Oil Filled Air Compressor Market size was estimated over USD 20 billion in 2017 and the industry will grow by a CAGR more than 3% up to 2024.
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Due to the growing population, the need of fossil fuel will increase as crude oil is regarded as an essential natural resource, despite innovations in alternative energy resources. North America has 14% of the world’s crude oil reserve and 6% of the global natural gas deposit, which will increase the oil & gas exploration activities and spur the product market. The U.S. oil & gas sector growth will be the leading driver for oil filled air compressor market in next six years. The development of abundant unconventional natural gas and tight oil creates immense break to oil lubricated air compressor market by the end of forecast timeframe These products, also known as oil lubricated air compressors, are installed in heavy duty equipment used in oil & gas, mining, quarrying, manufacturing industry for delivering the required pressure levels necessary during operations. These products are designed for most extreme climate and other ambient conditions. This will increase the demand of oil filled air compressor market by the end of 2024. Moreover, North America is the world’s second largest generator and supplier of solar, wind and hydropower, which will further increase the demand of oil lubricated air compressor in the region.
High cost and maintenance of oil lubricated air compressor compel the small and medium scale enterprise to rent the product rather than purchasing due to comparatively lesser compressed air demand during manufacturing end-product. Renting services also provide flexibility to switch to other air compressors according to the requirement. Rapid technological advancement will also support the rental services which reduces the risk associated with backdated technology compressors, such as tier 1 or tier 2.
|Oil Filled Air Compressor Market Size in 2017:
|20 Billion (USD)
|2018 to 2024
|Forecast Period 2018 to 2024 CAGR:
|2024 Value Projection:
|25 Billion (USD)
|Historical Data for:
|2013 to 2017
|No. of Pages:
|Tables, Charts & Figures:
|Product, Technology, Application and Region
|Pitfalls & Challenges:
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The oil filled air compressor market is fragmented into portable and stationary. Among these, stationary accounted for the majority share of the entire product market in 2017 and is likely to witness the slow growth by the end of forecast timeframe. Stationary compressors of smaller sizes are extensively used in automobiles, refrigerators and air conditioners for compressing the refrigerant in the system while the larger types are used in manufacturing and industrial applications to provide high volume of compressed air for painting, metalworking, and operating pneumatic tools.
Portable oil lubricated air compressor market will grow with around 3.5% CAGR during the forecast timeframe. These compressors are used in households for filling air in inflatable items such as tires, inflatable swimming pools, balloons, etc. and in industries where compressed air is required at multiple locations.
The oil filled air compressor market is segmented, based on technology, into reciprocating, rotary and centrifugal. Rotary oil lubricated air compressor will account for more than 60% of the entire market share of the product market in 2017. The new technological innovation regarding maintenance, efficiency and low cost will propel the rotary oil lubricated air compressor market by the end of forecast timeframe.
In terms of revenue, reciprocating oil lubricated air compressor accounted for 3.5 billion in 2017 and will grow at sluggish rate owing to substitution by rotary compressors. This will result in reciprocating product losing its market share to rotary product in the forecast timeframe.
The oil filled air compressor market is further diversified into seven major application categories including home appliances, mining & quarrying, oil & gas, energy, electrical & electronics, manufacturing, and building & construction. The other niche application includes food & beverage, textile, medical, etc.
Home appliances hold majority of the volumetric share in 2017 but generated low revenue, as the hermetic compressors used in home appliances are small in size and capacity and will gain the market at sluggish rate by the end of forecast timeframe.
Manufacturing segment generated revenue more than USD 6.5 billion in 2017 and will grow at substantial rate by the end of 2024. The oil filled air compressor is used in operating air tools on production lines, cutting and welding equipment, monitoring equipment, ejecting pieces from molds, adjusting roller and feed machinery, during blowing processes of plastics and other materials, for sandblasting and metal finishing as well as operating automatic machinery. They are also used for driving screws, turning nuts, positioners, clamps, air chucks, air knives, etc.
Asia Pacific is a crucial contributor in the product market and accounted for over 60% of the global oil filled air compressor market share in 2017. The region will witness a significant growth owing to innovative technology and initiatives. For instance, the China government proposed 46 pilot projects, focusing on new technological advancement to implement smart manufacturing as part of its ‘Made in China 2025’ initiative.
Mexico product market was valued over USD 700 million in 2017 and is likely to grow at significant annual growth rate by the end of forecast timeframe. In 2018, Mexico secured nearly USD 100 billion investment in oil & gas sector for Deepwater exploration. The significant application of the product in the oil & gas equipment will bolster the market by the end of 2024
Some well-known name providing the huge contribution in oil filled air compressor market are
These companies are involved in acquisition, product innovation and technology development in the market.
Oil filled air compressor are generally oil flooded or splash lubricated. The splash lubricated technology is commonly used in reciprocating air compressor whereas oil flooded is used in rotary, centrifugal and reciprocating. The oil lubricated air compressor is most commonly used owing to their longer life and less noise production.
Increasing energy industry coupled with oil & gas industry all around the world will provide the profitable growth to the product market. Stringent government regulations and initiatives to conserve fossil fuel and produce renewable energy will augment the oil filled air compressor market as the products are installed in windmills, hydrothermal energy plants etc.