Construction Industry Is Estimated To Witness High Growth Owing To Rapidly Expanding Construction Industry
The power rental market is estimated to be valued at US$ 6.19 Bn in 2023 and is expected to exhibit a CAGR of 7.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The power rental market offers temporary power solutions to end-users where installation of permanent power infrastructure is not feasible or cost-effective. Power rental solutions include generators, transformers, and temporary wiring systems that are used at construction sites, mining facilities, oil & gas refineries, utilities, and during special events. These rental power solutions help in meeting temporary or fluctuating power demands.
Market Dynamics:
The rapidly expanding construction industry worldwide is a major driver for the power rental market. Various infrastructure projects such as roads, bridges, commercial buildings, power plants, and other facilities require temporary rental power equipment during the construction phase. Furthermore, unpredictable power outages caused by factors such as extreme weather and grid failures have increased the adoption of backup power rental solutions from the utilities sector. Power rental generators are increasingly in demand from mining facilities and oil & gas refineries to power remote equipment and machinery. Special events industry also relies on rental power to provide continuous electricity during festivals, concerts, and sporting events.
SWOT Analysis
Strength: Power rental market offers flexible equipment that can be moved and scaled easily. The power rental companies have large rental fleet sizes and provide power solutions across geographies. They also provide 24/7 customer support services.
Weakness: Power rental solutions have higher per unit costs than permanent installed power infrastructure. Dependency on fuel prices is also a weakness as rise in fuel costs increases operational costs.
Opportunity: Increasing power outages and rise in construction and mining activities in emerging nations provide significant growth opportunities. Rapid industrialization and infrastructure development projects especially in Asia Pacific and Middle East & Africa is driving the demand.
Threats: Investment in development of renewable energy sources and energy storage technologies pose a threat to diesel generator rental market. Strict emission norms regarding use of diesel gensets can also impact growth.
Key Takeaways
Global Power Rental Market Size is expected to witness high growth, exhibiting CAGR of 7.8% over the forecast period, due to increasing investment in T&D infrastructure and rapid industrialization. The market size is estimated to reach US$ 10.61 Bn by 2030 from US$ 6.19 Bn in 2023.
Regional analysis
The Asia Pacific region is expected to dominate the power rental market during the forecast period. Countries such as China, India, Indonesia, and Australia are witnessing significant growth in industrial and construction activities which is driving the demand. The region accounts for around 35% of the global market share currently.
Key players
Key players operating in the power rental market are Aggreko PLC, United Rentals, Inc., APR Energy, PLC, Caterpillar, Inc., Cummins, Inc., Hertz Equipment Rental Corporation, Generac Power Systems, and Rental Solutions & Services, LLC. The industry is moving towards consolidation with big rental companies focusing on expansion in high growth regions through mergers and acquisitions.
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