Power Rental Market Size :
Consegic Business Intelligence analyzes that the power rental market size is growing with a CAGR of 5.2% during the forecast period (2023-2031), and the market is projected to be valued at USD 15,855.94 Million by 2031 and USD 9,991.86 million in 2023 from USD 9,476.00 Million in 2022.
Power Rental Market Scope & Overview:
Power rental is a temporary or short-term rental of electrical power generation equipment such as generators, transformers, load banks, distribution panels, and others. This rental service usually provides businesses, industries, events, and emergencies with a reliable and immediate source of electricity.
The rental services provide organizations with speed, flexibility, and cost-effective solutions during power outages. The purpose of these rentals is to help stabilize the utility power supply in case of power breakdowns. As per the analysis, it is also useful in providing power outages during emergency situations, construction and infrastructure projects, events and festivals, industrial operations, and remote areas where irregularity in power supply occurs.
Power Rental Market Insights :
Power Rental Market Dynamics - (DRO) :
Key Drivers :
Increasing demand for electrification & continuous power supply
Power rental can play a significant role in electrification and continuous power supply. It can be used to provide temporary power to areas that are not yet connected to the grid, or to supplement the grid during peak requirement periods. They are also used to provide backup power in case of a power outage. Rapid industrialization and expansion of infrastructure projects in developing economies necessities reliable and temporary power solutions. Based on the analysis, these rentals provide the essential electricity needed to support construction, transportation, and urban development projects. The significant trends for electrification across the globe is driving the market for these rentals.
For instance, according to the report by the International Energy Association in July 2021, global electricity requirement is set to grow by close to 5% in 2021 and 4% in 2022 driven by the global economic recovery after the impact of the COVID-19 pandemic. Hence, the growing need for electrification and continuous power supply continues to grow across various sectors, the power rental industry is getting benefited due to the sustainable trends for electrification and continuous power supply worldwide. This prominent factor is boosting the market trends.
High usage of power rental services in the mining industry
Power rental services are a vital part of the mining industry. They provide temporary or backup power for a variety of mining operations. Mining operations involve a range of energy-intensive processes, including, drilling crushing grinding, and ore transportation or operating conveyor lines. These activities require a steady and substantial power supply to operate efficiently. Moreover, based on the analysis, mining sites are in remote and off-grid areas where stable grid connection is limited or non-existent. These solutions provide a practical and flexible means to establish and maintain power infrastructure in these challenging environments. The high requirement for electricity from the mining sector is propelling the power rental market trends. For instance, according to the report by the National Renewable Energy Laboratory in 2020, the total energy consumption of mining activities, including both mineral and rock mining is estimated to be 6.2% of the total energy consumption. About 40% of the consumed energy in mineral mining (equalling 4.6 EJ annually on a global scale) is used for overcoming friction. Therefore, the rising requirement for remote electricity to operate and perform mining operations is influencing the power rental market demand. This, in turn, is driving the market expansion.
Key Restraints :
Stringent government regulations for the use of diesel-powered generators
Power rentals are widely used in power plants to generate electricity on a large scale. They are driven by various energy sources such as steam turbines, gas turbines, or water turbines. Power plants provide electricity to residential, commercial, and industrial areas. Many generators, particularly those powered by fossil fuels, emit greenhouse gases, pollutants, and particulate matter during operation. These emissions contribute to air pollution and have environmental implications, including climate change and negative health effects. As per the analysis, stringent government regulations to control the emission from this equipment are restraining the trend of the market. For instance, according to CPCB, the emission of oxides of nitrogen and hydrocarbons in a diesel generator with up to 19 kW power should not exceed 7.5g/kW-hr. The emission of carbon monoxide should not exceed 3.5g/kW-hr while that of particulate matter should not exceed 0.3g/kW-hr. For this reason, stringent government regulations for the use of diesel-powered generators is hampering the expansion of the market.
