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The HVAC rental equipment market size is forecast to increase by USD 1.99 billion, at a CAGR of 5.8% between 2023 and 2028. The expansion of the market is fueled by several key factors such as the notable surge in the adoption of cleanrooms across various industries, driven by a growing awareness of the importance of maintaining controlled environments for manufacturing and research processes. Additionally, the proliferation of data centers, spurred by the increasing reliance on digital technologies, contributes significantly to the demand for HVAC equipment rentals. These data centers require precise temperature and humidity control to ensure optimal performance and prevent equipment overheating. Furthermore, the enforcement of favorable regulations plays a pivotal role in driving market growth. Government initiatives aimed at improving indoor air quality, energy efficiency standards, and compliance requirements for environmental sustainability incentivize businesses to invest in HVAC equipment rentals that meet these criteria. Consequently, the convergence of these factors creates a conducive environment for the expansion of the HVAC equipment rental market, with opportunities for providers to capitalize on the evolving needs of industries and regulatory landscapes.
Market Forecast 2024-2028
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In the market, the focus is on providing solutions that ensure indoor environmental comfort while addressing concerns related to global warming and greenhouse gases. Rental facilities, including office buildings and construction projects, rely on primary HVAC systems to maintain climate control and meet sustainability goals. For sensitive environments like hospitals and medical facilities, energy-efficient and eco-friendly HVAC equipment is essential. Technologies like smart and connected HVAC systems enable efficient management and optimization of air conditioners, while filtration solutions such as fiberglass, pleated, electrostatic, and carbon air filters ensure clean indoor air quality. The market also serves industries like mining and LEED buildings, emphasizing high-efficiency particulate air filtration and the adoption of eco-friendly practices in HVAC operations. Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market. A holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
A cleanroom is a controlled environment where all environmental conditions, such as airborne particulates, air pressure, temperature, humidity, static charges, airflow patterns, motion, and lighting, are maintained within strict parameters. Dirt and dust are prevented from adhering to surfaces to ensure that high-quality and reliable electronic and medical end-products are produced within. The demand for cleanrooms is driven by government mandates and the need to enhance the manufacturing process and product quality across various industries. Cleanrooms also have emerging applications in photovoltaic (PV) solar cell manufacturing, fossil fuel exploration, and battery production.
In addition, HVAC systems are crucial to maintaining cleanliness standards in cleanrooms, and their adoption rate has increased in industrial applications that require their use. As a result, the growing adoption of cleanrooms across different industry verticals is expected to drive the growth of the market during the forecast period.
The global chemical industry is experiencing an upsurge in investments in advanced HVAC equipment for process optimization. Primary end-users that use HVAC rental equipment are chemical, food and beverages, construction, electronics, warehouses, and pharmaceutical industries. To preserve inventories, such as food products, dairy products, and pharmaceutical drugs, which have a short shelf life, refrigerated warehouses are operated at specific temperatures. The major end-users of refrigerated warehouses are the food and pharmaceutical industries. The increase in pharmaceutical sales globally will boost the production of pharmaceutical products. The use of advanced HVAC equipment in warehouses reduces the possibility of contamination.
Moreover, the temperature of cold storage systems needs to be maintained at as low as -31F to preserve items, such as ice cream and sea produce. Without any difficulty, advanced HVAC equipment can efficiently operate for a prolonged period under such conditions. Consequently, the use of advanced HVAC equipment in refrigerated warehouses is increasing, which will drive the growth of the market during the forecast period.
Significant upfront investments are required for acquiring and maintaining HVAC rental equipment. Such investments comprise the purchase of HVAC equipment, setting up the equipment fleet, conducting the necessary inspections, and ensuring compliance with industry standards and regulations. The significant initial capital outlay can be a financial burden, particularly for small and medium-sized rental companies. Over time, HVAC equipment depreciates owing to wear and tear, technological advancements, and changing market preferences. Such depreciation influences the resale value of HVAC equipment and affects decisions about fleet renewal and equipment retirement.
However, cash flow shortages can affect the ability of the business to provide timely services to customers. Allocating resources for such expenses while managing the initial investments can be a juggling act that may be hard to sustain, which will adversely affect the growth of the market during the forecast period.
The market share growth by the industrial segment will be significant during the forecast period. Because of the increasing investments in the food and beverages, pharmaceutical, oil and gas, mining, and power industries, the segment is anticipated to dominate the air conditioning (HVAC) rental equipment market. The investments include the expenditure on industrial HVAC that makes industrial processes efficient. The need for efficiency, speed, and security to carry out operations efficiently in the various industrial end-user sectors is growing worldwide.
