ID: MRFR/E&P/0718-CR | February, 2020 | Region : Global
Market Research Future (MRFR) presumes the Global Power Rental Market size to reach USD 21,765.1 Million at a CAGR of 9.06% from 2017 to 2023 (forecast period). Factors driving the growth of the demand are a continuous supply of power in the oil & gas and mining industries, the increasing need for electrification, and the constant supply of power in rural areas.
The global outbreak of COVID-19 in the first half of 2020 forced several countries into complete lockdown. Since governments and local authorities issued strict guidelines, all non-essential operations have been halted. This negatively affected the power rental market due to the suspension of end-users activities. Furthermore, production and supply chain delays are anticipated to pose a short-term obstacle to the power rental industry, as end-user industries still do not run at full capacity. However, several businesses have turned this crisis into an opportunity to provide services to society. For example, Cummins has converted its air filter manufacturing facility into a respirator (filtration material for face masks) manufacturing unit.
Demand for constant power supply from mining and oil & gas industries
Mining and oil and gas exploration operations typically take place in remote areas. Human life at such locations is under looming danger due to the highly flammable nature of the extracted products; therefore, proper illumination and power are essential requirements for such operations. Driven by growing investment, the mining and oil & gas industries in the US, Australia, and many African countries are likely to see substantial growth. New mining projects are expected to be launched in China, Australia, and India in the coming years. These factors are imperative to stimulate the demand for power rental solutions. As per the Australian Bureau of Statistics, Australia spent more than USD 2.3 billion on mining exploration in 2019, a rise of almost 19% from the previous year.
Moreover, since the advent of hydraulic fracturing, the US has remained one of the world's top oil-producing countries. Exxon Mobil plans to spend USD 50 billion to extend its integrated operations in the US through 2025. This includes drilling more oil and gas wells in the Permian Basin and constructing pipelines to move output to the Gulf Coast, where it is expanding its downstream footprint. Collectively, in the future, these factors are projected to drive the demand for power rental solutions.
Strict regulations on the reduction of emissions in fossil fuel-powered equipment
North America, Europe, and the Asia Pacific have formulated a range of stringent regulations to reduce carbon emissions from power generation operations. Such regulations also define the permissible noise levels of diesel generators to reduce the noise emissions generated by diesel generators. Different nations have their own set of laws and regulations. For example, the European Union has set a target of a 20% reduction in carbon emissions and related pollution by 2030. Several power rental companies have several emission controls measures, such as silencers, strong foundation, and rubber in shear mounts, canopies, and flexible elbows, to reduce the noise level, which, in turn, increases the total cost of generator sets.
Similarly, in order to meet emission requirements across different countries, rental diesel generators are expected to operate on more energy-efficient fuel, usually referred to as ultra-low sulfur diesel (ULSD). ULSD is more costly than standard diesel fuel due to the additional processing needed to eliminate or lower the sulfur content. The critical challenge for companies providing rental generators is to reduce emissions while retaining efficiency to support their businesses in a competitive world.
Global Power Rental Industry has been segmented into Fuel Type, Application, and End-User.
By fuel type, the global power rental market has been segmented into diesel, gas, others.
By application, the global power rental market has been segmented into baseload, stand-by power, and peak shaving.
By end-user, the global power rental market has been segmented into oil & gas, utilities, shipping, manufacturing, mining, construction, and other.
North America to dominate the global market
The North American region dominates the global market for power rental. North America had the highest market share of 31.60% in 2016, with a market value of USD 3.773.9 million. An aging grid infrastructure and natural disasters, which cause frequent power outages and increased demand from the industrial sector, boost the growth of the market in the region. In addition, increased investment in mining and related exploration activities in the area also drives the need for power rental equipment during the forecast period.
Customer-specific product offerings are a robust trend in the industry, with many industry players seeking to reach and retain market share through strategic alliances and long-term collaborations. Eminent industry players are concentrating on growing their product range and providing an appealing range of power rental systems to gain a competitive advantage in the market. Market players place importance on backward integration and economies of scale to preserve the standard quality of the product. These market players have implemented a variety of inorganic and organic growth strategies to expand their presence in different countries.
