With the expansion of the manufacturing sector, the demand for compressors is skyrocketing in India. Due to the implementation of favorable government policies and the inflow of huge foreign direct investments (FDIs), the manufacturing sector is registering rapid advancement, and it is predicted to reach a value of $1 trillion by 2025. For instance, the income tax rate of all companies having a turnover of up to $38.75 million was reduced by the government in the Union Budget 2018–2019.

Industrial air compressors are used extensively in this sector for stamping, clamping, and tool powering. Apart from the booming manufacturing sector, the expanding automotive sector is also fueling the sales of compressors in the country. Due to these factors, the Indian compressor market is exhibiting huge expansion. As a result, its value will grow from $1,943.4 million in 2019 to $2,891.9 million by 2030, as per the estimates of P&S Intelligence, a market research company based in India.

Furthermore, the market is predicted to grow at a CAGR of 6.2% between 2020 and 2030. Rotary and positive displacement are the two most widely used types of compressors in India. Between these two, the demand for the positive displacement compressors was found to be higher in the years gone by. The sales of these compressors are also predicted to surge in the coming years, due to their burgeoning requirement in industries such as semiconductor, chemical, steel, and automotive.

The other factors fueling the sales of these compressors are their better rotor profiles, availability in various innovative designs, and improved machines. Compressors sold in India are classified into two types, depending on lubrication type, namely oil-free and oil-flooded. Between these, the sales of the oil-flooded compressors were observed to be higher in the past years, because of their low initial cost and lesser maintenance requirements than the oil-free variants.

The demand for compressors was the highest in northern part of the country during the last few years, and this trend will continue in the coming years as well. Industrial and automobile manufacturing are the major application areas of compressors in this region. Furthermore, the sales of compressors are currently the highest in the National Capital Region (NCR) in the northern region, because of their high requirement in automobile manufacturing applications and the high industrial growth in this region.