The global power rental market is expected to be valued at USD 10.22 Billion in 2023. With the fast development of the industrial sector, coupled with the rising need for an uninterrupted and dependable power supply, the overall demand for Power Rental is projected to grow at a CAGR of 6.0% between 2023 and 2033, totaling around USD 18.31 Billion by 2033.
Rising power consumption in various parts of the world is one of the major factors that is escalated to boost the growth of the power rental industry over the analysis period. In addition, the oil and gas sector is one of the most important industries where power generators are rented for use in infrastructure construction or during exploration and production. Moreover, growing awareness of the advantages of outsourcing power equipment is favorably benefiting the industry. Also, there is an increasing demand for scalable rental equipment that can deal with voltage sags and swells, as well as power outages.
Additionally, favorable government measures to extend metro and airport networks, as well as the deployment of hotels and retail malls are augmenting the demand for power renting in both established and developing countries. Other factors such as the increased deployment of renewables as an alternative power source to minimize carbon emissions are also projected to accelerate the market growth.
| Data Points | Key Statistics |
|---|---|
| Power Rental Market Value 2023 | USD 10.22 Billion |
| Power Rental Market Projected Value (2033) | USD 18.31 Billion |
| Power Rental Market CAGR (2023 to 2033) | 6.0% |
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The global demand for power rental services is projected to increase at a CAGR of 6.0% during the forecast period between 2023 and 2033, reaching a total of USD 18.31 Billion in 2033, according to a report from Future Market Insights (FMI). From 2018 to 2022, sales witnessed significant growth, registering a CAGR of 3.2%. According to Future Market Insights, a market research and competitive intelligence provider, the Power Rental market was valued at USD 9.65 Billion in 2022.
The growth of the power generator rental market will be driven by increased demand for temporary electrical power sources during festivals, events, and fairs in the forthcoming years. These power systems offer peak shaving, allowing various businesses to accurately allocate their power use between non-peak and peak hours.
Global industrialization and the increasing need for dependable electricity supply are some major key trends that are projected to fuel market growth in the near future. The utility and industrial sectors have increased the demand for energy rental generators, owing to the smaller power grids and restricted access to the main transmission network. Additionally, factors such as the implementation of favorable government programs to expand metro and airport networks, as well as an increase in hotel and retail mall buildings, is also accelerating the demand for power rental in both established and growing economies.
Increasing Demand for Backup Power Solutions to Fuel the Market Growth
As nations are aggressively preventing themselves off of fossil fuels, the evolution towards renewable energy sources is assembling pace all over the globe, mainly from coal, to meet their energy needs. As a result, investments in renewable technologies have progressively developed in the last few years.
Renewables can sufficiently meet the demand for clean energy globally but an inherent disadvantage of renewables is that they are intermittent. Since energy storage technologies are still in promising stages of development. Thus, backup power solutions are essential for uninterrupted power supply to industries and households.
Power rental services and equipment can fill this gap because they are easy to access, require minimal maintenance, and are cost-effective. This is a major factor that is expected to fuel the growth of the Power Rental Market during the forecast period.
High Usage of Rental Power in the Mining Industry to Accelerate the Market Growth
The mining industry is one of the major end users of rental power. The mining sites are not attached to the grid, they rely on generator sets that have been engaged temporarily. The rental generators are in modest demand in industrial businesses, when there is a requirement for extra power during peak load demand, when the existing power supply system, such as purchased generator sets, has to be sustained, or when there is a brief outage.
As a result, the mining industry with poor grid power supplies is severely reliant on the power rental market. Hence, the mining industry is anticipated to boost the growth of the market during the forecast period.
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Increased Operational Expenditure of Diesel Generators to Restrain the Market Growth
Diesel generator sets are considered to be one of the most popular backup power solutions for many end-users such as oil & gas, and manufacturing, owing to their quick start-up time, low initial investments, less space requirement, and ease of installation and operation.
However, diesel generator sets entail high operating costs, which is mainly on account of the high cost of fuel. Fuel costs account for over 80% of the total life cycle cost of a diesel generator set. This has made diesel a less cost-efficient solution for backup, especially in view of the drop in solar power prices. This is one of the major factors that is expected to hamper the growth of the power rental market during the forecast period.
Stringent Government Regulations to Limit the Market Growth
Stringent governmental norms have been imposed for diesel fuel globally to reduce emissions and meet environmental regulations. With growing environmental concerns each country has come up with its own set of regulations and policies to reduce air pollution. This is the major factor that is anticipated to restrain the market growth over the analysis period.
Increased Investments in Mining in the Region to Fuel the Market Growth
The Power Rental Market in North America is expected to accumulate the highest market share of 35% in 2023. North America is the most lucrative region along with the highest market share. Factors such as the rising investments in mining, construction, oil and gas, and related exploratory operations are projected to escalate the demand for the power rental market in North America.
The growing uncertainty of power supply provided by small-scale power grids, along with limited access to the essential transmission network, has raised the demand for rental generators in the utility and industries. In addition, there is a growing need for readily available rental equipment that can help overcome the issues associated with swells, voltage sags, and power outages.
Furthermore, favorable government initiatives to extend metro and airport networks, as well as the construction of hotels and shopping complexes, would raise demand for power renting in both existing and upcoming markets. Other factors to consider include rising renewables deployment and the utilization of natural gas-powered generators. The region is expected to hold a CAGR of 5.9% over the forecast period.
Increase in Construction Activities in the Region to Augment the Market Growth
The power rental Market in Asia Pacific is expected to accumulate a market share value of 33.2% in 2022. Currently, in Asia Pacific, China holds a significant market share by value in the global market. China is among the key countries for mining activities. China was also reported to hold more than a 20% share of the global mining industry in the year 2018. The manufacturing sector in China is also growing at an appreciable rate mainly driven by abundant raw material availability and economic labor costs.
