Power Rental Market by Fuel Type (Diesel, Natural Gas), Equipment (Generators, Transformers, Load Banks), Power rating (Up to 50 kW, 51- 500 kW, 501-2000 kW, Above 2500 kW), Rental Type, Application, End User and Region - Global Forecast to 2029
[297 Pages Report] The global power rental market is forecast to reach USD 14.2 billion by 2029 from an estimated USD 10.8 billion in 2024, at a CAGR of 5.6% during the forecast period (2024-2029). There are several factors contributing to the development of the power rental market. Businesses are prompted to investigate alternate power options by energy unpredictability, which in turn promotes innovation in the power rental market. The generator fleets' adaptability is very important in the market. Moreover, the need for renewable fuels would be met by power rental providers. Furthermore, flexibility will always be essential to the future of power rental. Global industrialization, the necessity for constant energy supply, and the growing demand for a stable power supply are other factors driving market expansion.
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Power Rental Market Dynamics
Driver: Increasing need for electrification and continuous power supply in emerging economies
The growing demand for continuous power supply and electrification in emerging nations is anticipated to be a major factor for the market for power rentals to rise. To sustain economic growth, raise living standards, and accommodate growing populations, there is an increasing demand for dependable and easily accessible power in these economies as they experience fast urbanization, industrialization, and infrastructure development. Nevertheless, many rising economies struggle with issues including inadequate generation capacity, unstable power infrastructure, and restricted access to the grid, which frequently causes interruptions and power outages. Power rental options provide an adaptable and affordable way to supply extra or temporary power in these kinds of situations, helping to close the gap between supply and demand. To guarantee a continuous supply of power for crucial operations, construction sites, remote areas, and temporary buildings can swiftly utilize rental generators, transformers, and other power equipment.
Restraint: Rigorous government regulations to restrict the market growth
Stringent government regulations associated with generators can act as a restraining factor for the market in several ways. Regulations related to emissions standards and environmental compliance may impose additional costs and requirements on rental companies, particularly for older or less efficient generator models. Compliance with these regulations may necessitate investments in upgrading equipment, retrofitting emission control technologies, or implementing pollution mitigation measures, increasing operating expenses and reducing profitability. Moreover, generator use may be restricted in some places or sensitive situations, such as residential neighborhoods, hospitals, and nature reserves, due to regulations governing noise emissions, air quality standards, and site permits. Adherence to these guidelines may limit the need of rented generators.
Opportunities: Integration of renewable energy with power rental equipment
The integration of renewable energy sources, such as solar and wind power, with power rental equipment presents a lucrative opportunity for the power rental market for various reasons. Renewable energy sources are becoming increasingly cost-competitive and widely adopted as part of efforts to reduce carbon emissions and transition towards a sustainable energy future. Rental businesses can provide clients with hybrid power solutions that blend the advantages of clean energy with the dependability and versatility of rental generators by fusing renewable energy sources with power rental equipment. Renewable energy integration enhances the resilience and reliability of power rental solutions by reducing reliance on fossil fuels and grid electricity, thereby providing lucrative opportunity to the power rental providers.
Challenges: Rising operating expenditure of fuel generators due to high prices
The increase in fuel prices also increases the operating costs associated with running diesel or gas generators also rise, leading to higher rental rates for customers. This can make power rental services less cost-effective compared to grid electricity or alternative power sources, potentially reducing the demand for rental generators among price-sensitive customers. Furthermore, increasing gasoline prices might reduce rental firms' profit margins, especially if they are unable to pass the entire cost rise on to clients because of contractual restrictions or competitive pressures. This might limit spending on customer service, fleet development, and technological improvements, which would hinder rental firms' capacity to develop and flourish in a cutthroat industry.
Power rental Market Ecosystem
Leading companies in this market include well-established, financially secure providers of power rental. These corporations have been long operating in the market and have a differentiated product portfolio, modern manufacturing technologies, and robust sales and marketing networks. Major companies in this market include Aggerko (UK), Ashtead Group plc (UK), United Rentals, Inc. (US), Caterpillar (US), Cummins Inc (US).
The retail rental segment is expected to be the largest market by rental type during the forecast period.
By rental type, the power rental market is divided into retail rental and project rental. The retail rental segment is expected to be the largest in the market since in developed markets such as North America and Europe, customer requirements tend to be relatively more minor, short-term, but often complex projects and key events. Thus, various key companies are focusing on offering rental solutions for power, heating, and cooling. For instance, Aggreko Plc provided onsite power, cooling, and heating for over 100 tents and facilities, including grandstands, catering and hospitality, giant spectator video screens, operations buildings, the PGA Championship Golf Shop, the International Pavilion, and the opening and closing ceremonies. Therefore, there is an increasing demand for retail rental services that provide continuous power supply during peak hours and power outages.
By end user, the utilities segment is expected to be the largest segment during the forecast period.
This report segments the power rental market based on sources into utilities, oil & gas, mining & metals, manufacturing, construction, it & data centers, corporate & retail, events, and others.
