From what I know about air dryers, they come in two flavors.
There is the mechanical type that uses refrigeration system to cause the moisture in the compressed air to condense on some refrigerated tubing (the compressed air is circulated passed the tubing). The moisture is gathered at the bottom and on the better units is automatically dumped.
Then there is the desiccant type which means that the air passes through a chemical that readily absorbs the moisture. However, when the chemical is "full" of moisture, the way to get it out is to heat it for a period of time, usually with a built in heater. Since this means that the dryer will be out of service for a period of time, usually several hours as the heat drives out the moisture, this isn't an option for many people. But it is a good option for the hobbyist as it is much cheaper than a refrigeration type dryer.