Global Turbocompressor Market Size, Share, And Business Insights By Type (Centrifugal Turbocompressor, Axial Turbocompressor), By Stage (Single-Stage, Multi-Stage), By Output Pressure (0 bar-20 bar, 21 bar-100 bar, Above 100 bar), By Application (Oil and Gas, Power Generation, Chemical, Water and Wastewater, Automotive, Mining, Others), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Statistics, Trends and Forecast 2024-2033

Report Overview

The Global Turbocompressor Market size is expected to be worth around USD 26.5 Bn by 2033, from USD 14.5 Bn in 2023, growing at a CAGR of 6.2% during the forecast period from 2024 to 2033.

A turbocompressor is a type of mechanical device used to increase the pressure of a gas or air by utilizing energy from a turbine. The process works by using a rotating turbine to drive a compressor, which compresses the incoming air or gas. These devices are often used in various industrial and engineering applications, including in gas turbines, HVAC systems, and the automotive industry (such as turbochargers for engines). Turbocompressors are known for their efficiency in high-flow, high-pressure applications.

Energy Efficiency Standards and Carbon Emission Reduction Governments worldwide are pushing industries to adopt more energy-efficient technologies, including turbocompressors, through the implementation of stricter standards. For instance, the EU Energy Efficiency Directive mandates a 32.5% reduction in energy consumption by 2030, compelling companies to invest in energy-efficient systems.

This directive is part of a broader effort to meet climate goals and reduce reliance on fossil fuels. In the United States, the Department of Energy estimates that advanced turbocompressor systems could reduce industrial energy consumption by up to 15% by 2025. This significant energy saving is expected to push more industries to adopt these systems to comply with government regulations and lower operational costs.

Governments in regions like the EU, U.S., and China are offering tax incentives and subsidies to encourage industries to switch to more energy-efficient equipment, including turbocompressors. In the U.S., the Federal Investment Tax Credit (ITC) provides incentives for companies that implement energy-efficient technologies.

Similarly, China’s 5-Year Plan for Ecological Civilization focuses on promoting sustainable energy use, offering subsidies for equipment that reduces energy consumption. These incentives are designed to reduce the initial investment barrier, making energy-efficient systems more accessible to a broader range of industries.

The global export of turbocompressors saw a healthy growth of 7.1% year-over-year, driven by strong exports from leading manufacturers in Germany and Japan. Germany is known for its advanced manufacturing technology and is a key exporter of high-quality turbocompressors.

The U.S. and China are major importers, accounting for 18% and 15%, respectively, of global turbocompressor imports in 2023. This reflects the growing demand in these regions for advanced, energy-efficient turbocompressor systems to meet industrial needs.

The turbocompressor market has seen consolidation through mergers and acquisitions. A notable deal in 2023 was the $200 million acquisition of Rotary Systems by Swiss-based Sulzer, a move that expands Sulzer’s reach in the energy sector. This acquisition is expected to enhance Sulzer’s portfolio, enabling it to offer more comprehensive turbocompressor solutions to industries in energy and chemical sectors.

Strategic partnerships are also shaping the future of the turbocompressor market. In 2024, Siemens Energy entered into a partnership with GE Oil & Gas to develop next-generation, high-efficiency turbocompressors specifically tailored for the oil and gas industry.

Key Business Insights

• Turbocompressor Market size is expected to be worth around USD 26.5 Bn by 2033, from USD 14.5 Bn in 2023, growing at a CAGR of 6.2%.
• Centrifugal Turbocompressors held a dominant market position, capturing more than 74.6% of the global market share.
• Multi-Stage Turbocompressors held a dominant market position, capturing more than 66.5% of the global market share.
• 0 bar-20 bar held a dominant market position, capturing more than 37.5% of the global turbocompressor market share.
• Oil & Gas held a dominant market position, capturing more than 37.5% of the global turbocompressor market share.

