Global Generator Rental for Temporary Power Market Trends

Increasing demand for temporary power solutions in the construction, oil and gas, and mining industries will drive the growth of the temporary power rental market. This article discusses trends in the global Generator Rentals market and their impact on the industry. In addition, the article explores the growth of the region. Further, it highlights the key growth factors in the power rental market. The region is expected to grow at the highest rate over the forecast period.

Pacific region is the fastest growing region in the power rental market

Power supply interruptions and aging power grid infrastructure are major drivers of the Pacific power rental market. With rising industrial and construction activities, the region accounts for a significant market share in the power rental market. In addition, there is a high demand for off-grid power from oil and gas wells. The report also analyzes the competitive landscape and profiles key players in the market.

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The Pacific region is the fastest growing regional market in the power rental market. Growing investments in exploration activities and mining projects in the region are driving the growth of this industry. By 2020, diesel power systems will dominate the global power rental market, thanks to its weather-independence, scalability, and flexibility. However, the Pacific region remains one of the most challenging regions for the power rental industry, with significant investment required in the region’s infrastructure.

Demand for generator rental solutions in mining and oil and gas industries

The global generator rental market is highly fragmented with prominent vendors offering a range of generator sizes, from 20 kW to 2,000 kW. These providers are increasingly investing in building nationwide and global service networks, and offering flexible rent packages to suit the varied needs of their clients. Load-on-demand technology is a growing trend in the industry, allowing clients to automatically turn on and off their portable generators as the site’s load demand dictates. This trend is expected to continue, as energy costs rise as well as emissions and fuel usage.

Despite a declining demand for coal, gas, and other fossil fuels, mining and oil and natural gas exploration activities continue to rise in developing countries. With the rising demand for precious commodities, the demand for stable power applications in these environments is only expected to rise. Companies in the industry should pay close attention to emerging mining trends and understand which areas may experience increased demand for generator rentals. Here are a few trends that are likely to drive demand for generator rental solutions:

Growth of the construction industry

The construction industry is an important contributor to the economy of a country. Growth in this industry is expected to increase exponentially over the next several years. In the 95% of construction companies are small and medium-sized enterprises. The value added by these businesses has increased by 4% in 2019 and is projected to grow at 4.2% by 2020. This industry is an important focus for temporary power suppliers.

The construction industry is one of the most opportunistic segments of the generator rental market. Players in the construction industry favor renting power over purchasing it. This method of power generation is more economical than acquiring a generator, and construction projects such as residential buildings and roads have increased power usage. The construction industry is also one of the largest consumers of power rental services, with accounting for over a third of global sales.

Growth of the oil and gas industry

The oil and gas industry requires a constant power supply to maintain processes. Moreover, it requires costly drilling equipment, which requires a steady power supply. Further, oil and gas operations are capital-intensive, and the fluctuating global crude oil prices adversely affect their profit margins and investment decisions. Further, delays and cancellations of oil and gas E&P activities negatively affect the growth of the industry.

Globally, the temporary power market is witnessing growth from the petrochemical, energy, and infrastructure sectors. Oil and gas is a primary source of oil and gas, and the demand for it is expected to reach its peak in 2030. The demand for gasoline and diesel will also reach its peak by 2025. Moreover, the oil and gas industry’s continuous development is expected to drive the growth of the temporary power market in the years to come.