Power Rental Market

[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 system 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 power rental system market 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 rental market 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 systems market 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 generator rental market 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 systems market. 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 system market 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

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.

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