SAN ANTONIO, Oct. 18, 2017 (GLOBE NEWSWIRE) -- A new analysis by Verify Markets shows the Global Power Rental Market was valued at $5,698.0 million in 2016 and is expected to growth at a compound annual growth rate (CAGR) of 5.1% from 2016 to 2023. Increased population and energy demand in rapidly developing regions such as China, Africa, and the Middle East will primarily drive the growth. The demand for infrastructure projects will be also be one of the primary rivers of this industry, globally.
The North American market was the biggest in terms of revenue and unit shipments in 2016, representing around 25 percent of the global market. However, it is at a mature stage. The bulk of new opportunities will come from emerging economies in regions such as Africa, Eastern Europe, Asia and the Middle East, who are making significant investments in their residential, commercial, and public infrastructure projects. In particular, Africa is expected to experience the highest growth rates, driven mainly by high electricity demand and lack of energy infrastructure; increasing investments in infrastructure projects in the construction, mining, and tourism industries in Egypt, South Africa and Nigeria; and rapid population growth.
However, the market is projected to come under threat from cleaner, more environmentally friendly technologies. Increasing renewable energy capacity is projected to affect the power rental market negatively as more rural communities and remote areas are going to replace their energy consumption from diesel generators for new centralized generation renewable energy facilities. Nevertheless, this is not expected to hinder growth in the short to medium term. The relatively low cost of diesel generators, in addition to its greater power generation capacity, will ensure that this remains the first choice for most end users.
Regulations stipulating emission standards for off-road diesel engines will pose a significant challenge to manufacturers, particularly in the highly regulated markets of North America, Europe, and Japan. Complying with increasingly stringent regulations has led manufacturers to increase the cost of the generator units. This has resulted in higher prices for diesel generators, increasing the capital spending of rental companies.
The Global Power Rental Market report has been segmented by type of contract, fuel, application, power output and end user. Main customers include oil & gas, mining, utilities, industrial and construction. For 2016, the oil & gas and mining comprised more than 35 percent of overall market share. The oil & gas segment used to be the major revenue contributor to the total rental power market, historically. However, lower oil & gas prices have affected investment in exploration and extraction in some regions. Similarly, metal prices have affected the activity in the mining sector during the last two years. Nevertheless, future increases in oil & gas and metal prices –as it is expected in the short term- are likely to bring new investments in exploration and exploitation activities and boost the demand for rental power.
Some of the key companies covered in this report include Aggreko plc., APR Energy, LLC, Caterpillar, Inc., United Rentals, Inc., Cummins, Inc., Herc Rental, Inc. and Ashtead Group plc., among others. This report provides an in-depth analysis of the overall Global Power Rental Market. The report captures various market dynamics such as growth drivers, restraints, market revenues and forecast, technology trends and the competitive landscape.
A copy of the Global Power Rental Market research report can be obtained at www.verifymarkets.com. Follow us for more updates on Twitter @verify_markets or on LinkedIn. This report is part of Verify Markets’ Energy & Power Equipment market research and consulting practice. Other power rental market reports include:
- North American Power Rental Market
- Latin American Power Rental Market
- European 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 210.595.6987.
Contact: Haley Rico
Phone: 210-595-9687
Email: haley@verifymarkets.com