Monday 7 October 2013, AmsterdamIncreasing demand for electricity will drive the significant growth of the global power rental market over the coming years, with revenue expected to surge from $4 billion in 2012 to $8.5 billion in 2020, at a Compound Annual Growth Rate (CAGR) of 10.2%, according to a new report available on ASDReports.
The new report states that the US currently boasts the highest market share of 19%, followed closely by China and Saudi Arabia, which enjoy shares of 18% and 16%, respectively.
However, China is expected to take the lead in the power rental market by 2020, with an increased market share of 17% and a massive climb in revenue from $720m in 2013 to $1.4 billion at the end of the forecast period, representing a CAGR of 10.7%. Meanwhile, the US will experience a drop in its market share to 14%.
Sayani Roy, analyst covering power, says: “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.
“Furthermore, the poor transmission and distribution (T&D) 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.
Roy continues: “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. 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.”