Supply Chain Dynamics Shaping Growth and Challenges in the North American Air Compressor Rental Market
This study focuses on the North American air compressor rental market with geographical coverage of Canada and the United States of America. For purposes of this research, compressed air rental includes both oil-free, oil-flooded and instrument quality (IQ) units.
This report provides an overview of the air compressor rental market in North America (United States and Canada) and has focused on oil-free diesel, oil-flooded diesel, oil-flooded electric and oil-free electric air compressors. The report is further segmented by class 1 vs class 0, horsepower (HP) range and pressure (psig) range. The report captures the growth drivers, restraints, market trends, technology market landscape, and supplier landscape.
The focal point of the analysis remains rental compressors in North America only and does include any other rental equipment products. The total revenue provided in the study is solely the revenue generated from the rental business and does not include any peripheral costs or supplementary materials costs. The scope of this study does not include sales or refurbishment of this equipment. This study only focuses on equipment rented out to customers for use. The scope of the study encompasses the United States and Canada. The base year for the study is 2022 with forecasts to 2029.
This report captures the following information about the North America Rental Air Compressor Equipment Market:
- Market Size, Growth Rate, Revenue Forecast (2022-2029)
- Growth Drivers & Restraints
- Market Challenges
- Market Trends
- Technology Trends
- Market Landscape
- Competitive Landscape
- Market Share by Revenue for Competitor, Equipment Type, End-user for both oil-free and oil-flooded air compressor equipment
- Strategic Recommendations
- Quotes by Key Industry Participants
End-User Categories:
Petrochemical & Refining - Air compressors are used throughout the hydrocarbon and chemical processing industries in places such as refineries, gas plants, petrochemicals, chemicals, and synthetics.
Pipeline - Refers to pipeline, sewer, and underground utility contractors. Compressors are necessary for continued function and maintenance of the expansive network of subsurface pipeline systems that extend across the nation.
Painting & Sandblasting - Air compressors utilized for painting and sandblasting operations.
Mining - The end-user utilizes heat for both process and comfort purposes, extracting ore, coal and/or minerals from the ground.
Construction - Refers to any application involved with the construction, alteration and repair of buildings, structures, and other real property. This category is addressed by oil-injected air compressors.
General Manufacturing - Refers to any manufacturing operation of component or finished good where an air compressor is temporarily used.
Pharmaceutical - Refers to the manufacturing of drugs and other pharmaceutical products.
Food & Beverage - Refers to air compressors temporarily used for the manufacturing of food and beverage products.
Table of Contents
I. Research scopeII. MethodologyIII. Market SegmentationIV. End-user Definition
V. Market Restraints
Samples
LOADING...
Executive Summary
The North American air compressor rental market has experienced a swift resurgence following the aftermath of the COVID-19 pandemic. Notably, the years 2021 and 2022 saw remarkable growth, with increases of approximately 17.0% and 20.0% respectively. This heightened demand can be attributed to prolonged equipment lead times and postponed facility maintenance resulting from disruptions caused by the pandemic.
Supply chain limitations have a dual impact on the North American air compressor rental market. Extended lead times for new air compressors and repair components have driven demand for rentals, as users faced delays in receiving equipment. Rental companies with robust supply chains capitalized on this trend, driving market expansion. However, these constraints also present challenges for air compressor rental companies. Lengthened lead times and escalated costs for new equipment and parts have disrupted manufacturing processes and fleet expansion plans.
Moreover, a shortage of skilled labor is emerging as a critical constraint for rental companies, affecting various aspects including equipment delivery, setup, installation, and maintenance services. The scarcity of proficient technicians hampers system design and troubleshooting during repairs, constraining the growth potential of certain companies.
Apart from the mentioned challenges, the air compression rental market is a well-established and mature market with robust demand across diverse customer segments. Factors such as the advantages of renting equipment over ownership, urbanization, construction growth, and demand from the petrochemical and refining sector are key drivers bolstering interest in air compressor rental.
The North American Air Compressor Rental Market report is segmented by equipment type (Oil-flooded, Oil-free, and Instrument Quality), end user, engine type, horsepower range, and pressure. Noteworthy customers include those from the petrochemical and refining, general manufacturing, pharmaceutical, food and beverages, construction, and painting and sandblasting sectors.
The petrochemical and refining sector continues to hold a dominant position in the air compressor rental market, accounting for a substantial 55.0% share of the oil-free air compressor segment. Evolving trends and operational capacities in U.S. refineries influence demand patterns for air compressor rentals within this sector.
Similarly, the construction sector maintains its prominence in the oil-flooded air compressor rental market, capturing a significant 65.0% market share. The sector's heavy reliance on compressors for various construction applications underscores its pivotal role in shaping the market landscape. As urbanization continues to drive construction activity, the air compressor rental market is poised to benefit from increased demand within the construction industry.
Oil-flooded air compressors are the most frequently rented, representing 48.0% of the total air compressor rental market. Instrument Quality (IQ) air compressors are seen as cost-effective alternatives to oil-free counterparts in specific categories where the perceived risk can be minimized and managed, and the economic benefit outweighs potential risks associated with failure and oil contamination of processes.
Key companies covered in this report include Atlas Copco USA Holdings Inc., Aggreko, LLC, United Rentals, Inc., Sunbelt Rentals, Inc., Herc Rentals Inc., and CAT Dealership Network. This report offers an in-depth analysis of the overall North American Air Compressor Rental Market, capturing various market dynamics such as growth drivers, restraints, market revenues and forecasts, technology trends, and a competitive landscape assessment.
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Aggreko
- Atlas Copco
- CAT Compressed Air Technologies
- Herc Rentals
- Ingersoll Rand
- Roger Machinery
- Sunbelt Rentals
- The Caterpillar dealership network
- United Rentals
Methodology
LOADING...
