Power Rental Systems Market Forecasts to 2030 – Global Analysis By Equipment Type (Generators, Load Banks, Transformers and Other Equipment Types), Power Rating (Low Power (Up to 50 kVA), Medium Power (51-500 kVA) and High Power (Above 500 kVA)), Rental D

According to Stratistics MRC, the Global Power Rental Systems Market is accounted for $10.88 billion in 2024 and is expected to reach $16.06 billion by 2030 growing at a CAGR of 6.7% during the forecast period. Power rental systems are short-term power supply options that use rented generators and equipment to supply electricity for a range of uses. These systems provide scalable, adaptable power generation for events, industrial facilities, building sites, and emergency backup during blackouts. They enable businesses to meet short-term or supplemental power needs without making capital investments. Typically, they consist of generators, distribution equipment, fuel systems, and technical support services.

According to the U.S. Department of Energy, stationary and transportation energy storage combined markets are estimated to grow 2.5–4 terawatt-hours (TWh) annually by 2030.

Market Dynamics:

Driver:

Rising demand for uninterrupted power supply

The increasing need for reliable and continuous power in industries such as construction, oil & gas, and manufacturing drives the power rental systems market. Frequent power outages and inadequate grid infrastructure in many regions necessitate temporary power solutions. Additionally, rapid urbanization and industrialization further amplify demand for backup and peak load power systems. These factors collectively ensure that power rental systems remain a critical solution for maintaining operational continuity and meeting energy demands effectively.

Restraint:

Stringent environmental regulations

Environmental regulations targeting emissions and noise pollution from diesel generators pose challenges to the power rental systems market. Compliance with these regulations requires companies to invest in cleaner technologies, such as hybrid or renewable energy-integrated systems, which can increase costs. Furthermore, restrictions on generator use in sensitive areas, such as residential zones or nature reserves, limit market expansion. These regulatory pressures compel rental companies to adapt while managing operational expenses.

Opportunity:

Rising electrification in developing regions

Developing regions present significant opportunities due to increasing electrification efforts and infrastructure development. Many areas lack stable grid connectivity, creating demand for temporary power solutions during construction projects or emergencies. Governments’ focus on rural electrification and renewable energy integration further boosts the need for flexible rental systems. As industries expand in these regions, power rental providers can capitalize on the growing requirement for scalable and cost-effective energy solutions.

Threat:

Volatility in raw material prices  

Fluctuating prices of raw materials like diesel and natural gas significantly impact operating costs for power rental companies. Rising fuel costs can lead to higher rental rates, making services less attractive to cost-sensitive customers. Additionally, geopolitical tensions and supply chain disruptions exacerbate price instability, affecting profitability. This volatility poses a challenge for rental providers striving to maintain competitive pricing while ensuring service quality.

Covid-19 Impact:

The COVID-19 pandemic caused disruptions across industries relying on power rentals, such as events and construction, leading to reduced demand. Conversely, sectors like healthcare saw increased reliance on temporary power solutions to support emergency facilities and field hospitals. Supply chain challenges also impacted equipment availability and delivery timelines. Despite these setbacks, the market rebounded post-pandemic as economic activities resumed, highlighting the critical role of power rentals in maintaining operational resilience during crises.

The generators segment is expected to be the largest during the forecast period

The generators segment is expected to account for the largest market share during the forecast period due to their versatility in providing reliable power across various sectors like construction, oil & gas, and events. Their ability to deliver consistent electricity in remote or grid-constrained areas makes them indispensable for temporary needs. Technological advancements have also improved generator efficiency and emissions compliance, aligning with environmental regulations. These factors ensure that generators remain the preferred choice for industries requiring scalable and dependable power solutions.

The medium power (51-500 kVA) segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the medium power (51-500 kVA) segment is predicted to witness the highest growth rate due to their suitability for diverse applications across construction sites, small-scale industries, and commercial establishments. These systems offer an optimal balance between capacity and portability, making them ideal for temporary setups. The rising adoption of medium-power solutions in developing regions with expanding infrastructure projects further drives this segment’s growth.

Region with largest share:

During the forecast period, the Asia Pacific region is expected to hold the largest market share due to rapid industrialization, urbanization, and infrastructure development in countries like China and India. Frequent power outages and inadequate grid connectivity drive demand for temporary solutions across sectors such as construction and manufacturing. Government initiatives promoting rural electrification and renewable energy integration further enhance market growth in this region.

Region with highest CAGR:

Over the forecast period, the Asia Pacific region is anticipated to exhibit the highest CAGR owing to increasing investments in infrastructure projects and rising energy demands from industrial expansion. The region’s focus on renewable energy integration creates opportunities for hybrid rental systems. Additionally, growing awareness of energy security ensures sustained demand for flexible power solutions across emerging economies in this region.

Key players in the market

Some of the key players in Power Rental Systems Market include Aggreko, Caterpillar Inc., United Rentals Inc., Cummins Inc., Atlas Copco AB, Ashtead Group plc, Herc Rentals Inc., Generac Power Systems, APR Energy, Kohler Co., Wacker Neuson SE, Bredenoord, Wärtsilä, SoEnergy International, Shenton Group, Power Electrics, HIMOINSA and FG Wilson.

Key Developments:

In August 2024, Aggreko, a global leader in energy solutions, announced the addition of two new mid-node battery energy storage systems (BESS) to their Greener Upgrades line of temporary power options. The two integrated energy storage solutions are excellent options for North America customers looking for greener and more efficient energy options for larger projects and a wider variety of applications across different sectors, expanding on the capabilities of Aggreko’s 30 kVA and 60 kVA small-node models.

In January 2024, Caterpillar Inc. is set to demonstrate the Power of Possible at CES® 2024, one of the largest tech events in the world. The exhibit will highlight Caterpillar’s electric machines and energy solutions, designed to meet the evolving needs of our customers as they electrify their job sites. As a technology leader for nearly a century, Caterpillar continues to innovate and invest in electrification, alternative fuels, connectivity, and digital solutions to help our customers meet their sustainability goals.

Equipment Types Covered:
• Generators
• Load Banks
• Transformers
• Power Distribution Units (PDUs)/Switchgear
• Cables and Accessories

Power Ratings Covered:
• Low Power (Up to 50 kVA)
• Medium Power (51-500 kVA)
• High Power (Above 500 kVA)

Rental Durations Covered:
• Short-term (1-6 months)
• Medium-term (6-12 months)
• Long-term (Over 12 months)

End Users Covered:
• Energy & Resources
• Industrial
• Utilities & Infrastructure
• Construction & Development
• Commercial & Events
• Public & Emergency Services

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements