The
global power rental market reached a value of $9,167.6 million in 2017
and is predicted to grow with a CAGR of 10.3% during the forecast period
(2018–2023). The market is witnessing growth due to the gross domestic product
(GDP) and population rise, natural disasters, and surging demand for power from
the events and entertainment industry and emerging economies. Rental power is the
temporary electricity generated by rental systems for meeting power
requirements. Industries which are located in remote regions without access to
permanent electricity supply generally use rental power.
On
the basis of fuel type, the power rental market is categorized into gas
generators, diesel generators, and others (which include solar fuel-based and
gasoline/petrol generators). The market was led by the category of diesel
generators during the historical period (2013–2017) with more than 75.0% share in
2017. This is attributed to the easy availability of diesel and increasing
demand for such generators from the manufacturing and construction sectors.
This category is further expected to dominate the market during the forecast
period.
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When
end-users are taken into consideration, the power rental market is
divided into construction, mining, utilities, industrial, events, oil &
gas, and others. The division of others includes manufacturing, residential
& commercial buildings, military, and shipping. Among these, the division
of utilities contributed more than 45.0% revenue to the market in 2017, and it
is predicted to dominate the market during the forecast period as well. This is
due to the presence of various thermal power plants which require steady power
supply during maintenance, conversion, or shut down.
One
of the key driving factors of the power rental market is the upsurge in
demand for such devices from the events and entertainment industry. This industry
is flourishing currently due to the rising number of events that are being
organized, such as concerts, product launches, private functions, sports
leagues, weddings, fairs, and festival celebrations. For the smooth running of
these events, the industry requires rental power for both short and long
durations. Power rental companies provide reliable and efficient light towers and
generators of different power ratings for the events.
The
occurrence of natural disasters is also leading to the growth of the power
rental market. Natural disasters, such as tsunamis, hurricanes, floods,
tornadoes, and earthquakes, cause huge economic damage and loss of life. Often,
these calamities result in environmental problems, famines, and power cuts. The
recovery and mitigation process after such disasters involves large-scale
reconstruction activities and relief work, which are primarily facilitated by
power rental equipment provided by companies.
A
major trend in the power rental market is the growing popularity of
hybrid and gas generators. Propane, hydrogen, and natural gas are some gases
that are being used in power generators as fuel. As gas-based generators
release less emissions and create less noise than traditional fuel-based
generators, they are considered cost-effective and environment-friendly. Hybrid
generators are those which work on the bi-fuel operation mode, using random
combinations of diesel, gas, and solar energy. These generators are easily
available, sustainable, and clean, and because of these factors, their
popularity is increasing.
Hence,
the occurrence of natural disasters and rising demand for rental power from the
events and entertainment industry are leading to the growth of the market.
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