The key players in the Global Power Rental Market are 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.), Bredenoord Exploitatiemij B.V. (The Netherlands), L.M. Generating Power Co. Ltd. Ltd (Canada), and others.
This research report examines crucial factors, constraints, and obstacles in the global power rental market, regional and segment revenue forecasts, and assessments. The base year is 2017; the projection is 2017-2023. The segmentation of the market is represented in the following manner.
By Fuel type
1 Executive Summary
2.2 Scope of the Study
2.4 Market Structure
3 Research Methodology
3.1 Research Process
3.2 Primary Research
3.3 Secondary Research
3.4 Market Size Estimation 3.5 Forecast Model
4 Market Dynamics
4.1.1 Growth in construction sector
4.1.2 Increase in power consumption
4.1.3 Shortage of power supply
4.2.1 Stringent government regulations
4.2.2 Emission regulations for Diesel Engines
4.3.1 Scope in the Developing Nations
4.3.2 Strong growth in power generation
5 Market Factor Analysis
5.1 Porter's Five Forces Analysis
5.1.1 Threat of New Entrants
5.1.2 Bargaining Power of Suppliers
5.1.3 Bargaining Power of Buyers
5.1.4 Threat of Substitutes
5.1.5 Rivalry 25
5.2 Value Chain Analysis
6 Global Power Rental Market, By Fuel Type
7 Global Power Rental Market, By Application
7.1.1 Base Load
7.1.2 Stand-by Power
7.1.3 Peak shaving
8 Global Power Rental Market, By End-User
8.1.1 Oil & Gas
9 Global Power Rental Market, By Region
9.1 Introduction 39
9.2 North America 40
9.2.1 U.S. 43
9.2.2 Canada 45
9.3 Europe 47
9.3.5 Rest of Europe
9.4.4 Rest of Asia-Pacific
9.5 Rest of the World
9.5.2 Middle East
9.5.3 South America
10 Competitive Scenario
10.1 Competitive Landscape
10.1.2 Partnership and Collaboration
10.1.3 Merger and Acquisition
10.1.4 New Product Development
11 Company Profiles
11.1 Caterpillar Inc.
11.1.1 Company Overview
11.1.2 Financial Overview
11.1.3 Product/Service Offering
11.1.5 SWOT Analysis
11.2 Cummins, Inc.
11.2.1 Company Overview
11.2.2 Financial Overview
11.2.3 Product/Service Offering
11.2.5 SWOT Analysis
11.3 Ashtead Group Plc.
11.3.1 Company Overview
11.3.2 Financial Overview
11.3.3 Product/Service Offering
11.3.5 SWOT Analysis
11.4 Aggreko Plc.
11.4.1 Company Overview
11.4.2 Financial Overview
11.4.3 Product/Service Offering
11.4.5 SWOT Analysis
11.5 APR Energy
11.5.1 Company Overview
11.5.2 Financial Overview
11.5.3 Product/Service Offering
11.5.5 SWOT Analysis
11.6 United Rentals, Inc.
11.6.1 Company Overview
11.6.2 Financial Overview
11.6.3 Product/Service Offering
11.7 Herc Rentals Inc.
11.7.1 Company Overview
11.7.2 Financial Overview
11.7.3 Product/Service Offering
11.8 Speedy Hire Plc.
11.8.1 Company Overview
11.8.2 Financial Overview
11.8.3 Product/Service Offering
11.9 Bredenoord Exploitatiemij B.V.
11.9.1 Company Overview
11.9.2 Financial Overview
11.9.3 Product/Service Offering
11.10 L.M. Generating Power Co. Ltd
11.10.1 Company Overview
11.10.2 Financial Overview
11.10.3 Product/Service Offering
12 List of Tables
13 List of Figures