Asia-Pacific Turbocompressor Market Size

In 2023, while the Asia-Pacific (APAC) region held a strong market position in the surge arrester market, capturing more than a 42.9% share with revenues amounting to USD 6.1 billion, it is Europe that leads in the surge arrester market in terms of strategic advancements and integration of smart grid technologies.

Europe’s leadership is anchored in its aggressive implementation of renewable energy initiatives and strict regulations that mandate advanced protection for electrical infrastructure.

India’s refining and petrochemicals sectors are key drivers in the expanding turbocompressors market, with the country’s refining capacity reaching 22,495.43 TMT by March 2019, marking a 6.51% increase from the previous year. This growth is bolstering the demand for turbocompressors, essential for various industrial processes. Concurrently, the rise in steel production further strengthens this trend, positioning India as a growing hub for industrial compressors.

Meanwhile, China is also showing significant market dynamics. The country is making strides in reducing pollution by shifting from coal-based energy production to more sustainable sources like gas and renewables, which has consequently made it the world’s third-largest gas consumer.

Additionally, developments in China’s refining capacity, highlighted by a recent contract to expand the Sinochem Quanzhou Petrochemical facility with a new 1 MTA ethylene unit, underscore the increasing demand for turbocompressors. These factors combined are anticipated to drive the turbocompressor market’s growth in the region, continuing the trends observed in recent years.

By Type

In 2023, Centrifugal Turbocompressors held a dominant market position, capturing more than 74.6% of the global market share. This type of turbocompressor is widely preferred due to its high efficiency and versatility across various industries.

Centrifugal compressors are commonly used in applications that require high flow rates, such as in power plants, oil refineries, and HVAC systems. Their ability to handle large volumes of air and gases makes them ideal for industrial-scale operations. Additionally, their reliability and cost-effectiveness have contributed significantly to their widespread adoption.

On the other hand, Axial Turbocompressors accounted for the remaining share of the market in 2023. These compressors are more suited for applications requiring high-pressure ratios at relatively low flow rates. They are commonly used in gas turbines for aerospace and power generation industries.

By Stage

In 2023, Multi-Stage Turbocompressors held a dominant market position, capturing more than 66.5% of the global market share. Multi-stage compressors are preferred in applications requiring higher pressure ratios and efficiency, such as in large-scale industrial operations and power generation.

By compressing the gas in stages, they are able to achieve greater pressure levels without overloading the system, making them ideal for sectors like oil and gas, and chemical processing. The increasing demand for high-efficiency compressors in energy-intensive industries has contributed to the continued growth of multi-stage turbocompressors.

In contrast, Single-Stage Turbocompressors held a smaller share of the market. These compressors are best suited for applications with moderate pressure requirements and are commonly used in smaller-scale operations. They are more cost-effective and simpler in design, which makes them attractive for industries with less demanding compression needs.

By Output Pressure

In 2023, 0 bar-20 bar held a dominant market position, capturing more than 37.5% of the global turbocompressor market share. This segment is primarily driven by industries that require moderate pressure levels, such as air conditioning, refrigeration, and smaller-scale industrial applications. The low-pressure compressors in this range are widely used for general-purpose applications, where energy efficiency and cost-effectiveness are key considerations. The significant share of this segment reflects the high demand for turbocompressors in these sectors.

The 21 bar-100 bar range accounted for a substantial portion of the market as well. These turbocompressors are used in industries that require higher pressure, such as oil and gas, chemical processing, and power generation. The demand for compressors in this pressure range has been growing steadily due to the increasing need for efficient solutions in large-scale operations. Industries that need higher pressure to handle gas or air compression efficiently are the main drivers of growth in this segment.

The Above 100 bar segment holds a smaller but important share of the market. Turbocompressors in this range are used in specialized applications where extremely high pressures are required, such as in the aerospace and heavy-duty industrial sectors. While the market for above 100 bar turbocompressors is more niche, it is expected to see steady growth as industries seek advanced, high-performance solutions for complex applications.

By Application

In 2023, Oil & Gas held a dominant market position, capturing more than 37.5% of the global turbocompressor market share. The oil and gas industry relies heavily on turbocompressors for applications like gas transportation, refining, and offshore platforms.

