by The Power Rental Market is estimated to be valued at US$ 6.19 Billion in 2023 and is expected to exhibit a CAGR of 7.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The power rental market comprises rental power generating equipment such as generators, turbines, and temporary power systems provided on rent with specific power requirements. These rental power systems find wide application in various end-use industries such as oil & gas, construction, mining, manufacturing, utilities, and events. The rental power systems are used to meet temporary or backup power needs during plant shutdowns, natural disasters, and power outages. They provide reliable power supply and help reduce capital costs related to owning power assets.
Market Dynamics:
The growing construction and manufacturing industries in developing regions are the major factors driving the growth of the power rental market. Rapid urbanization and infrastructure development activities in countries such as China, India have increased the demand for power rental systems in construction applications. Furthermore, increasing demand for continuous power supply from the oil & gas and mining industries is also contributing to the market growth. For instance, power rental systems are used at oilfields and mining sites located in remote areas with no existing power infrastructure. Additionally, growing adoption of hybrid power solutions comprising diesel generators and renewable energy sources is expected to present lucrative opportunities for market players over the forecast period.
Segment Analysis
The power rental market is dominated by the diesel segment which accounts for over 70% of the market share. Diesel generators are preferred for power rental applications due to their affordability, fuel efficiency, durability and easy availability of diesel. Within the diesel segment, low and medium power generators ranging from 5-500kVA hold the major share as they are suitable to cater to the temporary power needs of small industries, retail shops, IT offices, events etc.
PEST Analysis
Political: Favorable government policies regarding deployment of temporary diesel generators for power backup during outages and construction activities is boosting market growth.
Economic: Growing industrialization and infrastructure development activities in emerging economies of Asia Pacific and Middle East is driving the demand for power rental solutions.
Social: Increasing frequency of power disruptions especially in developing regions is raising dependence on rental power.
Technological: Advancements in fuel cell and battery technologies is prompting market players to develop hydrogen and battery powered generators. However, high costs remain a challenge restricting their adoption.
Key Takeaways
Global Power Rental Market Size is expected to witness high growth, exhibiting CAGR of 7.8% over the forecast period, due to increasing industrialization and infrastructure development activities across the globe. The market size is expected to reach US$ 6.19 Bn by 2023.
The Asia Pacific region is expected to dominate the market owing to rapid industrialization and strong construction activities in China, India. Countries such as Malaysia, Thailand, and Indonesia are also contributing significantly to the regional market growth.
Key players operating in the power rental market are Aggreko PLC, United Rentals, Inc., APR Energy, PLC, Caterpillar, Inc., Cummins, Inc. Aggreko and United Rentals dominate with wide product portfolio and global presence. Caterpillar and Cummins have strong foothold in engine manufacturing and offer comprehensive power solutions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
