The Global Power Rental Systems Market is predicted to succeed in USD 20 billion by 2028 from USD 10.6 billion in 2019, growing at a CAGR of 8.2% over the forecast period. Increasing grid instability including power spikes in times of peak demand is predicted to be a key driver for the event of the market. Additionally, the increased focus towards reduction of peak power consumption so as to scale back electricity cost is predicted to reinforce the expansion of the market. Power rental systems are utilized in a spread of industries where there's high demand for continuous power. Key end-use markets for these systems were government, oil and gas and construction, which together accounted for over 60% of worldwide revenues in 2016. High dependency on power for daily operation of those industries may be a key driver for substantial use of power rental systems. The utilization of those systems in events, wherein there's high demand for temporary power, was a little segment in 2016 but is predicted to grow at the highest CAGR from 2013 to 2020.
Key Insights of Power Rental Systems Market:
- The key applications of power rental systems include peak shaving, continuous power and standby power. However, use of those systems for peak shaving is predicted to be the critical factor for the event of this market and is predicted to grow at the highest CAGR over subsequent seven years.
- Power rental systems are primarily used for power shaving, continuous power or as standby power device. The worldwide market was dominated by continuous power systems which accounted for a large part of the general share in 2016. It's expected that this substantial share will decrease by 2020, as demand for peak shaving systems is rising to beat the outages of grid connection and curbing power bills.
- Middle East and Africa (MEA) was the most important regional marketplace for power rental systems in 2016. The dominance of this region with regards to the presence of oil and gas and housing industry was the key factor for relatively high share and similar trend is predicted over subsequent seven years
- Asia Pacific and North America were the opposite major regions within the market of 2019. However, North America and Europe being mature markets are expected to lose share over the forecast period in light of in-depth environmental regulation in these regions. Asia Pacific is predicted to witness significant growth due to the event of economies like India, China and Indonesia.
- The power rental systems market was fragmented with the highest 5 players accounting for a majority of the market in 2016. Companies are targeting the Asia Pacific and Middle East market in light of the vast opportunities in these regions thanks to industrial growth of varied economies and therefore the presence of an outsized oil and gas industry. Aggreko, Caterpillar and APR Energy are a number of the key participants of the market.
The Power Rental Systems market segmentation is based on Application, End Use, and Region.
Key application segments analyzed and reported during this study include peak shaving, continuous power and standby power systems. Continuous power application was the most important application for power rental systems valued at USD 3.29 billion and is projected to grow at second highest CAGR during the forecast period. Power rental systems are increasingly finding applications in mining, oil and gas, and construction sectors. These sectors normally require endless supply of power and which are far away from the facility grid. Some of the hydroelectric and renewable power plants also require supplementary power backup solution. Hospitals, government offices, and telecommunication centers require an uninterrupted supply of power, thereby fueling the continual power application market. Standby mode consumes up to 25% power as compared to the active mode. Rising data centers, IT industry, and increased usage of electrical appliances that mostly add standby mode are expected to fuel the standby application segment within the coming year. However, various regulations implemented by EPA and Greenpeace are expected to attenuate standby power consumption thereby hampering the demand for rental power units. Peak shaving systems is one among the foremost common application of energy management systems accounted for the second highest market share in 2014 and is projected to grow at highest CAGR during the forecast period. Peak shaving may be a technique to scale back power bills by curbing the facility consumption during peak hours when electricity rates are the very best. The main goal of peak shaving is to avoid the need of permanent installation to provide the peaks of a highly variable load. Industrial and commercial customer use peak shaving technique to save lots of the electricity bills by reducing peak demand. Power demand rises during winter and summer seasonal peak periods. Peak shaving power rental units’ demand is probably going to grow with growing awareness to curb penalized bill.
