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The surge in demand for power, fueled by the economic growth and improved lifestyles in developing nations, has emerged as a key driver propelling the expansion of the power industry. Notably, developing markets such as India and China exhibit a substantial growth rate accompanied by a comparatively lower level of competition. This unique combination creates a fertile ground for robust opportunities within the power business in these burgeoning economies.
In India, a pivotal player in the global economic landscape, the government has proactively embarked on initiatives aimed at elevating the quality of life for its citizens. One such strategic move involves ensuring a consistent and ample supply of electricity. Both the central and state governments in India have set ambitious targets to provide round-the-clock power supply, thereby enhancing the overall quality of life for residents. This concerted effort by the Indian government is poised to unlock significant opportunities for the growth of the power rental market.
The trajectory of power generation aligns seamlessly with the overall economic and urbanization trends, presenting a compelling growth narrative. The flourishing economy, coupled with an increasing proclivity for electricity consumption and rapid urbanization, has created a robust environment for substantial growth in power generation. In India, companies are actively engaging in power generation endeavors, contributing to the cumulative development of an impressive 319.60 GW of power generation capacities.
This surge in power generation capacities not only addresses the growing energy needs of the nation but also sets the stage for vast opportunities in related segments. One such area poised for growth is the development of evacuation capacity, a critical aspect of the power infrastructure. Additionally, Original Equipment Manufacturers (OEMs) specializing in the production of conductors, insulators, and entities engaged in Engineering, Procurement, and Construction (EPC) activities stand to benefit substantially from the expansive opportunities emerging in the power sector.
The confluence of economic growth, increasing electricity demand, and rapid urbanization paints a picture of immense potential for the power industry in developing nations. The evolving landscape offers a canvas for diverse stakeholders to participate in the growth story, ranging from government initiatives to private enterprises investing in power generation capacities. The symbiotic relationship between the demand for power and the opportunities it presents across various segments underscores the pivotal role of the power sector in shaping the developmental trajectory of burgeoning economies.
As the power industry continues to evolve, driven by the dynamic landscapes of developing nations, the scope for innovation, collaboration, and sustainable practices becomes increasingly prominent. The journey towards a future characterized by reliable, efficient, and sustainable power solutions unfolds against the backdrop of a transformative era in which developing nations play a central role in shaping the global power landscape.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Segment Outlook | Fuel Type, Application, End-Use, and Region |
Power Rental Market Highlights:
Global Power Rental Market Overview:
Power Rental Market Size was valued at USD 11.2 billion in 2021. The power rental market industry is projected to grow from USD 12.11 Billion in 2022 to USD 21.03 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 8.2% during the forecast period (2022 - 2030). Rising demand for constant supply from oil & gas, mining industries are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Power Rental Market Trends
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Growing Prevalence of constant demand for constant power supply to boost market growth
Renting generator sets for equipment used in the production of electricity that uses gasoline, diesel, or another fuel is known as power rentals. It provides research on the power generating rental sector and numerous scalable parts that are put in power plants. Additionally, it gives companies the dependability, adaptability, quickness, and cost-effectiveness they need to deal with brief power outages. The utility power grids are stabilized by the power rental services, which also give businesses and communities more energy. As a result, it has a wide range of applications in the building, mining, and oil & gas industries. The market is expanding primarily due to the rise in need for reliable power supply and rising industrialization. A rise in the number of cases of intermittent power generation from small-scale power systems and limited.
Furthermore, Global market expansion is significantly attributed to the surge in demand for scalable rental equipment that can address issues related to voltage sags and swells and power outages. Additionally, increased knowledge of the advantages of outsourcing power renting systems has a favorable impact on market expansion. Power supply shortages are predicted to enhance the use of power rental equipment, which is anticipated to propel global market expansion. As these units offer power backup to maintain operations, the market for power leasing systems aims to meet the needs of a variety of industries. Every day, more power is needed due to rising population levels and developing economies in the many participating regions.
Power Rental Market Segment Insights:
Power Rental Fuel Type Insights
The Power Rental Market segmentation, based on fuel type, includes diesel, gas, and others. The gas power rental segment held the majority share in 2021. This is primarily owing to the affordable and effective fuels among the non-renewable resources across the globe. For instance, as per the US EIA, 2020-2021, the gas transportation network delivered in US about 27.7 cubic feet (Tcf) of gas to about 77.3 million customers.
Figure 2: Power Rental Market Size By Type 2021 (%)
Power Rental Application Insights
The Power Rental Market segmentation, based on application, includes base load, stand by power and peak shaving. The peak shaving segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. This is due to the increasing demand for power in day time in summer season and night time in winter season. Moreover, additional power supply solution is economical for the utilities.
Power Rental End User Insights
Based on End Users, the global power rental industry has been segmented into oil & gas, utilities, shipping, manufacturing, construction and others. Oil & gas held the largest segment share in 2021, owing to the availability of rental products at economical rates. Moreover, increasing government initiatives to provide the oil & gas constantly and at reasonable rates, and others segment is expected to boost the power rental market during the assessed timeline.