The utilities segment is expected to be the largest in the market. Utilities play a critical role in power generation, transmission, and distribution, providing electricity to residential, commercial, and industrial customers. Utilities often require temporary or supplementary power solutions to support maintenance activities, grid upgrades, peak demand periods, and emergency response efforts. Power rental services offer utilities a flexible and cost-effective option for accessing additional power capacity during these times, ensuring uninterrupted service to customers and maintaining grid stability.
“North America”: The largest in the power rental market.
North America emerges as the largest region in the power rental market. North America has a mature and well-established economy with a high level of industrialization, urbanization, and infrastructure development. This drives demand for temporary power solutions in various sectors, including construction, manufacturing, oil and gas, utilities, events, and entertainment. As a result, the region has a large and diverse customer base for power rental services, contributing to market growth. Moreover, North America has a robust regulatory framework and reliable power infrastructure, which makes it conducive to the adoption of power rental solutions.
Key Market Players
The power rental market is dominated by a few major players that have a wide regional presence. The major players in the market are Aggerko (UK), Ashtead Group plc (UK), United Rentals, Inc. (US), Caterpillar (US), Cummins Inc (US). Between 2020 and 2023, strategies such as product launches, contracts, agreements, partnerships, collaborations, alliances, acquisitions, and expansions are followed by these companies to capture a larger share of the market.
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Scope of the Report
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Report Metric |
Details |
Market size available for years |
2020–2029 |
Base year considered |
2023 |
Forecast period |
2024–2029 |
Forecast units |
Value (USD) |
Segments Covered |
Fuel type, equipment, power rating, application, rental type, end user |
Geographies covered |
Asia Pacific, North America, Europe, Middle East & Africa, and South America |
Companies covered |
Aggreko (UK), Ashtead group plc (UK), United Rentals, Inc. (US), Herc Rentals Inc. (US), Generac Power Systems, Inc. (US), Wacker Neuson SE(Germany) and Caterpillar (US), Atlas Copco AB (Sweden), Cummins Inc. (US), Briggs & Stratton (US), Shenton Group (UK), Saini Diesel Power Service Pvt Ltd. (India), Multiquip Inc (US), and Allmand Bros. (US), Koher (US), Brednoord (Netherlands), Aska power generation (Turkey), and Al Faris (Dubai), Trinnity power (Canada), Mordern energy rental (India), T&T Power Group (Canada), Perennial Technologies (India), Fuel Gard Fuel Supply Systems (US) and Indeck power (US) |
This research report categorizes the power rating market by fuel type, equipment, power rating, application, rental type, end user and region
On the basis of fuel type, the power rental market has been segmented as follows:
- Diesel
- Natural gas
- Other Fuel Type
On the basis of equipment, the market has been segmented as follows:
- Generators
- Transformers
- Load Banks
- Other Equipment
On the basis of power rating, the market has been segmented as follows:
- Up to 50 kW
- 51-500 kW
- 501-2500 kW
- Above 2500 kW
On the basis of application, the market has been segmented as follows:
- Peak Shaving
- Standby Power
- Base load/continuous power
On the basis of rental type, the market has been segmented as follows:
- Retail Rental
- Project Rental
On the basis of end user, the market has been segmented as follows:
- Utilities
- Oil & gas
- Mining & metals
- Manufacturing
- Construction
- IT & Data centers
- Corporate & Retail
- Events
- Others
On the basis of region, the market has been segmented as follows:
- Asia Pacific
- Europe
- North America
- Middle East & Africa
- South America
Recent Developments
- In December 2022, United Rentals completed the acquisition of assets of Ahern Rentals. The acquisition, treated as a business combination, involved the eighth-largest equipment rental company in North America, primarily serving customers in the construction and industrial sectors across 30 states. The strategic move aims to increase capacity in key geographies, enhance the availability of high-demand equipment, and create cross-sell opportunities for an expanded customer base.
- In February 2023, Caterpillar Inc. has announced the introduction of the Cat® XQ330 mobile diesel generator set, a new power solution for standby and prime power applications that meets U.S. EPA Tier 4 Final emission standards. The XQ330 is powered by a fuel-efficient Cat C9.
- In June 2022, Cummins Inc. launched a new 1MW twinpack rental generator, the C1000D6RE. The C1000D6RE is a 40ft power unit that combines two Cummins 15L, 500kW generators into a single container and is capable of withstanding extreme weather conditions and has a full sound attenuation package to minimize noise levels.
Frequently Asked Questions (FAQ):
What is the current size of the power rental market?
The current market size of the power rental market is USD 10.8 billion in 2024.
What are the major drivers for the power rental market?
The major driver of the power rental market is rapid industrialization in emerging economies and increasing demand for uninterrupted and reliable power supply. As there is a shift toward the increasing usage of temporary power supplies for various events, power rental has emerged as a vital solution.
Which is the largest region during the forecasted period in the power rental market?
North America is expected to dominate the power rental market between 2024–2029, followed by Asia Pacific.
Which is the largest segment, by application, during the forecasted period in the power rental market?
