Centrifugal Compressor Market Overview, Size, Trends & Forecast 2026-2034

The global centrifugal compressor market is expected to witness strong growth during the forecast period, supported by increasing industrialization, expanding energy infrastructure, and rising demand for high-efficiency compression systems. The market was valued at USD 4.21 billion in 2025 and is projected to reach USD 9.41 billion by 2034, registering a compound annual growth rate (CAGR) of 9.88% from 2026 to 2034.

Centrifugal compressors are widely used across industries due to their ability to handle large gas volumes efficiently, making them essential equipment in oil & gas, manufacturing, power generation, food & beverage, and healthcare sectors.

List of the Key Companies Profiled in the Report:

Ingersoll Rand Inc. (U.S.)

Baker Hughes Company (U.S.)

Siemens Energy AG (Germany)

GE (U.S.)

MAN, Energy Solutions (Germany)

Flowserve (U.S.)

Mitsubishi Heavy Industries Ltd (Japan)

Atlas Copco AB (Sweden)

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What Is a Centrifugal Compressor?

A centrifugal compressor is a dynamic compressor that increases gas pressure by converting kinetic energy into pressure energy through a rotating impeller. These compressors are known for their high reliability, energy efficiency, and low maintenance, making them suitable for continuous and large-scale industrial operations.

Key Market Drivers

Growth of the Oil & Gas Industry

The expansion of oil and gas exploration, refining, and transportation activities is a major driver for the centrifugal compressor market. These compressors are extensively used in gas compression, reinjection, processing, and pipeline transmission, supporting both upstream and downstream operations.

Rising Demand for Energy-Efficient Equipment

Increasing global energy consumption and strict efficiency regulations are encouraging industries to adopt energy-efficient compression technologies. Centrifugal compressors offer lower operating costs and higher efficiency compared to traditional alternatives, boosting their adoption across multiple sectors.

Technological Advancements

Manufacturers are integrating digital monitoring systems, smart sensors, and predictive maintenance technologies into centrifugal compressors. These innovations enhance operational performance, reduce downtime, and extend equipment life, further driving market growth.

Market Restraints and Challenges

Despite favorable growth conditions, the centrifugal compressor market faces several challenges:

Competition from Alternative Compressor Technologies, such as axial compressors in specific high-capacity applications

Operational Sensitivity, including susceptibility to flow variations, surging, and gas composition changes, which can affect performance

These factors may limit adoption in certain industrial settings.

Segmentation Analysis

By Type

Oil-Filled Centrifugal Compressors dominate the market due to their widespread use in heavy industrial applications and manufacturing facilities.

Oil-Free Centrifugal Compressors are gaining momentum, particularly in industries requiring contamination-free air, such as food processing, pharmaceuticals, and electronics.

By End-Use Industry

Manufacturing holds the largest market share due to extensive use in production processes.

Oil & Gas is one of the fastest-growing segments, driven by rising energy demand and infrastructure expansion.

Power Generation, Food & Beverage, and Healthcare also contribute significantly to overall market growth.

Regional Market Insights

Asia Pacific

Asia Pacific dominates the centrifugal compressor market, accounting for approximately 41.6% of the global share in 2025. Rapid industrialization, urban development, and expanding energy demand in countries such as China, India, and Japan are key growth drivers.

North America

North America exhibits steady growth due to a strong manufacturing base, technological advancements, and investments in energy efficiency and industrial automation.

Europe

Europe’s market growth is supported by increasing adoption of sustainable and energy-efficient industrial equipment, along with modernization of existing industrial infrastructure.

Latin America and Middle East & Africa

These regions are experiencing moderate growth, supported by expanding oil & gas projects, industrial development, and infrastructure investments.

Emerging Market Trends

Focus on Sustainability

Growing emphasis on reducing carbon emissions and improving energy efficiency is encouraging industries to upgrade to advanced centrifugal compressor systems.

Digitalization and Smart Monitoring

The integration of IoT-enabled monitoring and AI-based predictive maintenance is emerging as a key trend, helping industries optimize performance and reduce maintenance costs.

Post-Pandemic Recovery

After temporary disruptions caused by the COVID-19 pandemic, industrial operations have resumed, leading to renewed demand for centrifugal compressors across multiple end-use industries.

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Conclusion

The centrifugal compressor market is set for robust expansion through 2034, driven by industrial growth, energy demand, and continuous technological innovation. With a projected CAGR of nearly 10%, the market is expected to nearly double in value during the forecast period. Strong growth in Asia Pacific, rising focus on energy efficiency, and increasing adoption of digital technologies will continue to shape the future of the global centrifugal compressor industry.

KEY INDUSTRY DEVELOPMENTS

In October 2023, Kaishan USA, one of the leading manufacturers of industrial air compressors, introduced a new series of industrial, oil-free rotary screw air compressors, the KROF, at the CABP Expo 2023/Process Expo 2023.

In March 2023, ELGi introduced the new GP35FP portable air compressor at the CONEXPO-CON/AGG 2023. It will display the D185T4F model again. The company showcased its commitment to the construction industry through this achievement.