Manifold Benefits of Power Rental Over Purchasing Equipment Explains Popularity Among Consumers
COVID-19 has had an unprecedented impact on numerous industries leading to cost-cutting measures being implemented across the board. Power rental offers several advantages over purchasing power equipment in terms of flexibility in the power rating and lower maintenance and installation costs. For instance, a 20 KW rental diesel generator costs $100-$ 150 per day. While, in case of purchase, a 20 KW diesel generator costs between $ 2,500-3,000.
Power rental is available at much shorter notice than owned equipment and is popular in regions with low grid infrastructure as it allows operations to continue without pause. The power rental market is anticipated to grow at a moderate pace over the forecast period with the primary end-users being the energy and utilities and oil and gas industry.
Affordability of Diesel Coupled with Subpar LPG Infrastructure in Emerging Economies Ensure Diesel Remains the Leading Fuel
Diesel fuel-fired generators are expected to remain dominant till 2025. The demand for diesel has bounced back to pre-COVID-19 levels as it is widely used in the oil and gas, manufacturing, and mining sectors. According to the American Petroleum Institute, strong demand for diesel can be attributed to a recovery of industrial production as well as an improved situation in the broader economy. The lower cost of diesel compared to gasoline and natural gas enable it to meet temporary power demands in emerging economies with unreliable grids suffering from frequent outages. Furthermore, emerging economies in Latin America and Asia Pacific often have an underdeveloped gas and liquefied petroleum gas (LPG) infrastructure fuelling the demand for diesel there.
Robust Policies to Become Carbon Neutral Make Natural Gas Compelling Fuel in Developed World
As per the Gas Market Report, natural gas demand is predicted to rise by 3.6% in 2021 before reducing to 1.7% in the succeeding three years. The non-polluting nature of natural gas allows it to replace oil and coal in the transportation and the energy and utilities sectors. Additional shale gas production in the U.S. and Russia has boosted supply of natural gas in the power rental market. While stringent policies to guarantee net-zero emissions by 2050 make it challenging for emerging economies to adopt natural gas, developed countries in North America and Europe have the infrastructure and regulatory support to rent generators running on natural gas.
Convergence of IT, Mobility, and Manufacturing Augurs Well for Power Rental Companies
The utility segment held the largest share of the power rental market during the assessment period. Multiple utility companies, cities, and business customers have promised to decarbonize by 2050 – COVID-19 economic turbulence notwithstanding. The new U.S. administration has pledged to invest $2 trillion in achieving net-zero emissions with the power and utilities segment pledging to achieve this by 2035. The industry is moving towards electrification with electric vehicles (EV) necessitating charging ports. There is a strong likelihood that technology companies will enter the power rental market by investing in battery technology to offer a comprehensive solution to their customers. Thus, the convergence of the IT, manufacturing, transportation, and electric sectors should open new opportunities for utility companies in the power rental market.
OPEC Suppliers Well Placed to Tap Surging Demand for Oil in Asian Offshore Locations
The oil and gas segment is expected to grow at a robust CAGR from 2021 to 2025 as there is significant untapped demand for power in upstream, midstream, and downstream businesses that facilitate continuous operations. Barring a shift in behaviour or government intervention, global demand for oil will reach 104 mb/d as per the International Energy Agency. Middle Eastern suppliers such as Iraq, Kuwait, Saudi Arabia, and the U.A.E will pump record highs to tap demand in India and China. Offshore locations that are partially connected to the grid will need power rental units. Upstream operators prefer power rental because of the unbalanced structures of oil wells in upstream units and power rental companies are increasing their R&D budgets to deliver reliable power solutions.
Power Rental Companies in North America Sacrificing Short-term Profits for Long-term Gains
The next decade will be transformational in the North America power rental market as competition will be cutthroat and supply plentiful. Project error margins have narrowed and developers are taking greater power delivery risks to win contracts while foregoing immediate returns for long-term ones. Demand is on track to grow at a marginal rate and grid companies may compete for business in the ‘critical window’ that comprises the bulk of generator profits. With such challenging conditions, it is likely that consolidation looms large in the North America power rental market.
