SAN ANTONIO, July 18, 2017 (GLOBE NEWSWIRE) -- A new analysis by Verify Markets shows the Latin American Power Rental Market was valued over $800.0 million in 2016 and is expected to grow at a compound annual growth rate (CAGR) of 2.4 percent from 2016 to 2023. The Latin American Power Rental Market is highly fragmented, with the presence of several local and national market participants (https://www.verifymarkets.com/products/2017-power-rental-market-latin-america).
The continuous expansion of the power rental market in Latin America has been hindered by economic instability. Many Latin American countries are experiencing high inflation rates, currency devaluations, rising unemployment, public-spending cuts, and falling incomes. Brazil, the main market for power rental equipment -representing over 30 percent market share of the overall Latin American market- is going through a deep recession. The Brazilian power rental market has seen negative growth rates over the last two years.
The key market drivers include rapid population and urbanization growth, increasing energy demand, and demand from events 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 increase the demand for power. Lack of long-term investment in energy infrastructure to meet the increasing energy demand is 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 infrastructure and new opportunities in the industrial and oil & gas segments.
The Latin American Power Rental Market report has been segmented by fuel, application, power output and end-user. Main end-users include the oil & gas industry, mining, utilities, and construction. In 2016, mining and the oil & gas industry comprised of more than 35 percent of overall end-user market. With the fall in oil & gas and metal prices in 2016, investment in these two sectors has plummeted and many market participants have reported reduced margins due to the lower rental demand of power equipment from these sectors. Nevertheless, future increase in oil & gas and metal prices expected in the near future are likely to bring new investment in exploration activities and boost demand for rental power.
Some of the key companies covered in this 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 forecasts, 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 and LinkedIn. This report is part of Verify Markets’ Energy & Power Equipment market research and consulting practice. Other power rental market reports:
- North American Power Rental Market
- Chinese Power Rental Market
- Middle East Power Rental Market
- African Power Rental Market
- Indian Subcontinent Power Rental Market
- Australian and New Zealand Power Rental Market
- Indonesian Power Rental Market
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.