Screw Compressors - Market Size, Share, Industry Trends, And Growth Forecasts, 2026-2031 Automation And Oil-Free Systems Drive A USD 18.38 Billion Opportunity
Dublin, Oct. 30, 2026 (GLOBE NEWSWIRE) -- "Screw Compressors - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.
Screw Compressors Market to Reach USD 18.38 Billion by 2031 as Automation and Energy-Efficiency Investments Accelerate
The global screw compressors market is estimated at USD 13.97 billion in 2026, up from USD 13.22 billion in 2025. The market is projected to reach USD 18.38 billion by 2031, expanding at a 5.66% CAGR during 2026-2031. Growth is being supported by industrial automation, energy-efficiency mandates, manufacturing capacity additions, and rising demand for reliable compressed air systems across manufacturing, oil and gas, mining, and construction.
Industrial Automation Strengthens Screw Compressor Demand
Industrial automation is increasing baseline compressed air requirements as factories deploy pneumatic actuators, pick-and-place robots, CNC machining cells, and vision-inspection systems. Rising labour costs, reshoring initiatives, and production upgrades are encouraging manufacturers to install continuous-duty screw compressors equipped with variable-speed drives for more efficient load matching.
Automotive assembly, food packaging, electronics, and chemical facilities are also adopting connected compressor rooms with sensor-based condition monitoring and predictive maintenance capabilities. Suppliers that integrate compressor controls with factory supervisory systems are positioned to benefit as plant operators prioritize uptime, energy monitoring, and lower maintenance costs.
Energy-Efficiency Regulations Drive Equipment Replacement
Minimum-performance requirements in major markets are accelerating the replacement of older rotary compressor systems. The EU 2019/1781 isentropic thresholds and the United States' 2025 rotary compressor rule are encouraging investment in high-efficiency equipment. IE4/IE5 motor retrofits can deliver system-level energy savings of up to 10% while helping qualifying operators secure utility rebates and shorten payback periods.
California facility operators can save approximately USD 2,700-9,200 per compressor through lower electricity consumption. These regulatory and cost pressures favor established manufacturers with proprietary rotor technology, advanced controls, and premium motor designs.
Material Costs Remain a Key Market Restraint
Volatility in steel, copper, and NdFeB magnet prices continues to affect compressor production costs. Raw materials can represent more than 45% of the bill-of-materials for certain frame sizes, creating working-capital and margin pressure for smaller manufacturers. Copper costs affect both IE5 motor windings and plate-fin heat exchangers, while elevated magnet prices can delay the commercialization of permanent-magnet motor systems.
Manufacturers with captive foundries, long-term supply agreements, and established hedging programs are better positioned to manage these fluctuations. In contrast, tier-2 assemblers may face longer delivery schedules and difficulty maintaining competitive pricing.
Oil-Free Screw Compressors Gain Market Momentum
Oil-injected designs accounted for 68.72% of the screw compressors market in 2025 due to their competitive acquisition costs and tolerance for demanding duty cycles. However, oil-free compressors are forecast to expand at a 6.78% CAGR, supported by clean-label food processing, biosimilar pharmaceutical production, semiconductor manufacturing, and hydrogen refueling infrastructure.
The market size for oil-free screw compressors is expected to reach USD 6.17 billion by 2031. Class 0 certifications, water-injected technology, precision-ground stainless steel rotors, and dry air-end seals are helping extend operating life and reduce downtime. Heat-recovery modules can also reclaim up to 80% of input energy as usable hot water, supporting industrial decarbonization programs. Companies pursuing science-based targets increasingly favor oil-free systems because they can reduce downstream filtration requirements and lower associated power consumption by 3-4%.
Asia-Pacific Leads Global Market Growth
Asia-Pacific held 41.12% of the screw compressors market in 2025 and is forecast to grow at a 6.12% CAGR through 2031. Factory construction in China, India, and ASEAN, combined with infrastructure spending and expanding automotive and electronics production, is driving regional demand. China's Made-in-China roadmap supports automated manufacturing investments, while India's PLI schemes are encouraging oil-free compressor purchases in pharmaceutical and processed food facilities.
