Soaring Number of Outdated Power Plants Fueling Rented Power Demand
The burgeoning requirement for power, especially in emerging economies, such as India, China, Brazil, Qatar, Thailand, Turkey, and Thailand is driving the demand for power rental services. Moreover, these countries are witnessing rapid technological advancements and surging foreign direct investments in the construction industry, which is further boosting the requirement for power rental services. Additionally, many European and North American countries are expanding their operations in these emerging nations, on account of their huge growth potential.
For example, Aggreko PLC started a joint venture called Shanghai Yude Aggreko Energy Equipment Rental Co. Ltd. with Shanghai Yude, which is a Chinese power rental company, in January 2018 for expanding its business in the country with the help of a trusted and established local partner. Apart from the soaring power requirements in several countries, the presence of outdated power plants, which are highly inefficient and cause environmental pollution, is also driving the demand for power rental services. The governments of many countries are implementing strict regulations for shutting down these power plants.
This will fuel the requirement for power during the redevelopment process, which will, in turn, create lucrative growth opportunities for the players operating in the global power rental market. Owing to these factors, the value of the market is predicted to surge from $9,167.6 million in 2017 to $16,855.5 million by 2023. Furthermore, the market will demonstrate a CAGR of 10.3% between 2018 and 2023, as per the estimates of the market research company, P&S Intelligence.
Amongst these, the requirement for power rental services is predicted to rise rapidly in the utilities sector in the coming years. This is credited to the supply of rented power by various utility companies during the redevelopment or conversion process. Geographically, the demand for power rental services is predicted to soar in the Middle East and Africa (MEA) region in the coming years. This will be because of the surging power requirements in various end-use industries, such as construction and utilities in the region. Additionally, the increasing infrastructure development activities and rising industrialization rate are fueling the requirement for power rental services in the region.
Therefore, it can be said without any hesitation that the demand for power rental services will rise enormously across the world in the coming years, mainly because of the mushrooming requirement for power and the presence of inefficient and outdated power plants in several countries.
