Generator Rental Market for Oil and Gas Industry by Product, Application, and Geography - Forecast and Analysis 2020-2024

The generator rental market share for oil and gas industry is expected to increase by USD 153.87 million from 2019 to 2024, and the market's growth momentum will accelerate at a CAGR of 3%.

This generator rental market for oil and gas industry research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers generator rental market segmentation for oil and gas industry by product (diesel generator and gas generator), geography (MEA, North America, Europe, APAC, and South America), and Application (onshore and offshore). The generator rental market for oil and gas industry report also offers information on several market vendors, including Aggreko Plc, APR Energy, Ashtead Group Plc, Atlas Copco AB, Caterpillar Inc., Cummins Inc., Doosan Corp., Generac Power Systems Inc., Herc Holdings Inc., and United Rentals Inc. among others.

What will the Generator Rental Market Size for Oil and Gas Industry be During the forecast Period?

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Generator Rental Market for Oil and Gas Industry: Key Drivers, Trends, and Challenges

Based on our research output, there has been a neutral impact on the market growth during and post COVID-19 era. The constant demand for oil and gas is notably driving the generator rental market growth for oil and gas industry, although factors such as may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the generator rental industry for oil and gas industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Generator Rental Market Driver for Oil and Gas Industry

One of the key factors driving growth in the generator rental market for oil and gas industry is the need for consistent power. The production, processing, and refining are energy-intensive processes that require a constant power supply to keep the operation flow profitable. Extracting oil and gas reserves involves high-cost drilling equipment and production. With the near oil gas reserves depleting fast, companies are shifting to smaller, deep / ultra-deep reserves, and unconventional areas for oil. Extracting oil from such reserves requires more power tools as additional tools and technology must be used to keep the production efficient. They are also used to ensure a faster delivery to keep the profit margin high. This can be achieved effectively by using diesel generators, thereby ensuring no power loss. Mission-critical applications in the oil and gas industry require reliable power. The operation of safety devices such as a blow-out preventer during maintenance outage can be mitigated through rental power. The downtime in the production will lead to monetary losses of several thousand dollars, which is why the industry relies on rental power as a backup to assist them during any emergency or maintenance. Thus, these rental generators prevent downtime, save operation costs, and also ensure the safety of the crew members on-site by avoiding any risk.

Key Generator Rental Market Trend for Oil and Gas Industry

The increase in use of gas generators for rental power is a generator rental market trend for oil and gas industry that is expected to have a positive impact in the coming years. Environmental reforms and stringent government regulations to reduce emissions have led to a new technology being developed where generators involve less fuel consumption while increasing the power output. A recent trend has been the shift to gas power generators. The use of gas produces cleaner power than diesel as it is more efficient. The hybrid generators, with all their advantages, have led to the growing adoption in the oil and gas industry. Gas is comparatively cleaner than other non-renewable fuels and is also relatively cheaper to operate than a diesel generator. The generator rental market in oil and gas industry is witnessing an increasing trend in demand for hybrid generators that run on dual fuels such as gas and diesel or a combination of batteries, charging systems, generator, and renewable energy connections. Hybrid generators are more cost- and fuel-efficient as compared with conventional generators. They also emit substances that are less harmful in nature, such as nitrogen oxide, carbon monoxide, and hydrocarbons, when compared with diesel generators.

Key Generator Rental Market Challenge for Oil and Gas Industry

The declining crude oil prices will be a major challenge for the generator rental market for oil and gas industry during the forecast period. Fluctuations in global crude oil prices influence the profitability and performance of oil and gas E&P companies. Low crude oil prices can lead to the cancelation or rescheduling of oil and gas E&P projects. During 2012-2014, the US produced substantial amounts of shale oil, which increased the global crude oil supply and reduced the US crude oil imports. Owing to the oversupply of crude oil, global crude oil prices started declining in 2014. In 2019, the average price of crude oil reached $61.7 per barrel, which resulted in temporary curtailment on oil and gas production. This, in turn, has negatively impacted the demand for generator rental services. Upstream companies are affected adversely by fluctuations in global crude oil prices, as the selling price of crude oil is determined by the market, while production costs are largely fixed. Hence, investment decisions and profits are affected adversely due to the capital-intensive nature of oil and gas operations, which, in turn, resulted in slow growth or even decline in oil and gas E&P activities, including delays and cancelations of oil and gas projects. Therefore, fluctuations in global crude oil prices pose a significant challenge to the growth of the oil and gas industry, including the global generator rental market for oil and gas industry.

