Power Rental Market: Current Analysis and Forecast (2021-2027)
$3999 – $7577
Emphasis on Application (Continuous Load, Standby Load, and Peak Load); Equipment (Generators, Transformers, Load Banks, and Others); Power Rating (Up to 50 kW, 51 kW – 500 kW, 501 kW – 2500 kW, and Above 2500 kW); and Region/Country
Detailed Analysis of COVID-19 Impact on the Power Rental Market
Rapid industrialization and urbanization resulting in rising electricity demand and continuous power supply are some major factors driving the market for power rental equipment. Moreover, with the rising population, investment in different sectors are expected to increase to meet the consumer needs like commercial and residential space, and manufacturing units, which require a constant power supply. For instance, the global population is estimated to reach nearly 8.5 billion by 2030, which is expected to increase global construction spending to USD 17.5 billion. Growth in construction implies a high possibility of an increase in the power rental market, globally.
The global power rental market is expected to witness a CAGR of around 7% during the forecast period (2021–2027). Rising investments in power transmission and distribution networks coupled with the growing augmentation and modernization of transmission and distribution networks across the globe are expected to drive the market. Power rental refers to the facility of temporarily renting power equipment for supplying energy across industries. It delivers functioning power equipment along with various scalable components, which are installed in power stations. It also offers reliability, flexibility, speed, and cost-effectiveness to businesses for coping with brief shortages of power. The power rental services are aimed to stabilize utility power grids and provide additional energy to industries and support communities. Owing to this, it finds extensive application across the construction, mining, and oil & gas industries.
Caterpillar Inc., Cummins Inc., Aggreko plc, Ashtead Group plc, United Rentals Inc., Atlas Copco AB, Herc Rentals Inc., Generac Holdings Inc., Wacker Neuson SE, and Kohler Co. are some of the key players in the market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.
Insights Presented in the Report
“Amongst Application, peak load category to witness fastest-growth during the forecast period”
Based on application, the market is classified into continuous load, standby load, and peak load. Amongst them, in 2020, the continuous load category dominated the market. This is mainly due to the rising need for continuous power supply in remote locations such as mining, construction, oil & gas operations, ships, etc. where the access to grid supply is not present. Here, the equipment installed act as primary power equipment such as the use of generators as the primary power source.
However, the peak load category is expected to witness the fastest growth during the forecast period. Since the demand for power is increasing throughout the world, the generation has to grow as well in order to compensate for it. For instance, this demand especially rises during the daytime in summer. Peak load power equipment help organizations with huge electricity consumption to efficiently manage power supply and energy usage during peak hours. Furthermore, By using power rental solutions, utilities can ensure grid stability by feeding instantaneous additional power to the grid as and when required.
“Amongst Equipment, generators category is accounted for a significant market share in 2020”
Based on equipment, the market is classified into generators, transformers, load banks, and others. Amongst them, the generators category is accounted for a significant market share in 2020. The generator category is further bifurcated into diesel, natural gas, and other fuel types. In 2020, diesel generators accounted for the larger adoption in the market owing to its higher energy density coupled with its ability to generate more power energy from the same amount of fuel as compared to its counterparts. However, the drawback of diesel sets is the amount of pollution they cause. According to a study, a standard diesel generator of 250 kVA capacity when running at an average of 3 hours per day emits 0.183 kg/day of PM 10, 3.08 kg/day of NOx and 1.50 kg/day of CO. Due to this several companies are shifting towards renewable generators which are also expected to witness significant CAGR during the forecast period. The amendment in several energy policies to support the clean energy movement to reduce carbon emissions is further expected to boost the growth of the industry. A report published by the Intergovernmental Panel on Climate Change in 2018 estimates that global warming is likely to reach 1.5°C between 2030 to 2052.
“Amongst Power Rating, 501–2,000 KW category is expected to witness significant growth in the global power rental market”
Based on power rating, the market is categorized into Up to 50 kW, 51 kW – 500 kW, 501 kW – 2500 kW, and Above 2500 kW. During the forecast period, the 501–2,000 KW category is expected to witness significant growth in the global power rental market owing to its greater applicability driven by increasing demand for backup power in commercial spaces such as hotels, educational institutions, and telecom towers, especially in developing countries like China, Brazil, Mexico, and India. For instance, as per the Cellular Operators Association of India (COAI), the Indian mobile market has developed innovative network sharing solutions and has invested in setting up over 4.5 lakh towers spread across the country. In addition, the vast gap between power demand and supply in India is also a major growth factor. With a population touching 1.4 billion, India is not always able to meet the demand for electricity. In the country, the highest number of power equipment are used in commercial spaces, because offices, hotels, hospitals, shopping malls, metro and railway stations, and other such places need a constant power supply. Therefore, the market is expected to witness significant growth in the forecast period.
