Power Generator Rental Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The power generator rental market is expected to grow by increasing demand for power in various regions of the world. the oil and gas industry is one of the prominent industries, where power generators are used for rental purpose, while building the infrastructure or during exploration and production. During the forecast period, it is expected that North America will be the primary investor in the oil and gas industry and is expected to register a CAGR of around 6%. Thus, this indicates the growth in infrastructure and growth in the uses of generator services.

Instead of making more expenditure by buying a new generator, most industries prefer rental over complete ownership. Furthermore, projects of different sectors vary from location to location and are located in various regions. Rental for different location looks convenient and cost-saving, rather than transporting one’s generator between different locations. The drivers for the power generator rental market include the cost associated with purchasing new generators and tremendous developments in various sectors, such as oil and gas, construction, etc. However, expansion of power distribution networks and rising development in renewable energy projects are expected to act as a restraint for the market growth.

With the rising population, projects from different sectors are expected to increase to meet the requirements, like energy, commercial and residential space, and manufacturing units, for daily needs. For instance, the global population is estimated to reach nearly 8.5 billion by 2030, which is expected to increase the global construction spending to USD 17.5 billion. Growth in construction implies a high possibility of an increase in the worldwide generator's rental market.

Power generators are key power sources in the oil and gas industry, particularly for drilling and digging activities. The operations are the most crucial task that leads to hydrocarbon generation, and lots of power are required to operate the massive machinery for which mobile power generators, ranging from 500 kilovolts to 2,500 kilovolts, are mostly used.

North America is a significant region for the power generator rental market. It is estimated that scheduled power shutdown, new projects installations for various industries, and unplanned events, such as natural disasters and seasonal peak power demand, primarily drives the regional power generators rental market.

Power Generator Rental Market Trends

Power Generators in the Oil and Gas Industry to Witness a Significant Growth

• The oil and gas industry has a prominent share in the power generator rental market. With most of the projects located in remote areas, with different anticipated oilfield depth, power generators with high capacity that can work on rigorous environments are required.
• Power generators act as power supply for both drilling and digging and power back-up activities. During drilling and digging, huge power is required to operate the equipment. Additionally, power generators act as a power backup to the oil and gas facilities during any emergency or disaster.
• Typically, six poles of 1,200 rpm alternators, with two bearings for assembling on an oilfield, are most preferable in the oil and gas industry. Moreover, the generator’s alternator should withstand voltage dips as large as 25-30% that an electric motor can cause while starting.
• During the forecast period, the oil and gas industry is expected to boost the power generators rental market, as more expenditure is coming up for exploration and production (E&P) activities. By 2025, the oil and gas industry is expected to have nearly USD 700 billion investment, which may certainly drive the power generator rental market.

North America as a Significant Market

• North America’s power generator rental market is estimated to grow significantly, with diesel generators as the mostly dominating segment. However, with tightening environmental policies to reduce carbon footprints, focus on alternate fuel generators are increasing.
• The United States is one of the prominent countries that use natural gas power generators to have cleaner environment. The reason being higher reliability on natural gas generator is due to its less failure during operation. Moreover, natural gas generators typically save USD 1000 per kilowatt to USD 3000 kilowatt during opeartion.
• Growing demand for energy, infrastructure projects, and requirement of contact power are a few primary factors that drive the North America power generator rental market. Moreover, it has been estimated to have an investment of around USD 250 million in the United States oil and gas sector, which is expected to drive the market during the forecast period.
• Moreover, the construction sector of the region is expected to exceed USD 1 trillion investment, during the forecast period. The growth in the sector is expected to boost the rental generator market, along with the oil and gas industry.

Power Generator Rental Market Competitor Analysis

The power generator rental market is fragmented. Some of the key players in the market include Atlas Copco (India) Ltd, Cummins Inc., Ashtead Group PLC, Modern Hiring Service, United Rentals Inc., Herc Rentals Inc., Generac Power Systems, Wacker Neuson Group, and Wartsila Corporation, among others.

Additional benefits of purchasing the report:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

This product will be delivered within 2 business days.