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The power rental market is defined as the revenue earned either through renting the generators or from a temporary power plant. In the prior model, a power rental company can rent a generator for which maintenance responsibility lies with the company itself and revenue earned from renting the generator comes under the power rental market. While in the later model, a power rental company builds and maintains a temporary power plant and charges the user on the basis of duration, capacity build, and electricity units supplied.

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The MEA power rental market is witnessing high growth on the account of increase in construction activities and the tendency to rent the equipment instead of purchasing. Major portion of the demand comes across utilities in the region. Poor planning by the government left the region with huge demand that exceeded the supply by many folds. Distributing companies/utilities are heavily dependent on the power rental companies to meet the demand; the utilities share in the power rental revenue market will come down drastically due to the rigorous electrification in the region

Market Dynamics:

Drivers: Tendency to rent instead of buying due to cost factor

Rental generators let users use the machine without spending thousands of dollars purchasing one. Renting generator reduces maintenance costs, eliminating expensive service shops, service tooling, and spare parts. Renting offers elimination of repairing and inventory costs. People generally rent generators as it offers choice of brand, type, and rent price of a generator. Renting or leasing helps maintain cash reserves, which can be used for more essential expenditures. A generator requires huge investment, and value of the equipment depreciates over time. In case of shortterm projects most companies prefer to retain cash over making a capital investment into a high-value product. Therefore, inclination towards renting generator rather than buying is a major factor driving the rental market.

Restraints: Wear and tear of generators

Generators degrade after prolonged usage. This degradation is because of the dust and heat in the desert region of Saudi Arabia, adding to the maintenance incurred by rental provider companies.

The dependency on electricity is also very high sometimes due to weather conditions, because generators are required for either prime or for standby purposes, depending on the availability of grid power. However, factors such as increase in diesel price and variable diesel pricing and subsidy for different sectors of the country are restraining the growth of this market.

Challenges: Increasing focus on solar based power plants

Increasing focus on alternative sources such as solar energy has adversely affected demand for diesel gensets. Rising presence of foreign manufacturers intensify competition in the region, thereby decreasing profit margins for locally established players.

Opportunities: Growing trends in Industrial sectors

Tax incentives and low-rental costs for industrial zones are offered throughout the region to attract foreign direct investment. Most incentives in recent years are offered to manufacturing and industrial companies; especially into petrochemical production. To meet the temporary and sudden demand of power in such industries, rental power is required.

Market Key Players

Various key players are discussed in this report such as    Aggreko, Byrne Equipment Rental LLC, Rental Solutions & Services LLC, Altaaqa., Al Faris Equipment Rentals LLC, Nour Energy Co. Ltd., Peax Equipment Rental, Atlas, and    Apr Energy PLC

Market Taxonomy

By Fuel

  • Diesel
  • Gas
  • Dual Fuel

By Power Rating

  • 11-50 KW
  • 51-200 KW
  • 201-500 KW
  • 501-1000 KW
  • 1501-2000 KW
  • Above 2000 KW

By End User

  • Utilities
  • Oil & Gas
  • Events
  • Construction
  • Mining
  • Shipping

By Country

  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa

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