Air & Gas Compressor Manufacturing in European Union 2026: Industry Statistics & Trends

The Air & Gas Compressor Manufacturing industry in the European Union provides vital industrial machinery used to compress air and other gases across sectors like automation, energy, chemical processing, and manufacturing. According to the European Association of Manufacturers of Compressors, Vacuum Pumps, Pneumatic Tools and Allied Equipment (Pneurop), the broader European market turnover for the sectors it represents exceeded 20 billion EUR as of recent trade estimates. However, the industry operates within a challenging macroeconomic environment where the EU's total value of sold industrial production decreased by 2.0% in 2024 compared to 2023, following a 1.4% contraction in the previous

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What does the Air & Gas Compressor Manufacturing in European Union industry cover?

This industry encompasses the engineering, design, and manufacturing of mechanical devices that reduce the volume of air or gases to increase their pressure. These products include positive-displacement compressors such as reciprocating and rotary screw types, as well as dynamic compressors like centrifugal and axial models. Under official definitions, this segment also encompasses dedicated vacuum pumps and specialized compression machinery tailored for hazardous gas transport.

• •Classified under the NACE Rev. 2 system under code 28.13, which formally captures the manufacture of other pumps and compressors.
• •Covers air or vacuum pumps alongside air and gas compressors, excluding specialized liquid fluid power pumps.
• •Products serve critical pneumatic controls, industrial gas transport, and automated manufacturing assembly lines across the EU.

Who operates in the industry and how is it structured?

The market structure exhibits a moderate level of concentration, anchored by globally dominant European engineering conglomerates alongside an extensive network of specialized small and medium-sized enterprises (SMEs). Production hubs are largely concentrated in highly industrialized member states such as Germany, Italy, and France, which maintain strong domestic supply chains for industrial components. These operators rely heavily on domestic precision casting, electric motor supply, and electronic control systems.

• •Pneurop represents national associations across 7 EU Member States, the UK, and Turkey, encompassing more than 200 individual manufacturers.
• •SMEs typically cater to regional or niche application markets, such as medical-grade oil-free air or custom chemical processing configurations.
• •The sector features highly integrated service and aftermarket components, which generate steady recurring revenue streams for major operators.

What drives demand in the industry?

Demand is intrinsically tied to global and regional capital expenditure cycles across heavy industries, automotive manufacturing, and chemical infrastructure. Increasingly, the transition toward energy-efficient machinery acts as a primary catalyst as industrial operators look to mitigate rising electricity costs and adhere to regional carbon reductions. Furthermore, expanding infrastructure in automation and the emergence of green hydrogen transport require highly complex, non-corrosive gas compression technologies.

• •Energy efficiency concerns drive the replacement cycle, as compressed air systems can account for a significant share of industrial electricity use.
• •According to Eurostat, EU industrial gross value added increased by 17% between 2010 and 2023, underscoring structural long-term growth in purchasing sectors.
• •Automation trends and smart factory integrations demand next-generation compressors equipped with IoT monitoring capabilities.

Who are the notable companies in the industry?

Competition in the European market is intense, characterized by large multinational corporations that leverage substantial research and development budgets to lead in technology innovation. Companies compete aggressively on total cost of ownership, energy efficiency ratings, and the comprehensiveness of their maintenance networks. While European-headquartered entities hold substantial market share, major North American and Asian industrial groups operate extensive manufacturing and assembly footprints within the EU.

• •Atlas Copco AB, a premier Swedish multinational, reported total group revenues of 168 billion SEK in 2025, operating a major global compressor technique business area.
• •Ingersoll Rand Inc., a major US-listed industrial manufacturer, maintains comprehensive operations, production facilities, and historical brand presence across the EU market.
• •Other prominent active market participants with substantial European manufacturing presence include Kaeser Kompressoren SE, BOGE Kompressoren Otto Boge GmbH & Co. KG, and Aerzener Maschinenfabrik GmbH.
• •Firms focus significantly on 'local for local' production strategies to mitigate supply chain disruptions and meet specific regional customer requirements.

What are the recent trends and outlook?

The industry is navigating a temporary cooling period in broader European manufacturing, marked by consecutive declines in the production of manufactured goods. To counteract cyclicality, manufacturers are prioritizing digital transformation, integrating artificial intelligence for predictive maintenance, and expanding 'Compressed Air as a Service' (CAaaS) business models. The long-term outlook remains tethered to green transition goals, particularly custom compressor units designed for carbon capture and storage (CCS) installations.

• •Eurostat reported a 2.0% decline in the EU's value of sold manufactured goods for 2024, following a 1.4% decrease in 2023.
• •R&D investments remain steady, with market leaders like Atlas Copco investing approximately 4% of revenues back into product development during 2025.
• •Decarbonization of product life cycles (Scope 3 emissions) remains a primary focal point for engineering and design teams.

How is the industry regulated?

The regulatory landscape in the European Union is exceptionally stringent, focused heavily on environmental performance, machine safety, and energy efficiency. Manufacturers must design products that comply with strict Ecodesign requirements, which set minimum energy performance standards for industrial equipment. Additionally, equipment must adhere to rigorous safety protocols for high-pressure operations and deployment in explosive atmospheres.

• •Products must meet specific EU Ecodesign directives aimed at optimizing energy efficiency and lowering environmental impacts.
• •Compliance with the ATEX Directive (Directive 2014/34/EU) is mandatory for gas compressors operating in potentially explosive environments.
• •Manufacturers align operations with the European Climate Change Programme framework to support broader EU greenhouse gas reduction targets.

Government, statistical and trade sources used for this Claight analysis.

• Eurostat Industrial Production Statistics 2024/2025 ·
• Pneurop (European Association of Manufacturers of Compressors, Vacuum Pumps, Pneumatic Tools and Allied Equipment) Reference Data 2025/2026 ·
• Atlas Copco Group Annual Report 2025 ·
• European Commission NACE Rev. 2 Statistical Classification Framework