Screw Compressor Market Size, Share, Industry, Forecast and outlook (2023-2030)

Report Overview

Global Screw Compressor Market reached US$ 8.2 billion in 2022 and is expected to reach US$ 11.2 billion by 2030 growing with a CAGR of 4.2% during the forecast period 2023-2030.

The global screw compressor market is expected to undergo a shift in demand due to current trends. The exploration of new offshore oil blocks in South America and Africa is expected to increase demand from these regions in the short and medium term. 

Rising plastics production will also create demand for screw compressors from the petrochemicals industry. The International Energy Agency (IEA) estimates that petrochemicals will account for nearly a third of the increase in global oil demand by 2030. In April 2023, Iraq launched the construction of the Nibras petrochemicals complex with an annual capacity of 1.8 million tons.

During the forecast period, screw compressor manufacturers are likely to integrate more energy efficient accessories in order to increase value addition for consumers. For instance, Atlas Copco AB, a major screw compressor manufacturer, is currently working on equipping its entire compressor range with variable speed drive (VSD) motors to reduce electricity consumption.

Market Summary

Market Dynamics

Rapid Increase in Demand for Rare Earth Elements

Modern technology such as consumer electronic devices, home appliances and computers require extensive usage of rare earth elements. With increasing technological advancement, the demand for rare earth minerals has only increased in recent years. However, since demand growth is much faster than supply, rare earth mining activities have increased. 

Another major factor in expansion of mining exploration is derisking of the rare earth supply chain, as 63% of global rare earth mining occurs in China. For instance, Vietnam has become a major source of alternative supply, with the United States Geological Survey (USGS) noting that rare earth production jumped from 400 tons in 2021 to 4,300 tons in 2023. Screw compressors are used in mines to power drilling equipment, conveyor belts and pneumatic tools.

Higher Capacity Addition to Oil Refineries

To keep pace with increasing demand for fuel, many countries are increasing production output. For instance, in April 2023, China’s refinery output increased 18.9% from the year before to nearly 14.8 million bpd. Apart from increasing production, countries are undertaking significant capacity addition in anticipation of increased demand over the medium and long term. 

In February 2023, India’s state-owned energy company HPCL commenced construction of a new refinery and petrochemical complex in Barner, Rajasthan with an annual capacity of 9 million tons. In March 2023, Saudi Arabia announced a US$ 10 billion investment in a new oil refinery and petrochemical complex in China with a capacity of 300,000 bpd. Screw compressors are used in oil refineries for gas processing and oil purification processes. 

Maturation of Screw Compressor Technology

The screw compressor technology has reached a matured stage and further improvements are only marginal at best. A limited scope of improvement exists in reducing energy consumption and operating costs, however, it is not enough for end-users to justify significant capital expenditure in acquiring new screw compressors. Only new industrial projects generate appreciable demand for screw compressors.

Furthermore, given the high reliability of modern screw compressor technology, replacements have become less frequent. Even under extreme operational conditions, modern screw compressors perform well and have a low failure rate. Therefore, demand for replacement remains low within the various end-user industries.   

For more details on this report Request for Sample

Segment Analysis

The global screw compressor market is segmented based on type, stage, operation, end-user and region.

Rising Global Energy Demand Gives Oil and Gas A Major Share In The Global Market

Oil and gas occupies a significant share in the end-user segment of the global screw compressor market. Economic development and the advent of new consumer technologies has made modern life highly energy-dense. The relentless global requirement for energy has led the global oil and gas industry to significantly ramp up production and activities across all sectors, thereby increasing the demand for screw compressors. 

Oil and gas production has been stagnating in existing fields for the past few years. Therefore, to augment supplies, the downstream sector has undertaken the exploration and exploitation of new offshore deposits. For instance, in April 2023, BP, the UK-based multinational energy company, commenced production at a new offshore platform in the Gulf of Mexico. 

The downstream sector is also witnessing major growth as companies struggle to cater to rising fuel demand. In March 2023, Exxon Mobil, the U.S.-based oil and gas company, commenced production at the expanded Beaumont oil refinery in Texas, U.S. The refinery had an original capacity of 250,000 bpd which increased to 650,000 bpd after expansion. 

