The global Power Rental Market is estimated to be valued at US$ 6.19 Bn in 2023 and is expected to exhibit a CAGR of 5.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Power rental systems are temporary power generators used to provide electricity needs during power outages, peak demand periods, and construction activities. Power rental systems offer various advantages over traditional power systems such as flexibility, mobility, and reliability. They provide backup power during power outages and grid failures ensuring continuous power supply. During construction activities and infrastructure development projects, power rental systems fulfill temporary power needs where grid connection is not available. They are widely used in various end-use industries such as oil & gas, construction, mining, manufacturing, utilities, and events.
Market key trends:
A key trend in the power rental market is the increasing demand for fuel cell power generators. Fuel cells provide high electrical efficiency and zero direct emissions. They are emerging as alternative to diesel and gas generators due to their high efficiency and silent operations. Major players are focusing on developing hydrogen fuel cells systems to offer greener power solutions.For instance, in 2021, Aggreko introduced its hydrogen fuel cell power generator offering up to 125 kW power output with zero direct emissions. Such developments are expected to drive the adoption of cleaner power rental systems.
Porter’s Analysis
Threat of new entrants: New players find it difficult to enter the power rental market as it requires high initial investment and presence of established global players.
Bargaining power of buyers: Buyers have moderate bargaining power as there are multiple players providing power rental solutions. Switching costs are also low.
Bargaining power of suppliers: Suppliers have low bargaining power as there are numerous component providers and rental companies can choose from multiple options.
Threat of new substitutes: Threat of substitute is low as there is no direct replacement for power rental services.
Competitive rivalry: Industry players compete intensely on the basis of price, service quality, reliability and technical expertise.
Key Takeaways
Global Power Rental Market Size is expected to witness high growth, exhibiting CAGR of 5.6% over the forecast period, due to increasing demand for continuous power supply from various end-use industries such as construction, mining, oil & gas, and events.
Regionally, North America dominates the power rental market owing to high demand from oil & gas and construction industries in the US and Canada. Asia Pacific is expected to exhibit the fastest growth during the forecast period mainly driven by increasing industrialization and infrastructure development activities in China and India.
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 market is moderately consolidated with top players accounting for more than 50% of the global market share. Key players compete on the basis of product quality, reliability, service, and price.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
