The global Power Rental Market Growth Accelerated by Sustainability Initiatives

 

The power rental market provides rental generators and services to satisfy temporary or backup power needs across various industries such as construction, mining, oil & gas, and events. Power rental equipment such as generators help meet increasing demand for reliable and affordable power.

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 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

Sustainability initiatives by rental companies aimed at reducing environmental impact are accelerating adoption of low-emission power rental equipment. Companies are switching to lower emission solutions like natural gas generators and hybrid systems to reduce carbon footprint. For example, Aggreko launched its hybrid rental solution in 2021 that leverages battery storage to reduce fuel consumption and emissions. Growing consumer preference for greener power solutions is expected to boost demand for sustainable power rental options over the forecast period.

Segment Analysis

The global power rental market is dominated by the diesel generator segment which accounts for over 75% of the market share. Diesel generators are highly preferred for power rental applications owing to their reliability,easy availability of diesel, compact size and lower maintenance requirements. Though natural gas/LPG and other fuel generators are gaining traction, the diesel generators are expected to remain the dominant sub-segment owing to widespread infrastructure for diesel availability and extensive after-sales services provided by rental companies.

Key Takeaways

The global power rental market is expected to witness high growth over the forecast period of 2024 to 2031 driven by factors such as increasing construction activities and infrastructure development projects across developing regions of Asia Pacific and Africa. 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 to 2031.

Regional analysis

The Asia Pacific region currently dominates the global power rental market with over 35% share driven by robust construction activities and ongoing infrastructure development projects in countries such as India and China. The region is expected to maintain its dominance over the forecast period supported by increasing investments in renewable energy sector, smart cities initiatives and rural electrification programs.

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. Among these, Aggreko and United Rentals account for major market share owing to their widespread rental fleet and long standing presence across major rental markets globally.