Compressor Rental Market

The compressor rental market was valued at USD 4.4 billion in 2022 and is projected to reach USD 6.2 billion by 2028, at a CAGR of 5.8% between 2023 and 2028. Many different industries, including manufacturing, construction, automotive, oil and gas, refrigeration, and many others, employ compressors extensively, which drives the market.

Attractive Opportunities in the Compressor Rental Market

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Market Dynamics:

Driver: New customized compressed air rental solution

Major players offer compressor rental services engineered for specific applications, for short and long term, and various ranges. Rental options provide the ability to scale compressed air capacity up or down in response to production needs or maintenance outages, negating the need for substantial capital expenditures for permanent installations. Overall, the need for adaptability, flexibility, cost savings, and operational efficiency is driving demand for customized compressed air rental solutions.

Restraint: Uncertainty in raw material prices

Raw materials for compressors include forged carbon steel, stainless steel, and cast iron, among others. Prices for these raw materials are extremely sensitive to changes in macro-economic conditions. The rental rates that compressor rental firms offer may be impacted by the volatility of raw material prices. Rental companies may need to change their rates if the price of raw materials rises noticeably in order to remain profitable and pay their costs.

Opportunity: Next generation air compressors

Smart control systems that enable remote monitoring, data analysis, and compressor performance optimization are a feature of next-generation air compressors. Real-time monitoring of important metrics, proactive maintenance, and remote diagnostics are all made possible by Internet of Things (IoT) connectivity. The demand for energy efficiency, sustainability, connection, and dependability is what is driving the development of the next generation of air compressors, thus offering opportunity for the growth of compressor rental market.

Challenge:  Equipment availability challenges

The availability of equipment can be a problem when renting compressors, particularly if they are specialists in certain models or sizes, some rental companies could have a small selection of compressors. Due to greater demand, rental companies in crowded areas or large cities might stock a wider variety of compressors. On the other hand, in rural or remote places, selections can be more constrained, necessitating longer delivery periods or other rental providers. This provides a challenge to the compressor rental market.

Compressor Rental Market: Ecosystem

Prominent companies in this market include Atlas Copco (Sweden), United Rentals, Inc. (US), Ingersoll Rand (US), Caterpillar Inc. (US), Hertz Equipment Rental Corporation (US), Ashtead Group Plc (UK), H&E Equipment Services (US), Loxam Group (France), HSS Hire (UK).

Based on end-use industry, the construction segment dominated the compressor rental market in 2022, accounting for the largest market share. Environmental rules, such as emission standards and limits on noise pollution, are becoming more and more applicable to construction projects. Rental firms provide these regulations-compliant, contemporary compressor types, which are both energy- and environmentally friendly. Variable speed drives (VSD), a feature of energy-saving compressors, aid construction organizations in achieving sustainability objectives while lowering operating costs, thus driving the market of this segment.

The rotary screw compressor type segment is expected to lead the compressor rental market. Rotary screw compressors are ideal for rental applications because they can be moved and set up fast and easily, especially in mobile work areas such as construction. The attraction of rotary screw compressors in the rental industry has been further boosted by technological developments. Modern rotary screw compressors now come with advanced control systems, digital interfaces, remote monitoring capabilities, and preventive maintenance features.

The Asia Pacific region is expected to lead the compressor rental market between 2023 and 2028.  Advanced compressor models with attributes such as remote monitoring, proactive maintenance, and real-time data analytics are available from rental firms. Businesses will find compressor rentals more appealing as a result of these technological improvements in equipment performance, decreased downtime, and increased operational efficiency. To encourage the expansion of industry, environmental sustainability, and infrastructure development, many nations in the Asia Pacific area have implemented government initiatives and regulations, thus fueling market growth.

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Key Market Players

Atlas Copco (Sweden), United Rentals, Inc. (US), Ingersoll Rand (US), Caterpillar Inc. (US), Hertz Equipment Rental Corporation (US), Ashtead Group Plc (UK), H&E Equipment Services (US), Loxam Group (France), HSS Hire (UK) are among the major players leading the market through their geographical presence, enhanced production capacities, and efficient distribution channels.

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Scope of the Report

:

This research report categorizes the compressor rental market based on end-use industry, type, and region.

On the basis of end-use industry:

• Construction
• Mining
• Oil & Gas
• Power
• Manufacturing
• Chemical

On the basis of compressor type:

• Rotary Screw
• Reciprocating

On the basis of region:

• Asia Pacific
• Europe
• North America
• Middle East & Africa
• South America

Recent Developments

• In June 2023, Atlas Copco finalized the acquisition of National Pump & Energy (NPE), a leading provider of dewatering, environmental services, and water treatment solutions in Australia and New Zealand.
• In November 2021, Ingersoll Rand acquired Dosatron International L.L.C, a renowned provider of water powered dosing pumps and systems. By acquiring Dosatron International, Ingersoll Rand strengthens its position in the market for water powered dosing pumps and systems.
• In May 2021, United Rentals Inc. completed the acquisition of General Finance Corporation that provides mobile storage, liquid containment, and modular space.

Frequently Asked Questions (FAQ):

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