The power rental market is estimated to be valued at US$ 6.19 Bn in 2023 and is expected to exhibit a CAGR of 5.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
The power rental market includes companies that provide power generators and associated services for a variety of temporary and emergency power needs. Power rental services find applications in construction, mining, maritime, utilities, oil and gas, events, and other industries that require backup or temporary power. Generators of varying capacities and fuel type including diesel, natural gas, and hybrid are offered on either wet or dry rental basis as per customer needs and applications.
The power rental market is witnessing high growth on account of two major drivers-
Growing construction and infrastructure development activities in emerging economies lead to higher demand for power rental services for meeting temporary power needs at construction sites. Major global construction projects such as ones under Belt and Road Initiative boost market opportunities. Additionally, increasing instances of natural calamities and power outages have led to growing need of rental power backup among industrial facilities and commercial establishments to avoid business interruptions. This helps augment the market growth.
The global power rental market is dominated by diesel generators. Diesel generators accounted for over 75% of the market share in 2022 owing to their wide availability and cost effectiveness. Diesel generators are preferred for temporary and backup power requirements due to their fuel efficiency and mobility. However, growing concerns regarding emission may shift the preference towards natural gas generators in the coming years.
Political: Stringent emission norms by regulatory bodies are forcing the market to shift towards cleaner fuel options like natural gas generators. Some nations also offer tax benefits for rental of generators using alternative fuels.
Economic: Strong GDP growth in developing regions coupled with increasing infrastructure investments is driving the demand for power rental equipment for construction activities. Rising industrialization and power outages also boost the market.
Social: Growing demand for uninterrupted power from commercial and retail segments and increasing preference towards renting over buying equipment are fueling the market growth.
Technological: Advancements in generator technology have improved their fuel efficiency and made them more environment-friendly. Introduction of digital control panels and remote monitoring systems have also enhanced the operational efficiency.
Global Power Rental Market Size is expected to witness high growth, exhibiting CAGR of 5.6% over the forecast period, due to increasing infrastructure development activities across emerging nations of Asia Pacific and Middle East & Africa. The market size for 2023 is estimated to be US$ 6.19 Bn.
The Asia Pacific region dominated the global market in 2022 with over 35% share owing to large infrastructure projects underway in China, India and Southeast Asian countries. Rapid urbanization and industrialization in the region will continue to drive the demand during the forecast period.
North America is expected to witness steady growth owing to rising power outage incidents during extreme weather conditions and increased oil & gas activities in the U.S. government initiatives to upgrade & modernize the electricity grid will further support regional growth.
Key players operating in the power rental market are Aggreko PLC, United Rentals, Inc., APR Energy, PLC, Caterpillar, Inc., Cummins, Inc., Hertz Equipment Rental Corporation, Generac Power Systems, and Rental Solutions & Services, LLC. The market is consolidated in nature with top five players accounting for over 50% of the global share.