Screw Compressor Market Set to Grow at 5.8% CAGR Through 2032

Screw Compressor Market to Hit $18.9 Billion by 2032, Driven by Industrial Automation Growth

WILMINGTON, DE, UNITED STATES, November 20, 2025 /EINPresswire.com/ --

According to a recent report published by Allied Market Research, the global screw compressor market size was valued at $10.8 billion in 2022 and is projected to reach $18.9 billion by 2032, growing at a CAGR of 5.8% from 2023 to 2032. This steady growth is propelled by rapid industrialization, technological innovation, and rising demand for energy-efficient solutions across industries.

Screw compressors play a critical role in compressing air and gas, making them essential in sectors like manufacturing, oil & gas, petrochemicals, automotive, and construction. These compressors are known for their high efficiency, reliability, and ability to operate continuously under harsh conditions, which makes them a preferred choice for heavy-duty industrial applications.

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Market growth is fueled by rising industrial automation, expansion of manufacturing facilities, and increasing demand for energy-efficient air compression systems. Screw compressors are widely preferred due to their high reliability, low maintenance, continuous operation capability, and suitability across multiple industries including oil & gas, chemicals, power generation, food & beverage, and pharmaceuticals.

Technological advancements such as variable-speed drives (VSD), oil-free designs, and smart monitoring systems are further accelerating adoption. Asia-Pacific is expected to lead the market, supported by large manufacturing bases, rapid industrialization, and growing infrastructure investments.

Asia-Pacific Dominates the Global Market

Asia-Pacific held the largest market share in 2022, accounting for nearly two-fifths of the global revenue, and is expected to maintain its dominance during the forecast period. Countries like China, India, and Japan are experiencing significant demand due to expanding industrial sectors and increased infrastructure investments.

In addition, the region’s commitment to sustainable energy and emissions reduction is fueling the adoption of energy-efficient equipment like screw compressors. Governments and industries in Asia-Pacific are increasingly aligning with green energy regulations, which supports the adoption of advanced compressor systems designed to reduce energy consumption and environmental impact.

Leading Players in the Screw Compressor Industry

Key players operating in the screw compressor market include:

Atlas Copco AB

Kobelco

Ingersoll Rand

Kaeser Kompressoren SE

Gardner Denver

Sullair

Boge Kompressoren

ELGi Equipment Limited

Quincy Compressor

Bauer Kompressoren GmbH

These companies focus on technological upgrades, product innovation, and strategic partnerships to expand their market presence and address evolving customer needs. Many have integrated IoT-enabled systems into their compressors to improve monitoring, predictive maintenance, and operational efficiency.

Key Market Drivers

The screw compressor market is growing due to several major factors:

Rapid industrialization and urban development in emerging economies

Rising energy demands and need for efficient air compression technologies

Growing investments in oil & gas exploration and petrochemical projects

Adoption of IoT-based systems for real-time data analysis and performance optimization

Supportive government policies promoting energy efficiency and emissions reduction

Screw compressors are also increasingly used in renewable energy, HVAC, mining, and transportation, expanding the scope of their application.

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Challenges and Market Restraints

Despite strong growth prospects, the market faces notable challenges. The high initial investment cost and maintenance expenses of screw compressors act as barriers for small and medium enterprises. Additionally, technical complexity and the need for skilled professionals to operate and maintain advanced systems present operational challenges.

Environmental compliance and regulatory frameworks around the world are becoming more stringent, adding to the cost of upgrading or replacing outdated compressor systems.

Trends Toward Sustainability and Innovation

The screw compressor market is closely tied to the global shift toward sustainable energy. Manufacturers are focusing on developing oil-free, low-noise, and energy-saving compressors that comply with environmental standards. The integration of smart technologies, including sensors, AI, and cloud analytics, is transforming how compressors are maintained and managed.

This trend is leading to the creation of energy-efficient, eco-friendly systems that not only reduce operational costs but also support carbon neutrality targets for large industries.

Segment Insights

By Type: The oil-injected segment held the dominant share, accounting for nearly three-fourths of the global market in 2022, and is expected to continue its lead due to its widespread use in high-load industrial operations.

By Stage: The multi-stage segment emerged as the largest, securing two-thirds of the market share in 2022. Its popularity stems from superior performance and better efficiency in high-pressure applications.

By Technology: The stationary screw compressor segment was the market leader in 2022, with nearly three-fourths share, owing to its extensive use in manufacturing and processing industries.

By End User: The oil and gas segment were the largest contributor in 2022, capturing around two-fifths of the global share, driven by growing exploration and refinery projects across regions.

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Conclusion: The global screw compressor market is set for substantial growth in the coming years, fueled by rising industrial needs, energy efficiency goals, and smart technology adoption. While challenges remain, ongoing innovation and sustainability efforts are expected to reshape the landscape, offering lucrative opportunities for market players worldwide.

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About Us

Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports" and "Business Intelligence Solutions." AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.

Pawan Kumar, the CEO of Allied Market Research, is leading the organization toward providing high-quality data and insights. We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.

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Allied Market Research
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