01/27/2015 | Granview Research Releases Impressive Update on the Power Rental Systems Market
Here at HIPOWER SYSTEMS, we’re always looking for informative news to pique your curiosity. This week, we are sharing an interesting forecast, from Granview Research, about the future of the power rental systems market.
Auxiliary Energy: As the demand for electricity in industrial and commercial sectors continues to grow, especially during peak hours, grids are increasingly strained and electricity is commanding a premium. Energy users are finding it more efficient in some cases to rent temporary power units, e.g. generators, to engage in peak shaving (reducing grid load by generating energy on the premises during peak usage hours).
During periods of low demand, they can often sell power back to the utilities, as well. As a final bonus, they have a standby power unit at the ready in the event of an unexpected power outage. Although the report to which we had access did not state a growth rate for rental units used in this manner, Granview reports that “Peak Shaving is expected to be a key trend for the utilization of power rental systems,” between now and 2020.
Backup Power: From hydroelectric and renewable power plants to hospitals, data centers, government offices and telecommunication centers, companies in many sectors desire – and are often mandated – to have backup power supplies. Add to this the explosion in data centers, and the demand for standby power is certain to grow. At the same time, the EPA (with the urging of Greenpeace) has enacted more stringent standby power regulations that hamper owners from using these systems for any other purpose. These rules. Granview reports, may constrain the demand for rental units unless they are also involved in peak shaving, as described above.
Continuous Power: Of the application segments that Grandview analyzed, continuous power was the largest application for power rental systems. The strongest demand in this area, where generators are used as a continuous (prime) power supply, are the mining, oil and gas (O&G) and construction sectors. The O&G power rental market is expected to experience a 16% compound annual growth rate (CAGR) between now and 2020, slightly higher than the growth of the overall market (15.6%).
HIPOWER SYSTEMS is a leading generator provider to the rental industry in the U.S. and Canada, and we manufacture enclosed, easily towable generators with a broad array of features. To learn more about our units, browse our equipment designed for rental use (or any of our equipment) or call us at 913-495-5557.
If you are prospective rental generator customer, you may find our 2014 article on rental generator selection helpful. Finally, if you sign up for myHIPOWER, you will gain access to extended site benefits, and more.
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