Revenue generated from the global power rental market has increased from $2.7bn in 2006 to $7.5bn in 2016, according to a report by GlobalData.
Titled ‘Power Rental Market, Update 2017 – Global Market Size, Competitive Landscape, Key Country Analysis, and Forecasts to 2025’, the report notes how the rental market witnessed a compound annual growth rate (CAGR) of 10.6%.
Governments worldwide are turning to rental power to meet growing demands for electricity as developing electrical infrastructure requires a large investment.
Existing power infrastructures in countries such as Nigeria, China and India are insufficient to meet the growing power demand, forcing them to depend on rental power.
Increase in power outages, natural disasters, and poor transmission and distribution (T&D) networks are also contributing to power rental market growth.
The report notes that natural disasters and the entertainment sector have largely contributed to the power rental market in North America.
With a revenue of $1.05bn in 2016, the US is the largest power rental markets. In addition, a rising number of hurricanes in the country has increased the demand for temporary power.
Saudi Arabia is the second-biggest power rental market, with a revenue of $666.9m in 2016, while China is in third place with $585.7m.
The Middle East and Africa generated $2.3bn in power rental revenue in 2016, while the Asia-Pacific (APAC) and Europe generated $1.25bn and $1.27bn, respectively. Latin America generated $1.02bn.
Despite stringent environmental regulations in some countries, the global power rental market revenue is expected to continue to increase from $8.5bn in 2017 to $17.9bn in 2025, at a CAGR of 9.76%.
Diesel is the primary fuel used for rental power generators in most countries, the report adds.