Centrifugal Compressor Market By Type (Single stage Centrifugal Compressor (Integrally Geared, Overhang Compressor, and Between Bearing Design), and Multi stage Centrifugal Compressor (Compressor with Bell, Casing, Pipeline Compressor, Horizontally Split, Vertically Split, Integrally Geared)), By Discharge Pressure (Above 400 Bars, Between 200 and 400 Bars, Between 20 and 200 Bars, and Below 20 Bars), By Distribution channel (Direct Sales and Indirect Sales), and By End User (Petrochemical, Oil & Gas, Automotive, Power Sector, Chemical & Fertilizers, HVAC, Textiles and Others), and By Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Trends, Analysis and Forecast till 2034

Centrifugal Compressor Market was valued at USD 15.1 Billion in 2024 and is projected to grow at a CAGR of 4.9% to reach USD 23.4 Billion by 2034.

A Centrifugal Compressor is an equipment that primarily uses air as a working fluid and transfers the energy generated from rotating impeller blades to the working fluid. This results in increased static pressure that pushes air from the high-pressure area to the low-pressure area. A centrifugal compressor is a turbo compressor or dynamic compressor with a radial design. The term 'centrifugal' implies a radial flow of gas. It also implies that the transfer of energy is a result of centrifugal forces acting on the gas. Centrifugal compressors function at a constant pressure. Their performance is affected by several external factors such as gas conditions and inlet temperature.

The market for centrifugal compressors has grown steadily in the last several years. The market has grown as a result of factors such as industrialization, rising gas and oil prices, and the desire for energy-efficient products. The market's expansion has also been aided by the use of smart manufacturing processes and technical breakthroughs.

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Centrifugal Compressor Market Key Drivers:

Increasing demand in different industries

• The major factors driving the global centrifugal compressor are the expected increase in the uptake of newer oil & gas projects in the coming years and the growing need to expand natural gas pipeline infrastructure. Budgetary restrictions have resulted in companies looking for standardized solutions, instead of customized units. The customers are increasingly looking for centrifugal compressor products that minimize the overall operating costs, while providing the high flow that is necessary for their applications, with minimal maintenance cost.

Moreover, increasing demand for natural gas across all the major industrial sectors is expected to boost the demand for such cost-optimized and standard compressors compared to the customized solutions in the coming years. This, in turn, is likely to boost the demand for centrifugal compressors during the forecast period.

Growing pipeline networks

• As centrifugal compressors are one of the most commonly used equipment powering the long-distance natural gas pipeline, the growth in the pipeline network is expected to drive the demand for the centrifugal compressors during the forecast period. As the requirement of the continuous power supply is imperative for industrial operations, new power plants need to be developed. Therefore, the increase in the development of power generation plants, particularly the gas-fired generation plants, is expected to drive the demand for centrifugal compressors during the forecast period.

Centrifugal Compressor Market Restrains:

• The declining cost of and increasing investments in renewable power generation are hampering the demand for natural gas-fired power generation, in turn, negatively impacting the demand for centrifugal compressors in the power generation industry.

Centrifugal Compressor Market is segmented based on Type, Discharge Pressure, Distribution Channel, End User and region:

Type Insights:

• Single stage Centrifugal Compressor:

These centrifugal compressors raise the gas pressure by the use of a single impeller. They are simple and easy to use and more cost effective.

• Integrally Geared:

The integrated gear system offers great efficiency and versatility for a wide range of uses. They are frequently employed in sectors of the economy where flexibility and exact control are crucial.

• Overhang Compressor:

Compact in size and with a long shaft for the impeller, overhang compressors are well-known for their design. This design is good for situations where space is limited and makes maintenance easier.

• Between Bearing Design:

The bearings are positioned between the gear and the impeller in this arrangement, which provides stability and simplicity of maintenance.

• Multi stage Centrifugal Compressor:

These compressors use numerous impellers connected in sequence to obtain larger pressure outputs. The gas pressure rises steadily with each impeller.

• Compressor with Bell:

Compressor with Bell is a specifically designed and with improved design for a preliminary phase of efficient gas intake.

• Casing:

In the casing type, the diffusers and impellers are enclosed in a pressure-resistant casing that has a conventional design.

• Pipeline Compressor:

A pipeline compressor is made especially for applications involving the high-pressure transfer of gases through pipes.

• Horizontally Split:

The horizontal split type separates the compressor casing, making maintenance access simpler.

• Vertically Split:

Vertically Split is similar to horizontal splitting, but have a vertical separation plane.

• Integrally Geared:

Similar to the single-stage model, the integrally geared compressor has numerous impellers to meet larger pressure needs.

Among the segments mentioned above the one that dominated the market the most is the Multi stage Centrifugal Compressor segment due to their ability to handle higher pressure ratios.

Discharge Pressure Insights:

• Above 400 Bars:

High-pressure compressors operating at pressures more than 400 bars are employed in demanding processes such as petrochemical and chemical operations.

• Between 200 and 400 Bars:

Compressors operating at 200–400 bar are employed in the extraction of oil and gas, the transportation of natural gas, and the separation of industrial gases.

• Between 20 and 200 Bars:

Compressors with pressure between 20 and 200 bar are widely used in a variety of industries, including refrigeration, air conditioning, and power generating.

• Below 20 Bars:

Below 20 Bars compressors are utilized for low-pressure tasks such as wastewater processing, air conditioning, and pneumatic conveying.

Among the segments mentioned above the one that dominated the market the most is the between 20 to 200 bars segment due to the versatility, and wide applications of these type of compressors in air separation plants and CNG applications.

Distribution channel Insights:

• Direct Sales:

Manufacturers who engage in direct sales do so by providing end customers with specialized solutions and technical assistance.

