Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Global Power Rental Market Insights
Power rental plants are required for temporary supply of power for industries due to the supply-demand gap in electricity. To avoid financial losses, industries requires a constant power supply. Therefore, industries use additional power by introducing short-term initiatives, such as leasing or renting addition power by using diesel generators to fulfill their need for power.
Major drivers propelling the growth of power rental market globally include rapidly developing construction industry. According to CMI, the global construction industry is projected to expand at a CAGR of 5.8% from 2017 to 2025.
North America led the power rental market 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 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 a high requirement for rental electricity for continuous operation. These factors are highly responsible for the growth of the power rental market in Asia Pacific.
Among applications, base load/continuous segment held the leading position with a market share of around 43.5% in the power rental market in 2016. Base load or continuous power plant takes minimum power generation to provide continuous electricity supply. The other types of continuous power plant are geothermal power plant, tidal power plant, and coal-fired power plant among others.
On the basis of end users, construction and oil & gas industries held the largest position in 2016, owing to high adoption rate of power rental technologies by industries. According to American Chemistry Council (ACC), 294 new chemical projects started in the U.S. in 2017, due to availability of cheap and abundant ethane and shale gas. The ever increasing demand for oil and gas all over the world is the major factor driving the growth of global power rental market. According to International Energy Outlook, 2016, the global energy demand is set to increase from 268 mboe/d in 2013 to 399 mboe/d by 2040.
Figure 1. Global Power Rental Market Share, By Application, 2016
Source: Coherent Market Insights 2017
Base load/continuous was the largest segment in 2016 and is expected to maintain its position during the forecast period. Base load segment was valued at US$ 5.55 billion in 2016 and is expected to grow at a CAGR of 7.3% during 2017 - 2025.
Major Players in the Global Power Rental Market:
Some of the major players in the 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.