Market Challenges And Opportunities

Global Power Rental Market- Growth Drivers:

Rising need for Electrification and Continous Power Supply Worldwide to Boost Market Growth:

Increasing faults in transmission and distribution lines, failure in power generation equipment, abrupt grid problems, natural calamities, and several other factors are frequently affecting the power supply across the globe. Various public and private authorities are readily adopting measures to reduce the duration of power cuts to enable customers to continue their operations. Unexpected power outages have significantly increased the consumer’s demand for reliable backup power sources in industrial and commercial sectors, thus propelling the adoption of power rental equipment.

High demand for continuous power supply from the mining sector to drive market growth:

Rental generator sets are mostly used for supplying power in areas with very low grid connectivity. Mining activities are among the key consumers of the energy from generators, as most of the mining activities are carried out in areas located on the outskirts of cities and towns where the power supply through the grid is not available. Mining activities are not long-lasting and are for a temporary period and so, the players involved in the mining industry prefers rental power to meet their daily energy demand. Mining activities generally requires a higher power rating generator sets to conduct heavy digging operations. Therefore, the market potential for generator sets of ratings above 7500 KVA is high in the mining industry. The factors mentioned above are anticipated to accelerate the demand for power generation rental solutions.

Global Power Rental Market- Restraints:

Stringent Environmental Regulations ertaining to Emission Reduction and noise control likely to hamper market growth:

North America, Europe, and Asia Pacific have enacted a stringent legislation to restrict carbon emissions from power generation. Furthermore, to minimize noise pollution caused by diesel generator operations, regulations such as allowable diesel generator noise levels, are implemented. Several environmental bodies including the European Union’s (EU) European Environmental Agency and the United States Environmental protection Agency (EPA) have placed strict regulations on diesel power generators.

Another critical factor impeding adoption of diesel generators is energy service providers’ conversion to the greener alternatives. As compared to other types of generators, diesel generators generates higher decibels of noise. As a result, several government agencies have established noise-control laws and regulations.