SAN ANTONIO, February 23, 2021 -- A new analysis by Verify Markets shows the North American Electrical Distribution Equipment Rental Market was valued at over $395.0 million in 2020.
“The COVID-19 outbreak had a negative impact on electrical distribution equipment rental companies’ revenues during the first three quarters of 2020 and will continue affecting the market growth during the short-term of the forecast period. In addition, the market will face other challenges such as low oil & gas prices and a decline in non-residential construction,” states Senior Consultant for Verify Markets Georgina Carraway.
The demand for electrical distribution equipment rentals is directly affected by the level of economic activity in the construction industry, which represents 18.0 of the total market. The COVID pandemic has heavily affected the construction industry as many projects have been delayed or cancelled. Spending on nonresidential building projects is on the decline and will remain so through 2021. However, the successful implementation of the COVID-19 vaccine program, federal stimulus bills, stronger international growth, and the need for widespread building retrofitting in the wake of the pandemic, are expected to spur construction activity after 2021.
Besides lower activity in the construction sector, the electrical distribution equipment rental market is a mature, well-established market, with strong demand across different customer segments. Market participants expect that the market will return to its previous growth rates by the third quarter of 2021.
The utility sector is expected to be one of the main end users for electrical distribution equipment, driven by aging power infrastructure. The power generation infrastructure is aging fast and unable to meet current demand. About 70.0 percent of the grid and power transformers in the U.S are over 25 years old, and the average power plant is over 30 years old. Constant demand for more power by the industrial, data center, computer, and telecommunication segments; and the integration of renewable energy technologies is projected to continue increasing the demand for temporary power as utility companies demand rental electrical distribution equipment during plant and grid expansion, service and maintenance.
Other factors such as increasing urbanization and construction growth, recovery of the industrial activities, and continuing shift from ownership to rental are expected to drive the growth of the electrical distribution equipment rental market during the forecast period.
The North American Electrical Distribution Equipment Rental Market report has been segmented by end user, type of equipment and voltage. Main customers include oil & gas, utilities, industrial, commercial, construction and entertainment. The oil & gas segment has been traditionally one of the main end users of rental generators. However, lower oil & gas prices have affected investment in exploration and extraction, decreasing the share of the oil & gas segment in the power rental industry. This sector represented 30.0 percent of the total market during 2020. The live events sector has been one of the most affected sectors by the COVID-19 pandemic as most large events and parties have been cancelled or delayed.
Some of the key companies covered in this report include Aggreko plc., Caterpillar, Inc., United Rentals, Inc., Sunbelt Rentals, Inc., and Herc Rentals, Inc. This report provides an in-depth analysis of the overall North American Electrical Distribution Equipment Rental Market. The report captures various market dynamics such as growth drivers, restraints, market revenues and forecast, technology trends and competitive landscape.
A copy of the North American Electrical Distribution Equipment Rental Market research report can be obtained at www.verifymarkets.com. Follow us for more updates on Twitter @verify_markets and LinkedIn. This report is part of Verify Markets’ Energy & Power Equipment market research and consulting practice. Other power rental market reports:
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Verify Markets’ research methodology consists of extensive primary interviews with key participants in the industry along with analysis of secondary resources to validate our information. For more information on this report and other research (including custom reports and consulting), contact firstname.lastname@example.org or call +1 210.595.9687.