The power rental market is estimated to be valued at US$ 9.8 billion in 2023 and is expected to exhibit a CAGR of 5.6% over the forecast period of 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The power rental market offers temporary power solutions to various industries and sectors. It includes generators, power distribution panels, and other related equipment that can be rented for a specified period. These solutions are mainly used during power outages, construction projects, events, and in remote locations where grid connection is not available. The power rental market provides flexibility, cost-effectiveness, and hassle-free operation to end-users.
Market Dynamics:
The Power Rental Market Size is driven by the increasing demand for temporary power solutions in various sectors, such as construction, oil and gas, events, and manufacturing. The construction industry, in particular, is witnessing significant growth globally, leading to an increased demand for power rental equipment. Furthermore, the growing number of events, such as concerts, sports tournaments, and exhibitions, require temporary power solutions for smooth operations. These factors are expected to drive the growth of the power rental market.
Rapid urbanization and industrialization in developing economies are also contributing to market growth. However, factors such as stringent environmental regulations and high maintenance costs of power rental equipment may hamper market growth to some extent. Nevertheless, technological advancements and the development of hybrid power rental solutions are expected to create lucrative opportunities in the market.
Segment Analysis:
The power rental market can be segmented based on power rating, fuel type, end-use industry, and region. In terms of power rating, the dominating segment is expected to be the 50-500 kW range due to its versatility and wide range of applications. This power rating range is suitable for small and medium-sized businesses, events, and construction sites, which are the major end-use industries for power rental services. The 50-500 kW range provides sufficient power for temporary or backup electricity requirements without being excessive or cost-prohibitive.
PEST Analysis:
Political: The political environment has a significant impact on the power rental market. Government regulations and policies regarding energy generation and consumption, environmental concerns, and taxation can influence the demand for power rental services.
Economic: The economic factors affecting the power rental market include GDP growth, investment in infrastructure development, industrial activities, and disposable income levels. A strong economy with increased construction projects and industrial activities drives the demand for power rental services.
Social: The social factors influencing the market include population growth, urbanization, and increasing awareness of the importance of reliable power supply. Events, festivals, and weddings also contribute to the demand for power rental services.
Technological: Technological advancements in power generation equipment, such as hybrid generators and smart grid systems, are driving the growth of the power rental market. These technologies offer more efficient and environmentally friendly power solutions.
Key Takeaways:
The global power rental market is expected to witness high growth, exhibiting a CAGR of 5.6% over the forecast period (2023-2030), due to increasing construction activities, infrastructure development, and the need for reliable power supply in remote areas. The market size is projected to reach US$ 9.8 billion by 2023.
In terms of regional analysis, Asia Pacific is the fastest-growing and dominating region in the power rental market. Rapid urbanization, industrialization, and infrastructure development in countries like China and India are driving the demand for power rental services in this region.
Key players operating in the power rental market include Aggreko PLC, United Rentals, Inc., APR Energy, PLC, Caterpillar, Inc., Cummins, Inc., Hertz Equipment Rental Corporation, Generac Power Systems, and Rental Solutions & Services, LLC. These companies have a strong presence, extensive product portfolios, and strategic partnerships, which contribute to their market dominance.
Read More: https://www.rapidwebwire.com/power-rental-market-demand-and-scope/
