The North American power rental market is set to rise 45% in value to US$1.98 billion (€1.77 billion) by 2023, after reaching US$1.37 billion (€1.23 billion) in 2016, according to market research consultancy firm Verify Markets.
Verify Markets said the North American power rental market was mature and competitive, with the presence of regional and national market participants attempting to get a stronger foothold in the market.
It believes that, as the economy grows, the demand for energy equipment increases, driving the power rental industry. It also believes that, as businesses grow, they may choose to rent additional power, rather than risk losing overall productivity.
There has also been an increase in infrastructure spending in North America, according to Verify, while dramatic growth of renewable power sources in the recent years has put the traditional grid under increasing pressure.
Verify said that, despite the market potential, rental companies will be deterred by stringent environmental regulations – specifically EPA Tier 4 implementation in the US and the prospect of a carbon tax in Canada. It also cited lower oil & gas prices and intense competition in the industry as a potential problem.