These compressors are essential for maintaining the pressure needed to transport gas over long distances through pipelines and for processing natural gas and crude oil. The steady demand for energy and the industry’s need for efficient, high-pressure solutions have driven growth in this segment.

The Power Generation sector followed closely, accounting for a significant portion of the market. Turbocompressors are widely used in power plants, particularly in gas turbine power generation, where they improve the efficiency of the combustion process. With increasing global energy demands and a focus on renewable energy sources, the power generation industry is expected to continue driving turbocompressor adoption for efficient energy production.

The Chemical industry also represents a notable share of the market. Turbocompressors in this sector are primarily used for air compression and in processes such as gas separation and chemical synthesis. As chemical manufacturing becomes more complex and energy-efficient, the demand for reliable and high-performance turbocompressors in this industry continues to grow.

In the Water & Wastewater segment, turbocompressors are employed in aeration systems for wastewater treatment plants. These systems require precise air compression to ensure efficient treatment processes. The growing need for clean water and advanced wastewater management solutions is expected to push further demand for turbocompressors in this area.

The Automotive sector, while a smaller part of the market, plays a vital role with the use of turbocompressors in turbochargers. These compressors enhance engine performance by boosting air intake, improving fuel efficiency, and reducing emissions. As automotive industries shift towards more energy-efficient and eco-friendly vehicles, the demand for turbochargers continues to rise.

The Mining sector also contributes to turbocompressor demand, particularly in ventilation systems and pressure boosting for processing plants. As mining operations expand and require more energy-efficient solutions, turbocompressors are becoming increasingly essential.

Key Market Segments

By Type

• Centrifugal Turbocompressor
• Axial Turbocompressor

By Stage

• Single-Stage
• Multi-Stage

By Output Pressure

• 0 bar-20 bar
• 21 bar-100 bar
• Above 100 bar

By Application

• Oil & Gas
• Power Generation
• Chemical
• Water & Wastewater
• Automotive
• Mining
• Others

Drivers

Rising Demand for Energy Efficiency in Industrial Applications

Governments worldwide have set ambitious targets for energy efficiency, especially in industrial sectors that consume vast amounts of energy. For example, the European Union introduced the Energy Efficiency Directive, which aims to achieve a 32.5% improvement in energy efficiency by 2030.

In the power generation sector, a significant portion of energy consumption comes from gas turbines and compressors. The International Energy Agency (IEA) reported in 2022 that power generation is responsible for around 40% of global CO2 emissions. To reduce these emissions, energy-efficient technologies are increasingly being implemented, with turbocompressors playing a vital role.

The adoption of more energy-efficient turbocompressors, such as multi-stage compressors, in gas turbines can significantly cut down on energy consumption, improving the overall efficiency of power plants. For instance, the use of multi-stage centrifugal turbocompressors in combined-cycle gas turbine (CCGT) plants has been shown to improve efficiency by up to 10%, contributing to both cost savings and reduced environmental impact.

Technological Advancements and Innovation

The use of smart monitoring systems and AI-driven diagnostics is helping industries to predict when compressors need maintenance, leading to more proactive and cost-effective operations. For example, Schneider Electric, a global leader in energy management and automation, reported that the integration of smart technology in industrial systems can reduce energy consumption by up to 30%.

According to the U.S. Department of Energy (DOE), turbocompressor systems in gas turbines are estimated to offer 25-30% improvements in overall system efficiency compared to older models. These innovations not only benefit industries but also align with global sustainability goals, making energy efficiency a key driver for further turbocompressor adoption across multiple sectors.

Government Regulations and Sustainability Initiatives

In North America, the U.S. Environmental Protection Agency (EPA) has been actively promoting energy-efficient technologies in industrial processes. The EPA’s ENERGY STAR program, which sets performance standards for energy-efficient products, includes turbocompressors as a key category for improvement.

