Power Rental Market To Generate $15,117 Million Revenue by 2030
- Published: January 2023
The power rental market is expected to advance at a CAGR of 5.7% during 2022–2030, to reach USD 15,117 million by 2030. This is ascribed to the rapid advancements in the industrial sector, along with the rising demand for a continuous electricity supply, especially in emerging economies.
Moreover, renting electricity-producing equipment is necessary to recover from the property and economic loss caused by natural calamities. Earthquakes, tsunamis, floods, hurricanes, tornadoes, and other adverse weather events often cause huge economic damage, in addition to life and property loss. Moreover, these calamities often result in power cuts and environmental problems.
Currently, the five most-disaster-prone countries in the world are China, India, the U.S., the Philippines, and Indonesia. The recovery from and mitigation of the impact of natural disasters involve a great deal of reconstruction activities and relief work, mainly facilitated by genset rentals. Together, these factors indicate that an uninterrupted electricity supply plays a significant role in keeping the economy on its feet during such mishaps; thus, natural disasters can be seen as one of the key factors driving the global market growth.
GDP and Population Growth Drive Market
The gross domestic product (GDP) is the depiction of a country’s economic status; any increase in the GDP indicates economic growth. According to the Organisation for Economic Co-operation and Development (OECD), the global GDP is expected to quadruple by 2050. Similarly, as per the United Nations Department of Economic and Social Affairs (UN-DESA), the global population, which was 8 billion in 2022, will rise to 8.5 billion by 2030, 9.7 billion by 2050, and 10.4 billion by 2100.
The energy demand of any country is directly proportional to its GDP and population growth, as a rise in the number of people leads to an increase in the demand for an affordable and reliable energy supply. Additionally, the GDP is associated with industrial development and urbanization, which are hugely dependent on energy. Thus, the above-mentioned factors would be crucial in driving the demand for gensets on rent.
MEA Offering Lucrative Growth Potential to Rental Generator Providers
The MEA region is expected to show significant growth in the global market, due to the high demand for rental electricity from different sectors, including utilities, oil and gas, events, and construction. Moreover, players are gaining momentum in the region on account of the outdated power plants, ongoing infrastructure projects, and rapid industrialization.
Moreover, during the forecast period, the market is expected to witness the highest CAGR, of 7.8%, in the MEA region. The utilities sector here uses temporarily hired generators to fill the demand during the peak periods. For example, in winters, the Middle East witnesses a significant rise in the count of entertainment-related activities, which results in an increase in the demand for rental gensets. In addition, various ongoing construction projects, such as those related to metros and railways, require generators on a temporary basis. Moreover, the oil and gas, mining, and industrial sectors are the major end users of rental generators in the MEA region. Other factors driving the demand for such equipment on a hired basis in the MEA are the grid unavailability in remote locations, extreme weather events.
The most-significant power rental market players are Ashtead Group plc, United Rental Inc., Atlas Copco, Caterpillar Inc., Cummins Inc., HERC Rentals, Kohler Co., Ahren Rentals, Bredenoord, and Propower Rental.