Record-breaking Electricity Use in China Opening Avenues for Power Rental Companies
The Asia Pacific region dominates the power rental market with China and India leading the charge. In July 2021, China Central Television reported that domestic daily electricity use had broken records by 10% when compared to the previous peak in summer with consumption up by 4.7%. This power load was acutely felt in industrial bases such as Zhejiang, Jiangsu, and Guangdong. The State Grid has heightened transmission across provinces to guarantee an orderly and stable power supply. Chinese provincial level power demands have already surpassed that of Germany and this should only grow in the days ahead. In neighbouring India, the power rental market is primarily regional with companies targeting different demographics. An emerging trend is where construction firms provide their own equipment rental services along with a host of services such as trained personnel, spare parts, modern communication systems, and 24/7 turnkey service.
Continuous Load Needed in Hospitals and Telecom Companies Where Uninterrupted Supply is Table Stakes
The power rental market can be classified into three categories on the basis of application – peak load, standby load, and continuous load. Nearly half of the power rental market was held by the continuous load segment in 2020 and it demonstrated the highest growth. Power rental systems find the greatest application in the mining, energy and utility, and oil and gas sectors – all of which require a constant supply of energy. In addition, government offices, hospitals, telecommunication centres need backup in case of rolling blackouts, driving demand for continuous load in the power rental market.
The peak shaving application segment is expected to grow robustly as peak saving slashes bills by reducing the energy consumption during peak hours when prices are at a premium. Power rental systems assist in managing electricity demand during seasonal hours, reducing company overheads and improving the bottom line.
Oligopolistic Nature of Power Rental Market Compels Companies to Enter into Strategic Partnerships
The power rental market is oligopolistic in nature with a few companies dictating the direction and development of the market. Companies have entered into strategic partnerships and alliances to bolster their market with product customization key for retaining customer loyalty. Some of the largest companies in the global power rental market are Aggreko, Atlas Copco AB, Al Faris, Hertz System, Inc., Caterpillar, United Rentals Inc., Cummins Inc., Ashtead Group plc, Herc Rentals Inc., Sudhir Power Ltd., Newburn Power Rental Ltd., JASSIM TRANSPORT & STEVEDORING CO. K.S.C.C., and APR Energy.
In 2018, Aggreko was awarded the contract for supplying the 2020 Tokyo Olympics with rental power in a contract worth $200 million. This was recently revised to US315 million as it had to take the delay in the games and the changed scope of the work into account.
Regional Classification of the Global Power Rental Market is Listed Below:
North America
Europe
Asia Pacific
Latin America
Middle East and Africa
*Regions and countries are subject to change based on data availability.
Key Elements Included In The Study: Global Power Rental Market
Post Sale Support, Research Updates & Offerings
We value the trust shown by our customers in Fairfield Market Research. We support our clients through our post sale support, research updates and offerings.
