Centrifugal Air Compressor Market Size

Centrifugal Air Compressor Market Size

Centrifugal Air Compressor Market size valued at USD 9.9 billion in 2019 and is estimated to exhibit over 1.5% CAGR from 2020 to 2026. Growing oil & gas exploration activities and rising demand for food products will propel the industry demand.

Centrifugal air compressor or radial compressor are gaining traction across end-users owing to their lower maintenance cost and longer lifespan. These types of compressors can have more than 50% of turndown at the commercial level. For a compressor, if the turndown ratio increases, the availability for flow variability also increases. This reduces the chances of blow off in compressed air treatment systems during low flow conditions. Increasing product demand in major end-user industries will be a key factor responsible for market expansion.

Another growth enabling factor is technological advancement in the field of centrifugal air compressor. In the past, many end-users, especially plant maintenance personnel, have avoided the usage of radial compressors owing to its complex operations. However, the majority of manufacturers had started providing control modes, such as valve logic, to enhance customer satisfaction. The major incentive of using these technologies is energy-saving as compressed air accounts for around a quarter of the total plant energy consumption.
 

Centrifugal air compressor face challenges such as its installation and maintenance cost that will hinder market development. This can be mainly attributed to high penetration of rental services of compressors among end-users. Small to medium-scale end-users require compressed air treatment for a very short duration. Furthermore, renting air compressors is much more economical compared to buying as it saves a considerable amount of operational cost.
 

Loss in sales volume due to the adverse impacts of coronavirus will restrict the centrifugal air compressor market growth. Globally, aerospace and automotive manufacturing facilities have announced closure or partial shutdown due to worldwide lockdown and labor shortage. Semiconductor & electronics demand is projected to drop by over 10% owing to declining sales volume of smartphones, computers, vehicles, etc. Such trends have created a significant loss of global market revenue during 2019-2020. However, the industry will gain momentum post-2021 on account of stability in the global manufacturing sector and revival of the economy of major countries.