Temporary Power Market: Expected to Deliver Dynamic Progression until 2028 | Major Players - Larson Electronics LLC, Cummins, Aggreko Plc., Energyst B.V., SES Smart Energy Solutions FZCO, Hybrid Power Hire, Bennett Engineering LLC, Sudhir Rental Solution
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A combination of rising global energy demand and escalating fuel prices is prominently analyzed in the study which, in turn, is responsible for the shift of energy preference towards renewable energy resources. According to the report, the renewable energy plants are actively installing temporary power sources such as diesel and gas generators to offset the risk of intermittency caused by weather-related uncertainty and ensure long-term energy security. These developments are likely to spur sales of temporary power sources, with an expected US$ 7,000 million opportunity likely to emerge by 2026.
According to the report, diesel generators will continue to be the preferred backup power solution for end-users. This segment is likely to hold over three-fourth revenue share of the market throughout the assessment period. Demand for different types of power sources is primarily driven by the growing need for a diverse energy mix. While gas generators are the second most lucrative temporary power source segment, solar generators are witnessing impressing sales. The buoyancy in the solar generators segment can be attributed to a combination of multipronged factors, including government subsidies and growing awareness among end-users.
The reliance of temporary power sources manufacturers on demand from utilities sector remains unabated, according to the study. Global demand for energy has witnessed consistent increase in the last decade, with temporary energy sources gaining centerstage as an integral part of uninterrupted power supply. The lucrativeness of utilities sector in the temporary power sources market can be gauged from the fact that this segment is likely to witness 1.8x revenue growth during the course of the forecast period.
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North America is expected to dominate the global market with revenues likely to surpass US$ 2,000 million by the end of forecast period. The Middle East and Africa (MEA) is expected to emerge as a lucrative market for temporary power source equipment manufacturers, owing to insufficient permanent power grids in the region. According to the report, temporary power sales in developed countries will be influenced by aging transmission and distribution infrastructure, whereas in developing regions, lack of round-the-clock power supply is likely to drive demand.
The comprehensive research study thoroughly analyzes the business and product strategies of key players in the market. Considering the nature of the product, ‘renting over buying’ remains a prevailing trend across industries. The report also identifies notable developments in the temporary power market. For instance, by responding to the challenges of end-use industries, particularly renewables sector, temporary power manufacturing companies are developing high-voltage power options that prevent repeated fueling in remote locations and reduce the number of generators installed. Development of portable power distribution systems, particularly solar power generators, is another product innovation trend identified in the study.
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