ASEAN Air Compressor Market by Type (Portable and Stationary), by Technology (Rotary Screw, Centrifugal, and Reciprocating), by Lubrication Type (Oil-Free and Oil-Injected/Flooded), by Power Rating (0-100 kW, 101-300 kW, 301-500 kW, and 501 kW & Above), by Cooling Method (Air Cooled and Water Cooled), and by Industry Vertical (Manufacturing, Construction, Oil & Gas, Healthcare, and Others)– Opportunity Analysis and Industry Forecast, 2024–2030

Market Overview

The ASEAN Air Compressor Market size was valued at USD 1.51 billion in 2023, and is predicted to reach USD 2.03 billion by 2030, with a CAGR of 3.9% from 2024 to 2030. An air compressor is a mechanical device that converts power into stored potential energy within pressurized air. Its primary function involves compressing air to elevate its pressure, which finds application in various tasks such as powering pneumatic tools, inflating tires, and supporting industrial processes. The versatility of air compressors spans across construction, manufacturing, automotive repair, and more, enhancing productivity and precision. They contribute to energy efficiency and environmental sustainability by serving as a cleaner alternative to traditional power sources, thereby reducing reliance on disposable aerosol cans. With their reliability and portability, air compressors offer indispensable solutions for both industrial and residential needs. 

The Growing Oil and Gas Industry is Significantly Boosting the Market

The surge in oil and gas exploration activities in countries including Malaysia and Brunei is boosting the demand for air compressors. These compressors play a vital role in gas compression and powering pneumatic equipment necessary for extracting and processing oil and gas resources. According to the ASEAN Centre for Energy Report 2023, ASEAN exported oil worth USD 91.4 billion and natural gas worth USD 25.5 billion to the world market in 2021. As exploration efforts intensify, there is a growing need for reliable and efficient air compressors to optimize production, minimize downtime, and ensure safety in extraction and processing operations. This increased demand for air compressors is directly linked to the expansion of the oil and gas industry in ASEAN countries, driving growth opportunities for compressor manufacturers and suppliers.

Surge in the Infrastructure Development Projects is Further Boosting the Market Growth

The rapid pace of infrastructure development projects in ASEAN countries such as Indonesia, Thailand, and Vietnam is fueling demand for air compressors. These compressors play a vital role in construction activities such as drilling, nailing, and painting, providing the necessary power for pneumatic tools and equipment. According to ASEAN Constructor Federation report 2022, the Vietnam construction market size is valued at around USD 76.1 billion in 2021 and is expected to witness 8% growth by 2026. As these nations invest heavily in building roads, bridges, and buildings to support economic growth and urbanization, the need for efficient and reliable air compressors continues to rise. This surge in construction activity drives the demand for compressors, creating opportunities for manufacturers and suppliers in the market to meet the growing needs of the construction industry.

High Initial and Maintenance Cost Restrains the Market Growth

However, the initial investment required for air compressors, coupled with regular need for maintenance expenses such as filter replacements, lubrication, and inspections, contributes to the overall cost of ownership. This financial burden serves as a deterrent to market expansion, particularly for small and medium-sized businesses that may be reluctant to invest in new compressor systems or upgrade existing ones. As a result, market growth could be hindered by these financial constraints. 

Integration of IoT Sensors and Cloud Platforms Expected to Create Future Growth

The integration of air compressors with IoT sensors and cloud platforms is expected to unlock future growth opportunities for the market. Through this integration, air compressors can be remotely monitored, undergo predictive maintenance, and have their performance optimized. IoT sensors collect real-time data on parameters such as temperature, pressure, and energy usage, which is then sent to cloud platforms for analysis. Advanced algorithms analyze this data to identify potential issues, predict maintenance requirements, and optimize compressor operations. By harnessing IoT and cloud technologies, businesses can minimize downtime, improve equipment reliability, and enhance energy efficiency, thereby boosting the demand for smart air compressor solutions and driving market expansion. 

Indonesia Dominates the ASEAN Air Compressor Market

Indonesia stands out as a significant player in the global mining industry, boasting vast mineral reserves and strong production across various minerals such as coal, copper, gold, tin, bauxite, and nickel. This substantial growth in the mining sector is fuelling the demand for air compressors, vital for numerous mining operations, thereby streamlining workflow and enhancing productivity. According to a report by the Government of Canada, Indonesia's national mining revenues surged to USD 35.6 billion, marking an impressive 11.6% compound annual growth rate (CAGR) over the past five years.

Moreover, the growing oil and gas exploration activities in Indonesia are further driving the demand for air compressors market. Reports from the International Energy Agency (IEA) highlight a remarkable 18% growth in the country's oil supply from 2000 to 2021. In 2021 alone, Indonesia's oil supply reached 2,849,620 terajoules (TJ), showing a increase of 0.56% compared to the previous year. This surge in oil supply underscores the critical role of air compressors in facilitating oil and gas exploration processes, contributing to increased demand for this essential equipment in Indonesia's energy sector.

Competitive Landscape

Several market players operating in the ASEAN Air Compressor Market include Atlas Copco Group, Ingersoll-Rand PLC, Hitachi Ltd., Siemens Energy AG, Mitsubishi Heavy Industries Ltd., Kaeser Kompressoren, Elgi Equipment Limited, Anest Iwata, Boge Kompressoren, Suzler Ltd., and others. These market players are adopting acquisition, collaboration and product launch across various regions to maintain dominance in the ASEAN Air Compressor Market.

For instance, in April 2024, Hitachi acquired Mountain Air Compressor Incorporated to provide the sales and service of air compressors, air treatment products, accessories, and related equipment. This acquisition is part of Hitachi Global Air Power's strategy to serve its customers and establish a presence in the Tennessee valley which caters the mining, lumber, pharmaceutical, and chemical industry customers.

Also, in November 2023, Siemens Energy collaborated with Corre Energy for the deployment of multiday Compressed Air Energy Storage (CAES) technology in North America. This partnership builds on an existing strong relationship between the companies and support Corre Energy's expansion into North America, including a 280-megawatt CAES project in West Texas.

Furthermore, in November 2023, Mitsubishi launched the electric AC compressor designed for electric and hybrid vehicles. This compressor aims to address the high demand for an electrically-driven compressor that can be mounted in the space typically occupied by a belt-driven compressor.

KEY MARKET SEGMENTS

By Type

• Portable  

• Stationary

By Technology

• Rotary Screw

• Centrifugal

• Reciprocating

By Lubrication Type

• Oil-Free 

• Oil-Injected/Flooded

By Power Rating

• 0-100 kW

• 101-300 kW

• 301-500 kW

• 501 kW & Above

By Cooling Method

• Air Cooled

• Water Cooled

By Industry Vertical

• Manufacturing

• Construction

• Oil & Gas

• Healthcare

• Others

By Region        

• ASEAN    

  • Indonesia

  • Singapore

  • Thailand

  • Malaysia

  • Vietnam

  • Philippines

  • Rest of ASEAN

REPORT SCOPE AND SEGMENTATION:

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