People need electricity for almost everything: lighting and ventilation at homes, powering machines in factories, for electric transport, and what not?! With the increasing population, which is predicted to reach 9.7 billion by 2050, from 7.7 billion in 2019, as per the United Nations Department of Social and Economic Affairs (UNDESA), the electricity demand is continuously rising. This is especially true for India, China, Brazil, South Korea, Thailand, Turkey, and Qatar, which are, additionally, witnessing rapid industrialization and urbanization.
Therefore, with the escalating demand for energy, the power rental market is on track to growing at a CAGR of 10.3% during 2018–2023, from $9,167.6 million in 2017 to $16,855.5 million by 2023. Rented power simply refers to the electricity created from portable generators, hired on a temporary basis or purchased permanently, to supplement the grid power or act as the primary energy source in places with no grid connectivity. Another reason for the high demand for portable generators is the unpredictability of the grid supply, especially in emerging economies.
Geographically, the most fruitful power rental market has been the Middle East and African (MEA) region, owing to its growing construction sector, which is leading to the increasing demand for electricity to power machinery. In a bid to become independent from the effects of oil price fluctuations, several regional countries are focusing on other sectors for revenue, such as tourism and industrial. To host the rising number of tourists, many hotels, resorts, places of interest, and shopping malls are being constructed. Additionally, several global events are scheduled in the region, such as the 2020 Dubai Expo and 2022 FIFA World Cup in Qatar, for which preparations are underway.
Thus, as the number of people increase and power plants are shut down or decommissioned, the demand for portable generators will keep burgeoning.