The rapid growth of the manufacturing sector in the last few years has caused a sharp surge in the sales of compressors in India. Moreover, with the implementation of favorable government policies, this trend is likely to continue in the future years. According to industry experts, the manufacturing sector in the country is predicted to attain a valuation of $1 trillion by 2025. In manufacturing facilities, industrial air compressors are heavily used for clamping, stamping, and tool powering.

 

Apart from the enactment of supportive government policies, the inflow of huge foreign direct investments (FDIs) is also fueling the growth of the country’s manufacturing sector. For example, the government has reduced the income tax rate to 25% for all organizations having a maximum turnover of $38.75 million, under the Union Budget 2018—2019. Besides this, the flourishing automotive industry is also pushing up the sales of compressors in the country.

 

This is subsequently driving the advancement of the Indian compressor market. The market valuation is predicted to rise from $1,943.4 million to $2,891.9 million from 2019 to 2030. Furthermore, the market is predicted to advance at a CAGR of 6.2% between 2020 and 2030. There are mainly two types of compressors used in India— rotary and positive displacement. Of these, the sales of the positive displacement compressors were found to be higher in the past years.

 

This trend is predicted to continue in the upcoming years as well. This would be a result of the growing requirement for compressors in various industries such as semiconductor, automotive, chemical, and steel. Additionally, the advent of enhanced rotor profiles, innovative designs, improved machines, and various other advanced features is boosting the sales of the positive displacement compressors across the country. When lubrication type is taken into consideration, the Indian compressor market is classified into oil-free and oil-flooded.

 

Of these, the oil-flooded category recorded higher growth in the market in the years gone by, as per the findings of P&S Intelligence, a market research company based in India. This was mainly because of the lower initial cost and lesser maintenance requirements of this lubrication than the oil-free one. Moreover, the price-conscious nature of the Indian consumers and their demand for effective solutions at affordable prices propelled the sales of the oil-flooded lubrication in the past few years.

 

The Indian compressor market recorded considerably high growth in the northern region in the past and this trend will continue in the upcoming years as well. Compressors are extensively used in industrial and automotive manufacturing applications in this region. Furthermore, the usage of the compressors is currently being observed to be very high in the National Capital Region (NCR), primarily because of the rapid industrial growth and soaring automobile manufacturing in this region.

 

Thus, it can be safely concluded that the sales of compressors would skyrocket all over India in the coming years, mainly because of their growing requirement in the manufacturing sector and automotive industry and the explosive growth of the manufacturing sector in the country.