Generator Rental Market for the Oil and Gas Industry – 33% of Growth to Come from MEA | Driven by the need for constant power

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Key Market Dynamics:

  • Market engine – The key factor driving the growth of the oil and gas generator set rental market is the need constant power. Production, processing and refining are energy-intensive processes that require a constant power supply to maintain profitable operating flow. The extraction of oil and gas reserves involves high cost drilling and production equipment. With near-oil gas reserves rapidly depleting, companies are turning to smaller, deep/ultra-deep reserves and unconventional areas for oil. Extracting oil from these reserves requires more power tools, as additional tools and technology must be used to maintain production efficiency. They are also used to ensure faster delivery to maintain a high profit margin. This can be achieved efficiently by using diesel generators, thus ensuring no loss of power. Critical applications in the oil and gas industry require reliable power. The operation of safety devices such as a blowout preventer during maintenance shutdowns can be mitigated with rental power. Stopping production will result in monetary losses of many thousands of dollars, which is why the industry relies on rental power as a backup source to help them with emergencies or maintenance. Thus, these rental generators prevent downtime, save operating costs and also ensure the safety of crew members on site by avoiding any risk.
  • Market Challenges – the drop in crude oil prices will be a major challenge for the oil and gas industry generator rental market during the forecast period. Fluctuations in world crude oil prices influence the profitability and performance of E&P’s oil and gas companies. Low crude oil prices may lead to the cancellation or postponement of oil and gas E&P projects. From 2012 to 2014, the United States produced substantial amounts of shale oil, which increased global crude oil supply and reduced US crude oil imports. Due to the oversupply of crude oil, global crude oil prices started to decline in 2014. In 2019, the average price of crude oil reached $61.7 per barrel, which led to a temporary reduction in oil and gas production. This, in turn, has had a negative impact on the demand for generator rental services. Upstream companies are negatively affected by fluctuations in world crude oil prices, as the selling price of crude oil is determined by the market, while production costs are largely fixed. Consequently, investment decisions and profits are negatively affected due to the capital intensive nature of oil and gas operations, which in turn has led to slow growth or even decline in oil and gas E&P business, including delays and cancellations of oil and gas operations. projects. Therefore, fluctuations in global crude oil prices pose a significant challenge to the growth of the oil and gas industry, including the global oil and gas industry generator rental market.

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Segmentation analysis

The Oil & Gas Industry Generator Rental market report is segmented by Product (diesel generator and gas generator), Geography (SOUL, North America, EuropeACPA and South America), and Application (Onshore and offshore).

The growth in the market share of rental of generators for the oil and gas industry by the diesel generator segment will be important for revenue generation. Generator sets play a crucial role in the oil and gas industry. As demand increases, activities also increase, creating the need for increased energy requirements. Harsh conditions and remote oilfield locations make the diesel generator a viable rental power option. With easy access to diesel and low cost of adoption, diesel generators are the most commonly used generators on site.

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Some companies mentioned

The generator rental market for the oil and gas industry is fragmented and sellers are deploying growth strategies such as offering a wide range of products and services to compete in the market.

    • Aggreko SA
    • 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 access more supplier profiles with their key offerings available with Technavio, Click here

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Generator rental market for the oil and gas industry

Report cover

Details

Page number

120

Year of reference

2019

Forecast period

2020-2024

Growth momentum and CAGR

Accelerate at a CAGR of nearly 3%

Market Growth 2020-2024

$153.87 million

Market structure

Fragmented

Annual growth (%)

-2.57

Successful market contribution

33% MEA

Competitive landscape

Leading companies, competitive strategies, scope of consumer engagement

Profiled companies

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 Drivers and Barriers, Fast and Slow Growing Segment Analysis, COVID 19 Impact and Future Consumer Dynamics, Market Condition Analysis for the Forecast Period.

Personalization area

If our report does not include the data you are looking for, you can contact our analysts and customize the segments.

Main topics covered:

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

  • Summary of the five forces
  • The bargaining power of buyers
  • Bargaining power of suppliers
  • The threat of new entrants
  • The threat of substitutes
  • Threat of rivalry
  • Market state

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
  • Main leading countries
  • Market Opportunity by Geography
  • Market factors
  • Market challenges
  • Market trends

Supplier Landscape

  • Competitive scenario
  • Supplier Landscape
  • Landscape disturbance
  • Industrial risks

Vendor analysis

  • Suppliers Covered
  • Positioning on the supplier market
  • Aggreko SA
  • APR Energy
  • Ashtead Group Plc
  • Atlas Copco AB
  • Caterpillar inc.
  • Cummins inc.
  • Doosan Corp.
  • Generac Power Systems Inc.
  • Herc Holdings Inc.
  • United Rentals Inc.

Annex

  • Report scope
  • Currency conversion rates for the US dollar
  • Research methodology
  • Abreviations list

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