LONDON--(BUSINESS WIRE)--According to the latest market study released by Technavio, the power rental market in the Americas is expected to reach USD 2.849 billion by 2021, growing at a CAGR of more than 3%.
This research report titled ‘Power Rental Market in the Americas’ provides an in-depth analysis of the market in terms of revenue and emerging market trends. This market research report also includes up to date analysis and forecasts for various market segments and all geographical regions.
The power rental market in the Americas is witnessing a slow growth due to the fall in the global crude oil prices. The oil and gas industry has seen a major dip in investment due to overproduction. As a result, there is a low demand for equipment and production cuts in the oil and gas industry, leading to a major impact on the rental market.
Technavio researchers, however, expect the market to gain traction in the coming years due to the increasing expenditure on exploration and production (E&P) activities. The shift in the manufacturing bases from Asia-Pacific, on account of cheaper labor costs and favorable trade agreements, have caused countries in Central and Latin America to experience high industrial activities. This is expected to boost the demand for the power rental market in the Americas during the forecast period.
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Technavio’s energy research analysts categorize the power rental market in the Americas into the following segments by end-user. They are:
- Utility sector
- Oil and gas sector
- Industrial sector
- Others sector
The top three end-user segments for the power rental market in the Americas are discussed below:
The utility segment accounted for a market share of more than 33% of the power rental market in the Americas in 2016. To bridge the demand-supply gap, rental power is used to fulfill the need of ever-growing demand for power, owing to the increasing population and rapid industrialization. Rental power is used by utilities for peak load shaving; also, when a power plant undergoes repowering or restructuring, utilities worldwide use rental power as a backup or to meet base demand from end-users.
According to Sayani Roy, a lead power research analyst from Technavio, “Upgrading of power plants and scheduled maintenance activities require continuous electricity supply to prevent unexpected outages for an extended duration. Such situations are encouraging utilities to use rental power, which is driving the market.”
Oil and gas sector
The oil and gas segment accounted for a market share of almost 23% of the power rental market in the Americas in 2016. The instability of the crude oil prices is the reason for the steady growth of the power rental market in the oil and gas sector.
“Rental power is used in the oil and gas sector during the distinct phases of production and refining. Exploration and production activities across the Americas is increasing rapidly, especially in shale gas exploration and pre-salt discoveries in Brazil. The growth in oil and gas exploration activities will boost the market for power rentals during the forecast period,” says Sayani.
The industrial sector was one of the fastest growing segments of the power rental market in the Americas in 2016 with a market share of approximately 17%. The extreme dependence of industrial revenue for daily output and productivity is the main factor that is driving the power rental market in this sector. Industrial companies rent power generators to avoid potential losses due to a power outage.
Developing countries in the region, such as Brazil, Chile, and Argentina, are observing a boom in industrialization, leading to an increase in mining activities. Since most of the mines are located in remote areas, the power need is met through rental power. For instance, in the year 2013, to reduce the unreliability of the regional grid, Energyst, a specialist in rental power, supplied 23 MW of continuous power to one of the largest copper mines in Chile.
The top vendors highlighted by Technavio’s research analysts in this report are:
- APR Energy
- Atlas Copco
- United Rentals
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Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
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