North American Power Rental Market

Economic Decline and Reduced Capital Spending Energize the Power Rental Market

Tough economic conditions may have slowed down industrial activities, but has failed to put a dampener on power requirements. End users are gradually shifting to equipment rentals to deal with their temporary power needs, as they are reluctant to invest in expensive back-up equipment in these straitened circumstances. "Increasing end-user awareness of rental benefits such as availability of additional capital for core activities, better inventory control, elimination of maintenance expenses, as well as warehousing and disposal costs is driving demand in different end-user segments," says the analyst of this research. "Vendors should also capitalize on the demand from certain lucrative end-user segments to broaden their customer base and market shares by offering unique services."

Distinctive, value-added services and rapid response times are crucial to stand out in this mature market and retain customers. Competitors are relying on superior rental services, ranging from engineering assistance to maintenance support, to distinguish themselves. They could also offer exclusive product bundling strategies to attract end-user segments such as industrial, utility, and telecommunications, which are likely to grow faster than the others. "Moreover, following the economic downturn in 2008, the U.S Government announced a stimulus package of $61.90 billion for various developmental activities across the country," notes the analyst. "It also announced tax incentives for development of clean energy, which is expected to enhance the growth of the power rental market in the near future."

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

By Output Power Generated:

• Up to 20 kW
• 21 kW to 60 kW
• 61 kW to 300 kW
• 301 kW to 1,000 kW
• 1 MW to 3 MW

By End-user Applications:

• Utilities
• Industrial
• Telecommunications
• Construction
• Events
• Others (residential, mining)

By Applications:

• Peak power
• Standby
• Continuous power applications