The global market for air compressor aftercoolers is being driven by several factors including the move towards energy efficient air compressors, HVAC replacements and growing demand from the water industry, according to a newly published report from Technavio.

In the report, the analyst identifies the top three drivers for the global aftercooler market, including industry-specific demand and broader trends in air compressor uptake and replacement.

Water and wastewater applications are leading the demand in terms of sector-specific influences, where air compressors are important to power pumps, supply oxygen to processing bacteria and keep solids in suspension during processing.

Replacements of HVAC equipment are another driving force, as part of a drive towards better energy efficiency in building management systems, and in light of refrigerants like R-22 being phased out, many replacements of HVAC systems and their air compressors are being brought forward ahead of 2020.

In the US market in particular, Technavio forecast that HVAC replacements will account for 50% of total growth in the country’s HVAC market, with associated demand for air compressor aftercoolers.

And the broader trend towards energy efficient air compressors uptake is having a widespread impact on air compressor aftercooler sales too.

The oil and gas industry is a key market for this as part of efforts to reduce emissions in the energy-intensive sector, and in light of regional efforts both in Europe and in North America to improve energy efficiency in heavy industry.

Modern air compressor controls are helping to manage the energy consumption of new equipment, while older, less efficient air compressors are being replaced at an accelerated rate worldwide to cut costs and carbon emissions alike.

Taking all of these trends together, Technavio have predicted a compound annual growth rate of 5% for the global air compressor aftercooler market for the duration of their forecast period, which begins in 2017 and runs through until 2021.