The temporary renting of power plants or generators is referred to as power rental. Power rentals offer reliability, flexibility, speed and cost-effectiveness along with the option to scale. It helps to stabilize utility power grids and can also be used to provide additional energy as and when needed. Overcoming limitations of fixed power plants, power rental can be used in remote areas without the need to establish any grid line. Due to the several advantages power rentals offer, they are widely used across the construction, mining and oil & gas industries.
In 2019, the global power rental market was valued at over USD 12.0 billion. However, in 2020, during the pandemic, its valuation dropped down to nearly USD 9.0 billion. It is projected to register a compound annual growth rate of more than 6% from 2021 to 2026. At the end of the forecast period, the power rental market is estimated to reach a valuation of over USD 13.0 billion.
Growing demand from Mining and Oil & Gas Industries is the major contributor to the expansion of the power rental market.
Increasing investments in the mining field in countries such as the U.S., Australia, and in the African region coupled with new projects coming up in India and China are expected to fuel the mining activities. These activities are done at remote locations where adequate illumination is vital. Therefore, as the number of mining activities increases, the power rental market will also witness a corresponding growth.
Exxon Mobil, a leading company in the oil & gas industry, is planning to invest around USD 50.0 billion in expanding operations in the U.S. by 2025. These plans include the exploration & production activities in the Permian basin. Since power is essential for these activities, the expansion in the oil & gas industry will ensure progress in the power rental market.
The requirement to transport power to remote locations due to the soaring uptake of projects in different areas.
Rapid industrialization and the need to expand business are causing companies to take up projects in distant locations. The problem that arises is the provision of power supply and the difficulty to transport the entire equipment set. The use of power rental systems eliminates this issue. The surge in uptake of temporary projects or set up in distant locations creates an opportunity for the growth of the power rental market.
Unfavorable government initiatives towards fossil-fueled power equipment restrict market augmentation.
The factor that can deteriorate the development of the power rental market is the regulations set by governments across the world that deter the use of diesel-powered power equipment. Global efforts to reduce carbon emission as well as noise pollution are restricting the market growth. To meet the required noise levels, these generators require multiple control measures such as a silencer, canopies, flexible elbows, solid foundation, and so on. This, in turn, increases the final product’s cost. Likewise, to meet the carbon emission standards, diesel needs to be replaced by ultra-low sulfur diesel. This energy-efficient fuel is comparatively expensive and thus, increases the overall cost of the generators. As a result, sustaining the business while maintaining performance and complying to government regulations threatens the market growth.
Asia – Pacific, Middle Eastern, and African regions are estimated to garner over 50% of the power rental market share by the end of 2026. Limited access to electricity, growing population, and therefore growing urbanization coupled with the rising demand from the service sector will boost the market development in the region. The majority of the demand is generated from the construction, oil & gas as well as mining sector. The dynamic expansion of the telecom industry, soaring industrialization, and frequent power failures will ensure the expansion of this market in India.
In North America, the Canadian power rental market is estimated to display a 3% growth rate during the forecast period. The need to replace existing power infrastructure due to sudden blackout is the major driving factor for the power rental market in Canada. Frequent weather-related disasters have created a huge opportunity for the power rental market to flourish in the North American region.
The key players operating in the market are:
The research report analyses the ecosystem of power rental market and categorizes it to forecast the revenues and analyse the trends in each of the following below mentioned market segments.
By Power Rating
By Fuel Type
By Application
By End-use Industry
By Region
Priyanka has been writing chemicals & material market research reports for the last 12 years. A post-graduate, her specialization is in the chemicals sector. Preparing end-to-end reports covering minute details for market insights, competitive intelligence and trend analysis in the CMFE sector.
Research Methodology
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