• Indirect Sales:

When distribution takes place through approved dealers, distributors, or engineering, procurement, and construction (EPC) firms it is known as indirect sales distribution.

End User Insights:

• Petrochemical:

In the petrochemicals industry the centrifugal compressors are used in diverse processes such as production of ethylene and polyethylene, and different refining of petrol derivatives.

• Oil & Gas:

Compressors are essential to the oil, and gas industries for use in shipment, refinement processes, and gas processing.

• Automotive:

Compressors are utilized in production processes for handling and transporting materials and pneumatic conveying applications in the automotive industry.

• Power Sector:

Compressors are necessary for the production of electricity, especially in gas turbine-powered power plants.

• Chemical & Fertilizers:

Centrifugal compressors are used for gas compression and processing in a variety of chemical processes.

• HVAC:

For air compression procedure using centrifugal compressors for heating, ventilation, and air conditioning systems.

• Textiles:

In the textile industry, for the production of textiles, pneumatic air applications are utilized by compressors.

• Others:

The others category showcases the diversity of industries and uses for centrifugal compressors, highlighting the adaptability of these machinery.

Among the segments mentioned above the one that dominated the market the most is the Oil & Gas segment due to the wide applications of centrifugal compressor in the field and therefore this segment is anticipated to rule the market in the forecast period.

Centrifugal Compressor Market Regional Insights

• North America market is estimated to witness a significantly large revenue share over the forecast period, owing to the advanced technology adoption and the presence of major market players.
• Asia Pacific market is estimated to witness fastest revenue share due to the increasing demand in various sectors, rapid industrialization, and increasing investments in the energy sector.
• Europe market finds lucrative market opportunities owing to the major focus on the petrochemicals and automotive industries, and stringent regulatory bodies governing the market.
• Latin America market is increasing gradually due to the expanding energy and petrochemical activities and rising industrial infrastructure have increased the demand for centrifugal compressors.
• Middle East & Africa market is an emerging market owing to the expanding activities in the oil and gas industries of the middle east and rising demand for centrifugal compressors for petrochemical industry.

Report Scope:

Attribute	Details
Market Size 2024	US$ 15.1 billion
Projected Market Size 2034	US$ 23.4 billion
CAGR Growth Rate	4.9%
Base year for estimation	2023
Forecast period	2024 – 2034
Market representation	Revenue in USD Billion & CAGR from 2024 to 2034
Market Segmentation	By Type - Single Stage Centrifugal Compressor (Integrally Geared, Overhang Compressor, and Between Bearing Design), and Multi stage Centrifugal Compressor (Compressor with Bell, Casing, Pipeline Compressor, Horizontally Split, Vertically Split, Integrally Geared.   By Discharge Pressure - Above 400 Bars, Between 200 and 400 Bars, Between 20 and 200 Bars, and Below 20 Bars. By Distribution channel - Direct Sales and Indirect Sales. By End User - Petrochemical, Oil & Gas, Automotive, Power Sector, Chemical & Fertilizers, HVAC, Textiles and Others.
Regional scope	North America - U.S., Canada Europe - UK, Germany, Spain, France, Italy, Russia, Rest of Europe Asia Pacific - Japan, India, China, South Korea, Australia, Rest of Asia-Pacific Latin America - Brazil, Mexico, Argentina, Rest of Latin America Middle East & Africa - South Africa, Saudi Arabia, UAE, Rest of Middle East & Africa
Report coverage	Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 to 2034. For the purpose of this study, has segmented the Centrifugal Compressor Market report based on Type, Discharge Pressure, Distribution Channel, End User and region:

Centrifugal Compressor Market, By Type:

• Single stage Centrifugal Compressor
  • Integrally Geared
  • Overhang Compressor
  • Between Bearing Design

• Multi stage Centrifugal Compressor
  • Compressor with Bell
  • Casing
  • Pipeline Compressor
  • Horizontally Split
  • Vertically Split
  • Integrally Geared

Centrifugal Compressor Market, By Discharge Pressure:

• Above 400 Bars
• Between 200 and 400 Bars
• Between 20 and 200 Bars
• Below 20 Bars

Centrifugal Compressor Market, By Distribution channel:

• Direct Sales
• Indirect Sales

Centrifugal Compressor Market, By End User:

• Petrochemical
• Oil & Gas
• Automotive
• Power Sector
• Chemical & Fertilizers
• HVAC
• Textiles
• Others

Centrifugal Compressor Market, By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The key players operating the Centrifugal Compressor Market includes, Dresser-Rand, Atlas Copco LLC, IHI Rotating Machinery Engineering Co., Ltd., Kobelco, Hitachi, Ltd., Ingersoll Rand, Nanjing SAG, Baker Hughes, Mitsubishi Heavy Industries, and FS-Elliott Co., LLC.

Recent Development:

• In February 2022, United Arab Emirates (UAE)-based Dragon Oil, made its first oil discovery in the Gulf of Suez. This find was one of the greatest in the area in the last 20 years, according to the report, and the field may have reserves of up to 100 million barrels.
• In January 2020, Ingersoll Rand introduced the next generation of MSG Turbo-Air 2000 Centrifugal Compressors. The MSG TURBO-AIR 2000 can handle flow capacities ranging from 505 CFM to 1700 CFM, as well as pressures ranging from 3.5 to 10 bar. The newly developed compressor eliminates contaminants like oil and is driven by Ingersoll Rand technology, which provides excellent reliability, increased efficiency, and ease of operation.

• Dresser-Rand
• Atlas Copco LLC
• IHI Rotating Machinery Engineering Co., Ltd.
• Kobelco
• Hitachi, Ltd.
• Ingersoll Rand
• Nanjing SAG
• Baker Hughes
• Mitsubishi Heavy Industries
• FS-Elliott Co., LLC