Future Opportunities :
Increasing usage of power rentals in industrial as well as commercial electricity
Industries and commercial businesses are highly dependent on a stable and consistent power supply to maintain operations and productivity. These services provide a reliable backup solution ensuring energy security during grid failure, breakouts, or unexpected power outages. The significant trends in the consumption of electricity from the industrial sector is expected to provide lucrative opportunities for the global power rental market growth over the forecast period. For instance, according to the report by the U.S. Energy Information Administration, the U.S. is a highly industrialized country with the industrial sector accounting for 35% of total U.S. end-use energy consumption and 33% of total U.S. energy consumption among which the electricity consumption from the industrial sector accounted for 3.14 QBTU (Quadrillion British Thermal Unit) in 2021 to 3.44 QBTU in 2022. It also includes sewage treatment facilities. Based on the analysis, common uses of energy associated with this sector include space heating, water heating, air conditioning, lighting, refrigeration, cooking, and running a wide variety of other equipment. These commercial sectors require a constant and uninterrupted source of electricity due to which there is a high requirement of these rentals for electricity generation. Hence, the high electricity consumption from the industrial sectors and the growing demand for these rentals in commercial are creating lucrative power rental market opportunities in the upcoming years.
Power Rental Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2017-2031 |
| Market Size in 2031 | USD 15,855.94 Million |
| CAGR (2023-2031) | 5.2% |
| By Fuel Type | Diesel, Natural Gas, and Others |
| By Power Rating | Below 75 kVA, 75-375 kVA, 375-750 ksVA, and Above 750 kVA |
| By Application | Standby Power, Peak Shaving, and Base Load/Continuous Power |
| By End User | Metal & Mining, Construction, Manufacturing, Oil& Gas, IT & Data Centers, Events, and Others |
| By Region | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
| Key Players | Aggreko, Atlas Copco, Shenton Group, NIDS GROUP, Caterpillar Inc., Cummins Inc., Kohler-SDMO, Pump Power Rental, Sudhir Power Ltd., Modern Hiring Service, Global Power Supply, and FG Wilson |
| Geographies Covered | |
| North America | U.S. Canada Mexico |
| Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
| APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
| Middle East and Africa | GCC Turkey South Africa Rest of MEA |
| LATAM | Brazil Argentina Chile Rest of LATAM |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, Restraint or Challenges, Opportunities, Environment & Regulatory Landscape, PESTLE Analysis, PORTER Analysis, Key Technology Landscape, Value Chain Analysis, Cost Analysis, and Regional Trends & Forecast |
Power Rental Market Segmental Analysis :
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.
Top Key Players & Market Share Insights:
The Power Rental market is highly competitive, with several large players and numerous small and medium-sized enterprises. These companies have strong research and development capabilities and a strong presence in the market through their extensive product portfolios and distribution networks. The market is characterized by intense competition, with companies focusing on expanding their product offerings and increasing their market share through mergers, acquisitions, and partnerships. The key players in the market include-
- Aggreko
- Atlas Copco
- Sudhir Power Ltd.
- Modern Hiring Service
- Global Power Supply
- FG Wilson
- Shenton Group
- APR Energy
- NIDS GROUP
- Caterpillar Inc.
- Cummins Inc.
- Kohler-SDMO
- Pump Power Rental
Recent Industry Developments :
- In May 2020, Atlas Corp., and APR Energy Ltd. a global leader in specialized power solutions announced that they had signed a contract for eight turbines and 265MW across three sites in Mexicali, Baja California, Mexico. This is the second consecutive year that APR has developed projects in this region, of which one site is with a repeat customer.
- In October 2020, Aggreko, the world-leading provider of mobile, modular power, temperature control, and energy services, announced the immediate availability of its solar power rental offer. The 1 MW PV solution is optimized for weak or off-grid applications and delivers clean energy innovation without long-term financial or technical commitment.
Key Questions Answered in the Report
What was the market size of the power rental industry in 2022? +
In 2022, the market size of power rental was USD 9,476.00 million.
What will be the potential market valuation for the power rental industry by 2031? +
In 2031, the market size of power rental will be expected to reach USD 15,855.94 million.
What are the key factors driving the growth of the power rental market? +
Increasing demand for electrification & continuous power supply is fueling market growth at the global level.
What is the dominating segment in the power rental market by fuel type? +
In 2022, the diesel segment accounted for the highest market share of 42.05% in the overall Power Rental market.
Based on current market trends and future predictions, which geographical region is the dominating region in the power rental market? +
Asia Pacific accounted for the highest market share in the overall Power Rental market.
