Market Trends of Power Generator Rental Industry
This section covers the major market trends shaping the Power Generator Rental Market according to our research experts:
Power Generators in the Oil and Gas Industry to Witness Significant Growth
- The oil and gas industry has a prominent share in the power generator rental market. With most of the projects located in remote areas, with different anticipated oilfield depths, power generators with high capacity that can work in rigorous environments are required.
- Power generators act as a power supply for both drilling and digging and power backup activities. During drilling and digging, huge power is required to operate the equipment. Power generators act as a power backup to the oil and gas facilities during any emergency or disaster.
- According to IEA, in 2021, oil and gas upstream investment accounted for USD 384 billion. With an annual growth rate of 8.8%, upstream is expected to increase during the forecast period, which, in turn, may drive the power generators market in the oil and gas industry as drilling and digging require a large amount of power.
- Typically, six poles of 1,200 rpm alternators, with two bearings for assembling on an oilfield, are most preferable in the oil and gas industry. The generator's alternator should also withstand voltage dips as large as 25-30% that an electric motor can cause while starting.
- During the forecast period, the oil and gas industry is expected to boost the power generator rental market, as expenditure for exploration and production (E&P) activities is increasing. By 2025, the oil and gas industry is expected to have nearly USD 700 billion in investment, which may drive the power generator rental market.
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North America is Expected to Become a Significant Market
- North America's power generator rental market is estimated to grow significantly, with diesel generators being the most dominating segment. However, with tightening environmental policies to reduce carbon footprints, the focus on alternate fuel generators is increasing.
- The oil and gas industry requires a huge amount of power for its upstream and downstream processes. Oil consumption in North America is increasing Y-o-Y, thus creating demand for oil production, which, in turn, is expected to drive the power generator rental market during the forecast period. In 2021, total North American oil consumption accounted for 22,264 thousand barrels daily with an annual growth rate of 7.6%.
- The United States is one of the prominent countries that use natural gas power generators to have a cleaner environment. The country highly relies on natural gas generators due to their less failure during operation. Natural gas generators typically save USD 1,000 per kilowatt to USD 3,000 per kilowatt during operation.
- Growing demand for energy, infrastructure projects, and requirement for contact power are a few primary factors driving the North American power generator rental market. The US oil and gas sector is expected to see an investment of around USD 250 million, which is anticipated to drive the market during the forecast period.
- The region's construction sector is expected to exceed USD 1 trillion in investment during the forecast period. The sector's growth is anticipated to further boost the rental generator market, along with the oil and gas industry.
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