The base load/continuous power segment is expected to be the largest in the power rental market. The diesel-based or natural gas-based generators are used for the purpose of meeting base load requirements for short term. The base load power rental solutions are used in events, oil & gas, and mining, since the operations of these industries require a continuous supply of a large amount of power for a duration.
Which is the second largest segment, by fuel type during the forecasted period in the power rental market?
The natural gas segment is expected to be the second largest market by fuel type and the market is expected to contribute to the achievement of sustainable and clean energy generation. .
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The study involved major activities in estimating the current size of the power rental market. Exhaustive secondary research was done to collect information on the peer and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, market breakdown and data triangulation were used to estimate the market size of the segments and subsegments.
Secondary Research
This research study on the market involved the use of extensive secondary sources, directories, and databases, such as Hoovers, Bloomberg, Businessweek, Factiva, International Energy Agency, and United States Energy Association, to identify and collect information useful for a technical, market-oriented, and commercial study of the global power rental market. The other secondary sources included annual reports of the companies involved in the market, press releases & investor presentations of companies, white papers, certified publications, articles by recognized authors, manufacturer associations, trade directories, and databases.
Primary Research
The power rental market comprises power rental providers, manufacturers of subcomponents of power plant, manufacturing technology providers, and technology support providers in the supply chain. The demand side of this market is characterized by the rising demand for clean energy and energy efficiency. The supply side industry experts such as vice presidents, CEOs, marketing directors, technology directors, and related key executives from various companies and organizations operating in the market. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information.
Following is the breakdown of primary respondents:
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Market Size Estimation
Both supply side and demand side analysis were used to estimate and validate the total size of the market. These methods were also used extensively to estimate the size of various subsegments in the market. The research methodology used to estimate the market size includes the following:
- Identification of major players in the market across countries. Key players in the power rental market include Aggreko, United Rentals, Ashtead Group, Herc Rentals, Caterpillar, Atlas Copco, and Cummins.
- Determining the revenues and business strategy specifics, such as the inorganic and organic growth strategy details, of major power rental equipment providers.
- The market share of individual power rental segments, namely, equipment, fuel type, application, power rating, rental type, and end user, are determined by consolidating and evaluating the product offerings of major companies.
- In addition, country-level demand for power rental equipment from end users, such as utilities, oil & gas, mining & metals, manufacturing, construction, and IT & data centers, and supportive policy developments across regions during the forecast period has been analyzed. The analysed data then verified through primaries to determine the country-wise and regional landscape.
Global Power Rental Market Size: Supply Side Analysis
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Global Power Rental Market Size: Demand side Analysis
Data Triangulation
After arriving at the overall market size from the estimation process explained above, the total market has been split into several segments and subsegments. The complete market engineering process is done to arrive at the exact statistics for all the segments and subsegments, also data triangulation and market breakdown processes have been employed, wherever applicable. The data has been triangulated by examining various factors and trends from both the demand- and supply sides. Along with this, the market has been validated through both the top-down and bottom-up approaches.
Market Definition
The power rental market is defined as the revenue generated either through providing equipment on rent such as load banks, generators, fuel tanks, cables, transformers, and power accessories or by renting temporary power plants. Power rental equipment majorly operates on diesel, gas, and other fuels such as gasoline, hybrid fuel, and heavy fuel oil (HFO). This equipment is used for peak shaving, standby power, and base load/continuous load applications by the utilities, oil & gas, events, construction, mining & metals, manufacturing, IT & data centers, corporate & retail, and other end users. Other industries include shipping, agriculture, aerospace and defense, wherein this equipment is majorly used for the generation of backup power.
Key Stakeholders
- Consulting companies in the energy and power sector
- Consulting companies in the oil & gas sector
- Generator raw materials and component manufacturers
- Engine/generator manufacturers, dealers, and suppliers
- Governments and research organizations
- Investment banks
- Petroleum companies (diesel and natural gas suppliers)
- Construction and infrastructure development companies
- Power grid infrastructure companies
- Power plant project developers
- Power rental companies
- Shareholders or investors
Objectives of the Study
- To forecast the market size for five key regions: North America, South America, Europe, Asia Pacific, and Middle East & Africa, along with their key countries.
- To define, describe, analyze, and forecast the size of the global power rental market based on fuel type, power rating, application, equipment, end user, rental type, and region.
- To provide detailed information about key factors such as drivers, restraints, opportunities, and challenges influencing the growth of the market.
- To strategically analyze the subsegments with respect to individual growth trends, prospects, and contributions of each segment to the overall market size
- To strategically analyze the market with respect to individual growth trends, future expansions, and contributions to the market.
- To analyze market opportunities for stakeholders in the market and draw a competitive landscape for market players.
- To analyze competitive developments such as sales contracts, agreements, investments, expansions, new product launches, mergers, partnerships, joint ventures, collaborations, and acquisitions in the market.
- To compare key market players with respect to the market share, product specifications, and applications.
Available Customizations:
With the given market data, MarketsandMarkets offers customizations as per the client’s specific needs. The following customization options are available for this report:
Geographic Analysis
- Further breakdown of region or country-specific analysis
Company Information
- Detailed analyses and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in Power Rental Market