“APAC to witness significant growth during the forecast period”
Asia-Pacific is expected to show the highest CAGR growth in the power rental market. The major contributors to the growth of this market are China, India, and Australia. The increase in infrastructure development in emerging economies, as well as the expansion of the commercial and industrial sector, and mining operations, coupled with the rise in installation and integration of telecom towers and data centers, has contributed to the growth of the APAC market. Furthermore, data centers require a highly reliable power supply to ensure proper functioning. The loss of power for even a short period can cause disruptions in the functioning of businesses and result in financial loss. Therefore, the rising need for highly reliable mediums of power supply is boosting the demand for backup power equipment. The manufacturing sector is one of the major end-users of power equipment such as generators, and transformers, among others. Its unprecedented growth in developing nations of the region is one of the major drivers of the power rental market.
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- The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
- The report presents a quick review of overall industry performance at one glance.
- The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments.
- Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
- The study comprehensively covers the market across different segments.
- Deep dive regional level analysis of the industry.
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|1.4.||Currency used in Report|
|2.1.||Research Process of the Power Rental Market|
|2.2.||Research Methodology of the Power Rental Market|
|2.5.||Main Objective of the Power Rental Market Study|
|5||GLOBAL POWER RENTAL MARKET COVID-19 IMPACT|
|6||GLOBAL POWER RENTAL MARKET REVENUE (USD BN), 2019-2027F|
|9.1.||Up to 50 kW|
|9.2.||51 kW – 500 kW|
|9.3.||501 kW – 2500 kW|
|9.4.||Above 2500 kW|
|10.1.3.||Rest of North America|
|10.2.6.||Rest of Europe|
|10.3.5.||Rest of Asia-Pacific|
|10.4.||Rest of World|
|12||POWER RENTAL MARKET OPPORTUNITIES|
|13||POWER RENTAL MARKET TRENDS|
|14.1.||Demand Side Analysis|
|14.2.||Supply Side Analysis|
|15||VALUE CHAIN ANALYSIS|
|16.1.1.||Porter’s Five Forces Analysis|
|17.4.||Ashtead Group plc|
|17.5.||United Rentals Inc.|
|17.6.||Atlas Copco AB|
|17.7.||Herc Rentals Inc.|
|17.8.||Generac Holdings Inc.|
|17.9.||Wacker Neuson SE|
Research Methodology for the Global Power Rental Market Analysis (2021-2027)
Analyzing the historical market, estimation of the current market, and forecasting the future market of the global power rental market were the three major steps undertaken to create and analyze the adoption of power rental in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global power rental market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments the industry pertains to. Detailed methodology is explained below:
Analysis of Historical Market Size
Step 1: In-Depth Study of Secondary Sources:
Detail secondary study was conducted to obtain the historical market size of power rental market through company internal sources such as annual report & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the power rental market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments included in the report as application, equipment, and power rating. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the power rental market. Further, we conducted factor analysis using dependent and independent variables such as various application, equipment, and power rating of power rental equipment. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, merger and acquisition, business expansion, and product launches in the Power rental market sector across the globe.
Current Market Size Estimate & Forecast
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global power rental market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., top-down/bottom-up approach was applied to arrive at the market forecast about 2027 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:
- The industry’s market size, in terms of revenue (USD) and the adoption rate of power rental market across the major markets domestically
- All percentage shares, splits, and breakdowns of market segments and sub-segments
- Key players in the global power rental market in terms of solutions offered. Also, the growth strategies adopted by these players to compete in the fast-growing market
Market Size and Share Validation
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
Split of Primary Participants in Different Regions
Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment of the global power rental market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of application, equipment, and power rating in the global power rental market.
The main objective of the global power rental Market Study
The current & future market trends of global power rental market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends were determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:
- Analyze the current and forecast market size of the power rental market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments
- Segments in the study include areas of application, equipment, and power rating.
- Define and analysis of the regulatory framework for the power rental market industry.
- Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
- Analyze the current and forecast market size of the power rental market for the major region.
- Major countries of regions studied in the report include Asia Pacific, Europe, North America, and Rest of the world.
- Company profiles of the power rental market and the growth strategies adopted by the market players to sustain in the fast-growing market
- Deep dive regional level analysis of the industry