Exploring Growth Opportunities in the Power Rental Market: An Analysis
The global power rental market is experiencing a surge in popularity among consumers as it offers numerous advantages over purchasing power equipment, according to a recent industry report. The impact of COVID-19 on various sectors has prompted cost-cutting measures across the board, making power rental an attractive choice for businesses and industries looking to maintain flexibility, reduce maintenance costs, and ensure uninterrupted operations.
Flexible Power Solutions at Lower Costs
One of the primary reasons for the increasing popularity of power rental is its cost-effectiveness. For instance, renting a 20 KW diesel generator costs only $100-$150 per day, while purchasing the same equipment can set you back between $2,500-$3,000. This significant cost differential makes power rental an appealing option for businesses looking to optimize their budget without compromising on power reliability.
Swift Response to Power Needs
Power rental also offers the advantage of quick availability. In contrast to the time-consuming process of purchasing and installing power equipment, rental solutions can be deployed on short notice. This aspect is particularly beneficial in regions with unreliable grid infrastructure, allowing operations to continue without interruptions.
Diverse Fuel Options
The report highlights that diesel-fueled generators are expected to dominate the market until 2025, given their affordability and reliability. Diesel is especially favored in emerging economies with underdeveloped gas infrastructure, where frequent power outages are a common concern. Furthermore, the oil and gas, manufacturing, and mining sectors continue to drive strong demand for diesel.
Natural Gas for Sustainability
In developed countries, the focus on achieving carbon neutrality is driving the adoption of natural gas as a cleaner alternative. Natural gas demand is expected to rise steadily, supported by additional shale gas production in regions like the U.S. and Russia. Strict emissions reduction policies in these developed economies further incentivize the use of natural gas.
Convergence of Industries
The convergence of IT, mobility, and manufacturing is creating new opportunities for power rental companies. As the world moves towards electrification and electric vehicles become more prevalent, the power rental market is poised for growth. Technology companies are expected to invest in battery technology, offering comprehensive solutions to their customers.
Rising Demand in Oil and Gas
The oil and gas sector are experiencing robust growth in the power rental market, driven by the need for continuous power in upstream, midstream, and downstream operations. Offshore locations with partial grid connectivity are turning to power rental solutions to meet their energy needs.
Global Reach and Regional Focus
Power rental companies are expanding their reach globally, with the Asia Pacific region, led by China and India, dominating the market. China’s record-breaking electricity consumption and India’s regionalized market are key drivers in these regions.
Applications Driving Growth
The power rental market is categorized into three segments: peak load, standby load, and continuous load. Continuous load, which serves industries requiring a constant supply of energy, is witnessing the highest growth. Hospitals, telecommunication centers, and government offices rely on continuous load solutions for uninterrupted power supply.
Strategic Partnerships for Market Dominance
Given the oligopolistic nature of the power rental market, companies are forming strategic partnerships and alliances to enhance their market presence. Product customization is a key strategy for retaining customer loyalty.
Prominent companies in the global power rental market include Aggreko, Atlas Copco AB, Al Faris, Hertz System, Inc., Caterpillar, United Rentals Inc., Cummins Inc., Ashtead Group plc, Herc Rentals Inc., Sudhir Power Ltd., Newburn Power Rental Ltd., JASSIM TRANSPORT & STEVEDORING CO. K.S.C.C., and APR Energy.
In 2018, Aggreko secured a contract worth $315 million to supply rental power for the 2020 Tokyo Olympics, showcasing the company’s leadership in the industry.
As the global power rental market continues to evolve, consumers and industries alike are recognizing the numerous benefits it offers in terms of cost savings, flexibility, and reliability. With the demand for power rental solutions on the rise, the industry is set for steady growth in the coming years.
Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 – By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa) https://www.fairfieldmarketresearch.com/report/power-rental-market
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This press release first seen on Brilad