Market Trends of Temporary Power Industry
This section covers the major market trends shaping the Temporary Power Market according to our research experts:
Utility Segment to Witness Significant Growth
Companies operating in the utility sector maintain infrastructure for public service. The utility sector refers to companies that provide basic amenities, such as water, sewage services, electricity, telecommunication, etc. Utilities are the key end-user of the temporary power market as utilities use temporary power sources to meet the increasing electricity demand during peak hours.
The utility sector is expected to dominate the temporary power market. Owing to an expanding population across the globe coupled with rapid urbanization and industrialization, the incremental energy demand that is driving the need for temporary power sources is likely to swell over the forecast period at construction sites for utilities.
In 2020, the utility sector held the majority share, amounting to 55%, among end users for the temporary power market, followed by the commercial and industrial end-user segments, which together accounted for a 45% share of the market.
As the utility sector continues to deal with the inadequacy of power capacity and the broadening gap between supply and demand, the temporary power market has grown. Leading temporary power suppliers have specialized in power rental solutions and account for the largest revenue share in the temporary power market.
A combination of rising global energy demand and escalating fuel prices is responsible for shifting energy preference toward renewable energy resources. The renewable energy plants actively install 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 and augment the growth of the utility segment during the forecast period.
Asia-Pacific Expected to Witness Fastest Market Growth
Asia-Pacific is expected to be the fastest-growing region in the global temporary power market. Factors such as scarcity of power, poor grid infrastructure, growing industrialization, and increasing capacity expansion are expected to propel the demand for temporary power generators in the region.
An increase in industrial and commercial loads increases the demand for electricity, which is likely to increase the need for renewable clubbed with temporary power during peak demand, which is expected to further fuel the growth of the temporary power market in India and China, especially.
In addition, ongoing development activities in various sectors such as commercial, construction, oil and gas, utilities, and residential are estimated to propel the growth of the temporary power market.
Moreover, an increasing number of renewable energy projects is expected to boost the demand for temporary power sources like generators at construction sites in case of any power outages from the grid and provide power to remote locations.
Renewable power generation in the Asia-Pacific region increased from 1149.2 Terawatt-hours (TWh) in 2019 to 1322.0 Terawatt-hours in 2020. Thus, with increasing renewable power generation and an increase in renewable power projects, the temporary power market in the region is expected to grow during the forecast period.
Cell towers, internet service providers (ISPs), data centers, television and radio broadcasting, and cable companies rely on power. Outages can mean thousands of dropped calls, lost data, signal interruptions, and upset customers. This calls for temporary power systems for a continuous power source in the Asia-Pacific region.
