An Overview Of The Power Rental Market
The market for global power rental is projected by 2023 to grow to 21,765.1 million dollars, at a compound annual growth rate between 2017 to 2023 of 9.06%. Power rentals are rentals of generator sets which run on diesel, gas, or other fuels to generate power and have various commercial and industrial applications. A power rental may be defined by renting of a temporary generator or power plant. Burning fossil fuels generates power by generating steam to drive large, electricity-producing turbines. Power supply shortages will lead to a marked increase in the demand for power rental equipment. Ultimately this, in turn, will lead to tremendous growth in the power rental market. Increasing demand for power rentals from industries related to construction is fueling the general growth experienced by the power rental market.
The demand for electricity in India has exceeded the available supply, which results in problems for the country’s numerous industries. India’s government, in an effort to boost power supply development, has taken it upon itself to create several corporations such as NTPC Limited, NHPC limited, and State Electricity Boards (SEB). Despite the creation of these corporations there remains a shortage in the country’s power supply, and the demand for power rental equipment is higher than ever. Looking to advance their infrastructure, multiple countries have made sizable investments in order to boost global infrastructural activity, which has an additional positive impact on market growth. Regulations for diesel engine emissions, however, are a factor with the potential to hamper the market growth.
An exponential increase has been seen in recent years in spending on infrastructure by the governments of Middle Eastern countries. These governments have shifted their focus from depending solely on reserves of oil and gas to generating alternative sources of income.
Global Power Rental Market Key Players
Global key players in the power rental market include Caterpillar Inc. (U.S.), Aggreko Plc. (U.K.), Cummins, Inc. (U.S.), Speedy Hire Plc. (U.K.), Herc Rentals Inc. (U.S.), United Rentals, Inc. (U.S.), Ashtead Group Plc. (U.K.), APR Energy (U.S.), L.M. Generating Power Co. Ltd. Ltd (Canada), and Bredenoord Exploitatiemij B.V. (The Netherlands), among others.
Detailed Analysis By Region
The power rental market is segmented globally on a regional basis, those regions being Asia-Pacific, Europe, North America, and RoW (Rest of the World). North America as a region is globally dominant in the power rental market. The region accounted for 31.60% of market share in 2016 — the largest share — with a 3,773.9 million dollar market value. Factors such as an aging grid infrastructure combine with calamities of nature to cause frequent power failures and these along with rising demand from the industrial sector fuel the market growth in this particular region.
2016’s second-largest market could be found in the Asia-Pacific region. The Asia-Pacific region market was valued that year at 2,663.2 million dollars and is projected for the duration of the forecasted period to expand at a compound annual growth rate of 8.98%. Continuous expansion of developmental and constructional activities, along with the rapid rise in the gap between electric power demand and supply in emerging regional economies are factors which have driven the Asia-Pacific region’s power rental market growth. The RoW is projected however to experience the highest compound annual growth rate at 10.98%.
The reporting of trends and statistics for the power rental market provides helpful information with regards to future strategy development, can shed pertinent light on market drivers, can warn of potential market restraints, may increase awareness of market opportunities and the ongoing fluctuations in the size of the global market, in addition to useful perspectives on a forecast thru 2023 on market share, market growth, market trends, and key market players .