North American growth is primarily replacement-driven, with efficiency regulations moving users toward premium-efficiency systems. Gas-processing expansions in Texas and Pennsylvania are also supporting demand for high-horsepower compressor skids. In Europe, noise standards, ecodesign requirements, and environmental policies are increasing demand for acoustic enclosures, validated green lubricants, and multi-stage heat-recovery systems. These trends are expected to sustain global screw compressors market growth as operators prioritize efficiency, reliability, and lower lifecycle costs.
Key Topics Covered:
1 Introduction
1.1 Study Assumptions & Market Definition
1.2 Scope of the Study
2 Research Methodology
3 Executive Summary
4 Market Landscape
4.1 Market Overview
4.2 Market Drivers
4.2.1 Industrial automation & cap-ex boom in discrete and process industries
4.2.2 Energy-efficiency mandates & IE4/IE5 motor retrofits
4.2.3 Upstream & midstream oil-&-gas brownfield expansions
4.2.4 Hygiene-critical F&B & pharma demand for oil-free units
4.2.5 Hydrogen refueling network roll-out needs high-pressure oil-free screws
4.2.6 Heat-recovery-ready packages for industrial decarbonisation
4.3 Market Restraints
4.3.1 Raw-material cost volatility (steel, copper, rare-earth magnets)
4.3.2 Substitution risk from centrifugal & scroll compressors in?2 MW range
4.3.3 Tightening EU noise & workplace-exposure directives
4.3.4 Pending PFAS lubricant ban jeopardises current oil formulations
4.4 Supply Chain Analysis
4.5 Regulatory Landscape
4.6 Technological Outlook
4.7 Porter's Five Forces
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
5 Market Size & Growth Forecasts
5.1 By Technology
5.1.1 Oil-Injected
5.1.2 Oil-Free
5.2 By Stage
5.2.1 Single-Stage
5.2.2 Multi-Stage
5.3 End-User Industry
5.3.1 Manufacturing (Steel, Chemicals)
5.3.2 Oil and Gas
5.3.3 Mining
5.3.4 Construction
5.3.5 Other End-User Industries
5.4 Geography
5.4.1 North America
5.4.1.1 United States
5.4.1.2 Canada
5.4.1.3 Mexico
5.4.2 Europe
5.4.2.1 Germany
5.4.2.2 United Kingdom
5.4.2.3 France
5.4.2.4 Italy
5.4.2.5 Russia
5.4.2.6 Rest of Europe
5.4.3 Asia-Pacific
5.4.3.1 China
5.4.3.2 India
5.4.3.3 Japan
5.4.3.4 South Korea
5.4.3.5 ASEAN Countries
5.4.3.6 Rest of Asia-Pacific
5.4.4 South America
5.4.4.1 Brazil
5.4.4.2 Argentina
5.4.4.3 Rest of South America
5.4.5 Middle-East and Africa
5.4.5.1 Saudi Arabia
5.4.5.2 United Arab Emirates
5.4.5.3 South Africa
5.4.5.4 Egypt
5.4.5.5 Rest of Middle East and Africa
6 Competitive Landscape
6.1 Market Concentration
6.2 Strategic Moves (M&A, Partnerships, PPAs)
6.3 Market Share Analysis (Market Rank/Share for key companies)
6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Products & Services, and Recent Developments)
6.4.1 Aerzener Maschinenfabrik GmbH
6.4.2 Atlas Copco AB
6.4.3 Bauer Kompressoren GmbH
6.4.4 Daikin Industries Ltd
6.4.5 Emerson Electric Co
6.4.6 Hitachi Industrial Equipment Systems
6.4.7 Ingersoll Rand PLC
6.4.8 Mitsubishi Electric Corporation
6.4.9 Kobe Steel Ltd
6.4.10 Kaeser Kompressoren SE
6.4.11 Gardner Denver Industries LLC
6.4.12 Sullair LLC
6.4.13 Siemens Energy AG
6.4.14 Elgi Equipments Ltd
6.4.15 Doosan Infracore Co Ltd
6.4.16 BOGE Kompressoren GmbH
6.4.17 Kaishan Compressor USA & China
6.4.18 Quincy Compressor LLC
6.4.19 Hanbell Precise Machinery Co Ltd
6.4.20 Baker Hughes (Compression Systems)
7 Market Opportunities & Future Outlook
7.1 White-space & Unmet-Need Assessment
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