Power Rental Accessories Market Size, Share, Analysis and Forecasts To 2021
Market Research Analysts forecast global power rental accessories market to grow at a CAGR of 3.18 % during the period 2017-2021.
According to the report, one driver in market is growing demand from utility and industrial sectors. The need for temporary power supply across utilities and industrial sectors is increasing because of the demand-supply gap in electricity. Though the governments of various countries are commissioning new power plants to meet the growing demand, shortfalls persist in the short run as constructing a power plant would require 3-5 years, depending on its capacity. In addition, delays in power plant completion due to lack of investment will extend the construction period. However, many industries require a constant power supply to achieve optimum operational capacity and avoid financial losses due to outages. Apart from facing financial losses, continuous industrial development is required for sustaining the economic development of the country. This has resulted in utilities and industries resorting to the use of rental power where grid power is unstable for backup or in situations where grid power is not available.
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Further, the report states that one challenge in market is slow growth in oil and gas industry. Earlier, power rental companies benefitted from increased onshore and offshore oil and gas exploration and production. However, the plunge in global oil and gas prices, which have fallen by almost 40 %-50 % in the last two years( 201-2016) limits the confidence of new investors in the industry, posing a serious challenge to power rental companies. The rig count acts as a barometer for the oil and gas drilling industry and its suppliers worldwide. There has been an almost 35 % drop in the rig count between 2014-2015. This is an indicator of the weak demand for the equipment used by the oil and gas industry. Therefore, lower oil prices and reduction in activities means lower equipment rentals, which is a challenge for the growth of the rental accessories industry.
The study was conducted using an objective combination of primary and secondary information including inputs from key participants in the industry. The report contains a comprehensive market and vendor landscape in addition to a SWOT analysis of the key vendors.
About Power Rental Accessories
Rental power is used to meet peak load demand, base load supply, or as a standby. The need to provide uninterrupted power is a major factor driving the growth of the global power rental accessories market. Power rentals are more economical than maintaining a reserve plant. Thus, this factor has increased the demand for rental power over time.