North American Power Rental Market Expected to Reach Almost $2 Billion by 2023
SAN ANTONIO, May 10, 2017 -- A new analysis by Verify Markets shows the North American Power Rental Market was valued at $1,365.4 million in 2016 and is expected to reach revenues over $1,981.8 million by 2023. The North American Power Rental Market is mature and competitive, with the presence of regional and national market participants trying to get a strong foothold in the market.
As the economy grows, the demand of energy equipment increases, subsequently driving the growth in power rental industry. As businesses grow, they may choose to rent additional power and related solutions rather than lose productivity.
Another stimulus for the market is the increase in infrastructure spending. The power generation infrastructure is aging quickly and is unable to meet current demands. Moreover, the dramatic growth of renewable power sources in the recent years has put the traditional grid under increasing pressure. Incorporating large amounts of renewable energy into the grid system can produce a problem in grid stability due to differences between electrical generation and consumption. Utility companies demand rental generators to provide power to their customers during plant, grid service and maintenance.
Despite the market potential, rental companies will be deterred by stringent environmental regulations (specifically EPA Tier 4 implementation in the United Sates and the prospects of a carbon tax in Canada), lower oil & gas prices and intense competition in the industry.
The increased requirement for manufacturing companies to alter the design of the equipment has subsequently lead to an increase in cost of the generator unit. Diesel generator prices have increased between 20 and 30 percent during the last two to three years.
Power rental companies are trying to maintain their existing fleet or buy used equipment as long as possible in order to avoid the higher cost of the Tier 4 certified generators. Companies who have acquired new equipment before the Tier 4 Final stage was implemented are able to maintain their input costs and are more price-competitive.
The North American Power Rental Market report has been segmented by fuel, application, power output and end user. Main customers include oil & gas, utilities, industrial and construction. For 2016, the oil & gas and utilities comprised more than 50 percent of overall market share. The oil & gas segment used to be the major revenue contributor to the total power market. Lower oil & gas prices have affected investment in exploration and extraction, decreasing its share of the market during 2016. However, the segment is expected to increase its share during the end of the forecast period as the rise of oil & gas prices fuels the expansion of LNG facilities and exportation terminals, as well as future investment in upstream oil activities. The utility segment is also projected to increase as utilities incorporate more renewable energy sources to their generation mix; it is expected that utilities will demand more power rental to provide grid stability and reliability.
Some of the key companies covered in this report include Aggreko plc., Caterpillar, Inc., Cummins, Inc., United Rentals, Inc., Sunbelt Rentals, Inc., and Herc Rentals, Inc. This report provides an in-depth analysis of the overall North American Power 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 Power Rental Market research report can be obtained at www.verifymarkets.com. Follow us for more updates on Twitter @verify_markets. This report is part of Verify Markets’ Energy & Power Equipment market research and consulting practice. Other power rental market reports:
- Chinese Power Rental Market
- Middle East Power Rental Market
- African Power Rental Market
- Indian Subcontinent Power Rental Market
- Australian and New Zealand Power Rental Market
- Indonesian Power Rental Market
Our research methodology consists of extensive primary interviews with key participants in the market along with secondary sources 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 210.595.6987.