crucial role in shaping the Global Screw Compressor Market Industry. Recent advancements in compressor design, materials, and control systems have led to enhanced performance and reliability. For instance, the integration of variable speed drives allows for better control over energy consumption, adapting to varying load conditions. This not only improves efficiency but also extends the lifespan of the equipment. As industries increasingly adopt smart technologies, the demand for advanced screw compressors is expected to rise. The market is projected to grow significantly, with an estimated value of 20.7 USD Billion by 2035, indicating a strong correlation between technology and market expansion.

The ongoing trend of industrialization across developing regions contributes significantly to the Global Screw Compressor Market Industry. As countries invest in infrastructure and manufacturing capabilities, the demand for reliable and efficient air compression systems rises. Industries such as automotive, food and beverage, and pharmaceuticals are increasingly utilizing screw compressors for their operational needs. This growth is supported by the projected compound annual growth rate of 4.95% from 2025 to 2035, indicating a robust market outlook. The expansion of industrial activities in emerging economies is likely to create substantial opportunities for screw compressor manufacturers, further enhancing market dynamics.

The Global Screw Compressor Market Industry is witnessing a marked increase in the adoption of screw compressors within heating, ventilation, and air conditioning (HVAC) systems. As urbanization accelerates and climate control becomes essential, the demand for efficient HVAC solutions rises. Screw compressors are favored for their ability to provide consistent performance and energy savings in large-scale applications. This trend is particularly evident in commercial buildings and industrial facilities, where maintaining optimal temperature and air quality is critical. The growing focus on sustainable building practices is likely to drive further adoption of screw compressors, reinforcing their position in the HVAC sector.

The Global Screw Compressor Market Industry experiences a notable surge in demand driven by the increasing emphasis on energy efficiency across various sectors. Industries are actively seeking solutions that minimize energy consumption while maximizing output. Screw compressors, known for their efficiency and reliability, are becoming the preferred choice for applications in manufacturing, refrigeration, and air conditioning. This trend is reflected in the projected market value, which is anticipated to reach 12.2 USD Billion in 2024. As organizations strive to reduce operational costs and carbon footprints, the adoption of screw compressors is likely to accelerate, further propelling market growth.

Regulatory frameworks aimed at promoting environmental sustainability significantly influence the Global Screw Compressor Market Industry. Governments worldwide are implementing stringent regulations to reduce greenhouse gas emissions and improve energy efficiency. These regulations encourage industries to adopt more efficient technologies, including screw compressors, which are recognized for their lower environmental impact compared to traditional systems. As compliance with these regulations becomes mandatory, the demand for screw compressors is expected to rise. This regulatory support not only drives market growth but also aligns with global efforts to achieve sustainability goals, creating a favorable environment for screw compressor manufacturers.

By region, the study gives market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Screw Compressor market dominates this market, because of the hype in the demand from numerous end users in developing countries for screw compressors. 

The fast industrialization in emerging economies and the rising demand for efficient tools & machinery is anticipated to boost the market. The government is providing opportunities to invest in industrialization, increasing foreign direct investment, thus boosting the market. The US is the largest contributor to the screw compressor in the Asia Pacific region.

Further, the main countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, South Korea, Japan, India, Australia, and Brazil.

Figure 2: Screw Compressor Market Share By Region 2022 (USD Billion)

Source: Primary Research, Secondary Research, Market Research Future Database, and Analyst Review

Europe's Screw Compressor market accounts for the second-largest market share because of the growing demand for energy-efficient compressors and rising district cooling in the region. Further, the German Screw Compressor market held the largest market share, and the UK Screw Compressor market was the rapid-growing market in the European region.

The Asia Pacific Screw Compressor Market is expected to grow at the rapid CAGR from 2023 to 2032. This is due to the growth in the number of industries and oil and gas exploration activities and growing economy. Moreover, China’a Screw Compressor market held the largest market share, and the Indian Screw Compressor market was the rapid-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development in order to spread their product lines, which will help the Screw Compressor market grow even more. Market participants are also undertaking a various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Screw Compressor industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Screw Compressor industry to benefit clients and increase the market sector. In recent years, the Screw Compressor industry has offered some of the most significant advantages to various industries. 

Major players in the Screw Compressor market, including Atlas Copco, ELGI Equipment Limited, Kobe Steel Ltd., Hitachi, Kore Compressor, Lewis System, Caterpillar Inc., Michelin, GE Oil & Gas, Howden Group Ltd., Siemens AG, Garden Denver, Inc., Sullair LLC, Aggreko plc., and others, are trying to increase market demand by investing in research and development operations.

Atlas Copco, established in 1873, is headquartered in Stockholm, Sweden, having customers in more than 180 countries. In 2022, Atlas Copco made revenue of approx. BSEK141 (13 BEUR). In September 2019, a new XAS 950 air compressor was launched by Atlas Copco. It is a single-stage, oil-injected, rotary air compressor having the capability of adjusting pressure via cognitive electronics to meet the engine speed, power, and torque with air demand, resulting in fuel savings and better efficiency. 

In March, the company launched its GA 110-160 VSD oil-injected air compressor ranging in a smart air solution portfolio. This new launch has featured in the new format of art compression elements and provides triple benefits in terms of efficiency, service, energy encompassment, and uptime.

ELGI Equipment Limited is an air compressor manufacturer globally which emphasizes innovation and technologically best-compressed air systems. It has a long-term partnership with its stakeholders globally, guided by technology, reliability, capability, and values boosted by innovation. 

The ELGI is operating across 120 countries globally and has a product portfolio of over 400 products. ELGI provides a full range of compressed air solutions, oil-lubricated and oil-free rotary screw compressors oil-lubricated and oil-free reciprocating compressors, dryers and filters. In June 2019, ELGI Equipment launched an upgraded scale of encapsulated screw air compressors with various frequency drivers and heat recovery systems.