VOL. XCIV, NO. 247

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Wednesday, January 7, 2026

Atlas Copco AB (publ)

ATCO-A · Nasdaq Stockholm

Market cap (USD)$839.9B
SectorIndustrials
IndustryIndustrial - Machinery
CountrySE
Data as of
Moat score
63/ 100

Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.

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Overview

Atlas Copco AB (publ) is a Swedish industrial group organized into four business areas: Compressor Technique, Vacuum Technique, Industrial Technique, and Power Technique. The common moat pattern is service-led: global service networks and installed-base monetization (parts, contracts, tool management) reinforce retention and recurring revenue. In Vacuum Technique, the moat is strongest where semiconductor vacuum and abatement systems are integrated into critical manufacturing processes and supported by global service capacity. Digital connectivity (remote monitoring and data-driven service) is an additional layer that can increase workflow stickiness, though it faces interoperability and third-party overlay risks. Key counter-pressures across segments are cyclicality in industrial/semiconductor capex, customer multi-sourcing/procurement power, and feature parity from large competitors.

Primary segment

Compressor Technique

Market structure

Oligopoly

Market share

HHI:

Coverage

4 segments · 8 tags

Updated 2026-01-05

Segments

Compressor Technique

Industrial compressors, air/gas systems (including air treatment) and related aftermarket service

Revenue

43.8%

Structure

Oligopoly

Pricing

moderate

Share

Peers

IR6501.T6367.T

Vacuum Technique

Vacuum pumps, abatement and vacuum systems for semiconductor manufacturing plus industrial and scientific vacuum applications

Revenue

22.9%

Structure

Oligopoly

Pricing

moderate

Share

Peers

6361.TMKSIVACN.SWENTG

Industrial Technique

Industrial assembly tools and fastening systems, production-quality solutions (including data-driven service and tool management)

Revenue

16.7%

Structure

Oligopoly

Pricing

moderate

Share

Peers

SWKSNACGNX6861.T

Power Technique

Portable power and flow equipment plus specialty rental (temporary solutions for air, power, flow and temperature)

Revenue

16.7%

Structure

Competitive

Pricing

moderate

Share

Peers

CATCMIGNRCURI

Moat Claims

Compressor Technique

Industrial compressors, air/gas systems (including air treatment) and related aftermarket service

Revenue share computed from FY2024 external revenues (MSEK) by business area in the Q4 2024 report: Compressor Technique 77,433 of Group 176,771.

Oligopoly

Service Field Network

Supply

Strength

Durability

Confidence

Evidence

A large, geographically distributed service organization supports uptime-critical customers, increases aftermarket attach, and reinforces retention across the installed base.

Erosion risks

  • Independent service providers reduce aftermarket capture
  • Commoditization of mid-range compressor offerings
  • Industrial capex downturns reduce new equipment volumes

Leading indicators

  • Service revenue growth vs equipment revenue growth
  • Service share of segment revenues
  • Renewal/attach rates for service plans

Counterarguments

  • Many customers run multi-vendor compressor fleets and can switch suppliers on replacement cycles
  • Service can be outsourced; switching service providers is often easier than switching process equipment

Data Workflow Lockin

Demand

Strength

Durability

Confidence

Evidence

Remote monitoring and connected equipment enable predictive maintenance and energy optimization; integrating monitoring into operations can increase switching friction and support higher service capture.

Erosion risks

  • Third-party monitoring layers reduce vendor-specific lock-in
  • Customer IT/security policies limit connectivity adoption
  • Open protocols and interoperability reduce differentiation

Leading indicators

  • Connected machine count and growth
  • SmartLink/remote monitoring adoption rates
  • Predictive maintenance contract penetration

Counterarguments

  • Connectivity features can become table-stakes and competed away
  • Large customers may insist on data portability and multi-vendor monitoring dashboards

Vacuum Technique

Vacuum pumps, abatement and vacuum systems for semiconductor manufacturing plus industrial and scientific vacuum applications

Revenue share computed from FY2024 external revenues (MSEK) by business area in the Q4 2024 report: Vacuum Technique 40,419 of Group 176,771. Reuters noted Vacuum Technique exposure to semiconductor equipment makers such as ASML: https://www.reuters.com/business/atlas-copcos-operating-profit-slightly-beats-estimates-q4-2025-01-28/.

Oligopoly

Design In Qualification

Demand

Strength

Durability

Confidence

Evidence

In semiconductor vacuum and abatement, equipment is integrated into tool vacuum chambers/subfab environments; performance and uptime criticality create qualification and switching friction once designed in.

Erosion risks

  • Semiconductor OEMs/fabs push dual-sourcing to reduce supply risk
  • Aggressive localization requirements in key regions
  • Competitors close technology gaps in abatement and dry pumps

Leading indicators

  • Semiconductor and flat panel order intake trend
  • Share of service revenue vs equipment revenue
  • Penetration of uptime-based/service contracts

Counterarguments

  • Major semiconductor customers can exert pricing pressure and demand second sources
  • Some components may be specified by tool OEMs, reducing supplier differentiation over time

Service Field Network

Supply

Strength

Durability

Confidence

Evidence

A global service footprint supports uptime-critical vacuum systems (especially in semiconductor production), reinforcing recurring service revenue and customer retention.

Erosion risks

  • Customers standardize maintenance internally or via third parties
  • Geopolitical disruptions constrain parts/service delivery
  • Regional competitors expand service coverage

Leading indicators

  • Service center footprint expansion
  • Service contract renewal rates
  • Mean time to repair / uptime KPIs for key customer fleets

Counterarguments

  • Large fabs often have significant in-house maintenance capability
  • OEMs can require local service from all vendors, narrowing differentiation

Learning Curve Yield

Supply

Strength

Durability

Confidence

Evidence

Technology leadership and accumulated know-how in vacuum pumps (dry and oil-flooded) and systems supports reliability/performance that is hard to replicate quickly in specialized applications.