1. Executive Summary
1.1. Global Power Rental Market: Snapshot
1.2. Future Projections, 2023 - 2030, (US$ Mn)
1.3. Key Segment Analysis and Competitive Insights
1.4. Premium Insights
2. Market Overview
2.1. Market Definitions and Segmentation
2.2. Market Dynamics
2.2.1. Driver
2.2.2. Restraint
2.2.3. Industry Challenges & Opportunities
2.3. Market Forces Analysis
2.3.1. Value Chain Analysis
2.3.2. Porters Five Forces Analysis
2.4. Challenges and Solutions
2.5. Supply Chain Impact Analysis
2.6. COVID-19 Impact Analysis
2.6.1. Pre and Post Covid-19 Analysis
2.7. Regulatory Scenario
2.8. Economic Analysis
3. Price Analysis
3.1. Key Price Indicators
3.2. Factors Affecting Cost
3.3. Price Analysis, by Region
4. Global Power Rental Market Outlook, 2018 - 2030
4.1. Global Power Rental Market Outlook, by Fuel Type, Value (US$ Mn), 2018 - 2030
4.1.1. Key Highlights
4.1.1.1. Diesel
4.1.1.2. Natural Gas
4.1.1.3. Misc.
4.1.2. Market Attractiveness Analysis
4.2. Global Power Rental Market Outlook, by Application, Value (US$ Mn), 2018 - 2030
4.2.1. Key Highlights
4.2.1.1. Prime Load
4.2.1.2. Continuous Load
4.2.1.3. Standby Load
4.2.2. Market Attractiveness Analysis
4.3. Global Power Rental Market Outlook, by End-user, Value (US$ Mn), 2018 - 2030
4.3.1. Key Highlights
4.3.1.1. Electric Utilities
4.3.1.2. Telecom
4.3.1.3. Data Center
4.3.1.4. Petrochemical & Refining
4.3.1.5. Mining
4.3.1.6. Manufacturing
4.3.1.7. Construction
4.3.1.8. Misc. (Marine, etc.)
4.3.2. Market Attractiveness Analysis
4.4. Global Power Rental Market Outlook, by Region, Value (US$ Mn), 2018 - 2030
4.4.1. Key Highlights
4.4.1.1. North America
4.4.1.2. Europe
4.4.1.3. Asia Pacific
4.4.1.4. Latin America
4.4.1.5. Middle East & Africa
4.4.2. Market Attractiveness Analysis
5. North America Power Rental Market Outlook, 2018 - 2030
5.1. North America Power Rental Market Outlook, by Fuel Type, Value (US$ Mn), 2018 - 2030
5.1.1. Key Highlights
5.1.1.1. Diesel
5.1.1.2. Natural Gas
5.1.1.3. Misc.
5.2. North America Power Rental Market Outlook, by Application, Value (US$ Mn), 2018 - 2030
5.2.1. Key Highlights
5.2.1.1. Prime Load
5.2.1.2. Continuous Load
5.2.1.3. Standby Load
5.3. North America Power Rental Market Outlook, by End-user, Value (US$ Mn), 2018 - 2030
5.3.1. Key Highlights
5.3.1.1. Electric Utilities
5.3.1.2. Telecom
5.3.1.3. Data Center
5.3.1.4. Petrochemical & Refining
5.3.1.5. Mining
5.3.1.6. Manufacturing
5.3.1.7. Construction
5.3.1.8. Misc. (Marine, etc.)
5.4. North America Power Rental Market Outlook, by Country, Value (US$ Mn), 2018 - 2030
5.4.1. Key Highlights
5.4.1.1. U.S.
5.4.1.2. Canada
6. Europe Power Rental Market Outlook, 2018 - 2030
6.1. Europe Power Rental Market Outlook, by Fuel Type, Value (US$ Mn), 2018 - 2030
6.1.1. Key Highlights
6.1.1.1. Diesel
6.1.1.2. Natural Gas
6.1.1.3. Misc.
6.2. Europe Power Rental Market Outlook, by Application, Value (US$ Mn), 2018 - 2030
6.2.1. Key Highlights
6.2.1.1. Prime Load
6.2.1.2. Continuous Load
6.2.1.3. Standby Load
6.3. Europe Power Rental Market Outlook, by End-user, Value (US$ Mn), 2018 - 2030
6.3.1. Key Highlights
6.3.1.1. Electric Utilities
6.3.1.2. Telecom
6.3.1.3. Data Center
6.3.1.4. Petrochemical & Refining
6.3.1.5. Mining
6.3.1.6. Manufacturing
6.3.1.7. Construction
6.3.1.8. Misc. (Marine, etc.)
6.4. Europe Power Rental Market Outlook, by Country, Value (US$ Mn), 2018 - 2030
6.4.1. Key Highlights
6.4.1.1. Germany
6.4.1.2. France
6.4.1.3. U.K.
6.4.1.4. Italy
6.4.1.5. Spain
6.4.1.6. Turkey
6.4.1.7. Russia
6.4.1.8. Rest of Europe
6.4.2. BPS Analysis/Market Attractiveness Analysis
7. Asia Pacific Power Rental Market Outlook, 2018 - 2030
7.1. Asia Pacific Power Rental Market Outlook, by Fuel Type, Value (US$ Mn), 2018 - 2030
7.1.1. Key Highlights
7.1.1.1. Diesel
7.1.1.2. Natural Gas
7.1.1.3. Misc.
7.2. Asia Pacific Power Rental Market Outlook, by Application, Value (US$ Mn), 2018 - 2030
7.2.1. Key Highlights
7.2.1.1. Prime Load
7.2.1.2. Continuous Load
7.2.1.3. Standby Load