Attributed to these factors, the demand for rental power is anticipated to remain high and the market in China is expected to hold a lion’s share of the global market. On the other hand, construction activities in the region are growing at steady rates in the region. All these factors are expected to boost regional market growth.
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501 to 2,500 KW Segment to beat Competition in Untiring Market
On the basis of power rating, the global Power Rental market is dominated by 501-2,500 KW, which accounts for a share of 32%. This growth is attributed to the critical need for emergency power in heavy-duty applications. The segment is expected to hold a CAGR of 5.9% over the analysis period.
The generators with the power of 501 to 2,500 KW can be used to provide standby power as well as continuous power supply during outages peak shaving. Furthermore, developing countries face power outages more frequently than developed nations. This is due to poor transmission and distribution infrastructure as well as older power plants. To ensure that electricity is easily and reliably accessible to all industries, utility-scale power generation plants have been set up in some parts on a rental basis, which is driving the market.
Diesel Segment to Drive the Power Rental Market
Based on the Fuel, the diesel segment is expected to witness a significant growth of 30% in 2022, and the trend is expected to continue during the forecast period. Diesel generators are widely preferred by key players involved in the mining, oil and gas, and manufacturing sectors. The surplus availability and economical pricing of diesel fuel are among the key factors for the high demand for diesel generator sets for meeting temporary power demand. Moreover, regions such as Latin America, Asia Pacific, the Middle East, and Africa have a weak infrastructure for gas and liquefied petroleum gas pipelines, which adds to the growth in the demand for diesel generators in these regions.
However, regions such as Europe and North America are focused on reducing carbon emissions and are thus strengthening regulations related to the use of diesel. This is expected to retard the global diesel generator rental market growth marginally over the forecast period. The segment is expected to hold a CAGR of 5.8% over the analysis period.
Prominent players in the Power Rental market are Herc Rentals Inc., Atlas Copco, APR Energy Ltd., Generac Holdings, United Rentals Inc., Caterpillar Inc., Aggreko Plc., Ashtead Group Plc., Cummins Inc., Wacker Neuson, Kohler Co., Soenergy International, Bredenoord, Allmand Brothers Inc., and Multiquip, Inc., among others.
Recent Developments:
| Report Attributes | Details |
|---|---|
| Growth Rate | CAGR of 6.0% from 2023 to 2033 |
| Market Value in 2023 | USD 10.22 Billion |
| Market Value in 2033 | USD 18.31 Billion |
| Base Year for Estimation | 2022 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD Billion and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered | Power Rating, Fuel, End-Use, Application, Region |
| Regions Covered | North America; Latin America; Europe; East Asia; South Asia & Pacific; Middle East and Africa (MEA) |
| Key Countries Profiled | USA, Canada, Brazil, Mexico, Germany, United Kingdom, France, Spain, Italy, China, Japan, South Korea, Malaysia, Singapore, Australia, New Zealand, GCC Countries, South Africa, Israel |
| Key Companies Profiled | Caterpillar Inc.; Cummins Inc.; Aggreko; Atlas Copco; Kohler-SDMO; Shenton Group; NIDS GROUP; Jassim Transport & Stevedoring Co. ; K.S.C.C.; Pump Power Rental; United Rentals; Sudhir Power Ltd.; Modern Hiring Service; Newburn Power Rental Ltd.; Global Power Supply; FG Wilson; ProPower Rental; APR Energy |
| Customization & Pricing | Available upon Request |
As of 2022, the market for Power Rental was valued at USD 9.65 Billion, as per FMI
By 2023-end, sales of Power Rental closed at a value of USD 10.22 Billion.
From 2018 to 2022, Power Rental demand expanded at a CAGR of 3.2%
From 2023 to 2033, Power Rental sales are expected to flourish at a CAGR of 6.0%
By 2033, the market value of Power Rental is expected to reach USD 18.31 Billion
By Power Rating, the 501-2,500 KW segment of the Power Rental constitutes the bulk of the market share of 32% in 2022
By Fuel, the Diesel segment dominates the market with a share of 30% in 2022.
1. Executive Summary | Power Rental Market 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Power Rating 5.1. <75 KVA 5.2. 75-375 KVA 5.3. 375-750 KVA 5.4. >750 KVA 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Fuel 6.1. Diesel 6.2. Gas 6.3. Others 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End Use 7.1. Telecom 7.2. Data Center 7.3. Health Care 7.4. Oil & Gas 7.5. Electric Utilities 7.6. Offshore 7.7. Manufacturing 7.8. Construction 7.9. Mining 7.10. Marine 7.11. Others 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 8.1. Standby 8.2. Peak Shaving 8.3. Prime/Continuous 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 9.1. North America 9.2. Latin America 9.3. Europe 9.4. South Asia & Pacific 9.5. East Asia 9.6. Middle East and Africa (MEA) 10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. South Asia & Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Key Countries Market Analysis 17. Market Structure Analysis 18. Competition Analysis 18.1. Atlas Copco AB 18.2. Caterpillar 18.3. Value (USD Billion)ed Rentals, Inc. 18.4. Cummins Inc. 18.5. Aggreko 18.6. Generac Power Systems, Inc. 18.7. Kohler-SDMO 18.8. Ashtead Group 18.9. Herc Rentals Inc. 18.10. Shenton Group 18.11. Bredenoord 18.12. Al Faris Group 18.13. Modern Hiring Service 18.14. Perfect Hiring Services 18.15. APR Energy 18.16. HIMOINSA 18.17. Wärtsilä 18.18. Sudhir Power Ltd. 18.19. Wagner Equipment Co. 18.20. Perennial Technologies 19. Assumptions & Acronyms Used 20. Research Methodology
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