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The power rental market size is estimated to grow by USD 4 billion at a CAGR of 6.36% between 2023 and 2028. The market's expansion depends on several factors, including the boost in infrastructure-related activities, rapid industrialization, and the growing incidence of power outages. These elements collectively contribute to the demand for reliable and efficient power solutions. The increasing focus on infrastructure development, particularly in emerging economies, drives the need for strong infrastructure for renewable energy. Rapid industrialization further fuels this demand, as industries require a consistent AC/DC power supply to maintain operations. Additionally, the rise in power outages, attributed to various factors such as aging infrastructure and environmental challenges, underscores the necessity for resilient power solutions. As a result, the market is witnessing growth as stakeholders seek to address these challenges and ensure reliable power supply for industrial and infrastructure needs.
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The power rental market forecast report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
The utility segment is estimated to witness significant growth during the forecast period. The market encompasses the rental of equipment such as generators for various applications. Rental generators, including diesel and gas models, cater to diverse energy demands in sectors like manufacturing, mining, construction, utility, oil and gas, and others. Continuous load, which requires uninterrupted power for extended periods, dominates the market due to expanding advancements in power technologies, such as those utilizing renewable fuels and renewable energy sources.
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The utility segment was the largest segment and was valued at USD 3.44 billion in 2018. These advancements include hydrogen-powered generators and those serving as primary power sources. Continuous load is anticipated to maintain its leading position in terms of revenue during the forecast period. Additionally, peak and standby loads are significant market segments. Power rating, transmission, and distribution lines, digitalization, and the Industrial Revolution 4.0 influence power rental consumption. Generator fleets, fuel prices, and rental power services are essential market considerations. The retail rental segment, project rental segment, and utilities segment cater to corporate, retail, events, commercial venues, hotels, malls, and retail stores. Power outages necessitate the use of rental power equipment, and these services ensure uninterrupted power supply. Hence this segment of the power rental market is likely to witness growth during the forecast period.
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North America is estimated to contribute 41% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market in North America experienced substantial growth in 2022 due to the expansion of commercial properties and the resulting demand for continuous power supply. Utility power networks faced challenges in meeting the increased energy requirements, leading to power outages. To address this issue, power leasing equipment and generators came into use as a backup power source and a primary power source for manufacturing businesses, mining segments, and commercial spaces. The need for power during events and fairs also contributed to market expansion. Power rental systems played a crucial role in grid stabilization, rural power delivery, and peak load demand management. Generator sets, using diesel and gas, were widely adopted for continuous load and peak load segments. Renewable energy projects also utilized power rental equipment for electrification purposes. End users, including residential buildings and roadways, also benefited from these temporary power solutions. Hence, these factors are expected to boost power rental market growth during the forecast period.
The market encompasses the rental of various power equipment, including LV diesel generators, to cater to the energy demands of manufacturing industries, utilities segment, hotels, malls, and retail stores during power outages or for continuous power supply. Rental generators play a crucial role in maintaining power during transmission and distribution line disruptions. The market is significantly influenced by energy demand and fuel prices. The shift towards renewable fuels and renewable energy sources is also impacting the market. Generator fleets are being utilized to support the electrification of various industries and infrastructure projects.
Power leasing equipment is essential for industries and businesses to ensure uninterrupted power supply and mitigate the risks associated with power outages. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage. Power generation rental systems are attracting Foreign Direct Investment (FDI) in the oil and gas segment, indicating a growing trend towards flexible and efficient energy solutions in the industry.
Increasing infrastructure-related activities are driving market growth. The expansion of infrastructure projects worldwide has driven up the requirement for uninterrupted power supply. In industries such as manufacturing, construction, mining, and utilities, the use of power rental equipment, including rental generators, is essential to prevent costly downtime. Energy demand is increasing, necessitating the installation of transmission and distribution lines with higher power ratings. Diesel and residential gas generators are commonly used to meet continuous, peak, and standby loads. The mining, construction, oil and gas, and renewable fuels sectors heavily rely on generator fleets to ensure uninterrupted power.
Renewable energy sources, such as lithium and graphite, are gaining popularity due to their sustainability and cost-effectiveness. Fuel prices influence the choice of power rental equipment. The market caters to various segments, including retail, project rental, and utilities. Corporations, retailers, events, and commercial venues like hotels, malls, and retail stores, consume significant power and rely on these services during power outages. The ongoing digitalization and industrial revolution 4.0 further boost the demand. This is expected to grow as industries modernize and expand. Hence, these factors are expected to boost the growth of the power rental market during the forecast period.