Erosion risks

  • Competitor innovation narrows performance/reliability gaps
  • Process changes reduce demand for certain vacuum technologies
  • IP leakage and talent mobility

Leading indicators

  • Win rates on new tool platforms/next-gen nodes
  • Field failure rates and warranty cost trend
  • R&D intensity and new product cadence

Counterarguments

  • Some vacuum categories are increasingly standardized and competed on price
  • Tool OEMs can redesign around alternative subsystems if performance converges

Industrial Technique

Industrial assembly tools and fastening systems, production-quality solutions (including data-driven service and tool management)

Revenue share computed from FY2024 external revenues (MSEK) by business area in the Q4 2024 report: Industrial Technique 29,456 of Group 176,771.

Oligopoly

Installed Base Consumables

Demand

Strength

Durability

Confidence

Evidence

Service and consumables tied to the installed base (calibration, maintenance, replacement parts) drive recurring revenue and increase customer stickiness over time.

Erosion risks

  • Procurement-driven standardization reduces differentiation
  • Rival tools/software reduce parts and service capture
  • Manufacturing downturns reduce utilization and service demand

Leading indicators

  • Service and consumables revenue growth
  • Tool calibration/maintenance contract penetration
  • Retention of tool management contracts

Counterarguments

  • Manufacturers can multi-source tools and services, limiting lock-in
  • Some consumables/services can be performed by third parties

Data Workflow Lockin

Demand

Strength

Durability

Confidence

Evidence

Data-driven monitoring and tool-management programs can embed Atlas Copco into production workflows (uptime, performance optimization, quality/traceability practices), increasing switching friction beyond the tool purchase.

Erosion risks

  • Customers demand data portability and use cross-vendor analytics
  • Open platforms reduce vendor-specific workflow dependence
  • Cybersecurity requirements restrict connected tooling

Leading indicators

  • Growth in tool-management program adoption
  • Software/service attachment rates per tool installed
  • Churn on data-enabled service offerings

Counterarguments

  • Third-party MES/quality platforms can sit above tooling vendors, reducing lock-in
  • Large OEMs can internalize tooling analytics and management

Power Technique

Portable power and flow equipment plus specialty rental (temporary solutions for air, power, flow and temperature)

Revenue share computed from FY2024 external revenues (MSEK) by business area in the Q4 2024 report: Power Technique 29,463 of Group 176,771.

Competitive

Capacity Moat

Supply

Strength

Durability

Confidence

Evidence

Specialty Rental relies on a specialized fleet and dedicated expertise to deliver temporary solutions; fleet investment and execution capabilities create a practical barrier versus smaller entrants.

Erosion risks

  • Large rental competitors scale specialty fleets
  • Construction downturn reduces rental utilization
  • Fleet depreciation and residual value pressure

Leading indicators

  • Specialty rental revenue growth
  • Fleet utilization and capex into rental equipment
  • Return on rental assets

Counterarguments

  • Specialty rental is contested by large national rental chains with capital and local coverage
  • Some customers can substitute by purchasing equipment for longer-duration projects

Service Field Network

Supply

Strength

Durability

Confidence

Evidence

A broad service footprint and proactive installed-base management support retention and aftermarket across portable equipment and rental fleets.

Erosion risks

  • Service differentiation narrows as competitors expand networks
  • Parts availability issues weaken service reputation
  • Shift toward standardized electric/battery products reduces service intensity

Leading indicators

  • Service revenue growth vs equipment revenue growth
  • Net promoter score for service operations
  • Parts availability and lead times

Counterarguments

  • Portable equipment is often price-competed through rental channels
  • Service is a necessary feature and may not sustain pricing premiums in commoditized subcategories

Evidence

other
Atlas Copco Q4 2024 Quarterly Report - Business areas

The Compressor Technique business area ... has a global service network.

Direct company statement that the segment operates a global service network.

investor_day
Capital Markets Day 2024 - Compressor Technique

Perform more service on a higher share of the installed base of equipment.

Shows explicit strategic focus on deepening service penetration of the installed base.

investor_day
Capital Markets Day 2024 - Compressor Technique

Hundreds of thousands machines connected.

Signals a large connected installed base supporting monitoring and data-driven service.

other
Atlas Copco - Connected compressors (SmartLink) webpage

More than 120,000 connected compressors are currently improving productivity and efficiency.

Concrete disclosure of connected installed base scale, supporting workflow/data-based service stickiness.

investor_day
Capital Markets Day 2025 - Vacuum Technique

Market leader in semiconductor vacuum & abatement.

Company positioning suggests leadership in a specialized segment where qualification and uptime are central.

Showing 5 of 17 sources.

Risks & Indicators

Erosion risks

  • Independent service providers reduce aftermarket capture
  • Commoditization of mid-range compressor offerings
  • Industrial capex downturns reduce new equipment volumes
  • Competitors bundle similar service contracts and monitoring
  • Third-party monitoring layers reduce vendor-specific lock-in
  • Customer IT/security policies limit connectivity adoption

Leading indicators

  • Service revenue growth vs equipment revenue growth
  • Service share of segment revenues
  • Renewal/attach rates for service plans
  • Field service response times and NPS
  • Connected machine count and growth
  • SmartLink/remote monitoring adoption rates
Created 2026-01-05
Updated 2026-01-05

Curation & Accuracy

This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).

Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.