The ASEAN air compressor market will exhibit a CAGR of 3.6% between 2019 and 2024, owing to the flourishing automotive industry, expanding construction sector, and surging focus on energy-efficient air compressors in the region. According to P&S Intelligence, the market will generate $1.13 billion revenue by 2024. In contemporary years, the introduction of the internet of things (IoT)-enabled air compressors has created immense growth opportunities for market players, as they help predict and detect maintenance needs in end use companies.
The surging construction activities in Thailand, Malaysia, Indonesia, Singapore, the Philippines, and Vietnam will drive the demand for air compressors in these countries, as compressors find wide applications in the development of bridges, subways, tunnels, ports, and highways. The increasing construction of these structures can be attributed to the rising infrastructure expenditure of the governments of the aforementioned countries. The Republic of the Philippines spent 4,687.16 PHP billion on infrastructure projects across sectors, as of August 24, 2021.
In recent years, the surging preference for oil-free air compressors has become a prominent trend in the ASEAN air compressor market. The usage of oil-flooded air compressors in the manufacturing, oil and gas, food and beverage, textile, power, and chemical industries result in the contamination and condensation of air compressed through these compressors. To deal with this issue, these industries are shifting toward oil-free air compressors. For instance, food and beverage companies use oil-free compressors for cleaning and manufacturing, product handling, packaging, and peeling and cutting food products to avoid contamination of food products.
In the preceding years, the industrial manufacturing category accounted for the largest share in the ASEAN air compressor market, under the application segment. This was on account of the rising number of manufacturing facilities in Thailand, the Philippines, and Malaysia. Moreover, the mounting government support being provided to manufacturing industries will also contribute to the growth of this category in the foreseeable future. Government initiatives, such as the economic transformation program in Malaysia and Making Indonesia 4.0, are attributed to the growth of the manufacturing sector in these nations.