Compressor Rental Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Compressor Rental Market is Segmented By Type (Reciprocating, Rotary Screw, Centrifugal), By Lubrication System (Oil-Lubricated, Oil-Free), By Drive System (Gas Driven Compressor, Electric Driven Compressor, Fuel Driven Compressor), By End-User (Building & Construction, Mining, Power, Oil and Gas, Chemical, Manufacturing, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Compressor Rental Market Overview

The "global compressor rental market" is expected to reach at a high CAGR during the forecast period (2024-2031). Compressed air is critical for industrial processes and temporary requirements for compressed air can come up at any time.

Utilizing compressor rentals strategically and effectively requires industrial facilities and utility operators to do their homework before it arises. Renting commercial air compressors has become a regular business. Money, productivity, demand, and equipment upkeep can influence company decisions. Since the rented compressor is often a temporary device, getting more specific with system needs is easier. Adjust the compressor to the facility's system and if things change, rent a different one. Adaptability can additionally save costs and optimize productivity in different ways.

In some cases, leasing an air compressor and the one currently in use is necessary. Seasonal demand is an important factor to consider for any business. The spikes necessitate the deployment of additional compressors to accommodate the increased compressed air required to keep up with seasonal order periods. Aside from the periodic structure of the sales cycle, seasonal weather conditions must also be considered. The natural conditions of a compressor's location can affect its performance.

Compressor Rental Market Scope

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Compressor Rental Market Dynamics

The global compressor rental market is expected to boost with rising use from companies with limited capital budgets.

Rising use from companies with limited capital budgets

Companies with limited capital budgets can rent air compressors to satisfy their financial needs while maintaining continuous manufacturing output and uptime. For example, they might not have enough money in their capital budget to buy a new compressor if one breaks down unexpectedly. The equipment can be rented and paid for out of the operating budget rather than the capital budget. Renting is a cost-effective way to keep air-driven plant activities running smoothly. Renting can be a great choice for organizations with limited finances or those that need temporary equipment that demands more air than the facility's existing compressed air capacity. Temporary compressed air systems make it easier to keep a process running by allowing continuous operations to maintain the air capacity required.

Renting air compressors guarantees the use of equipment for specific periods and with a fixed cost. Additionally, manufacturing companies may benefit from maintenance support services that are automatically included with rental equipment. Compressor rentals allow manufacturing plants to access reliable, temporary compressed air to keep their production and critical processes continuously up and running. Additionally, by selecting the rental equipment producing the appropriate air quality, companies can avoid system and process contamination and the resulting process waste and expensive cleanup of contaminated process equipment. Running older air compressors might be more expensive than renting more appropriately equipped and performing compressors.

When facility changes are underway, the last thing needed is for product quality and productivity to be at risk. Temporary compressed air solutions facilitate continuous operations during plant upgrades, renovations, or routine maintenance, keeping production running at peak efficiency. Air compressor rentals can sustain critical processes when planning for facility changes while new equipment and other changes are being adopted.

Stringent regulations on the use of air compressors

If the air compressor tank is 1.5 cubic feet or more, or the safety valve is set higher than 150 pounds per square inch, Cal/OSHA requires a permit (psi). However, all air compressor tanks (whether over or under 1.5 cubic feet and 150 psi) must be inspected before being serviced to ensure that they meet Cal/OSHA requirements for tank material, design, and construction.

California has the strictest regulations in the U.S. across many industries and air compressors are no exception. Further, California's legislation often pioneers the laws adopted by the rest of the nation. Beginning January 2023, commercial and industrial air compressors sold in California must use the federal test procedure and meet state standards. The state standards need to follow according to the California Code of Regulations (CCR), section 1605.3(s)(2).

COVID-19 Impact on Compressor Rental Market Growth

The compressor rental sector has faced a downfall during COVID-19. As various industrial operations were either halted or were working with specific guidelines, the demand for rental compressors declined suddenly. Compressor rental is widely utilized in various industries, including construction, mining, automotive, and oil & gas and the losses in these industries have directly impacted the market demand.

For example, During COVID-19, the UK construction industry faced losses of around US$410.8 million (£301.5 million) per day. The impact of the Coronavirus in India will reduce investment in the construction industry by 13 to 30%, probably affecting gross value added. Moreover, according to a survey conducted by the Associated General Contractors of America in 2020, 78% of contractors responded that they are experiencing project delays or disruptions.

