The compressor market includes compressors used in various home and industrial appliances such as air conditioners, refrigerators, chillers, heat pumps, oil & gas tools, and automotive systems. Compressors are crucial for various industrial processes that need to move gases from one point to another or raise gases' pressure. They help operate machines like AC units, refrigerators, small and large chillers, and air handling units that require compressed air or gases for functioning.
The global compressor market is estimated to be valued at US$ 42.6 Bn in 2023 and is expected to exhibit a CAGR of 16% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity
The increased demand for home appliances is estimated to offer significant growth opportunities to the compressor market over the forecast period. Rising disposable income and changing lifestyle trends have increased the demand for appliances like air conditioners, refrigerators, and washing machines globally. The growing penetration of household appliances in developing countries is driving the sales of compressors. Moreover, the increasing construction of commercial buildings, residential buildings, hospitals, malls, and other infrastructure is also fueling the demand for compressors. As commercial refrigeration systems and HVAC equipment require compressors, their increased deployment is positively influencing the compressor market growth.
Porter's Analysis
Threat of new entrants: The threat of new entrants in the compressor market is low as it requires substantial investment and expertise to manufacture compressors. In addition, established players enjoy economies of scale and brand recognition which make it difficult for new players to enter the market.
Bargaining power of buyers: The bargaining power of buyers in the compressor market is high. Buyers have many alternatives and can negotiate on price and discounts. They can also choose rental options to fulfill short term requirements.
Bargaining power of suppliers: Suppliers of compressor parts and raw materials have moderate to low bargaining power as there are many suppliers in the market and they have little switching cost.
Threat of new substitutes: There is low threat from substitutes in the compressor market as compressors are essential for various industries. However, alternatives like rental compressors provide some substitution.
Competitive rivalry: The competitive rivalry in the compressor market is high among major global players. Players compete based on product quality, price, product innovation, distribution network and brand image.
SWOT Analysis
Strengths: Compressors have wide industrial applications. Major players have strong brands, distribution networks and technical support globally.
Weaknesses: High initial investment required. Dependent on economic cycles of end user industries.
Opportunities: Growth in construction, manufacturing and automotive industries in developing nations. Rising demand for rental compressors.
Threats: Strict environmental regulations. Threat from substitute technologies in certain applications. Intense price competition.
Key Takeaways
The Global Compressor Market Growth is expected to witness high over the forecast period driven by growth in end use industries. The global compressor market is estimated to be valued at US$ 42.6 Bn in 2023 and is expected to exhibit a CAGR of 16% over the forecast period 2023 to 2030.
Regional analysis: Asia Pacific dominates the compressor market currently accounting for over 40% share due to strong growth in manufacturing and construction industries in China and India. The region is expected to continue its dominance over the forecast period on account of increasing industrialization.
Key players: Key players operating in the compressor market include Sullair, ELGI Equipment Ltd., Ingersoll Rand Inc., Doosan Portable Power, and Atlas Copco.
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