This generator rental market for oil and gas industry analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2020-2024.

Parent Market Analysis

Technavio categorizes the global generator rental market for oil and gas industry as a part of the global industrial machinery market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the generator rental market for oil and gas industry during the forecast period.

Who are the Major Generator Rental Market Vendors for Oil and Gas Industry?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

 

• Aggreko Plc
• APR Energy
• Ashtead Group Plc
• Atlas Copco AB
• Caterpillar Inc.
• Cummins Inc.
• Doosan Corp.
• Generac Power Systems Inc.
• Herc Holdings Inc.
• United Rentals Inc.

 

This statistical study of the generator rental market for oil and gas industry encompasses successful business strategies deployed by the key vendors. The generator rental market for oil and gas industry is fragmented and the vendors are deploying growth strategies such as offering a broad range of products and services to compete in the market.

Product Insights and News

• Aggreko Plc - The company provides diesel and natural gas rental generators from 20kVA to 1,375kVA.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The generator rental market for oil and gas industry forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Generator Rental Market for Oil and Gas Industry Value Chain Analysis

Our report provides extensive information on the value chain analysis for the generator rental market for oil and gas industry, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The value chain of the industrial machinery market includes the following core components:

• Inputs
• Inbound logistics
• Operations
• Outbound logistics
• Marketing and sales
• Aftermarket and service
• Industry innovation

The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.

Which are the Key Regions for Generator Rental Market for Oil and Gas Industry?

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33% of the market's growth will originate from MEA during the forecast period. Iran (Islamic Republic of Iran) and Saudi Arabia are the key markets for generator rental for oil and gas industry in MEA. Market growth in this region will be faster than the growth of the market in the European and North American regions.

The considerable investments in the oil and gas industry will facilitate the generator rental market growth for oil and gas industry in MEA over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

The increasing number of oil and gas activities in the region has increased the demand for generator rental services to ensure the effective operation of the oil and gas manufacturing process. Moreover, accessibility to the grid power can be limited, owing to an unstable political scenario in the region. These factors encourage the use of rental power generators for reliable and continuous power supply in the refineries and rigs. However, the increasing number of COVID-19 cases in the region may slow down the growth momentum in 2020 and 2021. The market is expected to gradually attain pace once business processes and investment activities in the oil and gas industry are back to normal.

What are the Revenue-generating Product Segments in the Generator Rental Market for Oil and Gas Industry?

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The generator rental market share growth for oil and gas industry by the diesel generator segment will be significant during the forecast period. Power generators play a crucial role in the oil and gas industry. As the demand increases, the activities also increase, creating the need for increased power needs. The harsh conditions and remote locations of oilfields make the diesel generator a viable rental power option. With easy accessibility to diesel and low cost of adoption, the diesel generators are the most commonly used generators at site.

This report provides an accurate prediction of the contribution of all the segments to the growth of the generator rental market size for oil and gas industry and actionable market insights on post COVID-19 impact on each segment.

 

Generator Rental Market Scope for Oil and Gas Industry
Report Coverage	Details
Page number	120
Base year	2019
forecast period	2020-2024
Growth momentum & CAGR	Accelerate at a CAGR of 3%
Market growth 2020-2024	$ 153.87 million
Market structure	Fragmented
YoY growth (%)	-2.57
Regional analysis	MEA, North America, Europe, APAC, and South America
Performing market contribution	MEA at 33%
Key consumer countries	US, Russian Federation, Saudi Arabia, Canada, Iran (Islamic Republic of Iran), and China
Competitive landscape	Leading companies, Competitive strategies, Consumer engagement scope
Key companies profiled	Aggreko Plc, APR Energy, Ashtead Group Plc, Atlas Copco AB, Caterpillar Inc., Cummins Inc., Doosan Corp., Generac Power Systems Inc., Herc Holdings Inc., and United Rentals Inc.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Generator Rental Market for Oil and Gas Industry Report?

• CAGR of the market during the forecast period 2020-2024
• Detailed information on factors that will drive generator rental market growth for oil and gas industry during the next five years
• Precise estimation of the generator rental market size for oil and gas industry and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the generator rental industry for oil and gas industry across MEA, North America, Europe, APAC, and South America
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of generator rental market vendors for oil and gas industry

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