Global Market Outlook on Onshore Crane Rentals

  • In 2016, the global onshore crane market was valued at $3.64 billion, and it is expected to grow at 4.2 percent in 2016–2021
  • The market for cranes in North America and the Middle East is saturated, and it is facing a slow growth, whereas APAC is expected to witness the fastest growth in the forecasted period

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Demand and Supply Evolution

The onshore oil fields contribute about 70 percent of the total crude oil produced. The demand for onshore cranes are primarily driven by refinery maintenance, drilling and expansion activities of wells

  • The global demand for onshore crane rentals depends largely on the oil and gas industry
  • The fall in oil prices from late 2014–2016 has led to the OPEC decision to cut supply, which, in turn, increased the stability of oil prices. In 2017, crude price faced a small increase
  • This increase in price is expected to increase the stagnant investment in the oil sector (medium term), and thus, expected to act as a strong demand driver for the onshore crane market as well
  • The increased investment in the offshore project, especially in the US, is being stabilised, and the onshore production holds 70 percent of the overall oil production capacity
  • The crane market in the US and the Middle East has reached maturity
  • APAC is expected to be the fastest growth market for the crane rental market driven by the increasing investments from India, China, Thailand and Malaysia

Growth Drivers and Constraints

The growth of onshore crane rentals can be signaled directly by the growth of the oil and gas industry. Price increase, increased investment, in terms of new refinery or capacity expansion, will directly act as the drivers of the crane rentals industry.
Drivers
Recovery in Oil Prices

  • The fall in oil prices has strongly affected the market in 2015–2016, as the price of crude fell drastically
  • As the crude is under the road to recovery, the industry is expected to resume expansion projects Increased Investment by Oil Companies
  • The rig counts increased to 700 from the lowest point at 400. Also, large players in the industry are expected to increase investment

Constraints
Growth in Other End-use Sectors

  • The demand for cranes in construction and infrastructure industries is in a boom globally, which will take up the cranes off the market
  • In long-term view, the oil and gas industry is still in a consolidation period, where in the industry investment is relatively in a falling trend as opposed to the last decade