Power Rental Market is Expected to Exceed $17.8 billion, Growing at 6.6% CAGR by 2030

iCrowd Newswire
14 May 2022, 05:32 GMT+10

The global power rental market was valued at $9.5 billion in 2020, and is projected to reach $17.8 billion by 2030, growing at a CAGR of 6.6% from 2021 to 2030.Power rental refers to the facility of temporarily renting power plants or generators for supplying energy to industrial units. It delivers functioning power equipment along with various scalable components, which are installed in power stations. In addition, it offers reliability, flexibility, speed, and cost-effectiveness to businesses for coping with brief shortages of power. Power rental services are aimed to stabilize utility power grids and provide additional energy to industries and support communities. Thus, power rental systems find extensive application across the construction, mining, and oil & gas industries.

Rise in electricity consumption for commercial and industrial applications has increased the supply–demand gap in the power market. This slit is even more obvious during the peak hours for power consumption. This has propelled the expansion of power rental systems, which are proficient in providing provisional electricity at times of low supply of power. Furthermore, surge in demand for momentary electricity supply sources at times of festivals, events, and fairs is expected to boost the growth of the market in the upcoming years. In addition, these power systems deliver a peak shaving, which permits various industries to allot their power load consistently during non-peak and peak hours.

Interested to Procure the Data? Request Sample Here @ https://www.alliedmarketresearch.com/request-sample/2221

Moreover, these systems act as a stand-in power supply in periods of unintended power losses. Incentives and schemes by government authorities, including feed-in-tariff, in Asia-Pacific and North America are expected to fuel the demand for power rental solutions. Schemes introduced by the government are targeting to endorse the installation of such rental systems across industrial, commercial, and residential applications. These systems can further be worked off-grid as well as on-grid reliant on their locations as well as applications. Several benefits of distributed energy generation over conventional sources of power generation are expected to drive the market.

However, enforcement of stringent regulations pertaining to emission reduction in fossil fuel-powered equipment is expected to hamper the growth of the power rental market during the forecast period. On the contrary, advent of digital technology solutions for operation enhancement are expected to provide remunerative growth opportunities for the expansion of the power rental market during the forecast period.

By fuel type, the global power rental market size is studied across diesel, natural gas, and others. The diesel fuel segment accounted for the largest market share in 2020, owing to its ability to provide weather-independent, scalable, and flexible operations. In addition, round the clock power availability and low up-front costs is anticipate to drive the demand of diesel fuels power rentals equipment's. The diesel fuel segment dominated the global power rental market with more than four-fifths of the total market share in 2020.

By power rating, the global power rental market is studied across up to 50 KW, 51 to 500 KW, 501 to 2,500 KW, and above 2,500 KW. The 501 to 2,500 KW segment accounted for the largest market share in 2020, as it provides standby power as well as continuous power supply power during outages peak shaving. The 501 to 2,500 KW segment dominated the global market with more than half of the total power rental market share in 2020.

Request a Discount Before Purchasing Report @ https://www.alliedmarketresearch.com/purchase-enquiry/2221

By application, the global power rental market is studied across peak shaving, standby power, and continuous power. The continuous power segment emerged as the leader in 2020, owing to growing demand for constant supply of electricity from oil and gas, construction, and mining sectors as they are far-off from the power grid areas. The continuous power segment dominated the global market with more than two-fifths of the total market share in 2020.

By end-use industry, the global power rental market is studied across utilities, oil & gas, events, construction, mining, manufacturing, telecom and data centers, and others. The utilities segment emerged as the leader in 2020, owing to growing demand for stabilizing the grid within a short duration of time at economical prices. The continuous power segment dominated the global market with more than one-fifth of the total market share in 2020.

Region wise, the global power rental market is studied across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific dominated the global market in 2020, garnering one-third of the total share. This is attributed to rapid expansion of commercial spaces comprising malls, hotels, and retail stores in Asia-Pacific, which has significantly driven the demand for stable power supply, thereby augmenting the utilization of power rentals.

The major players profiled in the global power rental market are Atlas Copco AB, Caterpillar, United Rentals, Cummins, Inc., Aggreko, Generac Power Systems, Inc., Kohler Co., Ashtead Group Plc., HERC Rentals Inc., and Wacker Neuson SE.

However, outdated permanent power plants, which are inefficient in operations result in environmental pollution. Thus, governments across the globe are implementing stringent regulations for the shutdown of outdated power plants, thereby impacting the environment positively. While these power plants are inactive, they require power on rent for the redevelopment process. Therefore, with the stringency of regulations and shutting down and redevelopment of power plants, the power rental market exhibits immense growth potential."

Get detailed COVID-19 impact analysis on the Power Rental Market

https://www.alliedmarketresearch.com/request-for-customization/2221?reqfor=covid

COVID-19 analysis

According to the International Monetary Fund (IMF), owing to the outbreak of novel coronavirus (COVID-19), the global economy shrunk by 3.0% in 2020. Many countries are under strict lockdown, which have forced several sectors to shut down their operations. This has halted manufacturing activities and reduced the demand and production of power rental equipment.

According to the United Nations Industrial Development Organization (UNIDO), the micro, small, & medium enterprises (MSME) sector across developing economies, such as India, has been worst affected due to the COVID-19 outbreak and the lockdown imposed thereafter. This is expected to decline the demand for power rental equipment from various end-use industries such as oil & gas, events, construction, mining, and manufacturing. In addition, in the second half of 2020, some countries began to lift restrictions and gradually started business operations in various sectors. Even with the gradual lifting of the lockdown, it is expected to be challenging for the manufacturing sector to get back to normal working conditions. This is expected to subsequently affect the power rental market growth in the coming years.

According to the UNIDO, 30.0–70.0% of pre-COVID-19 workforce of various manufacturing industries such as automotive, building & construction, and mining have migrated back to their hometowns due to uncertainties and loss of income during the lockdown. This unavailability or less availability of workforce is expected to directly affect production activities of these industries, thereby resulting in decline in demand for power rental equipment. This is expected to decline growth of the market during the forecast period.

The outbreak of COVID-19 across the world in the first half of 2020 forced multiple countries into complete lockdown. Since governments and local authorities issued stringent guidelines, all nonessential operations were halted. This adversely affected the power rental market, owing to suspension of activities of various end-use industries. In addition, production and supply chain delays are expected to pose a short-term challenge to the power rental market, since end-user industries are still not operating at their full capacity. However, many companies have turned this crisis into an opportunity to offer services to the society. For instance, Cummins converted its air filter manufacturing facility into a respirator (filtration material for face masks) manufacturing unit.

Tags: Power Rental Market, Power Rental