SAN ANTONIO, March 22, 2017 (GLOBE NEWSWIRE) -- Verify Markets’ analysis of the North American rental air compressor industry shows annual sales of $855 million with a compound annual growth rate of 3.4% from 2016-2023 for oil-flooded and oil-free equipment combined ( https://www.verifymarkets.com/products/2017-n...sor-market ).
The market is largely dominated by diesel air compressors. However, with the tightening of regulations on emission standards, more focus is being given to electric compressors. Factors driving the growth in the market in recent years include: a shift away from buying with capital expense budgets to renting with operating expense budgets, aging equipment failures and replacement, changing emission requirements, growth in the petrochemical and refining segment and the Donald Trump presidency adding potential growth to the manufacturing, coal and mining verticals. The Trump presidency also has the potential of currency devaluation as a consequence of a movement away from trade agreements like the North American Free Trade Agreement (NAFTA) and the Trans-Pacific Partnership (TPP). Such currency devaluation could encourage the purchasing of air compressors as opposed to renting.
The EPA’s stringent emission regulation standards on a tiered structure (Tier 1-4, four being the strictest) to reduce hazardous emissions from compressors has increased new equipment prices up to 30 percent. This circumstance has transferred equipment costs to increased rental rates to the end-customer. However, list prices are often negotiated downwards, providing pricing pressure on rental rates. Companies that focus on the refurbishment and rental of used equipment have thrived in this environment.
The overall market is mature and competitive, with the presence of regional and national market participants trying to get a strong foothold in the market. Major market participants include: Atlas Copco, Aggreko, the Caterpillar dealership network, United Rentals, Ingersoll Rand Rentals, Sunbelt Rentals, Herc Rentals and BlueLine Rental. Smaller and regional market participants include Air Equipment Rental, Wistar, Sunstate Rentals, Neff Rental, Capital Machinery Systems and Griffith Air Tool, among many others.
Instrument quality (IQ), oil-flooded equipment, with after-treatment, provides customers with a cost effective alternative to Class 0, oil-free equipment. This equipment is ideal for customers that can afford to manage the risk associated with potential contamination and failures associated with a 99.9% oil-free solution. Furthermore, other technology advances like the utilization and integration of variable frequency drives (VFDs), global positioning systems (GPS) in rentals, streamlined applications for rentals using mobile devices and big data provide a promising impact to growth, accessibility and simplicity in the market.
This report provides an overview of the 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 horsepower (HP) range and pressure (psig) range. The report captures the growth drivers, restraints, market trends, technology market landscape, and supplier landscape, while providing strategic recommendations.
A copy of the North American Rental Air Compressor Market research report can be obtained at www.verifymarkets.com .
Contact: Haley Rico Phone: 210-595-9687 Email: haley@verifymarkets.com
