OTC Industrial Technologies | Industry News

Air Compressor Efficiency: Reduce Costs & Save Energy | OTC Industrial Technologies

Written by OTC Insights Team | Jun 24, 2025 1:00:00 PM

Rising electricity prices and the push toward more sustainable business practices have manufacturers seeking ways to make their compressed air systems more energy efficient. Air compressors draw a significant amount of energy and contribute to high utility bills. By auditing your systems and remediating inefficiencies, you can drastically reduce costs by cutting waste, boosting your reliability and supporting sustainability goals. OTC Industrial Technologies has been in the compressed air industry for more than 60 years and is a go-to compressed air solutions provider. If you have rising energy costs and are looking to make your systems more efficient, contact OTC for a free air audit.

Why Improving Air Compressor Efficiency Reduces Energy Costs

Air compressor energy consumption may account for 25% to 30% of a facility’s total electricity bill, so eliminating waste can have a large impact on the bottom line. Understanding where waste originates is the first of many methods of energy saving in an air compressor system that can help reduce costs.

The Role of Compressed Air in Industrial Applications

From powering pneumatic tools to conveying products and actuating valves, compressed air is an indispensable utility across many manufacturing industries such as petrochemical, oil and gas, and more.

How Inefficiencies Drive Up Energy Costs

Many factors contribute to energy waste in compressed air systems, including:

  • Undetected air leaks - significantly increasing energy usage
  • Excessive pressure set points - forcing the compressor to work harder than needed
  • Deferred maintenance - dirty filters, worn seals, oil carry over, etc. can inhibit performance

Even small inefficiencies can add up, resulting in thousands of dollars in wasted energy annually

The Benefits of Optimized Systems

By having a system that runs efficiently and is optimized for your specific needs, you can quickly see the benefits, including:

  • Lower energy consumption and a reduction in operating costs
  • Increased system reliability and performance
  • A smaller carbon footprint that aligns with sustainability goals and meets environmental, social, and corporate governance (ESG) targets

Key Factors Influencing Air Compressor Efficiency

From equipment sizing to leak management, there are many variables that determine how efficiently your compressed air system converts electrical power into useful work. Addressing the following factors will give you the quickest and most impactful wins.

Proper Sizing and System Design

Choosing the right size air compressor prevents overloading and underperformance of the equipment. An oversized unit cycles excessively, while an undersized unit runs in full load bypass. Both oversized and undersized units waste power. Compressors should operate between 70-90% of the time, rather than short or constant cycles.

OTC’s engineered system solutions analyze your demand profile with how your system is actually functioning, then works to right size the equipment, storage, and piping, quickly creating a positive impact on efficiency.
If you’re looking for a new take on a compressed air system, turn to OTC’s DIRECTAIR® solution, providing air as a utility service. This turnkey solution is built specifically for your operations – DIRECTAIR® designs, manufactures, installs, and monitors the compressed air system, while you only pay for the air you use. Consider air as a utility to reduce your energy costs by 35% to 50%.

Reducing Air Leaks and Preventing Waste

Air leaks are the most common type of inefficiencies seen in air compressors. While routine maintenance may seem like more of a burden than a help, it may be the missing link to optimizing your equipment. Regular leak detection checks using ultrasonic detectors can cut losses by up to 30% - one of the quickest methods of energy saving in air compressor  systems. OTC specializes in compressed air service and repair to keep your operations running at peak performance.

Using Variable Speed Drives (VSDs) for Better Control

Energy efficient air compressors  equipped with VSDs match motor speed to real time demand, continuously adjusting to fluctuating air demand. To put it simply, instead of operating at a constant fixed speed, VSDs allow the pumps to adjust and adapt to demand. VSD can reduce energy consumption by up to 50% - especially in part load conditions commonly found in energy saving rotary screw air compressor  applications.

Proven Strategies to Reduce Energy Costs in Air Compressor Systems

Ready for actionable steps you can take right now? Below are a few tactics that range from low  or no cost adjustments or upgrades that can provide benefits to your bottom line quickly.

Routine Maintenance and System Audits

Keeping your air compressors running in top condition is key to their continued efficiency. Ensure you are completing routine maintenance on your equipment. If ongoing maintenance is taking time away from your daily operations, OTC helps customers maximize the performance, reliability and efficiency of their compressed air systems with Customer Service Agreements (CSA). OTC offers several preventative maintenance CSAs to help lower operating and energy costs, lower repair costs, and extend equipment life.

Additionally, if you neglect your equipment, you may find that you have dirty intake filters, raising the need for power, and clogged coolers that elevate discharge temperature. Be sure to schedule quarterly inspections and leverage OTC’s AIM™ Predictive Maintenance system for continuous monitoring. OTC combines system audits and root-cause failure analysis with condition monitoring, allowing us to monitor vibration, speed, oil, temperature, pressure and more.

Upgrading to Energy Efficient Air Compressors

It’s crucial to audit and evaluate your current air compressors versus what technologies are on the market today. Replacing outdated equipment with modern VSD or two stage oil free models can yield quick return on investment and improve energy efficiency.

OTC offers a wide range of compressors, including brands like Atlas Copco and Quincy Compressor. These brands use optimized air compressor technologies and monitoring to save energy, maximize uptime, and ensure system stability.

Not ready to buy? Explore short term air compressor rental solutions through OTC, allowing you to test out the equipment before you buy.

Success Stories: Companies Saving with Energy Efficient Air Compressors

See how OTC has helped manufacturers save thousands in annual costs by servicing or replacing compressed air systems to boost their efficiency!

Partner with OTC to Improve Your Air Compressor Efficiency

Improving air compressor efficiency is one of the fastest, most reliable ways to cut operating costs and advance your sustainability goals. Whether you’re upgrading your equipment or continuing maintenance on your current compressor system, OTC is here to help! OTC has been a trusted partner for more than 60 years, providing air compressor products and services to help your company run efficiently.

Ready to turn efficiency into a competitive advantage? OTC’s experts deliver data driven audits, turnkey installations, and ongoing support to ensure long term savings. Contact OTC today to discuss a plan to make your air compressor equipment efficient and save on your bottom line.