by The power rental industry provides temporary power solutions to a wide range of applications including construction, mining, oil and gas, utilities, manufacturing, and events. Diesel generators of various power ratings ranging from low to high are commonly used by the power rental industry to cater the temporary or backup power needs in different end use industries. Generator sets ranging from 6 kVA to over 2500 kVA power ratings cater to requirements such as power outages, power backups, mobile lighting towers for large construction sites or outdoor events, and portable or mobile generators for off-grid or low power applications. The global power rental market is expected to surge owing to factors such as increasing infrastructure projects in developing nations, rapid urbanization and industrialization, frequent power outages, and economic growth. However, alternative power solutions such as power from grid and distributed power generation systems coupled with regulatory hurdles for diesel generators are anticipated to hamper market growth to some extent.
The global Power Rental Market is estimated to be valued at US$ 10.97 Billion in 2024 and is expected to exhibit a CAGR of 5.8% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
Increasing industrialization and urbanization are the major drivers propelling growth of the power rental market. Rapid growth of end use industries such as construction, mining, oil & gas especially in developing countries of Asia Pacific and Latin America is spurring demand for power rental solutions. According to data from World Bank, urban population in emerging economies is expected to increase from 56% in 2020 to 68% by 2050. This will significantly boost infrastructure development activities including construction of roads, bridges, buildings, and other urban development projects, thereby augmenting demand for power rental services and equipment. Moreover, frequent power outages in industrial parks and developing regions have encouraged adoption of power rental solutions as backup power source. According to WHO, around 600 million people in sub-Saharan Africa are estimated to lack access to electricity. Power rental solutions help in providing temporary and reliable power in such off-grid areas. The growing occurrence of outage events coupled with increasing power deficit particularly across Middle East, Asia Pacific, and Latin America has been fueling uptake of power rental.
Segment Analysis
The power rental market can be segmented based on fuel type, power rating, end-use industry, and region. The diesel generators segment dominated the market and accounted for around 56% of the global demand in 2024 as diesel is cheaper than other fuels and diesel generators have lower maintenance requirements. Emergency power segment is expected to be the fastest growing segment during the forecast period due to growing adoption of backup power supply systems for uninterrupted operations among various industries.
PEST Analysis
- Political: Stringent regulations on diesel emissions and development of natural gas infrastructure are expected to favor gas generators over the forecast period.
- Economic: Power rental market is driven by investments in mining, construction, and oil & gas industries. Economic uncertainties and slowdown in infrastructure development post-covid may impact market growth.
- Social: Increasing power outages and demand for uninterrupted power from industries are key drivers. Remote operations also boost demand for power rental solutions.
- Technological: Developments in gas generators, hybrid systems, and connectivity features in rental equipment are expanding applications and market opportunities.
Key Takeaways
The global power rental market size was valued at US$ 10.97 Billion in 2024. The global Power Rental Market is estimated to be valued at US$ 10.97 Billion in 2024 and is expected to exhibit a CAGR of 5.8% over the forecast period 2024 to 2031.
Regional analysis indicates North America accounted for around 35% of the global market in 2024 led by U.S. mining and construction industries.
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 key players are focusing on developing gas and hybrid power solutions to comply with emission regulations. The power rental market is expected to witness high growth on account of investments in infrastructure development globally along with focus on renewable integration and remote operations by industries.
