Power Rental Market Size, Share and Industry Analysis By Rating (Below 75 KVA, 75 – 375 KVA, 375 – 750 KVA, Above 750 KVA), By Fuel Type (Diesel, Natural Gas and LPG, Others), By Application (Continuous, Stand By, Peak Load), By End-Use (Mining, Construction, Utility, Events, Manufacturing, Oil and Gas, Others) and Geography Forecast, 2019 - 2026

KEY INDUSTRY INSIGHTS

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The global power rental market size was valued at approximately USD 10.6 Billion in 2018 and is projected to reach nearly USD 20 Billion by 2026, exhibiting a CAGR of 8.24% in the forecast period.

Power rental, also known as power on hire comes with numerous advantages over the other counterparts. The rental generators are useful over the purchased generators as they provide flexibility in the power rating required, negligible maintenance and installation costs, readily available on short notice, and lower initial costs among other features. The manufacturers generally prefer hiring generators in case of maintenance of the existing power supply system, lack of availability of grid infrastructure, and requirement of power for a temporary time period. The rental power is a popular concept for the events that are organized across different parts of the world.

Power rental is generally preferred in the areas with low grid infrastructure, which includes the islands present in the Asia Pacific and Latin America region. The mining industry is among the key consumers of rental power. Since the mining sites are not connected to the grid supply, they drive the power from the temporarily hired generator sets for a specific time period. The manufacturing industries have a moderate demand for the rental generators in case of maintenance of the existing power supply system such as purchased generator sets or when there is a need for extra power in case of peak load demand, and when there is an outage for a short period of time. The global power rental market growth is thus highly dependent on the industries with weak power supply from grids.

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Market Segmentation

"Demand for the Diesel Generators to Remain High Over the Forecast Period"

The market potential is dependent on the demand and sales of rental diesel generator sets across different industries. Diesel generators are widely preferred by the players involved in the mining, oil and gas and manufacturing sectors. The surplus availability and economical price of the diesel fuel are among the key factors for the high demand for diesel generators sets for temporary power demand. Additionally, regions such as Latin America, Asia Pacific, and the Middle East and Africa have a weak infrastructure for gas and liquefied petroleum gas pipelines which adds to the growth of demand for diesel generators in these regions.

However, regions such as Europe and North America that are focused on reducing carbon emissions are strengthening regulations related to the use of diesel fuel. This is expected to retard the global diesel generator rental market growth marginally over the forecast period.

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The gas generators, on the other hand, have environment-friendly characteristics and are used mostly in Europe and North America region where there is a good infrastructure for gas pipelines. The global power rental market potential for the gas generators is expected to grow marginally over the forecast period owing to increasingly strict regulations and environmental policies in different regions.

"Mining Industry Is Projected to Dominate Across the Global Market by End-Use"

Rental generator sets are mostly used for supplying power in the areas with deficient grid connectivity. Mining activities are among the key consumers of the energy from generators as most of the mining activities are carried out in the areas located on the outskirts of cities or towns where the power supply through the grid is not available. Mining activities are not long-lasting and are for a temporary period of time so, the players involved in the mining industry prefer rental power to meet their daily energy demand. The mining activities generally demand higher power rating generator sets for the high power rated equipment.

So the global market potential for the generator sets of ratings above 750 KVA is high in the mining industry. The construction industry is gaining traction across developing countries such as China, India, Saudi Arabia, and Kuwait among others owing to a large number of upcoming infrastructure development projects. The players involved in the construction industry generally prefer rental power in order to minimize the transportation and installation costs of generators. Construction activities include the construction of commercial spaces, residential buildings, flyovers and roads among others.

Different countries are focused on developing infrastructure in order to provide more facilities to the local people. The growth in infrastructure development is expected to boost the growth of the construction industry which is anticipated to create lucrative opportunities for the market growth of the market in the coming years.

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The rental power has a high demand in the oil and gas industry for the upstream, midstream, and downstream operations. The key global power rental market players in the oil and natural gas industry are focused on the exploration of new oil wells in order to increase production capacities. Generally, the extraction of oil from the wells is dependent on crude oil prices in the market. Owing to this, the oil wells can remain sealed for a specific time period. The oil producers thus prefer rental power to run the upstream operations due to the irregular operational structure of wells which is dependent on fluctuating crude oil prices. The oil and gas producers also prefer rental power for the midstream activities which do not have any power supply from the grid.

Regional Analysis

"China is Likely to Hold the lion's share in the Power Rental Market"

Currently, China holds a significant market share by value in the global market. China is among the key countries for mining activities. China was reported to hold more than a 20% share in the global mining industry in the year 2018. The manufacturing sector in China is also growing at a considerable rate mainly driven by abundant raw material availability and economic labor costs. Due to these factors, the demand for rental power is anticipated to remain high, and the market in China is expected to hold the lion's share in the global market. The Middle East and Africa region are among the fastest-developing regions.

