October 13, 2021

Global Temporary Power Demand and Its Exponential Growth

power-distribution-box

Temporary power generally refers to the independent generation of electricity to support commercial and industrial sectors. This power enables these key sectors of the economy to continue running uninterruptedly during uncertain times like power disruptions, blackouts, or outages caused by natural occurrences or high demand/supply rates. The construction sector also utilizes temporary power in areas where there is no utility to continue building works. A global market report sheds light on important insights, opportunity analysis, and market forecasts for temporary power between 2015 and 2021.

Breakdown of the Temporary Power Research Report

The study was carried out in collaboration with major global manufacturers of temporary power like Aggreko, Caterpillar, Cummins, Kohler, and others to analyze market share, growth, identifiable trends, and forecasts. The major highlights of the research include:

  • Market structure and predictions for the coming years.
  • Market drivers, restraints, openings, and current movements.
  • Historical trends and data.
  • Estimations for the forecast period.
  • Developments in the market.
  • Government policies and micro & macro monetary factors affecting the market.

The report is further segmented according to the following criteria.

  1. By type of fuel – diesel, gas, and others.
  2. By Application or End User – government & utilities, oil & gas, events, construction, industrial.
  3. Generator Rating – up to 80 kW, 81-280 kW, and above 280 kW.
  4. Market Scenario by Region – North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa.

The report indicates an exponential growth of global temporary power sources by Compound Annual Growth Rate (CAGR) of at least 10% between 2015 to 2021. This growth is majorly attributed to power demands and failure to predict the same accurately. Additionally, insufficient coverage of utility power in emerging economies and the rise of infrastructure and construction activities are driving the global temporary power market to grow exponentially. An increase in events across the globe is also increasing the demand for temporary power systems.

Industrial and Regional Viewpoint: North America Continues to Dominate

Segmentation according to the region shows that North America (USA, Canada, and Mexico) is expected to extend its dominance over the global temporary power market. The leading cause is aging utility power transmission and distribution lines, which have led to an increase in power outages in the region. The construction industry in the area is also booming, leading to significant market growth due to increased demand.

The efforts by utility companies and local governments to provide reliable basic amenities to the public in America, such as water & sanitation, electricity, and communication, are driving the market into an upward trend. Utility companies use temporary power sources to factor out the unreliability of permanent electric power sources and help recovery operations during emergencies like hurricanes, wildfires, or floods.

Growth in renewable power sources is also driving higher demand for generators. These plants install diesel and gas generators to ensure consistent power amid ever-changing weather conditions.

Generators Deliver Power on Demand

If the report were to be summarized into one sentence, it would read like this — reliance on generators to provide temporary power will continue to grow exponentially due to unreliable utility power and an expanding economy. Major sectors and industries in the US, Canada, and Mexico can avoid costs related to power outages by purchasing or installing portable or standby generators that typically generate electricity on demand.

Power System Services offers temporary power solutions to over twelve key industries, including Oil & Gas, Mining, Military, Medical, etc. We deal with all major types and sizes of generators. Whether you choose to buy a new or used generator, you're assured of quality as all our gensets undergo rigorous inspection and testing before selling. To learn how we can help or to get answers to any generator question, kindly get in touch with us today.