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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.
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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.
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.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
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.
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.
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:
The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.
Executive Summary
Market Landscape
Market Sizing
Five Forces Analysis
Market Segmentation by Product
Market Segmentation by Application
Customer landscape
Geographic Landscape
Vendor Landscape
Vendor Analysis
Appendix
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