Compressor Rental Market size is expected to foresee strong growth from 2023 to 2032, driven by rapid infrastructure development and industrialization globally. Additionally, robust demand from the mining industry is also likely to augment the industry growth.
In the mining sector, the need for equipment such as hydraulic shovels, cable shovels, and continuous machines, among others, is rising steadily, as the demand for precious metals such as gold, silver, coal, and platinum, lithium grows worldwide.
Compression rentals find widescale use in mining applications for operations such as tire filling, scaling, refuge station air, raise boring, pneumatic conveying, and workshop service air. Consequently, strong growth of the mining sector is adding high revenue impetus to compressor rental market.
The mining industry has faced several challenges in recent years, stemming from limited investment activities across several regions, 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.
With resource-rich nation focusing on kickstarting their economies through novel mining projects, the mining equipment sector is charting a steady path towards its recovery, spurring the compressor rental market in its wake as the product is ideal for heavy mining operations.
The oil and gas industry is another major end-use sphere of the global business scenario. Several economies were pushed into a severe energy crisis with the end of the COVID-19 pandemic and the start of the Russia-Ukraine conflict. In response, numerous developed nations have walked back on their climate pledges and sanctioned new oil exploration initiatives, restarting a previously dying revenue stream for the market.
The compressor rental market landscape is highly competitive and is populated with large corporations such as Caterpillar, Atlas Copco, Aggreko, Herc Rentals, and Ingersoll Rand. Key vendors include Cramo, Blueline, ACME fab-con, Sunbelt, and Coates Hire. Strategic maneuvers and contributions by these prominent industry players have generated several lucrative growth prospects for the industry. Over the last few years, key industry participants have undertaken significant efforts to maintain a stronghold in the market.
For instance, in July 2022, Swedish manufacturing firm, Atlas Copco acquired, FITEC S.A.S., a French distributor specializing in the sales and service of rotary screw compressors and ancillary equipment, selling mainly to small and medium-sized industries. With this acquisition, Atlas plans to strengthen its presence in the Southwest area of France.
Impact of Russia-Ukraine war on compressor rental market
The impact of the war between Ukraine-Russia and inflation on mining industry participants has been tremendous in terms of 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.
However, the situation may improve once the global economy stabilizes, as resource-rich nations are being urged to support and optimize their internal resources, capacities, and synergies. Although the losses brought forth 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 industry outlook by 2032.