The global IBC rental business is projected to experience significant growth over the forecast period, due to various driving factors such as the growing demand from low-capital end-users and stringent shipping and storing regulations. A report from FMI studies the IBC rental business and provides critical insights for the forecast period 2019–2029.
The global IBC rental business is estimated to be valued at ~ US$ 1 Bn in 2019, projecting a CAGR of ~ 5% during the period of 2019-2029. The growth of the IBC rental business is noticeably driven by increasing demand from small to middle-scale chemical companies.
The IBC rental business is expected to witness a steady growth rate in the foreseeable future, owing to the growth of the global chemical industry. In addition, continued urbanization in the developing economies of South and East Asia has increased the demand for chemical which is expected to directly impact the growth of the IBC rental business.
Europe to Remain as Dominating Market Region throughout the Forecast Period
The IBC rental business is closely related to the export activities and manufacturing of chemical and value-added products of different countries. The domestic production of end user in different regions are estimated to be a key factor in analyzing the leading end-use industries for the IBC rental services. Europe is expected to dominate the regional market in terms of demand, owing to its established export business. In 2018, Europe contributed nearly 40% of the total global export of chemical products. The Benelux and Germany are estimated to account cumulatively 1/3 of market share in the European IBC rental business. South Asia is anticipated to witness a fast-paced growth, owing to government policies to increase the export of chemical products from ASEAN regions and India.
Temperature-controlled IBCs to Gain Traction in Coming Years
The global market of IBC rental business has been segmented in terms of material type, product type, content, capacity, end use, and regions. The regions are segmented into North America, Latin America, Europe, East Asia, South Asia, and Middle East & Africa.
- By product type, carbon steel IBC is generally preferred in the IBC rental business. In terms of value, stainless steel IBC is estimated to be the leading product in the market. The reusability and secure handling of hazardous and flammable products are critical features, due to which steel IBCs are highly used in IBC rental business.
- By content, shipping and storing of liquid are the main applications of rental IBCs. The higher safety, filling, and dispensing offered by IBCs are expected to prove itself as great packaging formant for industrial products packaging.
- By capacity type, the IBCs with the capacity of 1,001-1,500 liters are estimated to be prominent in the global IBC rental business, owing to the specific standard size mentioned by regulatory authorities.
- By end use, the industrial chemicals segment is leading for IBC rental business. The food & beverages segment is projected to be an emerging segment for IBC rental business, due to estimated increment in export volume based on previous five-year trade.
IBC Rental Business: Market Vendor Insights
The report highlights some of the market players, who have recognized themselves as leaders in the global IBC rental business. Some of the global key players in the IBC rental business profiled in report are CHEP, Good Pack Ltd., Hoover Ferguson Group, Arlington Packaging (Rental) Limited, Precision IBC, Inc., Hoyer Group, Metano IBC Services, Inc., CMO Enterprises, Inc., Mitchell Container Services, Inc., Global Packaging Services (GPS), Envirotainer AB, Americold, HCS (Hawman Container Services), SCHÄFER WERKE GmbH, and TPS Rental Systems.
Some of the IBC manufacturers are also showing interest to enter in IBC rental business owing to high-profit opportunity in renting, cleaning, and maintaining services of IBCs and will incrementally contribute to volume growth of the rental IBC global fleet.
These insights are based on a report on IBC Rental Business Market by Future Market Insights