November , 2018
Power sector is enhancing the air compressor market
16:50 pm

Kuntala Sarkar

The air compressor market can be segmented in two parts. Air compressors are widely used in white goods such as air conditioners and refrigerators. Industrially, air compressors are used in a variety of industries, which include the food and beverage industry, power industry, electronics, mining, healthcare and medical equipment, construction, cold storages, and the automobile industry. The foremost players in the air compressor manufacturing sector are Chicago Pneumatic, Ingersoll Rand Ltd., Quincy Compressors LLC., Redflow Ltd., Atlas Copco, Champion Air Tech, Hitachi Ltd., and ELGi Equipments among others.

In 2016, the global size of the air compressor market was around $19,798.56 million. According to the report ‘Air Compressor by Type, Technology, Lubrication Method, Power Rating and End-user Industry: Global Opportunity Analysis and Industry Forecast, 2014-2023’ by Allied Market Research, the growth of the compressor industry is expected to expand to reach $26,850.35 million within 2023. The report also informs that the industry is growing globally at a Compound Annual Growth Rate (CAGR) of around 4.47% whereas the market in India is growing approximately at CAGR of 9%.

According to the draft of ‘India Cooling Action Plan, 2018’, the aggregated nationwide cooling requirement is projected to grow around 8 times between 2037 and 38 as compared to the 2017-18 baseline. Assuming a high growth of the industry, Jairam Varadaraj, Managing Director, ELGi Equipment, recently informed PTI, “On consolidated operation, we are expecting that there will be 14%-15% growth in the 2018-19 fiscal.” The company’s net profit for the 2017-18 fiscal was Rs. 95.28 crore which was higher that it’s previous year’s profit margin. According to market sources, the compressor market can be expected to perform well in the near future in India, contributing well to India’s GDP.


India is showing a decent demand for the power sector which is translating to demand generation for the air compressor market. The Indian economy has shown signs of growth. There is rise in the amount of disposable income in the hands of the Indian middle class. That is augmenting well for the white goods market. A rise in demand for white goods like air conditioners and refrigerators is automatically generating demand for the air compressor market. The increasing rate of air pollution and global warming has also fuelled the demand for air conditioners in India. That is another trigger point for the rise in demand of air compressors.

Demand for compressors in power sector

According to market sources, the countries in the Asia-Pacific region have accounted for two-thirds of the global power segment’s growth in the last fiscal. Most of the demand is generating from India and China. The demand for air compressors is high in these two economies. In India, the central government is trying to encourage more domestic production by forming high customs duty on air compressors. The basic duty on air compressors is 7.5%, the countervailing duty (CVD) is 12% and the special CVD is 4%. Power generation and oil and gas sectors are the biggest consumers of air compressors. Growing gas pipeline network is expected to be one of the most significant drivers for the compressor market in India.

Sustainable growth for air compressor industry

Air compressors are directly related to air pollution. According to the International Energy Agency (IEA), refrigeration and air conditioning (RAC) causes 10% of the global CO2 emissions. New technological progresses are making compressors more energy efficient and environmental friendly. These newer versions are expected to replace the present conventional compressor units. Recently, Atlas Copco, a prominent air compressor manufacturing company launched ‘GA VSD+ compressor’. It reduces energy consumption by 50%. The ‘India Cooling Action Plan, 2018’ has brought out cooling strategies to control the level of pollution caused directly by air compressors. The compressor market is responding well by designing more environment-friendly versions.


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