Global Power Rental Market Worth $17 Billion by 2017

By MarketsandMarkets

 According to a new market research report,”Power Rental Market by End-User Industry, Peak, Prime/Base & Standby Application, Diesel & Gas Generator/Engine Type – Global Trends & Forecasts (2012 - 2017)” published by MarketsandMarkets, global power rental market will grow from an estimated $7.8 billion in 2012 to $17 billion in 2017 with a compound annual growth rate of 17% during the same period.

Global power rental market revenue which is the addition of revenue earned through renting the generators and revenue from a temporary power plant is estimated to be $6.4 billion in 2011. Major users of temporary power are utility companies, oil and gas companies, manufacturing firms, shipping industry, events organizers, construction companies, and mining companies.

The Utility sector is the largest user of temporary power and hence contributes maximum share in global power rental revenue. Second largest user is the oil &  gas industry followed by industrial sector. Industrial sector mainly comprises of manufacturing and service industry. Utilities and event industry are the highest growing end user markets.

In terms of geographical markets, North America region is the largest market followed by Middle East and then Asia-Pacific. Middle East is the highest growing market which will make it the largest geographical market by 2017, lagging behind North America. At country level, United States has the maximum revenue share. China is the second largest country level market followed by India and Canada.

Increasing power demand, lack of grid stability & support, and tendency to rent instead of buying are the major driving factors of the power rental market. Economic developments of Asian, African and Middle East countries led the electricity demand exceeding the permanent power plant capacities. To support developments in those economies temporary power is used which has created a tremendous market for power rental companies. Aging permanent power plants is another factor which will increase the market size significantly by 2017. The major restraint affecting the growth of power rental market is regulations.

SOURCE MarketsandMarkets