Source: DataM Intelligence Analysis (2023)

Geographical Share

Unique Geopolitical Situation To Propel Market Growth In Asia-Pacific 

Asia-Pacific accounts for the largest share in the global screw compressor market. The current geopolitical situation has proved extremely advantageous to various industries in the region. The current ongoing developments are expected to become a significant source of demand for screw compressors in Asia-Pacific, particularly for the petrochemicals and oil and gas industries.   

India and China, two major countries in the region and the largest energy importers globally, signed deals with Russia to obtain crude oil at rates significantly cheaper than global market prices. It has boosted the petrochemicals industry, which is taking advantage of cheaper feedstock and input costs. Petrochemical producers are ramping up production with a view to increasing exports to Europe and North America.

Furthermore, oil refiners in the region have entered into a lucrative trade by buying discounted Russian crude oil and selling refined petroleum products to Europe at market prices. Another source of increased screw compressor demand is the increase in coal mining in the region, particularly in Australia. In May 2023, the Australian government approved the construction of the Isaac River coal mine in Central Queensland, Australia.

Source: DataM Intelligence Analysis (2023)

Market Key Players

The major global players include Atlas Copco AB, Ingersoll Rand, MAN Energy Solution SE, Gardner Denver, Kaeser Kompressoren, Boge Kompressoren, BAUER COMP Holding GmbH, Howden Group, Kobe Steel Ltd. and Hitachi Compressor (Suzhou) Co., Ltd.

COVID-19 Impact Analysis

The COVID-19 pandemic presented significant challenges for the global screw compressor market as virtually every major end-user industry such as oil and gas, automotive and mining and metals was severely affected by the pandemic. Manufacturers mainly relied on fulfilling existing client contracts as well as carrying out maintenance and refurbishment activities during the pandemic. 

However, as the pandemic receded, major industries started witnessing an appreciable increase in demand, thus enabling the recovery of the global screw compressor market. However, global supply chain disruptions caused by the pandemic didn’t fully resolve, leading to a shortage of components and leaving manufacturers unable to quickly scale up production to meet recovering demand. 

AI Impact

The short-term impact of artificial intelligence (AI) will be mostly felt in screw compressor production. AI will be able to significantly refine production process to increase efficiency. Improved efficiency and less wastage might result in slightly lower prices for screw compressors. However the adoption of AI is still in early stages and therefore, it is difficult to accurately gauge the impact on the global market.

Some research projects have used artificial intelligence to forecast load on the screw compressor system, while other projects have used AI to carry out predictive maintenance on screw compressor systems. However, although the results of these projects were somewhat encouraging, commercialization of these technologies is still years away.

Ukraine-Russia War Impact

The Ukraine-Russia war will present opportunities and challenges for the global screw compressor market. European countries reduced dependence on Russian gas supplies due to the war. It has therefore, reduced demand for LNG compressors as the natural gas processing stations in Europe have either become underutilized or remain idle.   

Natural gas supplies were replaced by liquified natural gas (LNG) sourced from U.S. and Qatar. European countries are setting up LNG infrastructure to rapidly scale up imports, which is expected to increase demand for screw compressors in the short term. European countries like Germany have restarted coal mining to replace natural gas, which is further expected to increase demand for screw compressors.

By Type

• Oil-Free
• Oil-Injected

By Stage

• Single Stage
• Multi Stage

By Operation

• Stationary
• Portable

By End-User

• Chemical & Petrochemical
• Food & Beverages
• Mining & Metals
• Oil & Gas
• Automotive 
• Power
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In May 2023, Kaeser Kompressoren, a German compressor maker, announced the launch of its redesigned CSD series of screw compressors. The redesigned series have power ranging from 60 to 125 hp and has improved efficiency over a range of air flow conditions.
• In May 2023,  Atlas Copco AB, a Swedish industrial machines manufacturer, announced the launch of the B-Air battery-powered portable screw compressor.  
• In September 2022, Atlas Copco AB, a Swedish industrial machines manufacturer launched the new GA-90 oil-injected rotary screw compressor with new energy saving features such as a IE3 motor, energy recovery module and built-in dryers.

Why Purchase the Report?

• To visualize the global screw compressor market segmentation based on type, stage, operation, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous data points of screw compressor market level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global screw compressor market report would provide approximately 64 tables, 68 figures and 205 Pages.

Target Audience 2023

• End-User Companies
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies