The year 2021 proved to be an extraordinary one for the compressor industry. Against the backdrop of a global economic rebound, the sector was tested by skyrocketing raw material prices, widespread power rationing and production curbs, and the persistent impact of COVID-19 resurgences. While many initially voiced concern and frustration, by the time of the Shanghai International Compressor and Equipment Exhibition in late October, most had adopted a calmer, more pragmatic outlook—accepting the market’s volatility with resilience.

However, the compressor market did not rise uniformly across the board. Instead, it split along distinct lines:

• Global compressor sales surged by over 20%, with foreign brands leading the way in growth.
• Large-scale domestic compressors saw sales rise by more than 35%, while small-scale units lagged behind.
• Despite overall growth in revenue, sales volume, and profit, profit margins declined steadily.
• Strong enterprises expanded healthily, while weaker players struggled to sustain momentum.

Why the Split?

Several factors explain the market’s divergence:

On one hand, the global economic reopening drove significant growth in foreign trade, leading to rising demand for compressors. Multinational brands, with localized manufacturing and distribution capabilities, naturally benefited first. In contrast, many Chinese private compressor companies—lacking overseas production bases—were hindered by logistics bottlenecks and soaring shipping costs, missing out on the global rebound.

On the other hand, compressors—being general-purpose industrial equipment—are highly sensitive to national industrial policies. With consumption upgrades and industrial transformation underway in China, government regulations on energy consumption and carbon emissions have grown stricter. Rising production and operational costs are placing added pressure on smaller, less resilient enterprises, particularly under the ongoing influence of the pandemic. This has led to shrinking capacity among smaller firms and a shift in demand toward larger enterprises and higher-end equipment.

At the same time, market saturation in mid- to low-end compressor segments has diluted pricing power. Smaller units with lower added value face intense price competition. Rising material and energy costs have outpaced manufacturers’ ability to absorb them, further diminishing the appeal of low-price products in a market increasingly focused on quality and efficiency.

By contrast, companies—whether foreign-invested or leading domestic players—that strategically positioned themselves in high-end, high-specification, specialized, or green compressor solutions are now reaping the rewards.

Long-Term Perspective

As the Chinese proverb says, “Don’t let the floating clouds block your view—the best sights come from a long perspective.” The current market leaders didn’t rise overnight. Their status and success in 2021 are the results of years of steady effort and accumulation.

Although the compressor market is competitive, it still offers a high margin for error and ample room for strategic repositioning. As the market continues to differentiate, companies—whether pursuing scale or quality—must remain focused on product excellence, innovation, and strategic specialization to thrive.

FOOEN Rental: Your Specialized Compressor Partner

As a professional provider of compressor rental solutions, FOOEN Rental has always upheld the service values of dedication, quality, simplicity, and efficiency. Our mission is to deliver the most suitable solution for every project application. We are committed to building long-term, mutually beneficial partnerships with our clients—because that’s at the heart of what we do.