Global power rental market is expected to grow from USD 9.8 Billion in 2022 to USD 15.15 Billion by 2030, exhibiting a CAGR of 5.6% during the forecast period 2023-2030. Rapid expansion of industrial sector along with the surging demand for uninterrupted and reliable power supply is expected to drive the growth for the global power rental market.
Power rental Market delivers functioning power equipment along with various scalable components, which are installed in power stations In addition, it offers reliability, flexibility, speed and cost-effectiveness to businesses for coping with brief shortages of power. The power rental services are aimed to stabilize utility power grids and provide additional energy to industries and support communities. Thus, it finds extensive application across the construction, mining and oil & gas industries.
Global Power Rental Market: Regional Insights:
North America led the global power rental market in 2022 and is expected to witness a CAGR of 6.4% during the forecast period. Increasing demand for electricity and challenges in power sector such as federal carbon policies on carbon emission and meeting energy targets are the main reasons for development of global power rental market in this region. The emerging economies in Asia Pacific such as India and China are expected to propel the growth of power rental market in the region, in near future. Furthermore, industries such as construction, event, oil and gas, mining, manufacturing, and shipping have high requirement of rental electricity for continuous operation. These factors are highly responsible for growth of the power rental market in Asia Pacific.
Figure 1. Global Power Rental Market Share (%), By Region, 2022
Global Power Rental Market- Growth Drivers:
Rising need for Electrification and Continous Power Supply Worldwide to Boost Market Growth:
Increasing faults in transmission and distribution lines, failure in power generation equipment, abrupt grid problems, natural calamities, and several other factors are frequently affecting the power supply across the globe. Various public and private authorities are readily adopting measures to reduce the duration of power cuts to enable customers to continue their operations. Unexpected power outages have significantly increased the consumer’s demand for reliable backup power sources in industrial and commercial sectors, thus propelling the adoption of power rental equipment.
High demand for continuous power supply from the mining sector to drive market growth:
Rental generator sets are mostly used for supplying power in areas with very low grid connectivity. Mining activities are among the key consumers of the energy from generators, as most of the mining activities are carried out in areas located on the outskirts of cities and towns where the power supply through the grid is not available. Mining activities are not long-lasting and are for a temporary period and so, the players involved in the mining industry prefers rental power to meet their daily energy demand. Mining activities generally requires a higher power rating generator sets to conduct heavy digging operations. Therefore, the market potential for generator sets of ratings above 7500 KVA is high in the mining industry. The factors mentioned above are anticipated to accelerate the demand for power generation rental solutions.
Report Coverage | Details | ||
---|---|---|---|
Base Year: | 2022 | Market Size in 2022: | US$ 9.8 Bn |
Historical Data for: | 2017-2021 | Estimated Year: | 2023 |
Forecast Period 2023 to 2030 CAGR: | 5.6% | Forecast Period: | 2023-2030 |
Geographies covered: |
|
||
Segments covered: |
|
||
Companies covered: |
Aggreko PLC, United Rentals, Inc., APR Energy, PLC, Caterpillar, Inc., Cummins, Inc., Hertz Equipment Rental Corporation, Generac Power Systems, and Rental Solutions & Services, LLC. |
||
Growth Drivers: |
|
||
Restraints & Challenges: |
|
Global Power Rental Market- Restraints:
Stringent Environmental Regulations ertaining to Emission Reduction and noise control likely to hamper market growth:
North America, Europe, and Asia Pacific have enacted a stringent legislation to restrict carbon emissions from power generation. Furthermore, to minimize noise pollution caused by diesel generator operations, regulations such as allowable diesel generator noise levels, are implemented. Several environmental bodies including the European Union’s (EU) European Environmental Agency and the United States Environmental protection Agency (EPA) have placed strict regulations on diesel power generators.
Another critical factor impeding adoption of diesel generators is energy service providers’ conversion to the greener alternatives. As compared to other types of generators, diesel generators generates higher decibels of noise. As a result, several government agencies have established noise-control laws and regulations.
Global Power Rental Market- Trends:
The market potential is expected to expand by more investment in R&D(Research and development) and by technology partnerships among key players in the market. Market players are focusing on mergers, partnerships, expansions, and acquisitions to maintain their position in the market. The big players in Global power rental market are convincing people to use their products to meet the needs of a large population and to achieve their goal of making energy accessible. The competitors in this field are expanding their transmission and distribution networks to fulfill this mission. More R&D(Research and development) spending is expected in the near future, as companies are focusing on restructuring and building successful outcomes in this field. It is also expected that adopting some efficient development measures and environmentally friendly technologies will open up opportunities for many market players.
Figure 2. Global Power Rental Market Share (%), By Segment Type, 2022
Recent Developments:
In November 2021, Caterpillar Inc., announced a three-year project in collaboration with Microsoft and Ballard Power Systems, incorporating large-format hydrogen fuel cells to produce reliable and sustainable backup power for Microsoft data centers.
In June 2021, the first hydrogen power generation units piloted at the Aggreko Plc depot, in Moerdjik, Netherlands, for usage in temporary power applications.
In April 2021, Atlas Copco, introduced ZBC, latest model in its Lithium-ion energy storage system range called ZenergiZe. It can be used as a standalone source, combined with generators, to make a hybrid power solution or renewable sources of energy as well as to create Microgrids.
In August 2020: Aggreko signed a contract to deliver three temporary power generators for the pro women’s golf in Scotland.
Competitive Section:
Some of the major players operating in the global power rental market include Aggreko PLC, United Rentals, Inc., APR Energy, PLC, Caterpillar, Inc., Cummins, Inc., Hertz Equipment Rental Corporation, Generac Power Systems, and Rental Solutions & Services, LLC.
Power rental plants are simple power generators that generates on-demand power at the cost of fuel, in order to reduce the power disruptions in any environment. For large scale companies, national utilities, individual business, hospital emergencies, and for various events such as concerts and outdoor events, power rental generators are used to prevent expensive downtime.
Market Dynamics
The major drivers in the growth of power rental market include increased demand for power and lack of power infrastructure. According to the U.S. Energy Information Administration, the total world consumption of energy is expected to increase from 575 quadrillion Btu (British thermal unit) to 736 quadrillion Btu, with an increase of 28% from 2015 to 2040. Furthermore, many organizations and industries such as oil & gas, construction, manufacturing, mining, and other industries periodically upgrade their electric substation for maintenance or growing load requirement, as they unable to stop production for that amount of time. Hence, rental power generator fulfills the need of power for the continuous production, until the regular operations is ready to resume. Furthermore, increased construction activities and increase in demand for oil & gas industry is propelling the growth of power rental market.
Key features of the study:
Detailed Segmentation:
Joining thousands of companies around the world committed to making the Excellent Business Solutions.
View All Our Clients