The construction activities and oil and natural gas industry are growing at steady rates in the region. In 2018, the region accounted for a significant market share in the global market mainly driven by the demand form mining, construction, and oil & gas industries. Lack of availability of proper grid structure, increasing mining activities in Africa, and high demand for rental power from off-grid oil and gas wells are among the key drivers for the growth of the market in the region.

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Latin America is a high potential region that is likely to expand at a higher CAGR as compared to the other regions. The Latin America region is among the key producers of Lithium and graphite with mining activities in Brazil, Argentina, and Chile. The grid infrastructure in Latin America has not reached the remote places such as the Caribbean Islands where the power rental is still the major source of power. Owing to such conditions, the power rental market is expected to gain traction in the Latin America region.

INDUSTRY KEY PLAYERS

The global market is influenced by major participants across the globe. Aggreko is established as one of the leading players and operates under different verticals in the industry. The company offers a wide range of generator sets with varying ratings of power and has a global footprint with around 6,659 MW of power on hire in the year 2018. Other prominent players in the global power rental market are Caterpillar Inc., Cummins Inc., Atlas Copco, Kohler Co., Shenton Group, NIDS Group, Pump Power Rental, United Power and Resources, Sudhir Power Ltd., Modern Hiring Service, Newburn Power Rental Ltd, Global Power Supply, FG Wilson, ProPower Rental, United Rentals, Ashtead Group Plc, APR Energy, Bredenoord, Generac Power Systems, Wacker Neuson Group, Wartsila, Speedy Hire PLC, Multiquip Inc., among others.

Key companies covered in the report

• Aggreko


• Caterpillar Inc.


• Cummins Inc.


• Atlas Copco


• Kohler Co.


• Shenton Group


• NIDS Group


• Pump Power Rental


• United Power and Resources


• Sudhir Power Ltd.


• Modern Hiring Service


• Newburn Power Rental Ltd


• Global Power Supply


• FG Wilson


• ProPower Rental


• United Rentals


• Ashtead Group Plc


• APR Energy


• Bredenoord


• Generac Power Systems


• Wacker Neuson Group


• Wartsila


• Speedy Hire PLC


• Multiquip Inc.

Report Coverage

The power rental equipment provides a cost-effective energy supply for the continuous and peak demands for power across different industries. The inclination of various players towards using temporary power is increasing, which is more prevalent in developing countries with poor grid infrastructure. The frequency of events such as Olympic games, world cup tournaments, entertainment events, and sports tournaments has also increased in the recent past which has been a positive influence for the global market growth. The growing population has boosted the growth of infrastructure development projects across the globe. The infrastructure projects generally last for shorter time duration and require temporary power which is mostly rented. Diesel generators have a higher penetration in the global market as compared to the other types such as fuel cells or gas generators which are in the introduction and growth phase of the market respectively.

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The report provides qualitative and quantitative insights on This industry and detailed analysis of global power rental market size & growth rate for all possible segments in the market. The market is segmented by rating, fuel type, application, end-use, and geography. On the basis of rating, the global market is segmented into below 75 KVA, 75 – 375 KVA, 375 – 750 KVA, and above 750 KVA. Based on fuel type, the global market is segmented into diesel, natural gas and LPG, and others. Based on application, the global market is segmented into continuous, stand by, and peak load power requirements. Based on end-use, the global market is segmented into mining, construction, utility, events, manufacturing, oil and gas, and shipping, among others. Geographically, the global market is segmented into five major regions, namely, North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. The regions are further categorized into countries.

Along with this, the report provides an elaborative analysis of this market dynamics and competitive landscape. Various key insights presented in the report are the recent industry developments in the global market, such as mergers & acquisitions, the regulatory scenario in key countries, investment scenario, technological advancement, and key industry trends.

Segmentation

Key Industry Developments

• In December 2018, Aggreko Plc was awarded a contract for providing rental power services to the 2020 Tokyo Paralympic and Olympic games. The contract is estimated to be of worth around US$ 200 Million.


• In March 2018, Caterpillar Inc. launched the National Accounts VIP Rental Program in order to meet the temporary power needs of larger businesses operating in different regions by offering superior resources and expertise. The new program provided the clients with a streamlined approach to rental products by a single point-of-contact and single agreement policy.


• In January 2018, Aggreko announced a joint venture in China with Shanghai Yude, a power rental player. The new joint venture Shanghai Yude Aggreko Energy Equipment Rental Co., Ltd has been involved in trading of equipment in the local markets of China. Aggreko holds a 21.5% of the equity in the joint venture.