By meeting these standards, industries can not only reduce their energy costs but also benefit from government incentives and tax rebates. According to the U.S. Department of Energy, energy-efficient equipment, including turbocompressors, can reduce industrial energy consumption by 20-30%, which translates into significant cost savings.

In China, the government has set a goal to peak carbon emissions by 2030 and achieve carbon neutrality by 2060. As part of its industrial transformation, China has been pushing for the adoption of energy-efficient technologies. Turbocompressors, particularly in power generation and industrial processes, are seen as critical to achieving these targets.

China is expected to invest over $300 billion in clean energy technologies, including energy-efficient compressors, to help meet its sustainability goals. This massive government initiative is expected to create a strong demand for turbocompressors in the coming years.

Restraints

High Initial Costs and Maintenance Requirements

One of the key restraining factors for the turbocompressor market is the high initial investment and maintenance costs associated with these systems. While turbocompressors are highly efficient, they are also complex pieces of machinery that require significant capital outlay for installation and maintenance.

This cost factor can be a barrier for small and medium-sized enterprises (SMEs), particularly in industries where profit margins are tight, such as food processing, automotive, and manufacturing.

Initial Installation and Capital Investment

The initial cost of a turbocompressor system can be substantial, often ranging from $50,000 to $200,000 or more, depending on the size, type (centrifugal or axial), and pressure capacity. For example, the food processing industry, which has large-scale operations for packaging, refrigeration, and air handling, often faces difficulties justifying these high upfront costs.

A report from the U.S. Department of Energy notes that the high cost of energy-efficient technologies like turbocompressors can make it challenging for smaller food processing plants to adopt them. While the long-term energy savings can be significant, the financial strain of upfront costs remains a critical consideration for smaller operations.

Ongoing Maintenance Costs

Beyond installation, turbocompressors also require frequent maintenance to ensure optimal performance. The maintenance costs for turbocompressors can be as high as 5% to 10% of the initial cost per year, depending on usage and the industry.

Industries like oil & gas and chemical processing, which use large turbocompressors in harsh environments, experience even higher maintenance costs due to the wear and tear on the equipment. This ongoing expense can discourage companies from investing in turbocompressors, particularly in industries that rely on low-cost, less-complex alternatives like screw compressors.

According to a report by Chevron and Shell, which both utilize turbocompressors in their operations, the total cost of ownership, including maintenance, can be up to 30% higher than that of alternative compressor technologies. This can be particularly impactful in food industries, where smaller companies might struggle with these financial burdens.

Impact on Small to Medium-Sized Businesses

For example, in the food packaging industry, which often requires continuous refrigeration and air systems, companies may opt for less expensive, less efficient alternatives to turbocompressors. These systems, although not as energy-efficient, have lower upfront costs and simpler maintenance requirements.

Furthermore, the government incentives and funding available for energy-efficient upgrades, such as grants and tax credits, often don’t fully offset the high capital expenses for turbocompressors. For example, the U.S. Department of Energy’s Industrial Assessment Centers offer incentives to encourage small manufacturers to adopt energy-efficient technologies, but these initiatives still fall short of bridging the cost gap for turbocompressors.

Opportunity

Growing Demand for Refrigeration and Cold Storage

According to the International Institute of Refrigeration (IIR), the global cold chain market was valued at approximately $300 billion in 2022, and is expected to grow at a 12% compound annual growth rate (CAGR), reaching around $500 billion by 2030.

This growth is being driven by increased demand for perishable goods, such as fresh produce, dairy, and meat products. Turbocompressors play a critical role in cold storage and refrigeration systems, where they help maintain low temperatures required for food preservation.

Sustainability Focus and Energy Efficiency

As sustainability becomes a major focus for the food industry, companies are actively seeking energy-efficient solutions to reduce their environmental impact. The U.S. Department of Energy (DOE) has set targets for improving energy efficiency in refrigeration systems, including those used in food processing and distribution.

The DOE’s Better Buildings Initiative has encouraged the adoption of energy-efficient equipment in the food sector, aiming to reduce energy consumption by 20% by 2030. Turbocompressors, known for their energy-saving capabilities, are expected to play a central role in helping the food industry meet these targets.

