Power Rental Market 2030

Power Rental Market 2030

Bonafide Trust 01-08-2022 190 Pages
Region : Global Category : Energy & Utility Power storage & Backup

Power Rental is characterized as a power that is leased out for a particular amount of time and is controlled by either a written or verbal agreement. Power rental signifies the facility of temporarily renting generators or power plants for providing energy to industrial units. In many industries, power rental is increasingly used, as it can supply instant power, such as for power outages in remote areas without power networks. Increased end-customer advantage, increased profitability, fuel management, fleet management, reliability, design alignment, and after-sales service are the advantages of power rental. Industries need a constant power supply to prevent financial losses. Industries, therefore, use additional power by adopting short-term measures, such as leasing or leasing additional power by the use of diesel generators to meet their power needs.

Market Highlights

Power Rental Market is expected to project a notable CAGR of 6.9% in 2030. Power Rental Market to surpass USD 17.1 billion by 2030 from USD 9.4 billion in 2021 at a CAGR of 6.9% throughout the forecast period, i.e., 2022-30. The growing demand for power and the availability of new personalized rental solutions for compressed air are the key factors driving the growth of the global market for power rental. The key benefit of renting power equipment is the abandonment of upfront investment, tax reductions, improved infrastructure, reduction of balance sheet burden, and avoidance of transport and storage costs. Due to different macroeconomic factors and extensive industrial movement, an increase in power demand is observed. These factors are contributing to the rapid growth of the worldwide power rental market.

Power Rental Market: Segments

Continuous power segment to grow with the highest CAGR during 2022-30
Power Rental Market is segmented by applications as peak shaving, continuous power, standby. baseload/ continuous segment held the leading position with a market share of around 43.5% in the power rental market in 2019. To provide a continuous electricity supply, the baseload or continuous power plant needs minimum power generation. Geothermal power plants, tidal power plants, and coal-fired power plants are the other types of continuous power plants, among others. As continuous-power generators are used in a wide range of settings, including mines, manufacturing sites, construction sites, and oil and gas plants, the continuous power group is expected to produce the highest CAGR over the forecast period.

Oil & gas to grow with the highest CAGR during 2022-30

Power Rental Market is segmented by end-user into utilities, construction, oil & gas, manufacturing, mining, shipping, events, and others. The utility segment has been generating the largest revenue throughout the historical and forecast period. The section of utilities includes power plants owned and maintained by various utility companies and government agencies. Utility suppliers ensure an efficient supply of energy from power plants to commercial and residential buildings around the globe with the aid of an existing distribution line. The initial investment in the establishment of durable power plants requires tremendous capital investment. Besides, the growing demand for the establishment of consistent economic power has accentuated the need for fully capable and affordable operating power rental systems around the world. Due to the high adoption rate of power rental technologies by industries, the segment of the oil & gas industry is expected to expand over the forecast period. The world's ever-increasing demand for oil and gas is the key factor driving the growth of the global rental market for electricity.

Power Rental Market: Market Dynamics


Growing foreign investments along with ongoing technological advancements
The share of the diesel power rental market will be complemented by rising foreign investment along with ongoing technological developments, including high reliability and performance. Frequent power cuts and blackouts would have a positive effect on the outlook of the sector, along with aging transmission and distribution lines. Without the additional facilities, the rental units can quickly be set up and can be demobilized to support other projects after fulfilling the demand. Some of the main factors confirming the demand scenario are easy to supply, longer life cycle, and higher fuel energy density. Gas-based power rental demand would be motivated by the implementation of strict government guidelines against rising emission rates, followed by increasing adoption of renewable systems. The growth of the market will be enhanced by increasing consumer inclination towards operational suitability & economic viability. Besides, the growing market for green alternatives will shift to sustainability and hybrid technology in line with the shifting emphasis.

Demand for continuous power supply from Core industries

In remote areas, mining and oil & gas exploration operations typically take place. Due to the highly inflammable nature of the extracted goods, human life at such locations is constantly threatened; adequate lighting and power are therefore essential requirements for such operations. The mining and oil & gas industries in the US, Australia, and many African countries are likely to experience noteworthy growth, driven by growing investment. New mining ventures are anticipated to be launched in the coming years in China, Australia, and India. To propel the demand for power rental solutions, the factors listed above are imperative. Collectively, these variables are expected to drive the power rental solutions industry in the future.

Stringent emission regulations

Government agencies' stringent pollution regulations and the impact of oil price volatility on sectors dependent on oil are expected to impede the growth of the global power rental industry. Besides, the increased emphasis on renewable energy is expected to further hamper the growth of this sector in the near future. Several strict regulations have been formulated in the North America, Europe, and Asia Pacific regions to restrict carbon emissions from power generation operations. Such regulations also define the allowable noise levels of diesel generators to reduce the noise emissions generated by the operation of diesel generators. Different nations have their own set of laws and regulations. Multiple emission prevention measures such as silencers, solid foundations, and rubber in shear mounts, canopies, and flexible elbows are offered by many power rentals companies to minimize the noise level, which in turn increases the total cost of generator sets.

