Compressor Rental Market size is anticipated to witness healthy growth during 2020 to 2026. Rapid infrastructure development and industrialization across the globe, alongside robust demand from the mining industry is likely to propel the market growth. In the mining sector, the need for equipment such as hydraulic shovels, cable shovels, and continuous machines, among others, is rising steadily, owing to the burgeoning demand for precious metals such as gold, silver, coal and platinum.
A compressor is a mechanical device that is designed to increase pressure in myriad compressible gases or fluids, including air. They are utilized across the industrial spectrum, for a number of applications including to phase shift refrigerants in air conditioning and other cooling systems, for gas propulsion through pipelines, or to power abrasive blast equipment, paint sprayers or power air tools, among others.
The recovery of the mining equipment industry is projected to assert a significant influence on the compression rental market outlook. Compression rentals show robust potential in mining applications, such as tire filling, scaling, refuge station air, raise boring, pneumatic conveying and workshop service air, among others. Thus, growth in mining activities is likely to add impetus to compression rental market demand over the upcoming years.
The mining industry has faced several challenges in recent years, however, stemming from limited investment activities across several regions, as well as rising mineral and metal demand and pressure to increase output at economical rates. New technologies and innovations in the mining sector are helping to overcome these roadblocks, by offering mining companies lucrative opportunities to enhance their efficiency, productivity and cost-effectiveness. The restoration of the mining equipment market is therefore anticipated to augment compressor rental industry demand over the forecast spell, given the product’s suitability for heavy mining operations.
The oil and gas sector is another major end-use sphere of the global compressor rental market. Increasing oil exploration activities the world over have led to a substantial increase in the demand for compressors.
The global market share is highly competitive and is bolstered by the presence of major companies such as Caterpillar, Atlas Copco, Aggreko, Herc Rentals (formerly Hertz Equipment Rental Corp.), and Ingersoll Rand. Other key vendors include Cramo (Boels Rental), Blueline, ACME fab-con, Sunbelt and Coates Hire (Seven Group Holdings).
Strategic maneuvers and contributions by these prominent industry players have generated several lucrative growth prospects for the compressor rental market. Over the last few years, key industry participants have undertaken significant efforts to maintain a stronghold in the market.
For instance, in 2019, Atlas Copco added five specially designed products to its air compressor portfolio in India, designed to boost the competitive position of small & medium sized businesses. The range included a series of new screw air compressors, piston air compressors, as well as on-site nitrogen generators, designed to accommodate evolving demand from myriad industry segments, including textile, food & beverage, auto & ancillaries, metal, paper and general engineering, among others.
Caterpillar also undertook steps to strengthen their position in the mining, infrastructure and energy industries in India, by launching several new products with cutting-edge and innovative technologies, including the Next Gen Cat 120 Motor Grader, alongside various other additions to its diverse product portfolio.
The ongoing COVID-19 pandemic has had a far-reaching and drastic impact on the entire industrial landscape. For mining, especially, this impact has caused significant upheaval, as most mines were forced shut or have had to place operations on care and maintenance, in accordance with lockdown protocols, leaving a considerable dent in production and export activities.
The impact of the crisis on mining industry participants has been tremendous, in terms of both operational and financial pressure, as production scaled down rapidly and supply chain disruptions surged. This pressure is, in turn, also establishing a hold on compression rental market dynamics, as dwindling mining activities lead to a significant gap in the supply-demand ratio.
The situation may improve once the global economy stabilizes, however, as resource-rich nations are being urged to support and optimize internal resources, capacities and synergies. Although the losses brought forth by the onslaught of the pandemic are immense, it is anticipated that the combined efforts of these resource-rich regions and environmental resources could help recover systems that support the mining industry, which could spell potential advancement for the compressor rental market in the years ahead.