The demand for power from the emerging economies, including Qatar, Turkey, India, China, South Korea, Brazil, and Thailand, is surging at the present time due to their swift transformation in terms of industrialization, acceptance of mixed economy, and technological advancements. In addition to this, these countries are continuously witnessing a surge in infrastructure and construction-related activities, which is further supporting their economic growth. All these developmental activities need electricity for the smooth functioning of operations. But many of these countries are devoid of utility services and are completely dependent on rental power for commercial and residential power applications, which is resulting in increasing demand for rental power.
Rental power is basically temporary power generated by rental systems in order to meet the power requirements and is primarily utilized by industries which are located remotely and do not have access to permanent electricity. According to a study conducted by P&S Intelligence, the power rental market generated a revenue of $9,167.6 million in 2017 and is expected to register a 10.3% CAGR during the forecast period (2018–2023). The two major fuel types utilized by power rental generators are gas and diesel. Other fuel types include hydrogen, solar, and gasoline. Among these, the largest demand during 2013–2017 was created for diesel generators.
Get the sample copy of market analysis at: http://bit.ly/2rzoA29
Several sectors make use of rental power: oil & gas, construction, mining, utilities, industrial, events, and others (which include military, manufacturing, shipping, and residential & commercial buildings). Out of these, the highest demand for rental power was created by the utilities sector and the situation is projected to remain the same during the forecast period as well. The reason for this is the conversion of aging thermal power plants into natural gas-fueled plants in order to fill the power supply demand gap during the conversion, which is why utility companies are renting power generators. The fastest growth in demand is predicted to be witnessed by the construction sector in the coming years.
Among different regions, namely Europe, Latin America (LATAM), Middle East & Africa (MEA), North America, and Asia-Pacific (APAC), the highest demand for rental power was created by the MEA region during 2013–2017 and the situation is expected to remain the same during the forecast period as well. This is ascribed to the surging requirement for rental power from various end users, including construction, oil & gas, utilities, and events, swift industrialization, outdated power plants, and ongoing infrastructural development.
A key trend being witnessed in the power rental market is the rising popularity of gas and hybrid generators. Gas-based generators are considered pocket and environment-friendly because they are more affordable than conventional fuel-based generators, release less emissions, and create negligible noise. Apart from this, hybrid generators which work on bi-fuel operation mode, using random combinations of diesel, gas, and solar energy, have also been developed. These generators are sustainable, clean, and easily available. It is due to these factors that different companies and consumers have started preferring hybrid generators over diesel generators.