Infrastructure Projects Will Fuel Growth in the Compressor Rental Market Owing to Rising Infrastructure Spending
The compressor rental market offers short-term and long-term rental of compressors which are majorly used across various end-use industries such as construction, mining, and oil & gas. Compressors are machines used to compress air or gas to high pressures. The demand for compressors is primarily driven by their use in construction projects for activities such as operating pneumatic tools and equipment. They are also used in mining industries to power rock drills, jackhammers, and other mining tools that require compressed air.
The compressor rental market is estimated to be valued at USD 5.37 Bn in 2024 and is expected to reach USD 7.95 Bn by 2031. It is projected to grow at a compound annual growth rate (CAGR) of 5.76% from 2024 to 2031.
Key Takeaways
Key players operating in the compressor rental market are Atlas Copco, Ingersoll Rand, United Rentals Inc., Hertz Equipment Rental Corporation, and Sunbelt Rentals Inc.
Rising infrastructure development activities across both developed and developing countries have fueled the demand for compressors in construction projects. Asia Pacific region is witnessing high growth in infrastructure projects which is driving the compressor rental market.
Technological advancements in
Compressor Rental Market technology have led to the development of portable, fuel-efficient compressors with reduced noise levels and carbon footprint.
Market Trends
Electric compressors are gaining popularity owing to stringent environmental norms restricting the use of diesel compressors. They offer improved air delivery, are more energy efficient and have lower maintenance costs. Adoption of IoT and AI in compressors enables remote monitoring of equipment performance and predictive maintenance. This improves asset utilization for rental companies.
Market Opportunities
Increasing investments in renewable energy sector to drive demand for compressors in wind turbine manufacturing. Growing demand for compressed natural gas vehicles will boost opportunities in the transportation sector. focus on infrastructure development in developing Asian and African countries presents major growth avenues.
The Impact Of COVID-19 On The Compressor Rental Market
The COVID-19 pandemic has significantly impacted the global compressor rental market. During the initial months of the pandemic in 2020, many countries imposed strict lockdowns and business closures to curb the spread of the virus. This led to a sharp decline in industrial and commercial activities where compressors are commonly used. Many ongoing construction projects were halted which reduced the demand for compressor rentals. The shutdown of manufacturing facilities also diminished compressor requirements in industries. As a result, the compressor rental market witnessed a major slowdown in growth during this period.
However, as restrictions started easing in late 2020, activities began resuming gradually. The demand for compressors rose again as construction works restarted and industrial operations scaled up production. Many companies also increased their healthcare capacities and invented new medical solutions to fight COVID-19 which drove up compressor usage. The rental segment benefitedmore than equipment sales since customers preferred flexibility over investments. Various infrastructure projects got expedited post lockdowns to boost economic recovery which further supported market revival. The pandemic also upsurged demand for portable compressors in sectors like food processing and packaging. The rental business model enabled customers to fulfill sudden needs without large capital outlays.
Geographical Region
The geographical region where the compressor rental market is most concentrated in terms of value is North America. This is due to high industrial activity, ongoing infrastructure projects, well established rental companies and advanced adoption of compressor rental services across sectors in countries like US and Canada. The Asia Pacific region is projected to be the fastest growing market during the forecast period. This is attributed to increasing industrial investments, expanding construction industry and rising compressor usage in the food & beverage sector across major countries like China, India and South East Asian markets. Rapid urbanization and growth of manufacturing hubs will further supplement the regional market progress going ahead.
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc.
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