The demand for power in industries and construction sites has led to the exponential growth of the power rental systems market in recent years. Power rental systems offer temporary power generation in locations that lack connection to national grids or face disruptions in power supply. These modular power plants consist of engines connected to alternators to produce electricity near the point-of-use. Common product types are diesel, gas, and hybrid generating sets available in a range of power outputs. Power rental systems benefit end-users by providing affordable, reliable, and sustainable power solutions free of long-term responsibilities associated with permanent infrastructure.
The Global Power Rental Systems Market is estimated to be valued at US$ 27.12 Bn in 2024 and is expected to exhibit a CAGR of 8.9% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the power rental systems market are Aggreko, Herc Rentals Inc., APR Energy, Caterpillar, United Rentals, Inc., Cummins Inc., Ashtead Group plc, Atlas Copco AB, Al Faris, Shenton Group, Hertz System, Inc., Kohler Co., Bredenoord
The growing demand for uninterrupted power from industries and mega-construction projects is a major factor driving the Power Rental Systems Market share in remote locations lacking grid connectivity also depend on power rental systems.
Power rental companies are expanding globally to cater to the rising power needs in developing economies. Favorable government policies supporting infrastructure growth further encourage market players to tap into new regional markets.
Market Key Trends
Hybrid power solutions combining diesel and solar technologies are gaining popularity in the power rental systems industry. Hybrid systems offer fuel-efficiency and reduced emissions. Mobile solar generators integrated with batteries provide zero-emission power devoid of noise and fumes. Sustainable hybrid power rental solutions will be a prominent trend to reduce operational costs and carbon footprint over the forecast period.
Porter's Analysis
Threat of new entrants: The industry has moderate barriers to entry due to high capital costs required for power rental systems. Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitutes like rented generators.
Bargaining power of suppliers: The industry has few major suppliers which gives them moderate bargaining power over buyers. Threat of new substitutes: Substitutes like on-grid power supply limits the threat of new substitutes for power rental systems. Competitive rivalry: The competitive rivalry is high due to presence of many global players competing on pricing and product differentiation.
Geographical regions:
The Power Rental Systems Market Regional Analysis reveals that the power rental systems market in Europe accounts for the largest share in terms of value, owing to high demand from construction and events industries in countries like the UK, Germany, and France.
The Asia Pacific power rental systems market is expected to witness the fastest growth during the forecast period due to increasing industrialization and infrastructure development activities in emerging economies like China and India. Countries in this region are experiencing rapid urbanization which is augmenting the demand for power rental systems to fulfill temporary power needs in the construction sector.
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