For Instance: Exxon Mobil intends to invest USD 50 billion in extending its integrated operations in the US. In the Permian Basin, additional oil and gas wells are being drilled, and pipelines are being built to transport output to the Gulf Coast, where it is increasing its downstream footprint. These elements are anticipated to work together in the future to increase the market demand for power renting solutions.
Power Rental Regional Insights
By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. Asia-Pacific power rental market accounted for USD 4.8 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. This is attributed to the growing industrialization & infrastructure development, and expansion in the construction & telecommunication sector across the region. Moreover, China power rental market held the largest market share, and the India power rental market was the fastest growing market in the Asia-Pacific region
Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: Power Rental Market Share By Region 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe power rental market accounts for the second-largest market share due to the availability of cutting-edge treatment facilities, government backing for the growth of the healthcare industry, an ageing population, and an increase in incidence of degenerative disc disease, rheumatoid arthritis, and osteoarthritis. Further, the Germany power rental market held the largest market share, and the UK power rental market was the fastest growing market in the European region.
The North- America power rental market is expected to grow at the fastest CAGR from 2022 to 2030. This is due to increasing demand for uninterrupted power supply, increasing frequency & intensity of weather-related disasters.
Power Rental Key Market Players & Competitive Insights
Major market players are spending a lot of money on R&D to increase their product lines, which will help the power rental market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the power rental industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies adopted by manufacturers in the global Generator Rental industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. In recent years, power rentalindustry has provided medicine with some of the most significant benefits. The Power Rental Market major player such as Aggreko Plc. (U.K.), Caterpillar Inc. (U.S.), Cummins Inc.(U.S.), Herc Rentals Inc. (U.S.), Speedy Hire Plc.(U.K.), Ashtead Group Plc. (U.K.), United Rentals Inc. (U.S.), APR Energy (U.S.), Breaenoord Exploitatiemij B.V. (Netherlands), L.M. Generating Power Co. Ltd. (Canada), and others are working to expand the market demand by investing in research and development activities.
Aggreko powers progress by supplying energy wherever it is required in order to expand and communities to prosper businesses. Businesses all over the world are being impacted by the Energy Transition as we transition to a sustainable future. The potential it brings to the future of energy and the new landscape it is forming is something Aggreko wants to assist our clients in fully realising.
Aggreko Plc. (U.K.) signed a contract to deliver three portable generators for Scotland's professional women's golf tournament.
The development of power generators by Energyst and Caterpillar demonstrates the growing trend of partnerships. These power tools' cutting-edge designs can reduce rental costs and space requirements by close to 50%. Diesel generators can be used on offshore rigs to reduce fuel costs and noise levels, which encourages widespread adoption.
Generac, a market leader, designed and manufactured a number of different generators, transfer switches, and other engine-powered items. Our innovative Industrial Power gensets may be used for practically any application and run on BI-FUELTM, natural gas, or diesel.With the building of its largest natural gas unit to date, Generac Industrial Power's advantage in gaseous-powered generators grew. Utilizing long-lasting MOTORTECH components and in-house engine technology developed by Generac, the new SG1000 kW gaseous generator was created. The natural gas market will be significantly impacted by this plant. A wide range of products, including healthcare organisations, logistics management centres, educational institutions, and others, are suitable for the SG1000. At this power node, SG1000 produces much less CO and more than 75% less hazardous NOx than equivalent gaseous products.
Key Companies in the Power Rental Market includes
- Aggreko Plc. (U.K.)
- Caterpillar Inc. (U.S.)
- Cummins Inc.(U.S.)
- Herc Rentals Inc. (U.S.)
- Speedy Hire Plc.(U.K.)
- Ashtead Group Plc. (U.K.)
- United Rentals Inc. (U.S.)
- APR Energy (U.S.)
- Breaenoord Exploitatiemij B.V. (Netherlands)
- M. Generating Power Co. Ltd. (Canada)
Power Rental Industry Developments
June 2021: Aggreko Plc depot in Moerddijk, Netherlands the first hydrogen power generation units for use in temporary power applications.
March 2022: With the addition of Power Bank battery systems to its rental fleet, United Rentals stated that it will provide its customers with a zero-emission power option. Through its partnership with the company POWR2 Energy Solutions, United Rental offers clients in North America an investment in environmentally friendly workplace solutions. A small power storage system called POWERBANK works with diesel engines to reduce runtime, pollution, traffic, and fuel waste. High-density lithium-ion batteries, inverters, and load-sensing electronics are used in the system. The United Rentals POWERBANK type has a storage capacity of 60 KW to 120 KW hours and a power output range of 40 KW to 60 KW.
Power Rental Market Segmentation
Power Rental Fuel Type Outlook
- Diesel
- Gas
- Others
Power Rental Application Outlook
- Base Load
- Stand by Power
- Peak Shaving
Power Rental End User Outlook
- Oil & Gas
- Utilities
- Shipping
- Manufacturing
- Mining
- Construction
- Others
Power Rental Regional Outlook
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North America- US
- Canada
-
Europe- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
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Asia-Pacific- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
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Rest of the World- Middle East
- Africa
- Latin America
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