Industry and market


Compressed air is used in almost all industrial plants

Compressed air is a commodity comparable to electricity, water and heat, with its production being an integral part of most industrial manufacturing processes. Compressed air is used in almost all industrial plants to power up machines, tools, processes and automation, as well as to tmove materials related to production processes in different ways. In order to obtain electricity or water, an industrial plant does not have to own its own electricity or water plant or a thermal power plant, but for the time being, the industrial plants are still mainly responsible for the production of compressed air.
About 10 per cent of industrial electricity in the European Union is used to produce compressed air.1) Industrial growth and a sharp increase in automation will increase the use of compressed air by about 5.5 percent annually from 2019 to 2026.2)

The purity of compressed air is absolutely critical in many industries, including those processes where compressed air comes into contact with end products. The oil contained in the compressed air produced by traditional technology damages air compressor actuators, degrades the quality of the products manufactured and exposes workers to poor air quality and mineral oil in the form of vapor and aerosol.

1) A review on compressed-air energy use and energy savings:
2) Industrial Air Compressors Market Size to cross $24bn by 2026:


Global and growing market

A market study published by Research and Markets in 2020 has estimated the global industrial air compressor market to be worth about USD 14.0 billion, with a CAGR of about 3.3 percent until 2025, when the market is estimated to be worth about USD 16.9 billion.1)

The market is divided into oil-free and oil-lubricated compressors. In 2018, industrial oil-free air compressors accounted for approximately 20 per cent, meaning USD 2.8 billion, of the market value.2) Based on the Company’s own assessment and the source material used by it, the need for oil-free compressed air in the future will increase the market size for oil-free air compressed air to 50 per cent in the next 5-10 years in terms of air volume.3)

The competitive environment

Industrial oil-free compressed air can be produced by a number of different technologies. The technology that competes with Tamturbo’s air compressors in the same power range is the “oil-free”4) screw compressor technology manufactured by only a few large companies. In addition, numerous medium-sized manufacturers purchase essential oil-free compressor components or compressor cores from these large manufacturers and build their own oil-free compressor packages.

From the customer’s point of view, Tamturbo’s products compete mainly with oil-free dry screw compressors. Indirectly, Tamturbo also competes with traditional geared turbo compressors and oil-lubricated screw compressors.
The rapid and strong growth of the market relevant to Tamturbo is due to the even faster growth in the demand for oil-free compressed air within the growing air compressor market, and the technological disruption in the oil-free air compressor market.

A key driver here is the growth of environmental awareness, which will increase the use of energy-efficient and less environmentally harmful equipment and clean technologies. The continuing global rise in energy prices is also putting cost pressures on the manufacturing industry.

1) Industrial Air Compressor Market – Growth, Trends, and Forecast:
2) Industrial Air Compressors Market Size to cross $24bn by 2026:
3) Oil-free Compressors to be the Largest and Fastest in Global Air Compressor Market Through 2023:
4) Although the name oil-free screw compressor refers to complete oil-freeness, the unit still uses oil. The gearbox and bearings of the compressors are lubricated with oil, but the compression spaces of the elements themselves are completely oil-free.

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