In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022. Purchasing power in the country is expected to fell nearly by 2.5%.
On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.
Renting the power on temporary basis is called power rental. Process of producing electricity with the help of turbine which generates the steam by burning of fossil fuels such as coal, oil & gas produces the electric current which is provided to the various industries for running their operations.
Power renting provides flexibility, reliability, speed and cost effectiveness. It also offers complete power package for operating and delivering scalable components with huge power generator plants installation to different applications of industry.
Mostly the power required in industries like oil/gas, power infra and the construction companies for lifting heavy machines the diesel generators are used for processing their operations.
Power rental can be used for supplying high amount of power or energy in critical operations to perform heavy operations like construction of dams and highways. Power renting can be used as a stand by for providing power as a safety to avoid the interruption in the operation.
The global power rental market is anticipated to expand at around USD 23 billion and a CAGR of around 9.09% during 2018-2027. The power renting enables industries to perform various operations and also enables safe and smooth calculation of units consumed and the amount to be paid. Such factors are anticipated to boost the global power rental market over the forecast period.Increase in the sector of shale energy for extraction of shale the need of power for processing complete operation requirement of power is expected to increase in North America which anticipates the growth of power rental market in the expected forecast period.
The global power rental market is segmented on the basis of region into North America, Asia-Pacific, Latin America, Europe, Middle East and Africa. Asia- Pacific is anticipated to be the fastest developing region for the global power rental market on the account of rapid expansion of the infrastructures, oil/gas sector and factories in India and China. The growing demand for energy in oil and gas industry for drilling and exploratory operations that requires more power for their process is also anticipated to drive the market growth of the Asia Pacific region during the forecast period.
Europe is anticipated to showcase robust growth during the forecast period. The increasing number of the key players operating in the power rental market coupled with favorable government regulations to use power rent system is anticipated to fuel up the demand for the automotive relay during the forecast period.
Our in-depth analysis segmented the global power rental market in the following segments:
On the basis of regional analysis, global power rental system market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
North America is expected to showcase the modest and steady growth in market, owing to increase demand for power across the region. Additionally, North America is followed by Asia Pacific and Europe region in terms of power rental assisted by increase demand for power in various industries.
Global power rental market is further classified on the basis of region as follows:
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According to the Indian Ministry of Statistics and Programme Implementation the utilization of different sources of energy in India is 1,001,132 MW in total renewable power generation, 21,134 MW in Hydro power potential, 649,342 MW in Solar Power Potential and 302,251 MW in wind power potential. The high utilization is expected to result in an increasing demand for power generation. Such factors account to an increasing requirement for power rental services.
There is a high requirement for continues supply of electricity in urban and rural areas to carry out various critical operations within industries such as oil & gas, construction and infrastructure development which are often not met by the regular supply. Also, increasing mining activities are also resulting in an increased demand for power rental services. Therefore, there is an increasing demand for power in rent from power rental companies.
Innovations in air compressed generators that restrict the emission of harmful gases released from oil generators is also a factor driving the growth of market. Additionally, air compressed generators are able to operate at high pressure and temperature.
However, unfavorable government regulations that restrict the usage of conventional energy resources due to factors such as carbon dioxide emission, loss of eddy currents and hysteresis loss, are resulting for decline in the demand for power renting.