Air compressors, a key fluid power technology, play an important role not only in industrial plants but also in office buildings, hospitals, and other types of facilities. The efficient use of the air compressor is crucial to control unnecessary inefficiencies that cause high energy consumption. This study aims to provide energy and exergy analysis on air compressors for different industries. Detailed case studies are also analyzed. The case study focuses on the energy and exergy analysis of the compressed air system of foundry industries. The results indicate that applying the six improvement recommendations yield significant amounts of energy and cost savings as well as significant improvements in the overall performance of the system. The payback periods for different recommendations are economically feasible and worthwhile to use. The suggested improvement methods can provide high costs with a low payback period.