Power Rental Market to Generate Revenue Worth $16,855.5 Million by 2023

The global power rental market was valued at $9,167.6 million in 2017, which is projected to reach $16,855.5 million by 2023, at a CAGR of 10.3% during the forecast period (2018–2023). The diesel generators category dominated the market in 2017, in terms of revenue, on the basis of fuel type. This is majorly attributable to the low cost of diesel generators, along with their low maintenance requirement.

The gas generators category is projected to witness the fastest growth during the forecast period, owing to the increasing preference of such equipment, particularly in the North American and European regions.

Growing Power Demand from Developing Nations is the Key Market Driver

In recent times, the demand for power has witnessed an increase, particularly in developing nations, such as China, India, Thailand, Qatar, and Brazil. With the rapid industrialization in these countries, along with the expansion of the construction sector, the market for power rental systems is expected to prosper in the coming years. In addition, several power rental companies are particularly targeting emerging economies, owing to their untapped power rental market potential.

Segmentation Analysis of Power Rental Market

• The diesel generators category held the largest share in the power rental market in 2017, based on fuel type. This is attributable to the low-cost availability of diesel generators across the globe. In addition to this, they have a significantly lesser maintenance cost, in comparison to other generators.
• Continuous power held the largest share in 2017, and is expected to retain its dominance throughout the forecast period in the global power rental market, on the basis of application, owing to the large-scale usage of such equipment in industries including oil & gas, construction, and mining.
• The utilities category accounted for the largest share in 2017, based on end user, and it is projected to retain its dominating position till 2023. This is attributable to the requirement for rented power for redevelopment and upgradation of shutdown power plants for maintenance.
• The 51 kW–500 kW power rating category held the largest share in 2017, and it is expected to showcase the fastest growth during the forecast period as well. This is due to the increasing adoption of 51 kW–500 kW power generation equipment, owing to its ease of mobility.

Geographical Analysis of Power Rental Market

Together, MEA and North America are expected to account for over 53.0% share in the power rental market by 2023. This can be mainly attributed to the growing demand for rented power owing to the ongoing economic development and industrialization. In addition, end users such as the oil and gas, mining, industrial, and events sectors have a high requirement for rental electricity, for functioning in remote areas and maintaining continuous operations during power outage, owing to which the power rental market in these regions is expected to grow.

Competitive Landscape of Power Rental Market

The power rental market is fragmented in nature, with the leading players accounting for just over 30% of the share. Some of the prominent players in the market include Caterpillar Inc., Ashtead Group PLC, APR Energy, Al Faris Group, United Rentals Inc., Cummins Inc., Aggreko PLC, Quippo Infrastructure Equipment Limited, and Atlas Copco AB.

Companies in the power rental market are entering into strategic agreements, along with product launches, in order to gain a larger share. For instance, in October 2017, United Rentals Inc. completed the acquisition of NES Rentals Holdings for $965 million, in order to increase its production capabilities and geographical presence, mainly in southern geographies of U.S. such as the East Coast, Gulf States, and Midwest.

GLOBAL POWER RENTAL MARKET SEGMENTATION

By Fuel Type

• Diesel generators
• Gas generators
• Others (gasoline, hydrogen, and solar generators)

By Application

• Prime power
• Standby power
• Continuous power

By End User

• Utilities
• Oil and gas
• Industrial
• Construction
• Events
• Mining
• Others (shipping, manufacturing, residential and commercial buildings, and military)

By Power Rating

• Up to 50 kW
• 51 kW–500 kW
• 501 kW–2,500 kW

By Region

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC)
  • China
  • Japan
  • India
  • Rest of APAC
• Latin America (LATAM)
  • Brazil
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia
  • South Africa
  • Rest of MEA