South America Power Rental Market Outlook, 2029

The power rental sector in South America is at the crossroads of rising energy consumption, infrastructure expansion, and the continent's unique geographical terrain. South America, which includes nations such as Brazil, Argentina, Chile, Colombia, Peru, and others, has a dynamic energy industry with both challenges and opportunities. As the continent experiences fast urbanization, industrialization, and economic growth, the need for dependable and scalable power solutions grows. South America's rising infrastructure development projects are a major driver of the power rental sector. Countries across the continent are making significant investments in infrastructure to boost economic growth, improve connectivity, and raise living standards.

These projects include the development of highways, bridges, airports, ports, and energy infrastructure including power plants and transmission lines. Power rental companies play a pivotal role in these initiatives by providing temporary power solutions during the construction phase, ensuring uninterrupted electricity supply to machinery, equipment, and temporary facilities on-site. The energy situation in South America is likewise changing, with a greater emphasis on renewable energy sources. Countries such as Brazil, Chile, and Uruguay have made tremendous progress in capturing renewable energy, particularly wind and solar. This shift toward clean energy opens up new potential for power rental companies to provide environmentally friendly solutions like hybrid generators and battery storage systems. Furthermore, as governments tighten environmental restrictions and provide incentives to minimize carbon emissions, there is a growing demand for rental power solutions that are in line with sustainability standards. Political and economic issues also influence the dynamics of South America's power rental markets. Economic swings, currency devaluations, and regulatory uncertainties can all have an impact on investment decisions, project timelines, and rental power demand. Moreover, geopolitical pulls and social unrest in certain countries may pose challenges to business operations, requiring power rental companies to navigate risks effectively and adapt to evolving market conditions.

According to the research report "South America Power Rental Market Outlook, 2029,", the South America Power Rental market is expected to add more than 250 Million 2024 to 2029. South America has a wealth of natural resources, including hydroelectric power potential, plenty of sunlight for solar energy, wind resources along its coastlines, and considerable oil and gas reserves. Power rental companies can use these resources to provide a diverse range of energy solutions, including renewable energy and typical fossil fuel-powered generators. South America's energy consumption is increasing as its population and economies rise rapidly.

Power rental services play an important role in meeting this demand by offering temporary power solutions for building projects, industrial operations, events, and emergency circumstances, ensuring that electricity supply remains constant in the face of variable demand. South America hosts some of the world's greatest mining operations, with considerable reserves of copper, gold, silver, lithium, and other minerals. The mining industry relies heavily on temporary power solutions to support operations in remote and off-grid locations. Power rental companies cater to this demand by providing generators, transformers, and electrical distribution equipment tailored to the specific needs of mining sites. Government policies and regulations, such as energy sector restrictions, environmental standards, and renewable energy adoption incentives, all have an impact on the dynamics of the South American power rental market. To be competitive and compliant in the South American market, power leasing companies must stay up-to-date on shifting regulatory frameworks and align their services with government priorities. South America has an abundance of hydroelectric power potential, with major rivers like the Amazon, Paraná, and Orinoco providing considerable chances for hydroelectric development. Power rental companies can leverage this opportunity by offering temporary power solutions for hydroelectric projects during the construction, maintenance, and refurbishing stages, thereby boosting the region's renewable energy goals.

Major Drivers

Regulatory complexity: South America is witnessing tremendous infrastructure development in a variety of sectors, including transportation, electricity, telecommunications, and urbanization. This increases demand for temporary power solutions during the construction phase of infrastructure projects. Power rental firms play an important role in providing generators, transformers, and other equipment to building sites, resulting in increased project efficiency and prompt completion.
Natural resource extraction: South America has a wealth of natural resources, including minerals, oil, and gas, which fuel major activity in the mining, oil and gas, and extractive industries. These industries frequently operate in distant or off-grid areas, with limited access to the main power grid. Power leasing services are critical for supplying dependable power solutions to mining operations, drilling activities, and extraction processes, ensuring ongoing productivity and operational efficiency.

Major Challenges

Regulatory complexity: The regulatory frameworks governing the South American power rental market vary by country and region. Compliance with various licensing requirements, environmental regulations, and import/export restrictions increases the administrative burden and operational challenges for power rental companies operating in multiple jurisdictions, necessitating meticulous attention to legal nuances and continuous monitoring of regulatory changes.

Based on fuel type segment market includes diesel, natural gas and other fuel types. Diesel fuel type is predicted to dominate the South America power rental market. Based on equipments segment market is divided into generators, transformers, load banks and other equipments. Generators equipment is expected to lead the South America power rental market.

South America has an established infrastructure for diesel fuel distribution and storage. Diesel is widely available throughout the region, making it easy for power rental firms to fuel their generators. Furthermore, the existing network of diesel fuel stations and transportation infrastructure assures consistent supply chains, which are critical for providing uninterrupted power rental services. Diesel fuel is less expensive than alternative fuels like natural gas or liquefied petroleum gas (LPG) in many parts of South America. Lower fuel costs improve the cost-effectiveness of diesel-powered generators for both power leasing providers and their clients.

Diesel's price makes it an appealing alternative for a wide range of applications, from transitory events to industrial operations. Generators are very dependable and diverse power sources that can provide electricity in a variety of applications and settings. Generators, whether for industrial, commercial, or domestic use, provide a reliable option for temporary or backup power demands. Generators are an important source of reliable electricity in South America, where grid stability can be unpredictable, ensuring that companies and vital services can operate continuously. Generators can be swiftly deployed to supply immediate electricity in emergency situations or during temporary events. Power leasing firms can transport generators to remote or inaccessible areas where grid power is absent or unreliable. Generators are deployed quickly to guarantee that businesses, communities, and vital infrastructure have as little downtime and inconvenience as possible during power outages, natural disasters, or scheduled maintenance activities.