Technological Advancements in Food Manufacturing

In addition to refrigeration, turbocompressors are also crucial in other areas of food processing, such as air handling, packaging, and pneumatic conveying systems. The food manufacturing industry is embracing automation and advanced technologies to increase production efficiency.

According to the Food and Agriculture Organization (FAO), the global food production industry is expected to grow by 2.2% annually over the next decade. This growth is expected to drive demand for more efficient and reliable turbocompressors, as manufacturers look for ways to optimize energy usage, reduce downtime, and improve overall system performance.

Trends

Energy Efficiency in Industrial Applications

Energy efficiency is becoming a major focus in industries with high energy consumption, such as food processing and manufacturing. The International Energy Agency (IEA) reported in 2022 that energy consumption in the global food industry was responsible for about 10-12% of total industrial energy use, with refrigeration being one of the largest contributors.

In response, companies are increasingly turning to turbocompressors that offer higher energy efficiency compared to traditional compressor systems. These new, energy-efficient models can reduce power consumption by up to 30% while maintaining the same level of performance. For example, in food production plants, these compressors are helping companies reduce their electricity bills, which can account for as much as 20-30% of overall operating costs.

Government Regulations and Green Initiatives

Governments worldwide are pushing for stricter regulations on energy consumption and emissions, particularly in industries that involve refrigeration and air compression. In the European Union, the Energy Efficiency Directive, part of the Green Deal initiative, requires member states to improve energy efficiency by 32.5% by 2030.

These regulations are driving the adoption of more efficient turbocompressor systems in sectors like food and beverage, where refrigeration and temperature control are essential. In the United States, the Environmental Protection Agency (EPA) has implemented guidelines for the food industry that encourage the use of low-energy refrigeration systems and compressors that minimize greenhouse gas emissions.

Eco-Friendly Refrigeration and Cooling Technologies

As the food industry seeks more sustainable operations, the use of eco-friendly refrigerants is becoming a key trend. According to the Food and Agriculture Organization (FAO), the global food industry is focusing on reducing the use of harmful refrigerants, which are used in traditional compressor systems, due to their potential environmental impact. Turbocompressors, which are compatible with environmentally friendly refrigerants such as R-134a and R-744, are gaining popularity.

These systems not only reduce energy consumption but also align with international regulations, such as the Montreal Protocol, which aims to phase out ozone-depleting substances. The move towards these greener alternatives is particularly strong in cold storage and distribution chains, where refrigeration is critical.

Impact on Food Processing Industry Growth

As food consumption increases globally, the demand for turbocompressors in food processing is expected to grow significantly. According to a report from FAO, food production is projected to increase by 70% by 2050 to meet the demands of a growing global population. This growth is driving the need for more efficient food processing technologies, including energy-efficient compressors.

Performance Analysis

Turbocompressors are rapidly becoming a key solution for end-user industries, offering significant life cycle savings through their superior energy efficiency, minimal maintenance needs, and maximum operating reliability. Compared to traditional compressor technologies, turbocompressors save at least 20% to 30% on electricity and maintenance costs throughout their operational life.

This is particularly important as industrial compressors typically account for around 13% to 15% of total energy consumption in a facility, which further impacts the overall energy costs, often contributing to 5% of a facility’s total energy consumption.

Due to these energy concerns, companies are focusing on developing oil-free, energy-efficient, and maintenance-free turbocompressors. These advanced compressors feature magnetic bearing motors, with the motor shaft and turbo impellers directly attached, floating in the air. This non-contact design significantly reduces mechanical losses and wear, improving both efficiency and longevity.

The demand for compressed air continues to grow as industrial facilities expand and automation increases. However, outdated or inefficient compressors can result in substantial losses, potentially costing industries hundreds of thousands of dollars in lost savings annually. In contrast, properly managed compressed air systems can contribute to energy savings, lower maintenance costs, reduced downtime, higher production throughput, and improved product quality.

