According to the latest report by IMARC Group, titled “Power Rental Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2020-2025”, the global power rental market size reached US$ 15.2 Billion in 2019. Power rental is a field of service that operates around the provision of temporary power equipment for commercial buildings, big infrastructure projects, heavy industrial construction, or mine development. This equipment can be used through various stages, from building construction and site development to pre-commissioning activities. Power rental service providers offer different safety devices that can perform effective and efficient fuel management procedures. Some of the power rental solutions include welding generators, cables, diesel generators, mobile lighting towers and distribution boards. As compared to purchased generators, rental power systems offer low installation costs, negligible maintenance, flexibility in required power rating and are readily available on short notice. Other than this, they are also beneficial in terms of better inventory control, reduced disposal and warehousing costs, decreased equipment obsolescence and higher cost control.
Global Power Rental Market Trends:
Over the past few years, end users in the industry have been gaining awareness about the numerous monetary benefits and functional advantages offered by rental power systems, which is the primary factor driving the market growth. Besides this, military and defense organizations across the globe have been undertaking initiatives to maintain homeland security with improved power back-up. This, coupled with the rising emission restrictions, has created growth opportunities for market players to expand their portfolio with environment-friendly solutions. Moreover, the inadequate power supply has become a hindrance to industrial development, thus enabling higher penetration of gensets, which is a combination of diesel and electrical generators. Owing to this, there has been a rise in the demand for power rental equipment. Also, escalating concerns regarding global warming have prompted service providers to promote and offer renewable power equipment to end users. For instance, the US-based automotive and energy company, Tesla, recently launched a solar rental program for residents of six states across the United States - New Mexico, Massachusetts, California, New Jersey, Connecticut and Arizona. Attributing to these factors, the market is projected to reach a value of US$ 24.9 Billion by 2025, growing at a CAGR of 8.6% during 2020-2025.
- On the basis of the equipment type, the market has been segmented into generators, transformers, load banks and others.
- The market has been segregated based on the fuel type, which includes diesel, natural gas and others. Amongst these, diesel is the most preferred type of fuel in the market.
- Based on the power rating, the market has been categorized as up to 50 kW, 51 – 500 kW, 501 – 2,500 kW, and above 2,500 kW. Amongst these, 501 – 2,500 kW is the most popular range of power ratings.
- On the basis of the application, the market has been divided into peak shaving, standby power, and base load/continuous power. Currently, most power systems are rented for base load/continuous power.
- The report has analyzed the market according to the end use industry, which includes utilities, oil & gas, events, construction, mining, and other industries. Amongst these, power rental solutions are mainly used in the utility industry.
- On the geographical front, North America represents the biggest market, accounting for the majority of the total market share. Other regions include Europe, Asia Pacific, Middle East and Africa, and Latin America.
- The competitive landscape of the market has also been examined, with some of the key players being Aggreko Plc, Caterpillar, Inc., Atlas Copco Group, Cummins, Inc., United Rentals, Inc., HIMOINSA S.L., Horizon Acquisition (Horizon Power Systems), The Hertz Corporation, Generac Power Systems, Wacker Neuson SE, Wärtsilä Oyj Abp, Speedy Hire Plc, Smart Energy Solutions (SES), and SoEnergy International, Inc.
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