Centrifugal Air Compressor Market Size, Share, Trends, Growth and Forecast 2034

Centrifugal Air Compressor Industry Prospective:

The global centrifugal air compressor market size was worth around USD 8.4 billion in 2024 and is predicted to grow to around USD 12.9 billion by 2034 with a compound annual growth rate (CAGR) of roughly 5.5% between 2025 and 2034.    

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Centrifugal Air Compressor Market: Overview

A centrifugal compressor is a dynamic compressor that raises the pressure of a gas by accelerating it to a high velocity and then converting its kinetic energy into pressure. They use a rotating impeller to impart velocity to the gas, which then travels through a diffuser, where it reduces velocity and increases pressure. They are widely utilized in several applications, including HVAC systems, and for compressing gases such as air, natural gas, and refrigerant. The centrifugal air compressor market is influenced by various factors such as rapid industrialization and infrastructure boom, the rising trend towards automation, environmental regulations, and many others.

Key Insights

• As per the analysis shared by our research analyst, the global centrifugal air compressor market is estimated to grow annually at a CAGR of around 5.5% over the forecast period (2025-2034).
• In terms of revenue, the global centrifugal air compressor market size was valued at around USD 8.4 billion in 2024 and is projected to reach USD 12.9 billion by 2034.
• The increasing trend towards automation is expected to drive the centrifugal air compressor industry over the forecast period.
• Based on the lubrication, the oil-filled segment is expected to hold the largest market share over the forecast period.
• Based on the application, the manufacturing segment is expected to dominate the market expansion over the projected period.
• Based on region, the Asia Pacific is expected to dominate the market during the forecast period.

Centrifugal Air Compressor Market: Growth Drivers

Increasing urbanization and infrastructure upgrades drive market growth

Rapid urbanization is propelling large-scale development of residential complexes, commercial structures, airports, roads, bridges, and mass transit systems. All of these projects require reliable compressed air for pneumatic tools, equipment, and material handling, with centrifugal compressors playing a vital role for fixed, high-volume requirements.

According to the March 2025 UNEP study, global building floor space increased by around 2% between 2022 and 2023, indicating continuous urban infrastructure growth that drives demand for compressors. As cities grow, so do the installations of centralized HVAC systems in high-rise buildings, shopping malls, hospitals, and data centers. These systems frequently use centrifugal compressors for efficient, high-capacity cooling and air management. Therefore, the aforementioned stats are propelling the centrifugal air compressor market.

Centrifugal Air Compressor Market: Restraints

High initial cost hinders market growth

One of the main reasons centrifugal air compressors aren't used often is that they are initially expensive. This is especially true for small and medium-sized firms (SMEs) and industries that are sensitive to costs. Centrifugal compressors have complex aerodynamic designs, very precise impellers, and materials that can handle running at high speeds all the time and last for a long period. They also need high-performance bearings, cooling systems, and a multi-stage architecture to handle high pressure correctly.

Additionally, these systems are typically designed to meet specific industrial needs, so they require proper design, construction, and calibration before they can be utilized effectively. It costs more to buy and install custom installations for oil and gas, petrochemicals, or major HVAC systems. Thus, the aforementioned facts are propelling the centrifugal air compressor industry revenue expansion.

Centrifugal Air Compressor Market: Opportunities

Innovative product launch offers a lucrative opportunity for market growth

The innovative product launch in the market is expected to offer a potential opportunity to the centrifugal air compressor industry over the forecast period. For instance, in May 2025, IHI Rotating Machinery Engineering Co., Ltd. (IRM), a firm within the IHI Group, announced the debut of a new high-efficiency centrifugal compressor, known as the "TRZ Series" (the New Model). Historically, IRM has provided a diverse selection of compressor models customized to the specific flow and pressure requirements of its customers.

IRM offers a high-efficiency centrifugal compressor for the world's largest market segment, with motor outputs ranging from 500 kW to 1,120 kW and discharge air volumes from 5,600 to 12,320 m³/h (discharge pressure: 0.7 MPaG). With the introduction of the New Model, their array of general-purpose, industrial air centrifugal compressors has grown to seven models, allowing us to deliver ideal solutions adapted to our customers' diverse production demands.

