Generator Rental Market for Oil & Gas Industry - 33% of Growth to Originate from MEA| Driven by Need for Consistent Power| Technavio

The potential growth difference for the generator rental market for the oil and gas industry between 2019 and 2024 is USD 153.87 million. To get the exact yearly growth variance and the Y-O-Y growth rate, Talk to our analyst.

Key Market Dynamics:

• Market Driver - The key factor driving growth in the generator rental market for the 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 efficiency. 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 outages 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.
• Market Challenges - The declining crude oil prices will be a major challenge for the generator rental market for the 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. From 2012-to 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 the temporary curtailment of 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 a 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 the oil and gas industry.

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Segmentation Analysis

The generator rental market for the oil and gas industry report is segmented 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 share growth for the oil and gas industry by the diesel generator segment will be significant for revenue generation. 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 the site.

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Some Companies Mentioned

 The generator rental market for the 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
• APR Energy
• Ashtead Group Plc
• Atlas Copco AB
• Caterpillar Inc.
• Cummins Inc.
• Doosan Corp.
• Generac Power Systems Inc.
• Herc Holdings Inc.
• United Rentals Inc.
• To gain access to more vendor profiles with their key offerings available with Technavio, Click Here

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Key Topics Covered:

Executive Summary

Market Landscape

• Market ecosystem
• Value chain analysis

Market Sizing

• Market definition
• Market segment analysis
• Market size 2019
• Market outlook: Forecast for 2019 - 2024

Five Forces Analysis

• Five forces summary
• Bargaining power of buyers
• Bargaining power of suppliers
• Threat of new entrants
• Threat of substitutes
• Threat of rivalry
• Market condition

Market Segmentation by Product

• Market segments
• Comparison by Product
• Diesel generator - Market size and forecast 2019-2024
• Gas generator - Market size and forecast 2019-2024
• Market opportunity by Product

Market Segmentation by Application

• Market segments
• Comparison by Application
• Onshore - Market size and forecast 2019-2024
• Offshore - Market size and forecast 2019-2024
• Market opportunity by Application

Customer landscape

Geographic Landscape

• Geographic segmentation
• Geographic comparison
• MEA - Market size and forecast 2019-2024
• North America - Market size and forecast 2019-2024
• Europe - Market size and forecast 2019-2024
• APAC - Market size and forecast 2019-2024
• South America - Market size and forecast 2019-2024
• Key leading countries
• Market opportunity by geography
• Market drivers
• Market challenges
• Market trends

Vendor Landscape

• Competitive scenario
• Vendor landscape
• Landscape disruption
• Industry risks

Vendor Analysis

• Vendors covered
• Market positioning of vendors
• 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.

Appendix

• Scope of the report
• Currency conversion rates for US$
• Research methodology
• List of abbreviations

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SOURCE Technavio