End Use Outlook:
Key end-use industries analyzed and reported during this study include government and utilities, oil & gas, industrial, events, construction. Government offices and projects are expected to stay key end-user segments for power rental market over subsequent seven years growing at the highest CAGR. The use of power rental systems helps these industries distribute power loads between peak and non-peak hours thereby reducing the electric power cost considerably. Industrial expansion in developing economies of Asia pacific region particularly in China, India and Japan is predicted to drive the demand for power rental systems for industrial application which eventually the facility rental systems market. Additionally, the emerging oil and gas industry within the Middle East and Asia Pacific including demand supply gap in power is predicted to reinforce the demand for power rental systems during this segment. Industrial segment was the second largest end-user industry for the facility rental systems market. The economic sector is predicted to propel prominently in Asia Pacific and therefore the MEA. Large companies have shifted their manufacturing activities to those regions which have considerably increased power demand of the region resulting in a requirement supply gap. The development industry was also a key consumer of power rental systems thanks to the continual high demand for power. Urbanization has fueled the development industry with opportunities in rural and infrastructural development which successively has resulted in increased power demand from the residential segment.
The Middle East and Asia Pacific were the most important markets for power rental in 2019, primarily thanks to the growing industrialization and development of oil & gas and housing industry within the region and is projected to grow at a highest CAGR during the forecast period. The Asia Pacific power rental systems market is predicted to exhibit high potential growth thanks to declining ownership demand for generator sets and therefore the growing demand for continuous applications from the development and utilities sector. Lack of reliable power supply from the utility power grids, particularly to islands, wherein electricity demand has grown substantially over a few of years is predicted to stay the market prospects optimistic. Inadequate power infrastructure in Indonesia, Philippines, and Vietnam is probably going to sustain product demand over subsequent few years. Similarly due to the continuous growth of end-use industries such construction, Oil & gas, and utilities in Qatar, Iraq, Saudi Arabia, and UAE the demand for rental power systems in Middle Eastern region is predicted to grow in coming years. North America is one among the pioneers of rental power systems market. American Rental Association (ARA) regulates the rental policies and also assists within the development of the rental industry. The region is predicted to witness market growth on account of growing end-user consciousness of rental benefits like accessibility of additional capital for core activities and abridged equipment obsolescence. However, mature market conditions of the region including the unfavorable economic climate are expected to hamper the event of the facility rental industry.
Key market players within the global industry include APR Energy, United Rentals, Hertz Corporation, Atlas Copco AB, Bredenoord Exploitatiemij B.V., Kohler Co.,Cummins Inc and Power Electricals Limited. These players have adopted various organic and inorganic growth strategies for expanding their presence in various regions. The global power rental market is moderately concentrated. Customized product offerings, supported client specifications may be a strong trend within the market, with many participants looking to accumulate and retain market share through long-term partnership and strategic alliances.
This report also includes the profiles of key Power Rental Systems market companies along with their SWOT analysis and market strategies. In addition, these competitive landscapes provide a detailed description of each company including future capacities, key mergers & acquisitions, financial overview, partnerships, collaborations, new product launch, new product developments, and other latest industrial developments.
Key Developments in Power Rental Systems Market:
- In September 2018, United Rentals has acquired BlueLine Rental from Platinum Equity for about US$2.1 billion.
What Does This Report Provide?
This report provides a detailed understanding of the global Power Rental Systems market from qualitative and quantitative perspectives during the forecast period. The report also provides dynamic indicators with potential impact on the market during the forecast period and an in-depth analysis of the leading companies operating in the market.
- Peak Shaving
- Continuous Power
- Standby Power
By End Use
- Government and Utilities
- Oil and Gas
- North America Power Rental Systems Market
- By Country (US, Canada, Mexico)
- By Application
- By End Use
- Europe Power Rental Systems Market
- By Country (Germany, Russia, UK, France, Italy, Spain, Rest of Europe)
- By Application
- By End Use
- Asia Pacific Power Rental Systems Market
- By Country (China, Japan, India, South Korea, Australia, Rest of Asia Pacific)
- By Application
- By End Use
- Middle East & Africa Power Rental Systems Market
- By Country (UAE, Saudi Arabia, Qatar, South Africa, Rest of Middle East & Africa)
- By Application
- By End Use
- South America Power Rental Systems Market
- By Country (Brazil, Argentina, Colombia, Rest of South America)
- By Application
- By End Use
Reasons to Buy This Report:
- Market size estimation of the Power Rental Systems market on a regional and global basis
- Unique research Usage for market size estimation and forecast
- Profiling of major companies operating in the market with key developments
- Broad scope to cover all the possible segments helping every stakeholder in the market
We provide customization of the study to meet specific requirements:
- By Segment
- By Sub-segment
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