The power generation rental market has been expanding steadily, driven by growing demand for temporary and backup power solutions in various industries. Rental power generation equipment, including diesel and gas generators, provides flexibility and cost-effective solutions for businesses needing temporary power during peak demand periods, construction projects, or emergency situations. With increasing investments in infrastructure development, natural disasters, and the rise of renewable energy projects, the market is seeing higher demand across sectors such as construction, industrial, government, and entertainment.
Key market players are investing heavily in fleet upgrades and technological innovations to stay competitive. Aggreko, for instance, has been focusing on expanding its range of hybrid and renewable energy-powered generators. Additionally, United Rentals and Ashtead Group are expanding their global presence, particularly in emerging markets where industrialization is fueling the demand for temporary power solutions.
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Market Size
The global power generation rental market is estimated to be valued at approximately USD 10 billion in 2023. The market is expected to grow at a compound annual growth rate (CAGR) of around 5.0% from 2024 to 2029. Growth is being fueled by the rising demand for reliable power sources in remote locations, rapid industrialization in developing regions, and the increased frequency of power outages in developed markets.Market Share & Trends Analysis
By Product Type
The market for power generation rental can be segmented based on product type:- Diesel Generators: Dominating the market due to their reliability and high power output, diesel generators are widely used across industries such as construction, industrial applications, and emergency power supply.
- Gas Generators: Increasingly gaining market share due to their cleaner emissions compared to diesel generators, making them a preferred choice for environmentally conscious industries.
- Hybrid Solutions: These are gaining popularity as they combine the benefits of both diesel and renewable energy sources, offering flexibility and sustainability for power generation.
By Key Players
Leading players in the power generation rental market include:- United Rentals: One of the largest players in the market, United Rentals offers a wide range of power generation equipment and provides rental services across various industries, including construction, industrial, and entertainment.
- Ashtead Group: A major market player with an extensive fleet of generators, particularly in the North American and European regions.
- Aggreko: A leader in the global rental power generation market, known for providing large-scale temporary power solutions for government, industrial, and event-related applications.
- H&E Equipment Services: Known for its strong presence in North America, offering power generation rentals for industries such as construction, energy, and industrial sectors.
- Herc Rentals: Focuses on providing energy solutions for construction, industrial, and entertainment sectors, offering a wide range of power generation equipment for both short-term and long-term needs.
By Application
The power generation rental market can be divided based on application areas:- Construction: Significant demand for power generation equipment due to the need for temporary electricity at remote construction sites, especially in regions without reliable grid access.
- Industrial: Used for backup power during outages, supporting critical operations in factories, manufacturing plants, and other industrial sites.
- Government: Government and military sectors rely on rental power for emergency response, disaster relief, and remote operations.
- Entertainment: Large-scale events, concerts, and festivals require portable power generation units for lighting, sound systems, and other essential equipment.
- Others: Includes applications in agriculture, oil and gas, and other sectors that rely on temporary power solutions for specific needs.
By Region
The global power generation rental market is segmented by region:- North America: Dominates the market with a share of approximately 35% in 2029, driven by strong demand from the industrial and construction sectors, as well as frequent power outages in some areas.
- Europe: Expected to maintain a significant share of the market, accounting for 25% of the total market share by 2029, driven by demand for rental solutions in industrial and entertainment sectors.
- Asia-Pacific: Expected to exhibit the fastest growth, with a projected CAGR of 6.2% due to expanding infrastructure projects, rapid industrialization, and increasing demand for reliable power solutions in emerging markets.
- Latin America and Middle East & Africa: Gradually emerging markets with growing demand for rental power generation equipment, particularly in industries like oil and gas, agriculture, and mining.
Market News on Policy and Companies
Government policies promoting sustainability and reducing carbon emissions are driving a shift towards cleaner power generation solutions. For example, there has been a growing interest in hybrid and gas-powered generators as opposed to traditional diesel engines. The rising demand for green energy solutions is also encouraging rental companies to include more environmentally friendly options in their fleets.Key market players are investing heavily in fleet upgrades and technological innovations to stay competitive. Aggreko, for instance, has been focusing on expanding its range of hybrid and renewable energy-powered generators. Additionally, United Rentals and Ashtead Group are expanding their global presence, particularly in emerging markets where industrialization is fueling the demand for temporary power solutions.
Segment Forecasts (2024-2029)
Growth in Key Segments
- Construction: Projected to grow at a CAGR of 5.4% as the demand for temporary power generation in large-scale construction projects continues to rise.
- Industrial: Expected to grow at a CAGR of 4.8% due to the increasing need for backup power and reliable power solutions across various industrial sectors.
- Entertainment: Anticipated to experience strong growth with a projected CAGR of 6.0%, driven by increasing demand for temporary power solutions for large-scale events and festivals.
Regional Insights
The Asia-Pacific region is expected to account for more than 35% of the market share by 2029. Rapid industrialization, infrastructure development, and the growing demand for rental power solutions in sectors like mining and construction will drive this growth. North America and Europe are expected to continue their steady growth, while markets in Latin America and the Middle East & Africa will see gradual increases in demand for rental power generation equipment.This product will be delivered within 1-3 business days.
Table of Contents
Chapter 1 Executive SummaryChapter 2 Abbreviation and Acronyms
Chapter 3 Preface
Chapter 4 Market Landscape
Chapter 5 Market Trend Analysis
Chapter 6 Industry Chain Analysis
Chapter 7 Latest Market Dynamics
Chapter 8 Historical and Forecast Power Generation Rental Market in North America (2019-2029)
Chapter 9 Historical and Forecast Power Generation Rental Market in South America (2019-2029)
Chapter 10 Historical and Forecast Power Generation Rental Market in Asia & Pacific (2019-2029)
Chapter 11 Historical and Forecast Power Generation Rental Market in Europe (2019-2029)
Chapter 12 Historical and Forecast Power Generation Rental Market in MEA (2019-2029)
Chapter 13 Summary For Global Power Generation Rental Market (2019-2024)
Chapter 14 Global Power Generation Rental Market Forecast (2024-2029)
Chapter 15 Analysis of Global Key Vendors
List of Tables and Figures
Companies Mentioned
- United Rentals
- Ashtead Group
- H&E Equipment Services
- Aggreko
- Herc Rentals