The report covers Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development. Competitive Landscape:
The Power Rental market, which is highly competitive, consists of several major players which are mentioned below

Power Rental Market: Key Players: Aggreko Plc (UK), Ahren rentals (US), Alfaris group (Dubai), Allmand brothers Inc (US), APR Energy(US), Ashtead group Plc (UK), Atlas copco (Sweden), Bredenoord (Netherlands), Caterpillar Inc (US), Cumminc Inc (US), DIR Rentals (US), Generac holding Inc (US), HERC Rentals (US), J&J Equipment rental & sales (US), Kohler Co (US), Multiquip Inc (US), One source rentals (US), Propower rental (US), Shenton group (UK), Soenergy international (US), United rentals Inc ( US), Wacker Nuson (Germany), Wartsila (Finland), Yanmar (Osaka).

Power Rental Market: Regions

Power Rental Market is segmented based on regional analysis into five major regions. These include North America, Latin America, Europe, APAC, and MEA.

Power Rental Market in North America held the largest market share of XX.X% in the year 2019 and it is expected to continue its market dominance in the future owing to factors such as growing investments in the industries of oil & gas, manufacturing, and mining. Besides, the increased investment in mining and related exploration activities in the area is also driving the demand for rental of electrical equipment over the forecast period. With the highest CAGR, MEA is expected to rise, and this is due to the rising demand for electricity from the construction sector, as well as the need to supply power to outdated power plants. Besides, the rise in investments in infrastructure in countries such as the U.A.E., Oman, and Saudi Arabia is expected to further fuel demand for leased power in the region in the coming years, with the market expected to expand at its fastest during the forecast period.

The market competition has been stepped up by the availability of many players offering Power Rental. For Instance, In August 2020: Aggreko signed a contract to deliver three temporary power generators for the pro women’s golf in Scotland.

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.

Recent Developments

  • In March 2022, United Rentals announced that it will offer its clients a zero-emission power option with the addition of POWRBANK battery systems to its rental fleet. United Rentals' relationship with manufacturer POWR2 Energy Solutions provides an investment in sustainable workplace solutions for North American clients. POWRBANK is a compact power storage system that works with diesel engines to lessen runtime, pollution, congestion, and fuel wastage. The system makes use of high-density lithium-ion batteries, inverters, and load-sensing electronics. The United Rentals POWRBANK type has a power output range of 40KW to 60KW and a storage capacity of 60KW to 120KW hours.
  • In January 2022, Herc Rentals acquired Temp-Power Inc., a provider of power generation rentals serving locations including Virginia, Maryland, and Washington, D.C.
  • In December 2021, with the construction of its largest natural gas unit to date, Generac Industrial Power's edge in gaseous-powered generators expanded. The new SG1000 1000 kW gaseous generator was built with Generac's in-house engine technology and long-lasting MOTORTECH components. This generator will have a significant impact on the market's natural gas business. The SG1000 is suited for a diverse range of products, including healthcare organizations, logistics management centers, educational institutions, and others. When compared to comparable gaseous products at this power node, SG1000 emits more than 75% less harmful NOx and significantly less CO.
  • In November 2021, Caterpillar Inc. announced a three-year project through collaboration with Microsoft and Ballard Power Systems to demonstrate a power system incorporating large-format hydrogen fuel cells to produce reliable and sustainable backup power for Microsoft data centers.
  • In June 2021, the first hydrogen power generation units piloted at the Aggreko Plc depot in Moerdijk, Netherlands for use in temporary power applications.
  • In April 2021: Atlas Copco introduced ZBC, the latest model in its lithium-ion energy storage system range called ZenergiZe. It can be used as a standalone source, combined with generators to make a hybrid power solution or renewable sources of energy as well as to create Microgrids.
  • In August 2020: Aggreko signed a contract to deliver three temporary power generators for the pro women’s golf in Scotland.
  • In May 2019: Bredenoord expanded its rental fleet with extra Big Battery Boxes, adding up to 4.5 MWh battery capacity.
  • In February 2019: Pramac (a subsidiary of Generac) acquired majority stakes in an Indian generator manufacturer called Captiva Energy Solutions. Captiva Energy manufactured, sold, and rented generators for various applications.

FAQs on Power Rental Market

Which Power Rental Segment is projected to Witness the Fastest Growth among Power Rental Fuel Type?

Diesel Fuel-powered power rental equipment is forecasted to grow at the highest CAGR of over 5.8% during 2022-2032. Diesel has a consistent deployment rate because of its ability to provide scalable and flexible operations. Diesel accounts for around 66% of the Power Rental Fuel Type market share. Continuous power availability and low beginning costs are likely to drive demand for diesel-fuelled power rental equipment.

Besides, diesel engines have good fuel efficiency. They typically provide 25 to 30% more fuel efficient than equivalent gasoline engines. Depending on the model and the rapidly growing automotive technology, diesel can also achieve the same or higher fuel efficiency as traditional gasoline-electric hybrids.

Which Power Rating of Power Rental is expected to Score Highest Growth in the Coming Years?

The 501 - 2500 KW segment is forecasted to grow at the highest CAGR of over 5.6% during 2022-2032. The rising demand from the mining and utilities end-user categories is driving the 501 kW - 2,500 kW rating market.

Which Application Segment of Power Rental is expected to Score the Highest Growth in the Coming Years?

The Base load/ Continuous Load application is expected to witness the highest growth and demand during the period 2022-30. IT systems, alarm systems, equipment, and security lights that are not switched on and off are examples of objects that require a continual power source. The fundamental quantity of energy that is always required is simply the level below which demand does not often fall.

Power leasing systems like these are becoming more widespread in the oil and natural gas industry, construction, and mining industries. Such sectors demand a continuous supply of electricity because they are positioned far from power grid sites. In addition, many renewable and hydroelectric power plants require the inclusion of a backup power solution.

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