The adoption of hybrid power generators is a key trend in the market. The market is experiencing a growth in demand for advanced equipment, specifically hybrid generators. These generators provide power from dual sources, such as gas and diesel, or a combination of batteries, charging systems, and renewable energy connections. Manufacturing industries, mining, construction, utility, oil and gas, and other sectors are increasing their use of power rental equipment due to rising energy demand and the need for reliable power sources. Hybrid generators offer several advantages over traditional diesel generators. They are more cost-effective and fuel-efficient, emitting fewer harmful substances like nitrogen oxide, carbon monoxide, and hydrocarbons. Gas generators, in particular, emit 85% fewer emissions than diesel generators and have lower fuel costs. These services cater to continuous load, peak load, and standby load requirements.
The market is segmented into the retail rental segment, project rental segment, and utilities segment. Corporations, retail venues like malls, hotels, and retail stores, and events are significant consumers of power rental services. The Industrial Revolution 4.0 and digitalization have led to an increased demand for power equipment and power plants. Power outages and the need for backup power sources have further boosted the market's growth. The integration of renewable fuels and renewable energy sources into generator fleets is a growing trend in the market. Fuel prices and the availability of lithium and graphite are key factors influencing the market's dynamics. Hence, it is likely to see further competitors following suit and offering similar products which will further drive power rental market growth during the forecast period.
Stringent emission standards for oil-dependent industries are challenging market growth. The market encompasses the rental of equipment such as generators for various industries to meet energy demands. Strict regulations, including emission limits, imposed by government agencies in North America, Europe, and the Asia-Pacific region, may hinder the expansion of this market. These regulations apply to power plants, setting limits on carbon dioxide emissions from electricity production and defining permissible noise levels for diesel generators. Manufacturing industries, mining, construction, utility, oil and gas, and other sectors rely on rental generators, which come in diesel and gas varieties, to meet continuous, peak, and standby loads.
Renewable fuels and energy sources, such as lithium and graphite, are increasingly used in generator fleets to reduce fuel prices and address environmental concerns. The retail rental segment, project rental segment, and utilities segment are key consumers of power rental services. Digitalization and the Industrial Revolution 4.0 have led to increased power equipment usage and the need for reliable power rental services, particularly during power outages. Power rating, transmission, distribution lines, and rental power services are essential components of this market. Hence, these factors are likely to pose a hindrance to power rental market growth during the forecast period.
The power rental market report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the power rental market research and growth report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ATLAS Corp. - The company offers rental power generation solutions through its subsidiary APR Energy.
The power rental industry research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak. The market forecasting report includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018 to 2022.
The power rental market is a significant sector within the energy industry, focusing on the rental of mobile power generation equipment. Equipment types include diesel generators, gas generators, and solar power systems. These rentals cater to various industries such as construction, oil and gas, telecommunications, and disaster management. Moreover, the market is driven by factors like increasing energy demand, infrastructure development, and the need for reliable power sources during emergencies. Power rental companies offer flexible rental plans, allowing customers to rent equipment for short or long-term periods. The market is competitive, with key players offering a wide range of equipment and services. Companies also focus on innovation, providing advanced technologies and customized solutions to meet diverse customer needs. The market is expected to grow steadily in the coming years, driven by these factors and the increasing adoption of renewable energy solutions.
Market Scope |
|
Report Coverage |
Details |
Page number |
177 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.36% |
Market growth 2023-2027 |
USD 4 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.65 |
Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
Performing market contribution |
North America at 41% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aggreko Plc, Ashtead Group Plc, Atlas Copco AB, ATLAS Corp., Bredenoord, Capstone Green Energy Corp., Caterpillar Inc., Cummins Inc., Doosan Corp., Generac Holdings Inc., Herc Holdings Inc., HSS ProService Ltd., Inmesol SL, Kohler Co., L.M. Generating Power Co. Ltd., Modern Hiring Service, Perennial Technologies, Trinity Construction Enterprises Inc., United Rentals Inc., and Yanmar Holdings Co. Ltd. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
Customization purview |
If our power rental market growth analysis report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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