The power rental market is on track to growing at a CAGR of 10.3% during 2018–2023, from $9,167.6 million in 2017 to $16,855.5 million by 2023. Rented power simply refers to the electricity created from portable generators, hired on a temporary basis or purchased permanently, to supplement the grid power or act as the primary energy source in places with no grid connectivity. Another reason for the high demand for portable generators is the unpredictability of the grid supply, especially in emerging economies.
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Moreover, many coal- and crude oil-fired power plants, even in developed countries, have aged. With the surging concerns regarding environmental degradation, for which the electricity generation sector is the biggest culprit, contributing around 25% of the global greenhouse gas (GHG) emissions, as per the Environmental Protection Agency (EPA) of the U.S., efforts are being stepped up to either shut them down or convert them to gas-based ones. During the renovation period, electricity is required for machines, which is why utility companies are increasing using rented power.
Portable generators are used for supplying primary, standby, and continuous power. Primary power is required in places with no grid supply, while standby power is required during events of power cuts or other emergencies. Continuous power is similar to primary power, but in the former, the electricity can be supplied only for a preset load, and fluctuations in the load cannot be accommodated for. Among these, the highest demand for rented electricity has been for continuous purposes, especially in the mining, oil & gas, and manufacturing industries.
Geographically, the most fruitful power rental market has been the Middle East and African (MEA) region, owing to its growing construction sector, which is leading to the increasing demand for electricity to power machinery. In a bid to become independent from the effects of oil price fluctuations, several regional countries are focusing on other sectors for revenue, such as tourism and industrial. To host the rising number of tourists, many hotels, resorts, places of interest, and shopping malls are being constructed. Additionally, several global events are scheduled in the region, such as the 2020 Dubai Expo and 2022 FIFA World Cup in Qatar, for which preparations are underway.
Thus, as the number of people increase and power plants are shut down or decommissioned, the demand for portable generators will keep burgeoning.
Read more: https://www.psmarketresearch.com/market-analysis/power-rental-market
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