SAN ANTONIO, Dec. 16, 2021 (GLOBE NEWSWIRE) -- A new analysis by Verify Markets shows the Latin American Power Rental Market was valued at $796.5 million USD in 2020 and is expected to growth at a compound annual growth rate (CAGR) of over 4.5% from 2020 to 2027, reaching revenues over $1.1 billion USD by 2027. The Latin American Power Rental Market is highly fragmented with the presence of several local, national, and regional market participants.
The continuous expansion of the power rental market in Latin America has been hindered by the economic instability and the COVID-19 pandemic. Many Latin American countries have been experiencing high inflation rates, currency devaluations, rising unemployment, public-spending cuts, and falling incomes. The COVID-19 outbreak exacerbated these problems. Latin American economies suffered a contraction of an average of 8.9 percent during 2020. Nevertheless, positive trends such as rapid population and urbanization growth, increasing energy demand, and an unreliable power grid are projected to have a greater impact on the market in the medium- to long-term.
With a rapid rise in population throughout the region, cities and urban areas are undergoing expansion. As urban population increases, infrastructure challenges related to transportation capacity, urban sprawl, and housing development need attention. Growing cities will have to revamp public infrastructure expenditure to increase citizens’ living standards, boosting the demand for power rental equipment.
Another stimulus for the market is the increase in energy demand. Rapid population expansion and increasing urbanization is expected to significantly rise energy demand. Electricity demand is projected to grow at a CAGR of 3.2 percent from 2020 to 2027. Issues like lack of long-term investment in energy infrastructure to meet the increasing energy demand, high reliance on hydropower, and aging infrastructure are raising the demand for temporary power solutions, especially rental diesel generators.
Among the three main countries analyzed in this report (Argentina, Brazil, and Mexico), Mexico is expected to experience the highest growth rate, driven mainly by increasing investment in the mining sector and the fast and strong economic recovery of the U.S economy. Main customers in Latin America include oil & gas, mining, utilities, industrial, and construction. For 2020, the oil & gas and mining represented almost half of total power rental opportunity. This segment is expected to continue dominating the market driven by the recovery of the oil & gas sector and increasing metal prices.
The Latin American Power Rental Market report has been segmented by fuel, application, power output, and end user. Some of the key companies covered in the report include Aggreko plc., APR Energy, LLC, SoEnergy, Inc., Finning International Inc., A Geradora Aluguel de Máquinas S.A. , and Tecnogera-Locação E Transformacao de Energia Ltda. This report provides an in-depth analysis of the overall Latin American Power Rental Market. The report captures various market dynamics such as growth drivers, restraints, market revenues and forecast, market trends, and competitive landscape.
A copy of the Latin American Power Rental Market research report can be obtained at www.verifymarkets.com. Follow us for more updates on Twitter @verify_markets. This report is part of Verify Markets’ Rental Equipment & Power Solutions Subscription market research and consulting practice. Other power rental market reports:
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- North American Temporary Heating Equipment Market
- North American Temporary Fencing Market
- North American Electrical Distribution Equipment Rental Market
- North American Power Rental Market
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- North American Temporary Cooling Market
- North American Ground Protection Rental Market
- North American Pump Rental Market
- North American Aerial Equipment Rental Market
- Latin American Generator Set Market
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About Verify Markets:
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Our research methodology consists of extensive primary interviews with key participants in the market along with secondary sources to validate our information. For more information on this report and other research (including custom reports and consulting), contact info@verifymarkets.com or call +1.210.595.6987.
Contact: Haley Rico
Phone: 210-595-9687
Email: haley@verifymarkets.com
