Centrifugal Compressor Market
Report ID: SQMIG20I2368
Report ID: SQMIG20I2368
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Report ID:
SQMIG20I2368 |
Region:
Global |
Published Date: May, 2025
Pages:
198
|Tables:
147
|Figures:
68
Global Centrifugal Compressor Market size was valued at USD 4.32 Billion in 2024 and is poised to grow from USD 4.57 Billion in 2025 to USD 7.15 Billion by 2033, growing at a CAGR of 5.74% in the forecast period (2026–2033).
The centrifugal compressor market is in the midst of a dynamic shift, spearheaded by accelerated industrialization and surging demand in energy, petrochemical, and HVAC markets. In the projected years, the market will grow steadily, due to the focus of industries on energy conservation and lower carbon emissions. The market maintains momentum because nations operate with urgency to decarbonize their oil & gas facilities and refineries.
The International Energy Agency (IEA) reports that carbon-neutrality programs force companies to exchange their old piston compressors with state-of-the-art centrifugal models. A significant transformation of the market exists within the time to come. The upcoming era will develop through predictive maintenance technology integration with AI control systems and remote performance monitoring capabilities.
The procurement strategies of major manufacturers throughout the United States and Europe have already started adopting these new trends. The transformation of economies to hydrogen systems creates promising prospects because centrifugal compressors play essential roles in producing and transporting hydrogen.
Despite this, challenges like the high upfront capital expense and strict maintenance procedures might hamper adoption in developing markets. However, with sustainability no longer a choice, centrifugal compressors will assume a key role in next-generation industrial infrastructure.
How AI-enabled Predictive Maintenance Systems and IoT Integration can encourage the Centrifugal Compressor Market?
Artificial Intelligence (AI) has already stepped into the centrifugal compressor market as it has revolutionized the area of maintenance. Key players are offering AI-enabled predictive maintenance solutions to end users to help them in cost reduction by enabling companies to know before any damage happens to the system. Companies are investing in this to support the Fourth Industrial Revolution – Industry 4. 0.. Additionally, IoT is connecting physical devices with the internet to enable them to gather and share data. For compressed air systems, IoT products like sensors, actuators and intelligent controllers are installed to sense different parameters in real-time like pressure, temperature, humidity, flow rates and energy consumption.
Market snapshot - 2026-2033
Global Market Size
USD 4.09 Billion
Largest Segment
Single Temperature
Fastest Growth
Single Temperature
Growth Rate
5.74% CAGR
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The global centrifugal compressor market is segmented into type, product, discharge pressure, application, end use industry and region. By type, the market is oil-free centrifugal compressors, and oil-filled centrifugal compressors. By product, the market is segmented into single-stage centrifugal compressors, and multistage centrifugal compressors. By discharge pressure, the market is segmented into below 20 bars, between 20 and 200 bars, between 201 and 400 bars, and above 400 bars. By application, the market is segmented into HVAC systems, refrigeration, gas turbines, industrial processes, and others. By end use industry, the market is segmented into manufacturing, oil & gas, energy, healthcare, food & beverage, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America.
SkyQuest’s research found that the oil-filled centrifugal compressors segment shares the highest position in the Global Centrifugal Compressor Market because this type of compressor has extensive use across heavy industrial applications such as petrochemicals, refineries, and gas processing. The compressors deliver higher efficiency, longevity, and cooling capability at high-pressure operating conditions, for which they become essential for high-throughput performance operations with minimum downtime. Growing investments in massive oil & gas and power generation facilities in the Asia Pacific and the Middle East are constantly driving demand. Additionally, the upgrade of old compressor units with newer lubricated versions is further driving market supremacy.
