BSRIA Worldwide Market Intelligence (WMI) reports the latest on compressor sales worldwide for applications in air conditioning, heat pumps, and refrigeration.
While sales experienced a significant decline caused by the outbreak of COVID-19, the global compressor market has recovered enthusiastically and was estimated at 486 million units in 2021, with a value of USD 42.4 billion. This strong rebound has already placed the market above its pre-pandemic level, driven by rotary compressors in air conditioning applications.
Reciprocating compressors dominate the market, as the use of small hermetic for household and light commercial appliances account for a large volume. In second place come rotary compressors, which are sold mostly for air conditioning applications and heat pumps. Scroll are in the third place; this compressor type is challenged by rotary in the lower capacities, but they are gaining market share in larger capacity segments as their performances increase.
Screw and centrifugal compressors, both standard and oil free, account for a much smaller share in number of units, yet they command a sizeable market value thanks to their high selling prices.
By 2023, the compressor market is expected to reach a total value of USD 46.7 billion, its highest performance ever, as applications in air conditioning, heat pumps and refrigeration continue to expand. In addition, drivers such as energy efficiency legislation, the uptake of refrigerants with a lower environmental footprint, and the improvements in compressor capacities and performances are expected to push the value of the compressor market higher by leveraging sales growth.
China
China is by far the largest market, comprising more than half of the total market in 2021, in particular rotary and scroll that are used in the assembly of finished products. However, with the US-China trade war, and the signing of the RCEP transforming Asia in the largest free-trade bloc in history, a change is expected to take place with the production of air conditioning units shifting to other countries in SEA, such as Thailand, and sales of compressors building there as a result of the manufacturing of air conditioning units.
Americas
In Americas, refrigeration is the largest segment in the market, with high volumes of hermetic reciprocating compressors for residential applications. Air conditioning is the second largest application with a notable decrease compared with the previous year due to COVID-19. Rotary and especially scroll account for the largest share of AC compressors. The heat pump market is nascent in Americas, with a small number of compressors sold in this application, concentrated in North America.
EMEA
Data for EMEA show that while the refrigeration sector accounts for the majority share of sales in volume; these are mostly small hermetic reciprocating compressors for domestic or light commercial refrigeration applications, which are low priced. There is a growing number of air conditioning and heat pump units being made in EMEA as the market is thriving, and this could encourage production of compressors in the region. There is already a strong base for production of compressors for refrigeration units being made in the region.
Compressors in the AC market account for a higher value, supplied to manufacturers of AC units such as chillers, rooftops, and also to the increasing number of groups that have set up manufacturing of split and VRF units in EMEA to encourage proximity with their distributors.
With the rapid growth taking place in the residential AC market in EMEA, accompanied by a rise in production, sales of rotary and scroll compressors to this region are expected to surge. The heat pump market in 2020 held up remarkably well especially in EMEA despite COVID, and their future looks bright as they are surfing on a wave of legislations and further drivers for the decarbonisation of buildings.
India
India is a small compressor market, but it is forecast to grow rapidly as production of air conditioning and REF units is expanding. There is yet no heat pump market in this region, and it is almost non-existent in SEA countries, where the strongest potential exists in air conditioning markets.
BSRIA WMI’s latest compressor study is composed of five separate regional reports: Americas, EMEA, India, China, and Rest of Asia. In the latter, the data is segmented between Japan and the other Asian countries – South-East Asia, Oceania (ROA). This ambitious project rests on the extensive knowledge and experience built over the years through research BSRIA has carried out in all three application segments, worldwide. It provides insightful details on market sizes, trends, and drivers for the benefit of all stakeholders.