7.3. Asia Pacific Power Rental Market Outlook, by End-user, Value (US$ Mn), 2018 - 2030
7.3.1. Key Highlights
7.3.1.1. Electric Utilities
7.3.1.2. Telecom
7.3.1.3. Data Center
7.3.1.4. Petrochemical & Refining
7.3.1.5. Mining
7.3.1.6. Manufacturing
7.3.1.7. Construction
7.3.1.8. Misc. (Marine, etc.)
7.4. Asia Pacific Power Rental Market Outlook, by Country, Value (US$ Mn), 2018 - 2030
7.4.1. Key Highlights
7.4.1.1. China
7.4.1.2. Japan
7.4.1.3. South Korea
7.4.1.4. India
7.4.1.5. Southeast Asia
7.4.1.6. Rest of Asia Pacific
7.4.2. BPS Analysis/Market Attractiveness Analysis
8. Latin America Power Rental Market Outlook, 2018 - 2030
8.1. Latin America Power Rental Market Outlook, by Fuel Type, Value (US$ Mn), 2018 - 2030
8.1.1. Key Highlights
8.1.1.1. Diesel
8.1.1.2. Natural Gas
8.1.1.3. Misc.
8.2. Latin America Power Rental Market Outlook, by Application, Value (US$ Mn), 2018 - 2030
8.2.1. Key Highlights
8.2.1.1. Prime Load
8.2.1.2. Continuous Load
8.2.1.3. Standby Load
8.3. Latin America Power Rental Market Outlook, by End-user, Value (US$ Mn), 2018 - 2030
8.3.1. Key Highlights
8.3.1.1. Electric Utilities
8.3.1.2. Telecom
8.3.1.3. Data Center
8.3.1.4. Petrochemical & Refining
8.3.1.5. Mining
8.3.1.6. Manufacturing
8.3.1.7. Construction
8.3.1.8. Misc. (Marine, etc.)
8.4. Latin America Power Rental Market Outlook, by Country, Value (US$ Mn), 2018 - 2030
8.4.1. Key Highlights
8.4.1.1. Brazil
8.4.1.2. Mexico
8.4.1.3. Argentina
8.4.1.4. Rest of Latin America
8.4.2. BPS Analysis/Market Attractiveness Analysis
9. Middle East & Africa Power Rental Market Outlook, 2018 - 2030
9.1. Middle East & Africa Power Rental Market Outlook, by Fuel Type, Value (US$ Mn), 2018 - 2030
9.1.1. Key Highlights
9.1.1.1. Diesel
9.1.1.2. Natural Gas
9.1.1.3. Misc.
9.2. Middle East & Africa Power Rental Market Outlook, by Application, Value (US$ Mn), 2018 - 2030
9.2.1. Key Highlights
9.2.1.1. Prime Load
9.2.1.2. Continuous Load
9.2.1.3. Standby Load
9.3. Middle East & Africa Power Rental Market Outlook, by End-user, Value (US$ Mn), 2018 - 2030
9.3.1. Key Highlights
9.3.1.1. Electric Utilities
9.3.1.2. Telecom
9.3.1.3. Data Center
9.3.1.4. Petrochemical & Refining
9.3.1.5. Mining
9.3.1.6. Manufacturing
9.3.1.7. Construction
9.3.1.8. Misc. (Marine, etc.)
9.4. Middle East & Africa Power Rental Market Outlook, by Country, Value (US$ Mn), 2018 - 2030
9.4.1. Key Highlights
9.4.1.1. GCC
9.4.1.2. South Africa
9.4.1.3. Egypt
9.4.1.4. Niegria
9.4.1.5. Rest of Middle East & Africa
9.4.2. BPS Analysis/Market Attractiveness Analysis
10. Competitive Landscape
10.1. Company Market Share Analysis, 2022
10.2. Competition Matrix (By Tier and Size of companies)
10.3. Strategic Collaborations
10.3.1. Joint Ventures
10.3.2. Mergers & Acquisitions
10.4. Company Profiles
10.4.1. Atlas Copco
10.4.1.1. Company Overview
10.4.1.2. Product Portfolio
10.4.1.3. Financial Overview
10.4.1.4. Business Strategies and Development
(*Note: Above details would be available for below list of companies based on availability)
10.4.2. Caterpillar Inc.
10.4.3. Cummins Inc.
10.4.4. Wärtsilä Corporation
10.4.5. HIMOINSA
10.4.6. Generac Power Systems
10.4.7. Kohler Co
10.4.8. United Rentals Inc.
10.4.9. Shenton Group
10.4.10. Kirloskar
10.4.11. FG Wilson
10.4.12. Aggreko plc
10.4.13. APR Energy
10.4.14. Herc Rentals Inc.
11. Appendix
11.1. Acronyms and Abbreviations
11.2. Research Scope & Assumptions
11.3. Research Methodology and Information Sources
Considering the volatility of business today, traditional approaches to strategizing a game plan can be unfruitful if not detrimental. True ambiguity is no way to determine a forecast. A myriad of predetermined factors must be accounted for such as the degree of risk involved, the magnitude of circumstances, as well as conditions or consequences that are not known or unpredictable. To circumvent binary views that cast uncertainty, the application of market research intelligence to strategically posture, move, and enable actionable outcomes is necessary.
View Methodology