Power Rental Market By Power Rating (Up to 50 kW, 51-500 kW, 501-2500 kW, Above 2500 kW), By Fuel Type (Diesel, Natural Gas, Others), By Application (Peak Shaving, Standby Power, Prime/Continuous Power), By End-use Industry (Utilities, Oil & Gas, Construction, Mining, Manufacturing, Telecom, Others) and By Region (North America, Europe, Asia Pacific, Latin America, MEA) - Global Forecasts 2016 To 2026

Date : Mar 2021

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Report ID : 56

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Category : Power Generation

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Report Format:  PDF EXCEL PPT WORD

Power Rental Market Overview:

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.

Power Rental Market

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.

Power Rental Market Classification

  • Generators that supply 501 kW and above power can be utilized to provide standby power and baseload or continuous power. As a result, the development of the 501-2500 kW segment, when the market is bifurcated based on rated capacity, is estimated to be at a high growth rate during the forecast timeline.
  • Based on fuel type, the diesel segment is estimated to account for the largest power rental market share. The advantages such as economic operation, availability and ease in storage, constant generation of voltage and power, high reliability, regulated power supply, and many more are contributing to its enormous growth. Moreover, since these generator sets are ideal for long-term operations, the segment is all set to dominate the market during the forecast period. However, government regulations may decelerate the progress of the diesel fuel segment.
  • Based on application, the prime/continuous segment will register a high growth rate between 2021 and 2026. The growth of this segment is accounted by the need for continuous power supply across numerous industries like marine, construction, mining, etc. Expanding infrastructure especially across emerging countries will propel the segment forward.
  • Based on end-user, the utility segment is projected to capture the majority of the market share. In developing regions such as Africa and Asia – Pacific, local grids do not have the capability to provide continuous supply due to a poor transmission network. This limited access to power supply affects industrial, commercial and residential users. As a result, the demand for power rental solutions that help stabilize the grid within a short period of time will have a positive impact on the segment’s advancement.

Regional Analysis

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.

Company Profiles and Competitive Intelligence Covered in Power Rental Market Report are:

The key players operating in the market are:

  1. Aggreko
  2. Herc Rentals Inc.
  3. APR Energy
  4. Caterpillar
  5. United Rentals Inc.
  6. Cummins Inc.
  7. Ashtead Group PLC
  8. Atlas Copco AB
  9. Al Faris
  10. Hertz System Inc.
  11. Kohler Co.
  12. Bredenoord
  13. Himoinsa SL
  14. Altaaqa Global
  15. Generac Power Systems
  16. Wacker Neuson SE
  17. SoEnergy International Inc.
  18. Allmand Bros. Inc.
  19. Speedy Hire PLC
  20. Multiquip Inc.

Recent Developments:

  1. Aggreko signed a contract to supply temporary power generators for the pro women’s golf in Scotland in August 2020.
  2. In May 2019, Bredenoord expanded its rental fleet by adding up to 4.5 MWh battery capacity boxes.
  3. Pramac, a subsidiary of Generac, in February 2019, acquired majority stakes in Captiva Energy Solutions.

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.

Power Rental Market Segmentations: 

By Power Rating

  • Up to 50 kW
  • 51-500 kW
  • 501-2500 kW
  • Above 2500 kW

By Fuel Type

  • Diesel
  • Natural Gas
  • Others

By Application

  • Peak Shaving
  • Standby Power
  • Prime/Continuous Power

By End-use Industry

  • Utilities
  • Oil & Gas
  • Mining
  • Construction
  • Manufacturing
  • Telecom
  • Others

By Region

  • North America
    • US
    • Canada
    • Mexico
  • Europe
    • Germany
    • UK
    • France
    • Norway
    • Italy
    • Spain
    • Netherlands
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • New Zealand
    • Rest of Asia Pacific
  • South America
  • ROW

Author Credentials

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.

  1. INTRODUCTION
    1. Product Outline
    2. What is Power Rental
    3. Different types of Power Rental
    4. Analysis of Power Rental Ecosystem
    5. Supply Chain Analysis
    6. Covid -19 Impact
    7. Market Dynamics
      1. Drivers
      2. Restraints
      3. Opportunities
      4. Threats
    8. Technology Overview
    9. Patent Analysis
  2. Technology and Regulatory Landscape for Power Rental   
    1. Regulations and Standards
  3. Power Rental   Pricing Analysis
    1. Prices of Power Rental  
  4. Power Rental  by Type of Power Rating
    1. Up to 50 kW
    2. 51-500 kW
    3. 501-2500 kW
    4. Above 2500 kW
  5. Power Rental by Fuel Type
    1. Diesel
    2. Natural Gas
    3. Others
  6. Power Rental by Application
    1. Peak Shaving
    2. Standby Power
    3. Prime/Continuous Power
    4. Others
  7. Power Rental by End-use Industry
    1. Utilities
    2. Oil & Gas, Construction
    3. Mining
    4. Manufacturing
    5. Telecom
    6. Others
  8. Regional Analysis
    1. North America
      1. US
      2. Canada
      3. Mexico
    2. Europe
      1. Germany
      2. UK
      3. France
      4. Norway
      5. Italy
      6. Spain
      7. Netherlands
      8. Rest Of Europe
    3. Asia Pacific
      1. China
      2. India
      3. Japan
      4. Australia
      5. New Zealand
      6. Rest Of Asia Pacific
    4. Middle East and Africa
    5. South America
  9. Key Strategic Insights
    1. New Applications
    2. Emerging Technologies
    3. Opportunity mapping
    4. Critical Success Factors
    5. Environmental Impact and sustainability issues
    6. Consumer preferences
  10. Key Market Trends / Recent Developments
  11. Competitive Scenario
    1. Competitive Strategies of Key Players
      1. Mergers and Acquisitions
      2. Investments
      3. Joint Ventures
      4. New Product launches
    2. Strength of product portfolio
    3. Ranking of Key Players
    4. Presence of players by Geographies
  12. KEY GLOBAL PLAYERS
    1. Aggreko
    2. Herc Rentals Inc.
    3. APR Energy
    4. Caterpillar
    5. United Rentals Inc.
    6. Cummins Inc.
    7. Ashtead Group PLC
    8. Atlas Copco AB
    9. Al Faris
    10. Hertz System Inc.
    11. Kohler Co.
    12. Bredenoord
    13. Himoinsa SL
    14. Altaaqa Global
    15. Generac Power Systems
    16. Wacker Neuson SE
    17. SoEnergy International Inc.
    18. Allmand Bros. Inc.
    19. Speedy Hire PLC
    20. Multiquip Inc.
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