The power rental market provides energy solutions through rental of generators and turbines to various end-use industries such as construction, mining, oil & gas, and events management. Power rental equipment such as generators ensure uninterrupted power supply and serve as a backup in times of power outages.
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 2024-2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The growing construction industry has been a major driver of the power rental market. Rapid urbanization and investment in infrastructure development across both developed and developing economies has significantly driven demand for power rental equipment in the construction sector. Construction activities such as buildings, roads, bridges require a continuous power supply, which is effectively met through power rental solutions. Growing mega construction projects in regions such as Asia Pacific and Middle East are expected to further augment the adoption of power rental equipment over the forecast period.
SWOT Analysis
- Strength: Power rental solutions offer flexibility and scalability to end-users allowing them to meet temporary or intermittent power needs. Temporary power equipment facilitates quick set up and packing for different applications.
- Weakness: Rental equipment requires high capital investment and operational costs. Fluctuating fuel prices increase the operating costs of rental generators. Reliability issues and maintenance of aging rental fleets is another challenge.
- Opportunity: Growth in construction and events industry along with rising power outages due to aging grid infrastructure will drive the demand. Adoption of hybrid and natural gas generators provides an opportunity for rental companies to expand clean technology offerings.
- Threats: Stringent emissions norms across regions compel rental firms to upgrade to Tier 4 generator sets. Investments in small scale renewable energy may reduce dependence on rented generators in the long run.
Key Takeaways
The global power rental market is expected to witness high growth driven by factors such as growth in the construction industry, increasing number of power outages due to aging grid infrastructure and rising investments in outdoor events and festivals. 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 2024-2031.
Regional analysis: North America dominates the global market owing to frequent power outages and storms damaging grid infrastructure in the US. The Asia Pacific region is expected to grow at the fastest pace during the forecast period with increasing investments in utilities and infrastructure development projects in China and India.
Key players: 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. These players are focusing on expanding their rental fleets with natural gas and hybrid generators to capitalize on the shift towards clean temporary power solutions.