Oil-free Centrifugal Compressors are turning out to be the quickest developing sub-segment as a result of growing clean, contamination-free compressed air demand from industries like pharmaceuticals, electronics, and food & beverages. One of the key drivers of this growth is the worldwide trend toward sustainable, energy-efficient manufacturing practices, where oil-free technologies help meet stringent environmental and regulatory requirements. Furthermore, advancements in material and sealing technologies are improving the efficiency and life of oil-free compressors. The demand for carbon-neutral operations and the increasing demand for low-maintenance systems are also spurring adoption in established markets of Europe and North America.
Oil & Gas proved to be the biggest end-user industry segment within the Global Centrifugal Compressor Market. The Oil and Gas industry has crossed USD 5 trillion as of 2024 and is growing 8% year after year, pushing demand for centrifugal compressors utilized in upstream, midstream, and downstream applications considerably. The offshore exploration, gas processing, and LNG infrastructure growth focus of the industry has accelerated the demand for compression systems with high efficiency. Additionally, well-established market refinery aging infrastructure and new refinery development in Asia-Pacific and the Middle East are further driving the use of centrifugal compressors worldwide.
Meanwhile, Energy is the fastest-growing end-use industry segment in the centrifugal compressor market, spurred by the global energy transition and the move towards decarbonization. The rapid shift towards renewable energy integration, growth in the hydrogen economy, and CCUS technology has spurred the demand for next-generation compressors. Industries and governments are making investments in clean infrastructure like gas-fired power generation and hydrogen production centers, where centrifugal compressors are significant in gas compression and storage. This is especially prevalent in Europe, North America, and some of Asia-Pacific regions where clean energy laws are making great strides.
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The Asia Pacific market dominated the Global Centrifugal Compressor Market in 2024 due to swift industrialization, build-out of LNG infrastructure, and considerable oil & gas investments. Regional dominance can be also due to a rapid inflow of cross-border gas pipeline projects as well as greater implementation of centrifugal compressors at petrochemical complexes. Strong regional demand from sectors like power generation and manufacturing as well as from government policies encouraging energy diversification have driven compressor installations in South Korea, China, and Japan.
In China, refinery expansions, massive coal-to-gas substitution projects, and state-supported LNG import terminals played a major role in increasing demand for centrifugal compressors. China led the most number of new natural gas pipeline projects in 2024, which further increased demand for high-capacity compression systems. In addition, government policies supporting the production of green hydrogen and the upgradation of chemical industries have given robust opportunities to centrifugal compressor suppliers for public as well as private organizations.
The market for centrifugal compressors in Japan, saw significant growth in 2024 as a result of its strong drive towards hydrogen and clean energy projects. Country's strategic investment initiatives in hydrogen fueling stations, ammonia co-firing facilities, and LNG regasification terminals, all of which demand efficient compression systems. Also, this country's government carbon neutrality strategy and collaborations with private giants such as Mitsubishi Heavy Industries are promoting the adoption of centrifugal compressors in industrial and energy use at an accelerating rate.
South Korea is being fueled by high-speed modernization of its petrochemical facilities, growing consumption of natural gas, and government-driven green hydrogen and gas-fired power generation shift. South Korea's top companies, including Hyundai Oilbank and SK Energy, are investing in environmentally friendly refinery upgrades, where centrifugal compressors play a crucial role in process optimization and emission control. South Korea's participation in developing hydrogen value chains is also boosting the demand for high-efficiency centrifugal compressors in both domestic and export-oriented projects.
North America is turning into a favorable market for centrifugal compressors in 2024 with the booming investments in LNG infrastructure, the shale gas boom, and aggressive growth of CCUS (Carbon Capture, Utilization, and Storage) projects. Upgradation of old oil refineries and gas processing plants, particularly in the U.S., has generated a strong demand for efficient compressors. Also, North America's robust push towards industrial decarbonization and increasing hydrogen economy projects are having a substantial multiplier effect on the uptake of centrifugal compressors in energy and manufacturing industries.
