In contemporary times, the demand for power has substantially increased in developing countries, such as Thailand, Brazil, China, Qatar, and India, owing to the rapid industrialization and urbanization in these nations. These countries are witnessing immense technological developments and heavy investment in the construction sector that will lead to higher adoption of rented power equipment. In addition to this, numerous European and North American companies are expanding their presence in these countries to meet the escalating demand for electricity.
 |
| To learn more about this report: https://bit.ly/3e6yRcB |
Moreover, rising number of obsolete power plants is augmenting the demand for rented power, across the globe. These plants are inefficient in operations and lead to high pollution levels. Governments across the world are legislating several policies to enforce the shutdown of these outdated power plants to curtail environmental pollution. Owing to these factors, the power rental market is expected to accelerate at a CAGR of 10.3% during the forecast period (2018–2023). The market stood at $9,167.6 million in 2017 and it is projected to reach $16,855.5 million by 2023.
The end-user segment of the power rental market is categorized into oil and gas, utilities, construction, industrial, mining, and events. Amongst these, the utilities category held the largest market share in 2017 and it is projected to maintain its leading position throughout the forecast period. This can be ascribed to the renting of power equipment by utility companies for redevelopment or conversion process. With the depleting network of thermal power plants in the world, the adoption of rented power is expected to spur in coming years.
Keeping up with the trend, the MEA power rental market is also expected to exhibit the fastest growth during the forecast period, globally. This can be attributed to the soaring electricity demand from end-use industries in the region, on account of a rising number of events, utility services, and construction activities. Moreover, the market is gaining momentum in the region, due to the rapid infrastructure development and urbanization in countries, such as Saudi Arabia and the U.A.E.
Thus, due to the rising need for power in times of reducing the capacity of thermal power plants and increasing number of outdated plants, the demand for rented power will surge in the coming years.
