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Where next for the fourth utility?

Published:  17 March, 2025

Compressed air is often referred to as the fourth utility after water, gas, and electricity, underlining its essential role in various operations. It is a foundational technology in the industrial sector that powers a wide array of machinery, tools, and processes.

Indeed, the global air compressor market is sizeable - and expanding fast. It was valued at over $27 billion in 20231 and is expected to reach $37.98 billion by 2030, growing at a Compound Annual Growth Rate of 4.76% from 2023 to 2030. Market growth is driven by various factors and trends, led primarily by a focus on energy efficiency and the continued expansion of the industrial sector, particularly in developing economies.

Importantly, compressed air - as an overarching technology - never stands still. To retain a central role in the industrial sector, it needs constant refinement and evolution, offering end users new value-adding capabilities. This journey continues today, with emerging concepts such as digitalisation and the application of artificial intelligence bringing more advanced operations in the medium term.

The application of compressed air systems

So, what might that evolution look like? What are the latest cutting-edge innovations in the compressed air industry, and how might these transform industrial operations, enhancing efficiency, sustainability, and productivity across various sectors?

To answer those questions, it is worth looking at how and why compressed air has secured such an important role in modern industrial settings. After all, in terms of application, compressed air is the silent partner to every industry imaginable.

For instance, manufacturing uses it to run equipment and control process valves, and to power pneumatic tools such as air hammers, drills, and spray paint guns on production lines. It also helps with materials handling, moving products on conveyors and vacuum lifting them without damage. It is used for blasting and finishing, as well as heating and cooling. Yet this prevalence isn’t just found in the manufacturing sector: compressed air is also applied in medical, food processing and oil and gas applications, to name but a few. In short, it is a flexible, versatile and reliable energy source that can be used for various industrial applications.

Taking a whole-life approach to system optimisation

However, this ubiquity presents challenges. Air compressors account for as much as 12% of all industrial electricity usage, and energy consumption accounts for up to 70% of the lifecycle cost of a compressed air installation. Therefore, energy efficiency is critical and represents a key area of recent development.

Subsequently, most compressed air suppliers recommend taking an end-to-end approach to compressed air management. This starts with having a full understanding of compressed air infrastructure by carrying out a comprehensive audit of installations over a significant period, including energy input, air flow demand, system pressure, air quality, pressure drops, and more. This forensic process helps identify potential savings and leads to suggested actions to achieve these cost efficiencies.

Repair is also a critical consideration. Up to 20% of the energy consumption in a compressed air system can be lost to air leaks. These days, fixing leaks while the distribution net is under pressure and without dismantling pipes or couplings is possible. Then, by investing in the latest intelligent control systems, connectivity and advanced monitoring tools, it is possible to optimise the operation of compressed air systems while set pressure and flow are being met.

Sensor-based compressor control systems, for instance, can significantly increase the efficiency of the whole air compressor system by actively managing the integrated machines at their most optimum points possible – thereby reducing energy consumption and optimising maintenance needs. Remote monitoring systems also allow end users to monitor the performance of their air compressor from a computer, smartphone, or tablet. Smart diagnostic systems allow for the capture of live data from compressed air equipment and the translation of it into clear insights. This means end users can check uptime, energy efficiency, and the health of a complete compressed air installation at a glance.

The importance of variable speed drive designs

Advances in modern air compressor design have also addressed energy efficiency. Over the past two decades, air compressors with Variable Speed Drives (VSD) have emerged to maximise energy efficiency and deliver energy savings. This type of design automatically adjusts the compressor’s operating speed to match compressed air production to demand in real-time. This is particularly useful in operations where demand for compressed air fluctuates, such as facilities that operate different processes or multiple shifts, so flow demand increases and decreases throughout the day.

