Multinational companies used to distribute industrial compressors through vendors in India in the early 1900s. The first reciprocating compressors manufacturing plant was established in the country in 1965 by Ingersoll Rand. Since then, India's industrial compressors industry has come a long way. The total market was valued at Rs 33 billion in FY 2014 and is expected to grow at a CAGR of 9%, to reach Rs 50 billion in FY 2019.

Almost 85% of the overall industrial compressors market is organized. The market is dominated by companies like Atlas Copco, Ingersoll Rand, Elgi Equipments and Kirloskar Pneumatic.

According to Nitin Patkar, a research analyst at ValueNotes, ''The industrial compressors industry in India is dependent on the growth in the cement, steel, oil & gas and power industries. Many projects in these industries are in the pipeline expecting to receive clearances in the next five years.''

He added, ''There will be an emergence of waste heat and geo thermal energy in India. As a result, the industrial compressors industry will see a noticeable growth in the near future.''

Screw compressors have a major market share of industrial compressors, and they will continue to dominate in the future as well. Centrifugal compressors, the next generation compressors, are expected to witness the highest growth as they are more energy efficient and have a noise-free operation. They are expected to contribute to 38% of the market.

45% of the total value of industrial compressors sold in India is imported. Germany, USA and China are the top exporters to India.