The power rental market is estimated to be valued at
US$ 6.19 Bn in 2023 and is expected to exhibit a CAGR of 5.6% over the forecast
period 2023 to 2030, as highlighted in a new report published by Coherent
Market Insights.
Market Overview:
The power rental market includes companies that provide power generators and
associated services for a variety of temporary and emergency power needs. Power
rental services find applications in construction, mining, maritime, utilities,
oil and gas, events, and other industries that require backup or temporary
power. Generators of varying capacities and fuel type including diesel, natural
gas, and hybrid are offered on either wet or dry rental basis as per customer
needs and applications.
Market Dynamics:
The power rental market is witnessing high growth on account of two major
drivers-
Growing construction and infrastructure development activities in emerging
economies lead to higher demand for power rental services for meeting temporary
power needs at construction sites. Major global construction projects such as
ones under Belt and Road Initiative boost market opportunities. Additionally,
increasing instances of natural calamities and power outages have led to
growing need of rental power backup among industrial facilities and commercial
establishments to avoid business interruptions. This helps augment the market
growth.
Segment
Analysis
The global power rental market is dominated by diesel generators. Diesel
generators accounted for over 75% of the market share in 2022 owing to their
wide availability and cost effectiveness. Diesel generators are preferred for
temporary and backup power requirements due to their fuel efficiency and
mobility. However, growing concerns regarding emission may shift the preference
towards natural gas generators in the coming years.
PEST Analysis
Political: Stringent emission norms by regulatory bodies are forcing the market
to shift towards cleaner fuel options like natural gas generators. Some nations
also offer tax benefits for rental of generators using alternative fuels.
Economic: Strong GDP growth in developing regions coupled with increasing
infrastructure investments is driving the demand for power rental equipment for
construction activities. Rising industrialization and power outages also boost
the market.
Social: Growing demand for uninterrupted power from commercial and retail
segments and increasing preference towards renting over buying equipment are
fueling the market growth.
Technological: Advancements in generator technology have improved their fuel
efficiency and made them more environment-friendly. Introduction of digital
control panels and remote monitoring systems have also enhanced the operational
efficiency.
Key Takeaways
Global
Power Rental Market Size is expected to witness high growth, exhibiting
CAGR of 5.6% over the forecast
period, due to increasing infrastructure development activities across emerging
nations of Asia Pacific and Middle East & Africa. The market size for 2023
is estimated to be US$ 6.19 Bn.
The Asia Pacific region dominated the global market in 2022 with over 35% share
owing to large infrastructure projects underway in China, India and Southeast
Asian countries. Rapid urbanization and industrialization in the region will
continue to drive the demand during the forecast period.
North America is expected to witness steady growth owing to rising power outage
incidents during extreme weather conditions and increased oil & gas
activities in the U.S. government initiatives to upgrade & modernize the
electricity grid will further support regional growth.
Key players operating in the power rental market are Aggreko PLC, United
Rentals, Inc., APR Energy, PLC, Caterpillar, Inc., Cummins, Inc., Hertz
Equipment Rental Corporation, Generac Power Systems, and Rental Solutions &
Services, LLC. The market is consolidated in nature with top five players
accounting for over 50% of the global share.
Comments
Post a Comment