So, how do VSDs work? An inverter adjusts the compressor’s speed (RPM). Instead of all the power going directly into a traditional AC fixed-speed compressor running at full capacity, the inverter provides the VSD compressor with the specific voltage required. Electronics measure system pressure and an onboard controller adjusts motor speed to match actual air demand. It’s a simple idea, although the technology that makes it possible is extremely sophisticated.

Standard VSD units are equipped with induction motors coupled to the screw elements with gears, but the latest VSD technology features an interior Permanent Magnet motor. Here, the iPM motor shares a rotor with the screw elements. That means it’s direct drive, making it extremely energy efficient. The whole drive train is a closed circuit, where both the motor and elements are cooled with oil, another good way to save energy. Compressors with the iPM technology reduce energy consumption by 50% on average compared to an idling compressor. The new technology also features a vertical design concept, which reduces the footprint by up to 55% compared to traditional air compressors.

Why reliability supports sustainability

Coupled with the need to improve energy efficiency is the desire to have more reliable air compressors. Equipment is only useful if manufacturers can rely on it to perform consistently, day in and day out. A focus on reliability ensures uptime, reducing the chance of production halts caused by faulty equipment.

The latest air compressors come with specific features aimed at avoiding downtime. These include intelligent temperature control systems that regulate the thermostatic control valve and the VSD fan to ensure that the compressor operates at all times with an optimal oil injection temperature. This increases reliability by eliminating the risk of condensation in the element. Meanwhile, smart reliability-boosting features such as Limp Mode ensure uptime even when the machine needs service. This functionality limits the compressor’s operational parameters, such as reducing the maximum pressure or flow rate, to minimise strain on the system and prevent potential damage while allowing limited operation until the issue can be resolved.

Finally, there is the Boost Flow capability - a feature in some VSD air compressors that temporarily increases the maximum air flow output beyond the standard capacity to meet short-term high demand. This allows the compressor to deliver additional airflow when needed without compromising overall system stability.

These advances have been integrated into modern air compressors to boost reliability – and, therefore, efficiency and sustainability. Ultimately, equipment that lasts longer, runs better and doesn’t break down is better for the environment and the bottom line.

Making the most of artificial intelligence

But where next? If technology never stands still, then how will air compressors embrace the opportunities brought by new systems and concepts such as artificial intelligence?

Companies like Atlas Copco already offer guarantees on air compressor availability, with the latest guarantees promising 98% uptime. To maintain that figure, and even go higher, the integration of AI will likely play an increasingly important role, mainly through the development of self-learning air compressor machines, autonomous operation and predictive maintenance. Automation can bring many advantages to manufacturers, including higher productivity (machines don’t get tired), greater accuracy and consistency and lower costs. In the future, that might usher in the concept of so-called ‘dark factories’, which are fully automated sites where production happens without human intervention.

To make this concept a reality, Atlas Copco says it is committed to long-term innovation, investing 4% of annual total revenues in research and development. This will ensure that air compressor technology becomes even more efficient and reliable, helping end users embark on a transitional journey to Net Zero operations.

Compressed air: a bright future

In conclusion, compressed air is an indispensable utility, powering many applications across various industrial sectors. The market is on an upward trajectory, driven by the ongoing pursuit of energy efficiency and technological advancements. Integrating VSD technology, intelligent control systems, and remote monitoring reflects the industry’s commitment to innovation, addressing energy consumption and reliability needs.

Looking forward, the rapid ascent of automation and artificial intelligence promises to revolutionise air compressor technology further, guiding the industry towards more sustainable and efficient operations. This will be achieved through increased collaboration between industry stakeholders, policymakers, and technology providers, driving further advancements in innovation in compressed air.

With companies like Atlas Copco committed to long-term research and development, the future of compressed air systems is set to align with the global imperative of achieving Net Zero, ensuring that this ‘fourth utility’ continues to evolve in tandem with the needs of a rapidly changing world.

1 https://www.kingsresearch.com/air-compressor-market-154#:~:text=The%20global%20Air%20Co mpressor%20Market,4.76%25%20from%2 02023%20to%202030.

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