Global HVAC&R compressor market resuming growth

In December 2021 BSRIA will finish updating its reports on the Global market for compressors used in applications for Air Conditioning, Heat Pumps, and Refrigeration. The set of reports covers data for individual world regions: Americas, EMEA, China, India, and Japan/rest of Asia combined. One global overview report will also be issued. Each regional report presents quantitative and qualitative data on compressor sales in terms of trends and forecast, by application, technology, size, inverters, and refrigerants

 “In 2021, the total Global market for compressors for HVAC&R is expected to reach 477 million units. The impact of COVID-19 has receded and all sectors are resuming growth.”

The global compressor market is estimated at 444 million units in 2020, valued at USD 37.8 billion. This includes AC compressors, heat pumps, and refrigeration. Following a fall in annual sales volume, the market is expected to recover in 2021 with a growth in compressors, driven by rotary in air conditioning and reciprocating in refrigeration.

Reciprocating compressors dominate the market in volume terms, as the use of hermetic for household and light commercial appliances account for the largest segment. Rotary compressors, which are sold mostly for AC applications are in second place followed by scroll compressors. Whilst scroll compressors are being challenged by rotary in the lower capacities, they are gaining market share on the larger capacities as their performances increase.

China is by far the largest producer of compressors, in particular rotary and scroll. However, with the US-China trade war, a shift has been taking of production of AC units to other Asian countries, with an expansion of sales of compressors in this region.

With the rapid growth taking place in the residential air conditioning 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 legislation and further drivers for the decarbonization of buildings.

India is still a small compressor market, but it is forecast to grow rapidly as the production of AC and REF units is expanding. However, there is still no hydronic heat pump market in this region and it is almost non-existent in SEA countries.

Screw compressors are largely used above a threshold of 250-300 kW, in both AC and REF applications. Centrifugal oil-free compressors compete with screw but their use is more limited, due to their cost premium.