Oil-Lubricated Air Compressor Market Forecasts from 2023 to 2028

The global oil-lubricated air compressor market is expected to grow at a CAGR of 4.76% during the forecast period.

In oil-lubricated air compressors, oil plays a vital role in ensuring smooth operation and preventing overheating by providing lubrication and cooling properties. The oil-lubricated air compressor market serves various end users, including automotive, textile, oil and gas, food, and beverage among others. These industries rely on oil-lubricated air compressors for powering pneumatic tools, maintaining production efficiency, and ensuring reliable operations. Bolstering growth in major end-users has become a prominent driver propelling the expansion of the oil-lubricated air compressor industry.

The booming food and beverage sector bolsters the oil-lubricated air compressor market

Oil-lubricated air compressors have become indispensable in the food and beverage industry, meeting the soaring demand for smooth and continuous production. These compressors power pneumatic tools and equipment, facilitating crucial operations such as mixing, blending, filling, packaging, and labelling. The increasing demand for processed food products has propelled the need for oil-lubricated air compressors. According to the April 2022 report issued by the United States Department of Agriculture, in 2021, the sales of processed fruit and vegetables in India experienced a remarkable growth of 51.43% in comparison to 2017.

The growing automotive sector drives the oil-lubricated compressor market expansion

Oil-lubricated air compressors are crucial in automotive for manufacturing, powering pneumatic tools and systems for assembly line operations, and tasks such as painting, sanding, and tightening. They provide reliable and efficient performance, ensuring smooth functioning while preventing overheating and contributing to overall efficiency and productivity. Increasing consumer demand, coupled with technological advancements, is driving the growth of the automotive sector and fuelling the expansion of the oil-lubricated air compressor industry. According to the International Organization of Motor Vehicle Manufacturers, in 2022, Argentina witnessed a notable increase of 24% in commercial vehicle production compared to the previous year, reaching a total of 536,893 units.

The rise in the textile sector drives oil-lubricated air compressor market growth.

Oil-lubricated air compressors are relied upon for their ability to deliver a consistent and reliable source of compressed air, essential for powering the various textile machinery and equipment involved in spinning, weaving, dyeing, and finishing. Growing demand for textile products globally, along with recent government initiatives, has bolstered the textile industry's growth. For instance, the government of India has given its approval for the establishment of Seven Pradhan Mantri Mega Integrated Textile Region and Apparel (PM MITRA) parks in both greenfield and brownfield sites. The parks will be set up with a budget of Rs. 4,445 crores over seven years, extending until 2027-28.

Asia-Pacific is anticipated to dominate the oil-lubricated air compressor market

Asia Pacific is expected to constitute a significant market share as the region is experiencing rapid industrialization due to which there is an increasing demand for efficient compressed air systems in food processing, packaging, and automotive manufacturing. Thriving economies, such as China, India, and Southeast Asian countries, are witnessing substantial investments in infrastructure development. For instance, in June 2022, PepsiCo India announced plans to invest INR 186 crore in Uttar-Pradesh to expand its largest foods manufacturing plant.

Shift toward alternative technologies restrain the oil-lubricated air compression market

The growth of the oil-lubricated air compressor industry faces some restraints due to the emergence and increasing adoption of oil-lubricated air compressor which offer advantages such as reduced maintenance requirements, improved air quality, and elimination of oil contamination risks. These compressors find applications in industries that prioritize clean and oil-free compressed air, such as pharmaceuticals, electronics, and food processing. As a result, the oil-lubricated air compressor market may experience competition and a certain degree of limitation due to the growing demand for oil-free alternatives.

Key Developments

• May 2022, one of the top producers of air compressors worldwide, ELGi Compressors Europe, a division of ELGi Equipments Limited, announced that its "LD Series" line of lubricated direct drive reciprocating air compressors was available for purchase in the European market.
• November 2021: Gardner Denver, a leading manufacturer, introduced the GD70, a new oil-lubricated piston compressor specifically designed for pressure off-loading bulk liquids, including solvents and resins. With its compact and efficient two-cylinder, single-stage design, the GD70 optimizes space utilization, allowing for the integration of other essential on-loading and off-loading equipment.

Company Products

• P2L series piston compressor: BOGE introduces the P2L series piston compressor, a robust and reliable oil-lubricated compressor designed for enduring unlimited switching frequency and operating at a 100% duty cycle. The P2L series features a direct-coupled design, ensuring efficient power transfer and enhanced performance, making it an ideal choice for applications requiring continuous and demanding compressed air supply.
• Rotary Screw Air Compressor: Indo-Air Compressors presents their Rotary Screw Air Compressor, known for its compact design, high efficiency, and low noise operation. With a simple mechanical structure, it ensures cost-effective operation and supports continuous 24-hour usage. The compressor delivers excellent quality compressed air, with an outlet oil content of less than 3ppm, making it suitable for a wide range of industries.

Segmentation

By Type

• Oil-Lubricated Scroll Air Compressors
• Oil-Lubricated Rotary Screw Compressors
• Oil-Lubricated Piston Compressors

By Oil Type

• Mineral Oil
• Synthetic Oil

By End-Users

• Automotive
• Textile
• Oil & Gas
• Food & Beverage
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• UK
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• China
• Japan
• South Korea
• India
• Australia
• Others