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Centrifugal Air Compressor Market: Challenges

Limited performance at low loads poses a major challenge to market expansion

One of the primary constraints in the centrifugal air compressor market is its poor performance at low loads. This issue has an impact on efficiency, operational costs, and overall applicability in industries that have variable air demand. Centrifugal air compressors are designed to deliver enormous amounts of air with a consistent flow rate. When air demand decreases, the compressor cannot rapidly adapt, resulting in inefficiency and energy waste.

Furthermore, at low loads, airflow through the compressor may become unstable, potentially resulting in a surge—an abrupt reversal of flow that can damage components. To avoid this, compressors frequently have blown-off valves or recycle loops that exhaust or reroute surplus air, but this consumes energy.

Centrifugal Air Compressor Market: Report Scope

Centrifugal Air Compressor Market: Segmentation

The global centrifugal air compressor industry is segmented based on lubrication, application, and region.

Based on the lubrication, the global centrifugal air compressor market is bifurcated into oil-free and oil-filled. The oil-filled segment is expected to hold the largest market share over the forecast period. The segment expansion is attributable to the broad applicability and cost-effectiveness of the product. Oil-filled centrifugal air compressors are suitable for a wide range of industrial applications where oil pollution is not an issue. This encompasses manufacturing, building, and general industrial processes.

Furthermore, oil-filled compressors are frequently less expensive to construct and maintain than oil-free ones, making them the favored choice for businesses that value cost efficiency. Thus, these characteristics of oil-filled lubrication drive the industry expansion.

Based on the application, the global centrifugal air compressor industry is bifurcated into food & beverage, manufacturing, semiconductor & electronics, healthcare/medical, oil & gas, home appliances, energy, manufacturers (IDMs), foundries, and others. The manufacturing segment is expected to dominate the market over the projected period. Compressed air is required for a variety of manufacturing processes, including the operation of pneumatic tools, material handling, and machine operation.

Centrifugal compressors provide a consistent supply of compressed air for these applications. Furthermore, reduced noise levels in manufacturing facilities are critical for employee comfort and safety. Centrifugal air compressors, with their quieter operation, are favored in environments where noise reduction is critical. Thereby, driving the market growth.

Centrifugal Air Compressor Market: Regional Analysis

The Asia Pacific dominates the market over the projected period

The Asia Pacific is expected to dominate the global centrifugal air compressor market. Rapid development in China, India, and Southeast Asian countries has resulted in increased demand for compressed air in an array of industries, including manufacturing, construction, and petrochemicals. Furthermore, ongoing infrastructure development projects, such as building, transportation, and utilities, require compressed air for a number of applications, thereby driving up demand for centrifugal air compressors.

For instance, according to the Press Information Bureau, India's National Highway (NH) network expanded from 65,569 km in 2004 to 91,287 km in 2014 and 1,46,145 km in 2024. NH stretches with four or more lanes grew 2.6 times from 18,371 km in 2014 to 48,422 km in 2024. Thus, this is expected to foster the expansion of the centrifugal air compressor market in the region over the analysis period. Besides, North America is expected to capture a significant market share in the market owing to the stringent environmental regulations and emission standards.

Centrifugal Air Compressor Market: Competitive Analysis

The global centrifugal air compressor market is dominated by players like:

• Gardner Denver Holdings Inc.
• Atlas Copco AB
• Ingersoll-Rand PLC
• Baker Hughes a GE Co.
• Sundyne
• Zhejiang Kaishan Compressor CO. LTD.
• Dresser-Rand Group Inc.
• Mitsubishi Heavy Industries Compressor Corporation
• Howden Group
• Sullair LLC
• Boge Compressors
• Sundyne
• Hanwha Power Systems
• Hitachi
• MAN Energy Solutions

The global centrifugal air compressor market is segmented as follows:

By Lubrication

• Oil-free
• Oil-Filled

By Application

• Food & Beverage
• Manufacturing
• Semiconductor & Electronics
• Healthcare/Medical
• Oil & Gas
• Home Appliances
• Energy
• Manufacturer (IDMs)
• Foundries
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa