Electric Motor Driven Compressors Market
The market for Electric Motor Driven Compressors was estimated at $2.6 billion in 2024; it is anticipated to increase to $3.8 billion by 2030, with projections indicating growth to around $5.2 billion by 2035.
Report Summary
Market Data
Methodology
Table of Contents
Global Electric Motor Driven Compressors Market Outlook
Revenue, 2024
$2.6B
Forecast, 2034
$4.9B
CAGR, 2025 - 2034
6.4%
The Electric Motor Driven Compressors industry revenue is expected to be around $2.8 billion in 2025 and expected to showcase growth with 6.4% CAGR between 2025 and 2034. The Electric Motor Driven Compressors market demonstrates strong expansion because of its expanding importance in industrial operations. The market expansion results from industrial growth together with technological progress and rising requirements for energy-efficient solutions. The market continues to be important because these compressors experience increasing demand from manufacturing and construction and oil & gas industries which depend on them for various operations.
Electric Motor Driven Compressors are known for their efficiency, reliability, and adaptability. These compressors, powered by electric motors, offer significant advantages including lower operational costs and reduced environmental impact compared to their fuel-driven counterparts. They are extensively used in applications ranging from air conditioning and refrigeration to power generation and oil refining.
Market Key Insights
- The Electric Motor Driven Compressors market is projected to grow from $2.6 billion in 2024 to $4.9 billion in 2034. This represents a CAGR of 6.4%, reflecting rising demand across Industrial Manufacturing, HVAC Systems and Oil & Gas Industry.
- Siemens AG, General Electric Company, Atlas Copco AB are among the leading players in this market, shaping its competitive landscape.
- U.S. and China are the top markets within the Electric Motor Driven Compressors market and are expected to observe the growth CAGR of 4.2% to 6.1% between 2024 and 2030.
- Emerging markets including Indonesia, Vietnam and South Africa are expected to observe highest growth with CAGR ranging between 7.4% to 8.8%.
- Transition like Shift towards Energy Efficiency has greater influence in U.S. and China market's value chain; and is expected to add $126 million of additional value to Electric Motor Driven Compressors industry revenue by 2030.
- The Electric Motor Driven Compressors market is set to add $2.3 billion between 2024 and 2034, with manufacturer targeting Energy & Automotive Applications projected to gain a larger market share.
- With Increased energy efficiency, and Technological advancements, Electric Motor Driven Compressors market to expand 86% between 2024 and 2034.
Opportunities in the Electric Motor Driven Compressors
The Asia-Pacific region together with China and India will also experience substantial growth in electric motor driven compressor demand. The market growth in this region will be driven by the fast industrialization and expanding infrastructure development of these countries.
Growth Opportunities in North America and Asia Pacific
The Electric Motor Driven Compressors market in North America expands because of growing HVAC industry requirements and industrial automation needs. The United States stands as the technological leader of this market because it continues to advance compressor technology. The market shows intense competition because General Electric and Atlas Copco maintain their position as dominant players. The renewable energy sector presents entry opportunities to new companies because electric motor driven compressors serve as essential components for wind and solar power generation systems. The market advances because of strict energy efficiency regulations which force companies to use these compressors to decrease their energy usage and environmental impact.
The Asia Pacific region experiences rising Electric Motor Driven Compressors demand because China and India lead the market expansion through their fast industrial growth and infrastructure development. The Asia Pacific market operates in a highly competitive environment because both international and domestic companies fight to capture market share. The market expansion is driven by two main factors: the expanding automotive sector which employs these compressors throughout its manufacturing operations and the developing construction industry that utilizes them in pneumatic tools and HVAC systems. The oil and gas industry in this region offers substantial business potential because electric motor driven compressors serve gas compression and transmission needs. The market growth in this region receives additional support from government programs that focus on energy conservation.
Market Dynamics and Supply Chain
01
Driver: Increased Energy Efficiency, and Stringent Environmental Regulations
The Electric Motor Driven Compressors market also experiences substantial growth because different industries require energy-efficient solutions. The compressors achieve high energy efficiency which enables industries to decrease their energy usage and operational expenses. The manufacturing sector together with oil and gas operations and power generation facilities select Electric Motor Driven Compressors to fulfill their energy efficiency requirements. The implementation of stringent environmental regulations worldwide is also driving the demand for Electric Motor Driven Compressors. These compressors produce less noise and have also lower carbon emissions compared to traditional compressors, making them an ideal choice for industries aiming to comply with environmental regulations. Industries such as HVAC and refrigeration are also particularly expected to witness a surge in the demand for these compressors due to their eco-friendly nature.
The compressor industry also experiences fast technological progress which stands as a major factor. The market growth is also driven by smart compressors that use IoT technology to provide real-time monitoring and predictive maintenance capabilities. The advancements in Electric Motor Driven Compressors enhance their operational performance while extending their operational life which leads to cost-effective solutions for end-users.
02
Restraint: High Initial Investment
The high purchase and installation expenses of Electric Motor Driven Compressors create an entry barrier that prevents numerous potential customers from buying them especially for small and medium-sized enterprises. The high initial investment required for these compressors prevents numerous businesses from acquiring them which limits market expansion.
03
Opportunity: Expanding Renewable Energy Sector and Technological Innovations in Compressor Design
The renewable energy sector, particularly wind and solar power, presents a significant market for electric motor driven compressors. These compressors play a crucial role in the operation of wind turbines and solar power plants, where they are used for air compression, cooling, and other applications. The global push towards sustainable energy sources is expected to drive the demand for these compressors in the renewable energy sector.
The development of compressor technology through variable speed systems and energy-efficient designs opens fresh market prospects for electric motor driven compressors. The innovative technologies improve compressor performance and efficiency while decreasing operational expenses which makes them more appealing to potential customers.
04
Challenge: Energy Consumption Concerns
Despite their numerous advantages, Electric Motor Driven Compressors are known to consume a substantial amount of energy. This can lead to increased operational costs over time, which can be a significant concern for businesses aiming to reduce their energy consumption and carbon footprint. Consequently, these energy consumption concerns can act as a , potentially impeding the market growth of Electric Motor Driven Compressors.
Supply Chain Landscape
1
Raw Material Suppliers
Alcoa CorporationRio Tinto Alcan
2
Component Manufacturers
ABB LtdSiemens AG
3
Assembly & Testing
General ElectricIngersoll Rand
4
Distribution & Sales
Atlas CopcoGardner Denver
1
Raw Material Suppliers
Alcoa CorporationRio Tinto Alcan
2
Component Manufacturers
ABB LtdSiemens AG
3
Assembly & Testing
General ElectricIngersoll Rand
4
Distribution & Sales
Atlas CopcoGardner Denver
Use Cases of Electric Motor Driven Compressors in Industrial Manufacturing & HVAC Systems
Industrial Manufacturing : Electric Motor Driven Compressors are extensively used in the industrial manufacturing sector. These compressors, particularly the rotary screw, are utilized to power pneumatic tools, provide clean, dry air for paint spraying, and supply compressed air for various other manufacturing processes. The unique advantage of using these compressors in industrial manufacturing lies in their ability to deliver a continuous supply of compressed air at precise pressure levels. Top players in this application include Siemens AG and Atlas Copco, both renowned for their high-quality, reliable, and energy-efficient compressors.
Oil & Gas Industry : In the oil and gas industry, Electric Motor Driven Compressors, predominantly centrifugal and reciprocatings, are used for gas lift, gas injection, and pipeline transmission applications. These compressors are favored for their high efficiency, low maintenance requirements, and capability to handle large volumes of gas. Major players in this sector include General Electric and Ingersoll Rand, known for their robust, durable, and high-performance compressors.
HVAC Systems : Electric Motor Driven Compressors, especially scroll and rotarys, find widespread application in Heating, Ventilation, and Air Conditioning systems. They play a crucial role in refrigeration cycles, providing the necessary pressure differential to circulate refrigerant and cool indoor air. The key advantage of these compressors in HVAC systems is their high efficiency and quiet operation. Daikin Industries and Emerson Electric Co.
Recent Developments
The Electric Motor Driven Compressors market witnessed significant advancements, driven by the increasing demand for energy-efficient solutions in various industries. The advent of smart compressors, powered by electric motors, has revolutionized the landscape, offering enhanced performance, reduced energy consumption, and minimal maintenance requirements. One key trend shaping the market is the growing adoption of IOT technology in compressor systems.
December 2024 : Siemens AG introduced a new line of energy-efficient electric motor driven compressors, offering improved performance and lower maintenance costs
October 2024 : Emerson Electric Co. launched a series of advanced electric motor driven compressors, specifically designed for heavy-duty industrial applications, boasting of superior durability and efficiency
August 2024 : Atlas Copco AB announced the expansion of their electric motor driven compressors range, integrating smart technology for enhanced operational control and energy conservation.
Impact of Industry Transitions on the Electric Motor Driven Compressors Market
As a core segment of the Pumps, Motors & Valves industry,
the Electric Motor Driven Compressors market develops in line with broader industry shifts.
Over recent years, transitions such as Shift towards Energy Efficiency and Technological Advancements have redefined priorities
across the Pumps, Motors & Valves sector,
influencing how the Electric Motor Driven Compressors market evolves in terms of demand, applications and competitive dynamics.
These transitions highlight the structural changes shaping long-term growth opportunities.
01
Shift towards Energy Efficiency
The Electric Motor Driven Compressors industry is undergoing a major shift toward energy efficiency. The industry transition stems from both environmental regulations and business requirements for cost-effective operations. The manufacturing and construction sectors have started using electric motor driven compressors because these systems use less power while lowering operational expenses. The environmental benefits of this transition combine with business profitability improvements through reduced energy usage.
02
Technological Advancements
Another notable transition in the Electric Motor Driven Compressors industry is the integration of advanced technologies. The advent of Industry 4.0 has led to the incorporation of IoT and AI in electric motor driven compressors, enabling real-time monitoring and predictive maintenance. This has significantly reduced the downtime and increased the lifespan of these compressors. Industries such as oil & gas and power generation have greatly benefited from this transition, as it has improved their operational efficiency and productivity.