Moreover, according to the OICA report, the automotive industry faced a production decline of 16% in 2020, to less than 78 million vehicles, equivalent to 2010’s sales levels. Europe as a whole witnessed a drop of over 21% on average. All main contributing countries had sharp declines, ranging from 11% to 40%.

Compressor Rental Market Segment Analysis

The global compressor rental market is segmented based on type, lubrication system, drive system, end-user, and region.

Companies looking for more cost-effective and environment-friendly operations will boost the demand for electrically driven compressor rental

The global compressor rental market is segmented into gas, electric, and fuel-driven compressors based on the drive system.

Electric compressors provide various advantages over diesel, including saving money on energy (electricity is much cheaper than diesel fuel), conserving resources, reducing maintenance cost and frequency, no risk of exposure to strong odor and vapors, eliminating diesel-fuel spills and leakage, producing better quality compressed air, emitting no carbon, enhancing safety and making less noise.

Various industries have shifted from fuel to electric-driven compressors for more environment-friendly and cost-effective solutions. Compressed air is used in various critical mining applications, such as heap leaching, wastewater treatment, and power-compressed air-driven equipment. Because mines are located in remote regions and harsh environments, reliable equipment, spare parts, and local service support are top priorities for mine operators.

Originally, Unity Mine in SouthWales utilized small rented diesel-driven compressors, but there was rising concern with their mechanical reliability and their dependency on supplied diesel fuel, in addition to increasing rental and fuel costs. The company switched from rented, diesel-driven compressors to two electric-driven compressors with energy efficiency and reliability. The new compressors are projected to save nearly US$ 22,000 annually in energy costs alone.

Compressor Rental Market Geographical Share

Rising demand from the construction and mining industry will boost the market demand in North America

Diesel air compressors largely dominate the market. However, with the upcoming regulations on emission standards, the market is expected to shift towards electric compressors in the region. The major factors driving the rental compressor growth include a shift away from spending huge capital expenses from buying machines to renting, changing emission requirements, aging equipment failures, and replacement and rising demand from various end-user sectors. Construction is a significant contributor to the U.S. economy. The industry creates nearly US$ 1.4 trillion worth of structures every year.

The mining sector has also been growing in the region. The U.S. is also the world's leading producer of beryllium and sulfur and the third-largest producer of gold and copper. In surface and subsurface mines, industrial air compressors are utilized as a viable source of electricity for powering drilling and piling machinery, material conveyors, pneumatic tools, and ventilation systems.

Various rental companies have been utilizing strategies to expand their market presence in the region. For instance, In 2021, CSI Compressco LP completed the relocation and expansion of its East Texas facility from Longview to Kilgore. The new 'Center of Excellence facility provides the company with a significant increase in compressor fleet repair and overhaul services and aftermarket services and parts. The new centralized facility allows the company to service the compressor rental fleet more efficiently while expanding the aftermarket services and parts sales.

Moreover, in 2020, Pye-Barker Engineered Solutions announced joining their business operations with Coastal Air Compressor, Inc. to offer an expanded product portfolio and enhanced service capabilities to Georgia's manufacturing and industrial market. It includes their complete line of replacement lubricants, air compressor rental/rebuild services, new and pre-owned air compressors, dryer sales, and service operations.

Compressor Rental Companies and Competitive Landscape

The global compressor rental market is extremely competitive and fragmented. Various companies operate at the global and local levels in the market. Major players in the market include Ironline Compression Services, Atlas Copco, Ingersoll Rand, Cisco Air Systems, Ingersoll Rand, United Rentals, Inc, and Aggreko plc. Caterpillar Inc, Herc Rentals Inc., and Hertz Equipment Rental Corporation, among others.

The players in the market are known to incorporate numerous market strategies to achieve growth in the global compressor rental market; these include mergers, acquisitions, contributions, and expansions.

Ironline Compression Services

Overview: Ironline Compression is a major compression rental business that sells, purchases, and rents gas and air compressor packages and ancillary equipment. With one of the best-equipped fleets in Western Alberta, the company offers a diversified set of oil & gas companies a differentiated set of contract compression and rental solution offerings.

Product Portfolio:

• Rental: The extensive line of natural gas-powered compressors includes small to large horsepower rotary screws and reciprocating packages.
• Key Development: In 2021, Staple Street Capital announced the sale of Ironline Compression’s aftermarket services division to Surepoint Technologies Group. However, Staple Street Capital will continue to own the compression rental business of gas and air compressor packages.

The global compressor rental market report would provide approximately 69 tables, 65 figures, and almost 180 pages.