Industry: Construction & Manufacturing | Publish Date: 25-Sep-2025 | No of Pages: 394 | No. of Tables: 356 | No. of Figures: 301 | Format: PDF | Report Code : CM2163
The Europe Air Compressor Market size was valued at USD 4.77 billion in 2023, and is projected to reach USD 6.78 billion by 2030, at a CAGR of 4.7% from 2024 to 2030. In terms of volume, the market size was 154 thousand units in 2023, and is projected to reach 273 thousand units by 2030, with a CAGR of 8.0% from 2024 to 2030. An air compressor is an essential mechanical device used across various industries to generate compressed air, that is vital for many applications.
It primarily converts power from sources such as electric motors or diesel engines into potential energy stored as compressed air. This pressurized air is then used to power pneumatic tools and equipment, inflate tires, supply air to HVAC systems for climate control, and support industrial processes such as spray painting and packaging. Essentially, an air compressor provides a reliable source of compressed air, crucial for a wide range of tasks and operations in diverse business and industrial environments.
The European Union's ambitious energy efficiency targets, including the Energy Efficiency Directive, are a primary driver compelling industry to upgrade their compressed air systems. With energy costs remaining a significant operational expenditure, there is a strong financial incentive to replace aging, inefficient equipment. This has accelerated the market-wide shift toward advanced technologies like variable speed drive (VSD) compressors, which can dramatically reduce energy consumption by aligning motor speed with air demand. This push for efficiency is particularly strong in Europe's industrial heartlands, where sustainability and cost-competitiveness are top priorities.
Across Europe's advanced manufacturing, automotive, and pharmaceutical sectors, the adoption of Industry 4.0 principles is reshaping production floors. This transition to smart factories requires equipment that can be integrated into digital ecosystems. As a result, demand is growing for intelligent air compressors equipped with IoT sensors and connectivity. These systems enable real-time performance monitoring, predictive maintenance, and remote diagnostics, which help minimize downtime, optimize energy use, and improve overall operational efficiency, making them a cornerstone of modern industrial automation.
The European air compressor market faces significant headwinds from a combination of stringent environmental regulations and ongoing supply chain instability. Regulations such as the EU's Stage V emissions standards for non-road mobile machinery impose strict limits on diesel-powered portable compressors, forcing manufacturers into costly redesigns or the adoption of more expensive technologies. This is compounded by volatility in the price of raw materials like steel and copper, as well as shortages of critical electronic components, which disrupt production schedules and increase manufacturing costs, ultimately impacting final product pricing and availability.
The continent-wide push toward decarbonization under the European Green Deal presents a major opportunity for the air compressor market. The rapid expansion of the renewable energy sector, particularly wind power, is creating new demand for portable and reliable compressors for the construction and maintenance of wind turbines in remote and offshore locations. Furthermore, the drive toward a greener industrial base is fueling the adoption of innovative, zero-emission solutions, such as battery-powered portable compressors, which are ideal for use in low-emission urban zones and indoor environments. This positions sustainable compressor technologies as key enablers of Europe's green transition.
The presence of stringent regulation in Germany with increasing governmental expenditure in support of energy efficiency programs accelerates the adoption of air compressor as businesses strive to reduce both operational costs and their environmental footprint. Modern air compressor systems equipped with advanced energy-saving features, such as variable speed drives and efficient motors, are highly sought after for their ability to optimize energy usage.
For instance, the Germany government adopted National Action Plan on Energy Efficiency (NAPE) under the EU Energy Efficiency Directive for implementation of strategy for enhancing energy efficiency in the country, covering energy saving for buildings, companies, transportation, and regular consumers.
The strategy allocated an annual funding of USD 1.2271 billion to a number of energy efficiency programs with a target to reduce energy consumption by 60% by 2050. The presence of regulatory support towards energy efficiency indicates about a prospective growth opportunity for adoption of efficient air compressors in the country.
Moreover, the significant growth of the food industry in the country is further driving the Europe air compressor market growth. Food industry is dependent on the use of air compressors for packaging, sorting, and conveying food products, enhancing efficiency and productivity.
According to the United States Department of Agriculture report 2024, German food processing industry generated a turnover of approximately USD 239 billion that represents around 5.8% of the national GDP. The prospective growth of the country’s chemical industry propels the demand for air compressor to maintain high-quality production standards in the food processing units.