The United States market for centrifugal compressors is flourishing with huge investment in LNG export terminals, shale gas initiatives, and government support for clean energy technology. Inflation Reduction Act (IRA) is also stimulating CCUS applications and hydrogen initiatives where the usage of centrifugal compressors is vital. In addition, the upgrade of petrochemical facilities in Texas and Louisiana and the development of gas pipeline networks are driving consistent demand for efficient and reliable compression solutions.
In Canada, the market for centrifugal compressors is picking up pace due to increasing investments in LNG Canada projects, carbon capture projects, and a strong emphasis on integrating renewable energy. British Columbia and Alberta are leading infrastructure development, in which compressors are essential to gas processing and transmission. Decarbonization plans of Canada with ambitious targets and incentives for the production and storage infrastructure of hydrogen are also compelling demand for advanced centrifugal compressor technologies in the large industrial and energy industries.
In 2024, the European Centrifugal Compressor market is witnessing slow expansion, which is stimulated by industrialization, energy transition initiatives, and investment in LNG terminals. The intense decarbonization push in Europe and modernization of oil & gas facilities are driving demand for compressors, particularly low-emission and energy-efficient ones.
In the UK, the market for centrifugal compressors is picking up pace with huge-scale investments in offshore wind power, carbon capture and storage (CCS) schemes, and the revival of old North Sea oil fields. The UK's commitment to net-zero by 2050 has been the catalyst for increased clean energy infrastructure growth, where compressors are central to gas handling and energy storage.
Growth in the market for centrifugal compressors in France is being driven by rising investment in LNG regasification terminals and government support of hydrogen mobility projects under the "France 2030" plan. French industries increasingly integrating compressors for renewable gas, biogas, and synthetic fuel use as part of their carbon neutrality strategy. Aside from that, the country's massive nuclear facility upgrades and upcoming small modular reactor (SMR) projects are driving strong demand for centrifugal compressors in energy-intensive applications.
In Germany, the centrifugal compressor market has been growing significantly with the support of Germany's ambitious Energiewende (energy transition) policy and heavy investments in biogas and hydrogen industries. Modernization of the industrial sector in Germany and increasing LNG import terminal projects after the 2022 energy crisis have increased the demand for sophisticated compression technology.
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Rapid Expansion of Oil & Gas Exploration and Production Activities
Surging Investments in HVAC Systems for Commercial and Industrial Spaces
Complexity in Design and Operation
Strict Environmental and Energy Efficiency Regulations
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The global centrifugal compressor industry is competitive, and the top five players such as Atlas Copco, Siemens Energy, Ingersoll Rand, GE Oil & Gas, and MAN Energy Solutions, have a combined market share of over 45%. The entry barriers are high as a result of high capital requirements, sophisticated technological know-how, and brand recognition. Firms enhance their market positions by ongoing innovation, including the integration of IoT and predictive maintenance technologies, which improve efficiency and minimize downtime. Moreover, venturing into emerging markets and providing extensive after-sales services also help in building greater customer loyalty and market share. Companies that invest in sustainable and energy-efficient solutions are especially well-placed to take advantage of the increasing demand across industries such as oil & gas, petrochemicals, and power generation.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.
SkyQuest's study suggests that the global market for centrifugal compressors is witnessing a major shift, fueled by fast-growing industrialization, energy transition projects, and technological innovations. Robust demand from the oil & gas, petrochemical, and HVAC industries continues to drive the growth of the market, while AI and IoT adoption is improving maintenance efficiency and operation performance. The market remains unscathed despite posing challenges like high capital expenditures. The manufacturers are concentrating on sustainable and high-efficiency solutions. Growing investments in hydrogen infrastructure and LNG projects also reinforce the market scenario. As companies focus on energy efficiency and decarbonization, centrifugal compressors are set to become an integral part of the new industrial landscape.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 4.32 Billion |
| Market size value in 2033 | USD 7.15 Billion |
| Growth Rate | 5.74% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Centrifugal Compressor Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Centrifugal Compressor Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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