Power Rental Market Size, Industry Share, Growth Trends and Forecasts (2023 - 2031)

By Fuel Type :

The fuel type segment is categorized into diesel, natural gas, and others. In 2022, the diesel segment accounted for the highest power rental market share of 42.05% in the power rental market. Diesel generators are known for their durability, as well as their versatility to handle projects of all types and sizes. The reason lies not only in the construction of the generator itself but the fuel type that helps power the generator to run in all sorts of situations. The high availability and economic prices of diesel as a fuel source are driving the segment's trends worldwide.

However, the natural gas segment is growing with the highest CAGR in the forecast period. The requirement for natural gas as a fuel source is expected to grow owing to the low generation pollution from these sources and the ecological sustainability offered by the fuel source. Moreover, as per the analysis, natural gas generators are cleaner, less expensive than other non-renewable fuels, and are considerably energy efficient. In comparison to oil and coal, the emissions of sulfur, nitrogen, and carbon dioxide (a greenhouse gas) are considerably lower. Thus, the high benefits of natural gas over other fuel sources will foster the revenue trends of the these rental during the forecast period.

By Power Rating :

The application segment is categorized into below 75 kVA, 75-375 kVA, 375-750 KVA, and above 750 kVA. In 2022, the above 750 kVA segment accounted for the highest market share in the overall power rental market owing to the need for heavy-duty applications. These heavy-duty generators are used across industrial facilities, commercial buildings, data centers, healthcare facilities, construction sites, mining sites, and other areas. The high requirement for above 750 kVA power ratings from these industries is driving segment expansion across the globe. Based on the analysis, the growing IT & data centers industry is improving the requirement for above 750 kVA power rating these rentals for their smooth operations and thus driving the segment trends. For instance, in January 2023, Amazon Web Services plans to invest USD 35 billion in new data centers in Virginia.

However, below 75 kVA power rating segment is expected to grow at the fastest CAGR over the forecast period. The below 75 kVA power ratings have substantial and moderate power capacity, due to which it is easy to use in small-scale commercial applications such as offices, shops, and others.

By Application :

The application segment is categorized into standby power, peak shaving, and base load/continuous power. In 2022, the base load/continuous power segment accounted for the highest market share in the overall power rental market. Base load or continuous supply these rental provides a reliable and uninterrupted source of electricity. They automatically start and take over the load within seconds of detecting a power outage, minimizing downtime and disruption. For commercial and industrial applications, a continuous power supply is crucial for business continuity. Continuous power rentals prevent interruptions in operations, minimize financial losses, and maintain productivity. The high requirement for load or continuous power supply from remote locations and industrial sectors is driving the requireent for the segment worldwide.

However, the peak shaving segment is expected to be the fastest-growing segment during the forecast period. Peak shaving is like load leveling and is used for reducing peak demand rather than for economy of operation. The goal is to avoid the installation of capacity leveling but peaks of a highly variable load.

By End-User :

The end user segment is categorized into metal & mining, construction, manufacturing, oil& gas, IT & data centers, events, and others. In 2022, the metal & mining segment accounted for the highest market share in the overall power rental market. Metal & mining industries are often located in remote locations where the electricity by the grid line is not available. Mining operations in these areas are majorly dependent on heavy-duty rentals for a stable and continuous power supply. These generators run equipment like drills, conveyors, and ventilation systems in the mining sectors. Significant trends in the mining sectors is fulfilling the market trends across various countries worldwide. For instance, according to the report published by the Trade Commission Services by the Government of Canada in September 2022, China has over 1,500 major mining operations and China's green mining industry is expected to grow by 30%-50% in the next 20 years. Therefore, the significant expansion in the mining sector is fostering the demand for power rentals to reduce medical errors and misidentification, thereby driving segmental expansion.

However, the manufacturing segment is expected to be the fastest-growing segment during the forecast period because of the growth in the manufacturing sector. For instance, according to the report by the United Nations Industrial Development Organization in March 2022, Global manufacturing production increased by 9.4 percent in 2021.

By Region :

The regional segment includes North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.

In 2022, Asia Pacific accounted for the highest market share at 37.60% was valued at USD 3,562.98 million in 2022 and USD 3,761.93 million in 2023, and it is expected to reach USD 6,003.06 million in 2031. In Asia Pacific, China accounted for the highest market share of 22.30% during the base year of 2022. Based on the power rental market analysis, the significant growth in the industrial as well as commercial sectors across the region is fueling the market growth. For instance, according to the data published by the Ministry of Statistics and Programme Implementation (MOSPI), India's mining GDP increased from USD 8.98 billion in the fourth quarter of 2020 to USD 11.09 billion in the first quarter of 2021. Furthermore, significant growth in the IT & telecom sector across the region is creating lucrative opportunities for efficient management of electricity across the business. For instance, according to the report by the Indian Brand Equity Foundation in May 2023, The IT sector in India accounted for 7.4% of India's GDP in FY22, and it is expected to contribute 10% to India's GDP by 2025. Henceforth, these growing industries across the regions are fostering market growth.

Furthermore, Middle East & Africa is expected to witness significant growth over the forecast period, growing at a CAGR of 6.8% during 2023-20230. This is due to the growing building and construction sector across the Middle East & Africa region.