Market Analysis
The Asia-Pacific Power Rental Market is witnessing robust growth attributed to rapid industrialization, urbanization, and infrastructural development in emerging economies like China, India, and Southeast Asian countries. The region's expanding manufacturing and construction sectors drive the demand for temporary power solutions for various applications such as construction sites, mining operations, and events. Furthermore, frequent power outages in certain regions necessitate reliable backup power sources, fostering market growth. Key players are focusing on strategic partnerships and acquisitions to expand their regional presence and offer innovative power rental solutions tailored to local requirements. Government initiatives promoting electrification and investments in renewable energy infrastructure also propel market growth in the Asia-Pacific region.
Market Research Future (MRFR) predicts the power rental market size to reach USD 21.03 billion, registering a CAGR of 8.2% from 2024-2030 (forecast period).
Demand for Uninterrupted Power Supply from Mining and Oil & Gas Industries
Mining and oil and gas exploration are usually carried out in isolated locations. Because of the extremely combustible nature of the extracted compounds, human life at such locations is in danger; consequently, sufficient illumination and power are required for such operations. Mining and oil and gas industries in the United States, Australia, and several African countries are predicted to grow significantly as a result of increased investment. In the following years, new mining projects are projected to be established in China, Australia, and India. These elements must be present in order to create demand for power rental solutions.
Moreover, since the introduction of hydraulic fracturing, the United States has remained one of the world's top oil-producing countries. Exxon Mobil intends to invest USD 50 billion in increasing its integrated activities in the United States until 2025. This includes developing new oil and gas wells in the Permian Basin and constructing pipelines to transport output to the Gulf Coast, where the company is increasing its downstream footprint. These factors are predicted to fuel demand for power rental solutions in the future.
Key Players
Aggreko Plc. (U.K.)Caterpillar Inc. (U.S.)Cummins Inc.(U.S.)Herc Rentals Inc. (U.S.)Speedy Hire Plc.(U.K.)Ashtead Group Plc. (U.K.)United Rentals Inc. (U.S.)APR Energy (U.S.)Breaenoord Exploitatiemij B.V. (Netherlands)Generating Power Co. Ltd. (Canada)Worlwide Power Rental Market
All non-essential operations have been halted since governments and local authorities set strict instructions. The stoppage of end-user operations had a adverse impact on the power rental sector. Moreover, while end-user sectors continue to operate at less than full capacity, production, and supply chain delays are predicted to provide a short-term challenge to the power rental industry. Several enterprises, Nevertheless, have turned this crisis into an opportunity to provide societal services. Cummins, for instance, has transformed its air filter manufacturing factory into a respirator (filtration material for face masks) manufacturing unit.
Market Segmentation
The worldwide power rental industry has been divided into fuel type, application, and end-user.
By fuel type, the worldwide power rental industry has been segmented into diesel, gas, others.
By application, the worldwide power rental industry has been segmented into baseload, stand-by power, and peak shaving.
By end-user, the worldwide power rental industry has been segmented into oil & gas, utilities, shipping, manufacturing, mining, construction, and others.
Regional Analysis
North America to Dominate the Global Market
The North American area leads the power rental market. With a market valuation of USD 3.773.9 million, North America had the largest share of 31.60% in 2016. The region's market is expanding as a result of aging grid infrastructure and natural disasters, which generate frequent power outages and increased demand from the industrial sector. Furthermore, rising investment in mining and related exploratory operations in the region supports the need for power rental equipment during the projection period.
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