Increases in the global construction and events sectors are triggering growing demand for temporary power, according to a new report from Research and Markets.
It said the global temporary power market was projected to reach US$6.4 billion (€5.7 billion) by 2021, growing at a rate of 10.6% from 2016 to 2021.
“This growth can be attributed to the lack of electricity supply, rise in construction and infrastructural activities, and increase in number of planned events, triggering an increasing demand for energy,” the report said.
The report segments the temporary power market on the basis of end-users into utilities, oil & gas, events, construction, mining, manufacturing, shipping, and others (military, telecom, and residential).
It said the utilities segment recorded the largest market size in 2015, which growth attributed to aging power grid infrastructure in developed economies, followed by lack of electricity supply in developing economies of the Asia-Pacific and Africa.
“Poor grid infrastructure causes frequent blackouts giving rise to the need for rental power,” the report said.
It said the oil & gas industry held the second largest market share, and added that growing industrialisation and rising demand for continuous power supply by these industries was expected to drive the temporary power market from 2016 to 2021.
For the report, the temporary power market was been classified on the basis of power rating into less than 80kW, 81kW-280kW, 281kW-600kW and above 600kW.
It said the demand for above 600kW power rated generators was expected to increase during the forecast period, as they were used in a wide range of applications in the oil & gas, utilities and mining sectors.
The report also said that the demand for diesel generators was expected to increase during the forecast period, as they were used in a wide range of applications, across various sectors.