Oct 20, 2017   SOURCE: BusinessWire

Generator Rental Market for Mining Industry - Top 3 Trends by Technavio

Technavio’s latest market research report on the global generator rental market for mining industry provides an analysis of the most important trends expected to impact the market outlook from 2017-2021. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.

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Technavio has published a new report on the global generator rental market for mining industry from ...

Technavio has published a new report on the global generator rental market for mining industry from 2017-2021. (Graphic: Business Wire)

The increasing pressure in the mining industry due to declining margins because of the fall in commodity prices has made mining companies hire generators rather than investing in their own generators for standby or prime power. From small mining activities to large excavation sites, there has been a high reliance on diesel generators. These generators have become the backbone of the mining industry, thus helping them move to remote locations.

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The top three emerging market trends driving the global generator rental market for mining industry according to Technavio research analysts are:

  • Increase in the use of gas and hybrid generators due to emission and cost concerns
  • Introduction of remote monitoring technology for power rental clients
  • Expansion in mining industry in developing countries

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Increase in the use of gas and hybrid generators due to emission and cost concerns

The growing need to reduce emissions owing to environmental concerns and stringent government regulations has led to the development of new technology for generators which ensure that generators consume less fuel while increasing power output. This has led to the increasing popularity of gas-powered generators. These generators produce cleaner power when compared with diesel generators. They are more efficient and produce close to 30% fewer emissions and lesser noise when compared with diesel generators.

According to Thanikachalam Chandrasekaran, a lead analyst at Technavio for power research, “The power rental market is witnessing an increasing demand for hybrid generators that run on dual fuels such as diesel and gas. Hybrid generators are more cost and fuel efficient when compared to conventional generators. They also emit fewer harmful substances as compared to diesel generators.”

Introduction of remote monitoring technology for power rental clients

One of the benefits of rental power generators is its scalability factor, which allows for stacking or placing multiple generators to meet the power needs immediately. This in turn, means that multiple generator needs should be inspected to ensure a consistent supply of power efficiently without incurring unanticipated expenses.

Inspecting every single generator, however, can be time-consuming activity as temporary power plants are usually placed in remote areas. Therefore, as a measure to overcome this, vendors have developed their own remote monitoring systems to enhance services offered to their customers. The addition of such services helps customers to improve efficiency and save on costs. For instance, Aggreko's ARM uses GPRS technology to send real-time data and maximize the equipment efficiency.

Expansion in mining industry in developing countries

The global demand for mineral-based products is expected to increase because of the continuing expansion of mining activities in developing nations. Therefore, the increase in demand for mineral-based products is expected to lead to an increase in demand for rental power for on-site operations. The depletion of mining reserves leads to mine expansion and movement of mining operations to remote locations. This leads to reduced access to the grid, which in turn, leads to an increase in demand for rental power generators. The extent of mining expansion worldwide in the future will have a positive impact on the generator rental market as power is vital for mining activities.

“The strongest growth in the market is expected to register from the BRICS and other developing countries that have become the new mining hubs of the world owing to the availability of abundant natural mineral resources. The easy availability of skilled labor, raw materials, and the more favorable regulatory environment have attracted mining companies to these countries. Such investments will lead to a considerable increase in mining activities, which is expected to drive the demand for rental generators,” says Thanikachalam.

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