In terms of power rating segment market is segmented into below 75 kVA, 75-375 kVA, 375-750 kVA, and above 750 kVA. Above 750 kVA power ratting segment is projected to lead the South America power rental market. Based on application segment market includes base load, standby power and peak shaving. Standby power application is expected to dominate the South America power rental market..

Large-scale industrial buildings, commercial complexes, data centers, and manufacturing plants frequently require large amounts of power to function properly. The above-750 kVA power rating sector meets the high electrical demands of these industries, offering dependable power solutions for key equipment and operations. Mining, oil and gas, telecommunications, and utilities rely on large-capacity generators to assure continuous power supply for their operations. South America is undergoing significant infrastructure development, including the construction of roadways, bridges, airports, ports, and utilities.

These infrastructure projects necessitate significant electricity capacity to support construction activity, equipment operation, and temporary facilities. The above-750 kVA power rating segment is well-suited for powering big construction sites, supplying the necessary electricity for heavy machines, lights, HVAC systems, and other construction needs. Critical infrastructure sites, such as hospitals, airports, water treatment plants, and emergency response centers, require continuous and dependable power to support life-saving operations and public safety efforts. Standby power solutions are critical for these facilities to continue providing crucial services during emergencies, natural disasters, and other unforeseen events. Power rental firms provide standby generators as a dependable backup power supply for vital infrastructure, ensuring operational resilience and community support during emergencies. Standby power uses include business and residential properties, where backup generators provide critical electricity during grid disruptions or blackouts. Businesses, retail outlets, and residential buildings use standby generators to power lighting, HVAC systems, security systems, and essential appliances during power outages.

Based on end-users segment market includes mining, construction, manufacturing, utility, events, oil & gas and others. Mining industry is expected to lead the South America power rental market.

South Americans live in isolated or off-grid areas with little or no access to reliable grid power. In these locations, power rental solutions are critical for supplying electricity to mining activities, equipment, and buildings. Mining power requirements can vary greatly based on factors such as operation size, excavation depth, and equipment type. Power rental firms provide generators with a variety of capacities, allowing mining companies to adapt their power supply based on their individual requirements. Mining operations require extremely reliable and long-lasting power solutions that can survive harsh climatic conditions and heavy use.

Power rental firms supply powerful generators intended to run consistently in tough terrain, harsh temperatures, and dusty environments commonly encountered in mining sites. Renting power equipment can be less expensive for mining businesses than buying and maintaining their own generators, particularly for short-term or temporary operations. Power rental firms provide competitive pricing and flexible rental terms, allowing mining companies to reduce operational costs and deploy resources more effectively. Power rental firms ensure that their equipment satisfies regulatory and safety criteria, allowing mining companies to comply with environmental and worker safety legislation. Mining firms can reduce compliance concerns while focusing on their core operations by renting generators from trusted sources.

Based on report market is categorised into three major countries including Brazil, Argentina and Colombia. Brazil is expected to lead the South America power rental market during the forecast period.

Brazil has enormous infrastructural demands and industrial activities, which increase the need for temporary power solutions. The country's continued economic expansion and development projects in areas such as construction, manufacturing, mining, and oil and gas produce a sizable demand for power rental services. Brazil has significant infrastructure development ambitions, with investments in transportation, energy, and utilities. Major projects such as road construction, airport expansions, and energy infrastructure upgrades necessitate temporary power solutions throughout the construction phase, which increases demand for power rental services.

Brazil is rich in minerals, and its mining industry is growing, relying significantly on temporary power solutions for activities in distant and off-grid areas. The country's large reserves of iron ore, gold, bauxite, and other minerals create demand for rental generators, transformers, and electrical distribution equipment in the mining sector. Brazil has made significant investments in renewable energy, specifically hydroelectric, wind, and solar electricity. The country's upright environment and natural resources make it ideal for renewable energy development. Power rental companies in Brazil are likely to benefit from the increased need for temporary power solutions for renewable energy projects such as wind farms, solar parks, and hydropower plants. Brazil is vulnerable to natural calamities such as floods, landslides, and droughts, as well as periodic power outages. Power rental firms play an important role in disaster preparedness and response by providing emergency backup power to essential infrastructure, telecommunications networks, and disaster relief efforts, ensuring resilience and service continuity during calamities.

The increased research and development spending, as well as technological collaborations between major market players, will boost the market potential. In order to maintain their market position, the manufacturers are implementing initiatives such as mergers, partnerships, expansions, and acquisitions. Aggreko, for example, was given a contract in December 2018 to provide rental power services for the 2020 Tokyo Paralympic and Olympic games. The market is influenced by major participants across the globe. Major players such as Aggreko, Caterpillar, Cummins, Inc., Atlas Copco, and Kohler Power constitute around one-fourth of the market and the remaining market is dominated by a large number of regional and local players.

Aggreko is established as one of the leading players and operates under different verticals in the power rental industry. The company offers a wide range of generator sets with different power ratings and has a global footprint with around 10,000 MW of power on hire in the year 2020. In December 2018, for instance, Aggreko was awarded a contract for providing rental power services to the 2020 Tokyo Paralympic and Olympic games. The contract is estimated to be worth around US$ 200 Million.

Considered in this report

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Power Rental market Research Report with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Fuel Type

• Diesel
• Natural Gas
• Others

By Equipments

• Generators
• Transformers
• Load Banks
• Other Equipments

By Power rating

• Below 75 kVA
• 75-375 kVA
• 375-750 kVA
• Above 750 Kva

By Applications

• Base Load
• Standby Power
• Peak Shaving

By End Users

• Mining
• Construction
• Manufacturing
• Utility
• Events
• Oil & Gas
• Others

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases.

After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Power Rental, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.


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