Global Power Rental Market to More than Double by 2020, GlobalData Report Says

Sept. 18, 2013

Increasing demand for electricity will drive the continuing growth of the global power rental market, with revenue expected to increase from $4 billion in 2012 to $8.5 billion in 2020, at a compound annual growth rate of 10.2 percent, according to research and consulting firm GlobalData.

The United States currently holds the highest market share at 19 percent and is followed closely by China at 18 percent and Saudi Arabia at 16 percent. However, China is expected to take the lead in the power rental market by 2020, with an increased market share of 17 percent and an increase in revenue from $720 million in 2013 to $1.4 billion at the end of 2020. The United States will experience a drop in its market share to 14 percent, according to GlobalData.

 “The substantial growth that we expect to see in the power rental market over the coming years will be due primarily to an increase in power consumption, which will almost double from 13,044 Terawatt-hours (TWh) in 2000 to 27,496 TWh in 2030,” said Sayani Roy, GlobalData’s analyst cover power. “Furthermore, the poor transmission and distribution network in many countries, as in China’s case, will provide a substantial boost for the market, as the low availability of power will result in the greater dependence of end consumers on rental power.”

However, there are still a number of barriers to further growth in the market, such as low awareness among consumers of the benefits of renting equipment as opposed to purchasing it, and the need for significant financial backing in order for companies to enter the power rental business.

“In addition to these barriers, emission regulations could also pose a significant challenge to the power rental market, which is dominated mainly by diesel-powered generators,” Roy added. However, since rental companies have started offering gas-powered equipment, which boast very low emissions and are currently a preferred source of electricity generation, the impact of this restraint is expected to remain medium to low during the forecast period.”

For more information or to order the report, go to: http://store.globaldata.com/market-reports/Power-~-Utilities/Power-Rental-Report-Global-Market-Size-Competitive-Landscape-and-Forecasts-to-2020#Report_Title.