Stringent government regulations driving the adoption of gas generators for rental power

Renewable energy


Power rental: Key market research findings

  • The Americas dominate the market geographically
  • The oil and gas sector is the largest end-user segment
  • Key vendors – Aggreko, APR Energy, Atlas Copco, Energyst, Himoinsa, and United Rentals

Technavio’s market research analysts predict the global power rental market to grow at a CAGR of around 5% between 2016 and 2020. The growth of the market is fueled primarily by the expanding construction activities in GCC countries. After the recovery of the Middle East countries from the financial crisis of 2008, there has been an exponential increase in infrastructure spending by governments for national development. Governments are increasingly focusing on generating more sources of income and depending less on just oil and gas reserves. During 2015, the global power rental market was dominated by the Americas with a market share of around 41%. The need for power during natural calamities and equipment failure is expected to spur growth in the power rental market in the Americas during the forecast period.

The new market research report from Technavio presents a breakdown and analysis of the power rental segments based on the end-user.

“The market is currently witnessing an increase in the use of gas generators for rental power. Environmental reforms and stringent government regulations to reduce emissions have led to new technology being developed where generators involve less fuel consumption while increasing the power output. The use of gas produces cleaner power than diesel as it is more efficient and produces 30% fewer emissions and less noise than diesel generators. Besides, gas is cleaner than other non-renewable fuels and is also relatively cheaper to operate than a diesel generator,” says Vishu Rai, Lead Analyst, Energy, Technavio Research.

During 2015, the oil and gas sector accounted for more than 36% of the market’s revenue to become the key revenue generator in the global power rental market. Often, oil and gas drilling sites and oil rigs are located in remote areas where access to grid power is limited or non-existent, resulting in an increased need for power rental. Production, processing, and refining are energy-intensive processes that require a constant power supply to keep the operation flow profitable. Power rental equipment can be used in upstream as well as in downstream sectors, based on the amount of backup power required.

The key vendors in the market include Aggreko, APR Energy, Atlas Copco, Energyst, Himoinsa, and United Rentals. Due to the presence of a several prominent vendors who offer generators ranging from 20 kW to 2,000 kW for use in several sectors, the market appears to be fragmented. Vendors in the market offer a broad variety of products and turnkey solutions and also provide consistent support and maintenance. The market is currently dominated by established vendors such as Aggreko, APR Energy, Atlas Copco, Energyst, Himoinsa, and United Rentals who with their extensive product portfolio, make it difficult for medium and small power rental companies to survive the competition.

A more detailed analysis is available in the Technavio report, Global Power Rental Market 2016-2020.

We can customize reports by other regions and specific segments upon request.

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