Growth in the air compressor industry has been forecast to remain above 4% for the five-year period ending 2022, according to Technavio.
In the analyst’s latest report on the global air compressors market, which sets 2017 as the benchmark for a five-year forecast period, Technavio predicts a compound annual growth rate of 4.02% over the course of the half-decade span.
This is based on the performance of air compressor suppliers around the world, from the EMEA region to APAC and the Americas, and includes major vendors like Atlas Copco, Ingersoll Rand and others.
While it notes that there is a potential for disruption due to uncertainty about the cost of raw materials over the course of the five-year period, there are also drivers for growth in certain segments and geographical locations.
For example in the HVAC segment, a surge in replacing old systems has led to increased demand for the air compressors that power them – and this represents a major driver behind the growth in air compressor sales overall.
In turn, this demand is being driven by concerns about cutting operating costs and improving air compressor efficiency in HVAC systems, making air compressor replacements an economical and eco-conscious choice.
This is especially apparent in the US HVAC market, where replacing older, less energy-efficient air compressors with new more eco-friendly air compressors is expected to account for half of the total growth in the HVAC segment over the coming five years.
Meanwhile in terms of the pricing pressures, competition between different vendors is helping to drive down the cost of new air compressors, while the factors that may push prices up depend on the geographic region.
For example in developing nations like India and China and throughout the APAC region in general, production costs are lower, but the availability of raw materials may be subject to great price volatility; in contrast to this in Europe, for example, prices may be steadier but labour costs are higher.
All of this creates a complex picture in which the overall value of the air compressor market is likely to grow as a combination of pricing pressures and increased demand – especially in the HVAC replacements segment – in each year from 2017-18 right through to 2022 and beyond.