Power rental market expected to reach $2.0 billion by 2025

North American Power Rental Equipment Market Report

North American Power Rental Equipment Market Report

Verify Markets B2B Market Research and Consulting

Despite the market potential, rental companies are deterred by stringent environmental regulations, specifically EPA Tier 4 Final implementation in the U.S.

SAN ANTONIO, TX, USA, October 29, 2019 /EINPresswire.com/ — A new analysis by Verify Markets shows the North American Power Rental Market was valued at $1.45 billion in 2018 and is expected to reach revenues over $2.0 billion by 2025. The North American Power Rental Market is mature and highly fragmented, although it is going through a process of consolidation where the large national rental companies are acquiring regional competitors.

Economic growth has been on the of the main drivers of the market. As the economy and businesses grow, the demand of energy equipment increases. Companies may choose to rent additional power and related solutions rather than lose productivity. However, this driver is expected to diminish its impact on the market during the forecast period as it is predicted that the U.S. economy will grow at a slower rate from 2020.

Another stimulus for the market is the urbanization growth and the increase in infrastructure spending. The increasing pace of urbanization and the resulting expansion of city limits is pushing the demand for residential and commercial construction activities. The power rental market is directly affected by the level of economic activity in the construction industry.

Despite the market potential, rental companies are deterred by stringent environmental regulations, specifically EPA Tier 4 Final implementation in the United States. The increased requirement for manufacturing companies to alter the design of the equipment has subsequently led to an increase in cost of the generator unit. Tier 4 I diesel generator prices can be 30.0 to 50.0 percent higher than a Tier 2 or 3 generators. Power rental companies are trying to maintain their existing fleet or buy used equipment as long as possible in order to avoid the higher cost of the Tier 4 certified generators. Companies who have acquired new equipment before the Tier 4 Final stage was implemented are able to maintain their input costs and are more price-competitive. This restraint is expected to reduce its impact during the next five years, as engine manufacturers are able to make Tier 4 engines in mass quantities, increasing availability. In addition, as emission control technology improves, it is expected that generators will become more serviceable, reducing high initial and operating and maintenance costs.

The North American Power Rental Market report has been segmented by fuel, application, power output, and end user. Main customers include oil & gas, utilities, industrial, and construction. Lower oil & gas prices have affected investment in exploration and extraction, decreasing the share of the oil & gas segment in the power rental industry. This sector represented 21.0 percent of the total market during 2018. However, the segment is expected to increase its share of the market by the end of the forecast period as projected increases of oil & gas prices will encourage near-term levels of exploration, development, and production activity, and is likely to increase business activity. The utility segment is also projected to increase; as utilities incorporate more renewable energy sources to their generation mix, demand is expected to increase for more power rental to provide grid stability and reliability.

Some of the key companies covered in this report include Aggreko plc., Caterpillar, Inc., United Rentals, Inc., Sunbelt Rentals, Inc., and Herc Rentals, Inc. This report provides an in-depth analysis of the overall North American Power Rental Market. The report captures various market dynamics such as growth drivers, restraints, market revenues and forecasts, technology trends, and competitive landscape.

A copy of the North American Power Rental Market research report can be obtained at www.verifymarkets.com. Follow us for more updates on Twitter @verify_markets and LinkedIn. This report is part of Verify Markets’ Energy & Power Equipment market research and consulting practice. Other power rental market reports:

North American Pump Rental Market
North American Aerial Equipment Rental Market
Latin American Generator Set Market
North American Temporary Heating Market
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North American Steam Boiler Rental Market
North American Temporary Cooling Market
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North American Power Rental Market
Latin American Power Rental Market

Verify Markets' research methodology consists of extensive primary interviews with key participants in the market along with secondary sources to validate our information. For more information on this report and other research (including custom reports and consulting), contact info@verifymarkets.com or call 210.595.6987.

Haley Rico
Verify Markets
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Source: EIN Presswire