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The industrial segment was the largest and was valued at USD 2.71 billion in 2018. Various industries, including oil and gas, metal processing, chemical and petrochemical, and construction, make significant contributions to the market. Industries such as oil and gas have a higher risk of explosion due to the presence of gases, fumes, dust, and mist, which can ignite and cause explosions. To maintain standard air quality and heating produced from machines construction sites use air coolers, ventilation, and dust extraction equipment. With the increase in construction activities, there is a growing demand for HVAC equipment rentals worldwide. As a result, the industrial segment's high use of HVAC equipment will drive market growth during the forecast period.
Based on type, the market has been segmented into air conditioning, heating, and ventilation. The air conditioning segment will account for the largest share of this segment.? Air conditioning is an essential part of HVAC systems. It plays a crucial role in maintaining a comfortable indoor temperature for various end-users in residential, commercial, and industrial settings. Air conditioning systems may unexpectedly experience breakdowns or failures. In such cases, rental air conditioning units can provide interim solutions while repairs or replacements are carried out. Renting HVAC equipment, including air conditioning units, offers industrial and residential end-users the flexibility to address specific cooling needs without making a significant upfront investment. This cost-effective approach aligns with the budget constraints faced by various end customers. As a result, these factors will contribute to the growth of the air conditioning segment and propel the market's growth during the forecast period.
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APAC is estimated to contribute 55% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. The highest contributing region in the air conditioning rental equipment market is APAC, and it's expected to remain the same throughout the forecast period. The demand for HVAC rental equipment in APAC is driven by an increase in infrastructure spending in commercial projects.
In addition, the rise in demand for HVAC from the food and beverage industry is supporting the regional market. The growing population is leading to an increase in the consumption of food products, which is encouraging manufacturers operating in the food and beverage industry to open new plants in APAC countries. This increase in the food and beverage industry will also lead to an increase in demand for HVAC systems, thereby propelling the growth of the HVAC rental equipment market in APAC during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Aggreko Plc, Air on Location Inc., AIR SOLUTIONS, Andrews Sykes Group Plc, Ashtead Group Plc, Big Ten Rentals, Brookfield Business Partners LP, Carrier Global Corp., Caterpillar Inc., City Air Toronto Air Conditioning and Heating, Entech Sales and Service LLC, Gal Power Systems, Herc Holdings Inc., HVAC Rentals, Ingersoll Rand Inc., Johnson Controls International Plc, Reliance Comfort Ltd., TK Rentals Sdn Bhd, Trane Technologies Plc, and United Rentals Inc.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market forecasting report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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In the HVAC rental equipment market, the focus extends beyond typical cooling solutions to encompass various sectors and scenarios. Refrigerants play a crucial role, especially in office building and non-residential institutions, where fiberglass filter, pleated filter, electrostatic filter, and carbon air filter ensure air quality. High efficiency particulate air (HEPA) and pocket filters are vital for healthcare and livestock environments, addressing health and safety concerns. With a growing emphasis on sustainability, energy-efficient HVAC equipment, and environmentally friendly refrigerants help lower carbon footprints. Additionally, HVAC systems equipped with virus mitigation capabilities find use in disaster shelters, emergency response centers, and during natural disasters or power outages. The market also caters to the event and entertainment industry, offering financing options and rental services for large-scale events and mining sectors, ensuring comfort and safety in diverse scenarios.
Further, in the HVAC rental equipment market, synthetic polymer materials drive innovation in cooling solutions for various institutions, leveraging automation for efficient operations. From air conditioners to stoves, heating pumps, and radiators, safety considerations are paramount, with an emphasis on air purification systems for healthy indoor environments. During emergency situations such as extreme heatwaves or cold spells, rental HVAC units provide crucial relief, ensuring comfort and safety. These systems are versatile, catering to diverse needs and scenarios while prioritizing health, safety, and efficiency in both institutional and residential settings.
Market Scope |
|
Report Coverage |
Details |
Page number |
180 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.8% |
Market growth 2024-2028 |
USD 1.99 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.26 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 55% |
Key countries |
China, US, India, Germany, and Italy |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aggreko Plc, Air on Location Inc., AIR SOLUTIONS, Andrews Sykes Group Plc, Ashtead Group Plc, Big Ten Rentals, Brookfield Business Partners LP, Carrier Global Corp., Caterpillar Inc., City Air Toronto Air Conditioning and Heating, Entech Sales and Service LLC, Gal Power Systems, Herc Holdings Inc., HVAC Rentals, Ingersoll Rand Inc., Johnson Controls International Plc., Reliance Comfort Ltd., TK Rentals Sdn Bhd, Trane Technologies Plc, and United Rentals Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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