Power rental market forecast to double by 2017

The worldwide power rental market will more than double in size to US$17 billion by 2017 according to a new report by a US market research company.

MarketsandMarkets (M&M) said the power rental sector will see compound annual growth rates of 17% over the next five years, taking the market value from the estimated $7.8 million this year up to $17 billion.

Houston, Texas-based M&M said increasing power demand, lack of grid stability, and a general tendency towards rental away from buying, were the major factors driving growth.

The researcher said that economic development in Asia, Africa and the Middle East had led to electricity demand exceeding the installed power plant capacity. "To support developments in those economies temporary power is used, which has created a tremendous market for power rental companies", said M&M, "Aging permanent power plants is another factor which will increase the market size significantly by 2017.

According to the report North America is the largest market followed by Middle East and then Asia Pacific, with the Middle east being the fastest growing.

M&M said the utility sector is the largest user of temporary power, followed by oil and gas and then the industrial sector. It said the industrial sector and events were the fastest growing end user businesses.

The report, which is priced at $4650, is titled Power Rental Market by End-User Industry, Peak, Prime/Base & Standby Application, Diesel & Gas Generator/Engine Type - Global Trends & Forecasts (2012 - 2017).