The global power rental market is evaluated at US$14.576 billion for the year 2020, growing at a CAGR of 9.96%, reaching a market size of US$28.341 billion by the year 2027.
Power rental is the facility to hire a power source to provide to an industrial unit or wherever required. Power rental has several benefits over the other solutions available for the same purpose. The key advantage of a power rental solution over its counterparts is that it gives the customer a significant level of flexibility in the power rating that can be given; moreover, it has almost negligible installation and maintenance costs. Additionally, a critical factor that has been driving the market of power rentals is the fact that they are readily available on short notice, which has proved to be noticeably beneficial for many firms. Moreover, power rental is not just used for particular companies but also for events that happen worldwide, as it is costlier to buy a whole new source of power that might be useless after the event wraps up. Thus this proves to be a more efficient option for the organizers. The power rental market is also fuelled by the growth of oil & gas projects around the globe that require power for a particular period during exploration or production.
The segmentation of the power rental market has been done into fuel type used, applications, end-user industry, and geography. By fuel type, the classification of the market has been done into diesel and gas. Based on applications, the market segmentation has been done into standby, peak shaving, and baseload. By the end-user industry, the market has been segmented as oil & gas, construction, mining, events, and others. Furthermore, based on geography, the global market is distributed in North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.
Increasing demand for power supply in the oil & gas sector
The increasing demand for power supply owing to a significant number of upcoming projects in the oil & gas sector is expected to drive the market in the coming years as such projects and operations take place in remote locations. Furthermore, the increasing need to reduce operational expenditure and increase marginal profits has made the plants adopt power rental solutions. With the dynamism in oil prices and other similar fuels, sometimes it becomes difficult to make a profit through the prices. Thus these plants prefer to cut down operational expenditure, opting for power rental solutions. Moreover, the demand for a continuous power supply in this sector has increased over the years with vast upcoming projects in the sector.
Expansion in the power distribution networks might restrain the growth
The power grids in several countries have witnessed a significant rise in their sizes with the development of more interconnected power networks across the country. This factor is expected to inhibit the growth of the power rental market as the need for power rental solutions will diminish if the network is spread wide enough to reach the locations of production plants. For instance, according to the Canadian Electricity Association, there are about 35 electric transmission interconnections between the United States and Canada, with other cross-border projects in different stages of development.
Middle East & Africa to witness a promising growth
Geographically, the Middle East & Africa region is expected to grow at a significant CAGR of x% during the forecast period owing to noticeable amounts of upcoming projects in the region. Several countries in the region have an ample number of oil & gas projects lined up, which in turn is expected to fuel the market of power rentals in the region. For instance, a major gas refinery project costing US$ 13 billion is in the process of development in Iran and is expected to be one of the biggest gas fields in the world. With such a large-scale project, the requirement for energy sources would be huge, given that the project will be taking place in a remote location in the country.
The players in the global power rental market are implementing various growth strategies to gain a competitive advantage over their competitors in this market. Major market players have been covered along with their relative competitive strategies. The report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered, along with the recent deals and investments of these important players in the market.
APR Energy Ltd secured contracts for eight turbines with a total capacity of 265 MW at three locations in Mexicali, Baja California, Mexico, in May 2020. APR Energy is a global provider of deployable, large-scale, and fast-track mobile power generation equipment.
Aggreko introduced a 1 MW solar power renting option in October 2020. This novel solution is designed for off-grid or weak-grid settings and provides clean energy. This solution is accessible with no upfront CAPEX and a three-to-four-month deployment period.
The advent of COVID-19 harmed the market since the pandemic forced the activities in various industries to a standstill, including all the oil & gas, construction, and mining projects across several countries, and slowed the growth of the power rental market to a significant level in the year 2020. With the industries getting back on track and recovering after suffering losses due to the pandemic, major activities like production and exploration have resumed. The growth of the power rental market is expected to show a gradual increase initially. However, it is expected to witness rapid growth after the industries resume full-fledged activities in the coming years.
|Market size value in 2020||US$14.576 billion|
|Market size value in 2027||US$28.341 billion|
|Growth Rate||CAGR of 9.96% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Fuel, Application, End-user, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Wärtsilä, United Rentals Inc., Caterpillar, Sunbelt Rentals Ltd, Wacker Neuson SE, Herc Rentals Inc., Atlas Copco (India) Ltd, Cummins Inc., Aggreko, Generac Power Systems, Inc|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What is the size of the global power rental market?
A1. Power Rental Market was valued at US$14.576 billion in 2020.
Q2. What will be the power rental market size by 2027?
A2. The power rental market is projected to reach a market size of US$28.341 billion by 2027.
Q3. What are the growth prospects for the power rental market?
A3. The global power rental market is projected to grow at a CAGR of 9.96% over the forecast period.
Q4. What factors are anticipated to drive the power rental market growth?
A4. The increasing demand for power supply owing to a significant number of upcoming projects in the oil & gas sector is expected to drive the power rental market.
Q5. Which region holds the largest market share in the power rental market?
A5. Geographically, the Middle East & Africa region is expected to hold a significant share of the power rental market.
United Rentals Inc.
Sunbelt Rentals Ltd
Wacker Neuson SE
Herc Rentals Inc.
Atlas Copco (India) Ltd
Generac Power Systems, Inc
All our studies come with 2 months of analyst support.
We are in compliance with the global privacy laws.