Denmark is one of the largest producers of oil and gas in the region that accelerates the Europe air compressor market demand. In oil refining, air compressors are essential for processes such as catalytic cracking, hydrocracking, and hydrotreating, where precise and reliable compressed air is necessary.
According to International Energy Agency report 2022, Denmark ranks as 19th largest country in Europe in terms of oil refining those accounts for 3,50,001 terajoule (TJ) and produce 44% of domestic crude oil that is around 1,36,948 terajoule (TJ). Thus, it reflects about a positive outlook for the growth of efficient and high-performance air compressor systems.
Moreover, the adoption of strict regulations towards energy efficiency is another major catalyst behind the growth of the Europe air compressor market. For instance, 2050 Energy Strategy was adopted by Danish Government in 2019 to attain 100% independence from fossil fuel in the national energy mix by 2050. It indicates about the need for companies to increasingly prioritize sustainability in their operations that necessities the adoption of energy efficient air compressors to contribute towards energy savings and lower the environmental impact.
The market players operating in the Europe air compressor industry include Atlas Copco AB, Ingersoll Rand Inc. (IR), KAESER KOMPRESSOREN GmbH, Hitachi Industrial Equipment Systems Co., Ltd, ELGi Equipments Limited, BAUER KOMPRESSOREN GmbH, BOGE KOMPRESSOREN Otto Boge GmbH & Co. KG, Howden (Howden / Howden Group), Doosan Portable Power, Mattei S.p.A, Aerzener Maschinenfabrik GmbH, KOBELCO COMPRESSORS, Mitsubishi Heavy Industries Compressor Corporation, Fusheng Industrial Co., Ltd, ALMiG Kompressoren GmbH. and others.
Positive-Displacement
Reciprocating (Piston)
Rotary
Screw
Scroll
Others (Vane, Lobe)
Dynamic-Displacement
Centrifugal
Axial
Electric-Driven
Engine-Driven (Diesel / Gas)
Oil-Free
Oil-Injected/Flooded
0-100 kW
101-300 kW
301-500 kW
501 kW & Above
Low-Pressure (≤ 8 bar)
Medium-Pressure (8–16 bar)
High-Pressure (> 16 bar)
Stationary
Portable
Fixed-Speed
Variable-Speed (VSD)
Manufacturing
Oil & Gas
Energy & Power
Transportation & Automotive
Pharma & Food
Construction & Mining
Others
UK
Germany
France
Italy
Spain
Denmark
Netherlands
Finland
Sweden
Norway
Russia
Rest of Europe
Atlas Copco AB
Ingersoll Rand Inc. (IR)
KAESER KOMPRESSOREN GmbH
Hitachi Industrial Equipment Systems Co., Ltd.
ELGi Equipments Limited
BAUER KOMPRESSOREN GmbH
BOGE KOMPRESSOREN Otto Boge GmbH & Co. KG
Howden (Howden / Howden Group)
Doosan Portable Power
Mattei S.p.A.
Aerzener Maschinenfabrik GmbH
KOBELCO COMPRESSORS
Mitsubishi Heavy Industries Compressor Corporation
Fusheng Industrial Co., Ltd.
ALMiG Kompressoren GmbH
Report Scope and Segmentation
|
Parameters |
Details |
|
Market Size in 2023 |
USD 4.77 Billion |
|
Revenue Forecast in 2030 |
USD 6.78 Billion |
|
Growth Rate |
CAGR of 4.7% from 2024 to 2030 |
|
Market Volume in 2023 |
154 thousand units |
|
Unit Forecast in 2030 |
273 thousand units |
|
Volume Growth Rate |
CAGR of 8.0% from 2024 to 2030 |
|
Analysis Period |
2023–2030 |
|
Base Year Considered |
2023 |
|
Forecast Period |
2024–2030 |
|
Market Size Estimation |
Billion (USD) |
|
Growth Factors |
|
|
Countries Covered |
15 |
|
Companies Profiled |
15 |
|
Market Share |
Available for 10 companies |
|
Customization Scope |
Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope. |
|
Pricing and Purchase Options |
Avail customized purchase options to meet your exact research needs. |