Regional Analysis

In 2023, the Asia Pacific (APAC) region dominated the turbocompressor market, capturing approximately 42.9% of the global market share, valued at USD 6.1 billion. This region’s dominance is largely driven by its rapid industrialization, particularly in countries like China, India, and Japan.

The growth of key industries such as power generation, oil & gas, and manufacturing in APAC has significantly contributed to the high demand for turbocompressors. Additionally, government initiatives promoting energy efficiency and sustainability are further accelerating the adoption of advanced turbocompressor technologies.

North America follows as a key player in the turbocompressor market, accounting for a significant share due to the presence of well-established industries in the U.S. and Canada. The region’s focus on energy-efficient solutions in power generation, chemical processing, and oil & gas has fueled demand for high-performance turbocompressors. In particular, the U.S. Department of Energy has set regulations encouraging the adoption of energy-efficient machinery, further driving market growth.

Europe also holds a notable market share, with a strong emphasis on industrial efficiency and environmental sustainability. Countries like Germany, the UK, and France are leaders in adopting cutting-edge compressor technology, especially in power generation and automotive sectors.

European regulations, such as the Energy Efficiency Directive, are pushing companies to replace older, inefficient equipment with more energy-efficient turbocompressors.

The Middle East & Africa (MEA) and Latin America together represent a smaller yet growing portion of the market. As energy-intensive industries expand in these regions, there is increasing demand for turbocompressors, particularly in oil-rich nations like Saudi Arabia and Brazil.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

The turbocompressor market is highly competitive, with several key players dominating the landscape. Companies like Atlas Copco, Elliott Group, and Gardner Denver Inc. have established themselves as major contributors to the global market. Atlas Copco is particularly noted for its innovative energy-efficient solutions, which are widely used across industries such as oil & gas, automotive, and power generation.

Elliott Group is known for its extensive portfolio of turbocompressors that cater to high-pressure applications, particularly in energy sectors, including oil and gas. Gardner Denver Inc. offers advanced turbocompressor technology that focuses on reducing energy consumption while maintaining high performance, making it a preferred choice for industries looking to optimize energy use.

Other notable players include GE Oil & Gas, Hitachi Ltd., and Howden Group Ltd., each of which has a strong market presence, particularly in industrial applications like power generation and chemical processing. GE Oil & Gas is a major player in the oil and gas sector, providing turbocompressor systems that enhance operational efficiency.

Hitachi and Howden offer a range of turbocompressor solutions for sectors including power generation and HVAC. Meanwhile, Ingersoll Rand and Kawasaki Heavy Industries continue to be prominent players, known for their technological advancements in both industrial and aerospace applications.

Mitsubishi Heavy Industries, Siemens AG, and Sulzer Ltd. are also significant players, with a global footprint in both high- and low-pressure turbocompressor systems. These companies focus on providing innovative solutions to optimize energy efficiency and reduce environmental impact.

Additionally, companies like Sullivan-Palatek Inc. and Sundyne Corporation are gaining traction with compact and efficient turbocompressors, catering to smaller industries and niche markets. The ongoing efforts in research and development and strategic partnerships further strengthen these companies’ positions in the turbocompressor market.

Top Key Players

• Atlas Copco
• Elliott Group
• Gardner Denver Inc
• GE Oil & Gas
• Hitachi Ltd.
• Howden Group Ltd
• Ingersoll Rand
• Kawasaki Heavy Industries, Ltd.
• Kobe Steel Ltd.
• MAN
• Man Diesel & Turbo SE
• Mitsubishi Heavy Industries
• Rotating Machinery Services InC
• Siemens AG
• Siemens Energy
• SKF
• Sullivan-Palatek Inc
• Sulzer Ltd.
• Sundyne Corporation

Recent Developments

In 2024, Atlas Copco focused on expanding its service portfolio, with €500 million invested in R&D for new product innovations in air compressors and turbocompressors.

In 2023, Elliott Group reported a 5% increase in year-over-year revenue, with total sales reaching approximately $1.8 billion.

Report Scope