Rapid expansion of the industrial sector is expected to drive market expansion shortly at a CAGR of 6.00% during the forecast period 2024 to 2032.

Market Research Future (MRFR) has published on the “Global Generator Rental Market”.

The Generator Rental Market is estimated to register a CAGR of 6.00% during the forecast period of 2024 to 2032.

MRFR recognizes the following companies as the key players in the global Generator Rental Market— Aggreko (UK), Ashtead Group plc (UK), United Rentals, Inc. (US), Herc Rentals Inc. (US), Generac Power Systems, Inc. (US), Wacker Neuson SE(Germany), Caterpillar (US), Atlas Copco AB (Sweden), Cummins Inc. (US), and Briggs & Stratton (US).

Market Highlights

The global Generator Rental Market is accounted to register a CAGR of 6.00% during the forecast period and is estimated to reach USD 18.4 billion by 2032.

The utilization of generators has seen a notable increase in events like concerts, festivals, trade shows, and sporting events to meet the demand for temporary power solutions. Moreover, the rise in construction activities necessitating temporary power solutions for diverse tools and equipment is further driving the growth of the generator rental market.

Segment Analysis

The global Generator Rental Market has been segmented based on fuel type, equipment, power rating, application, rental type, and end user.

Based on the Fuel Type, the market is segmented into Diesel, Natural Gas, and Other Fuel Types. The Diesel segment was attributed to holding the largest market share in 2023. Diesel generators have gained prominence due to several factors. Renowned for their durability, robustness, and high-power output, they cater to a broad spectrum of applications. Their reliability ensures consistent power supply over extended periods, while the widespread availability of diesel fuel guarantees a steady source for both rental providers and end-users. Moreover, diesel generators offer economic advantages through fuel efficiency and low maintenance requirements, making them a preferred choice for various industries and businesses.

Based on the Equipment, the Generator Rental Market has been segmented into Generators, Transformers, Load Banks, and Other Equipment. The Generators segment was expected to hold the largest market share in 2023. The demand for reliable backup power solutions is on the rise across industries like construction, events management, telecommunications, and healthcare, where generators play a crucial role in ensuring uninterrupted operations during power outages or in areas with unreliable grid power.

Based on Power Rating, the Generator Rental Market has been segmented into Up to 50 kW, 51-500 kW, 501-2500 kW, and Above 2500 kW. The 51-500 kW segment was expected to hold the largest market share in 2023. The 51-500 kW power rating segment serves as a significant driver in the power rental market, witnessing substantial demand from diverse industries. These medium-capacity generators strike a balance between power output and portability, making them versatile for various applications like small-to-medium-sized events, construction projects, and backup power for commercial establishments. Their comparatively lower rental cost, in contrast to higher-capacity units, renders them a financially feasible option for businesses with modest power requirements or budget constraints.

Based on the Application, the Generator Rental Market has been segmented into Peak Shaving, Standby Power, and Base load/continuous power. The Base load/continuous power segment was expected to hold the largest market share in 2023. The base load or continuous power application segment stands out as a significant driving force in the power rental industry. This particular segment caters to industries requiring long-term, consistent power supply, including manufacturing, data centers, and utilities. The steady demand for power in these sectors ensures a reliable market for rental solutions. Choosing to rent equipment for base load applications proves to be a more economical option compared to investing in permanent installations, especially for businesses with fluctuating power needs. Renting eliminates the concerns related to asset depreciation and maintenance overheads.

Based on the Rental Type, the Generator Rental Market has been segmented into Retail Rental and Project Rental. The Project Rental segment was expected to hold the largest market share in 2023. Renting generators for project-specific requirements provides businesses with a flexible resource management approach. Instead of investing in costly equipment that might remain idle after project completion, businesses can opt to rent generators for the project's duration. This adaptability is especially beneficial for companies involved in sporadic or seasonal projects.

Based on the End User, the Generator Rental Market has been segmented into Utilities, Oil & gas, Mining & metals, Manufacturing, Construction, IT & Data centers, Corporate & Retail, Events, and Others. The Utilities segment was expected to hold the largest market share in 2023. Utility companies often require temporary power solutions during scheduled maintenance, system upgrades, or unexpected outages to ensure uninterrupted service provision to consumers. With the ever-growing demand for electricity, utility companies face mounting pressure to uphold high levels of reliability and resilience. Renting power equipment provides them with the flexibility to address these challenges without incurring the significant capital expenditure associated with owning and maintaining additional permanent facilities. This flexibility proves especially vital during peak demand seasons or emergencies requiring swift response. Technological advancements in the rental market, such as advanced monitoring systems and energy-efficient generators, further cater to the utilities industry's need for dependable and environmentally conscious power solutions.

Regional Analysis

The global Generator Rental Market, based on region, has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. North America consists of the US and Canada. The Europe Generator Rental Market comprises of Germany, France, the UK, Italy, Spain, and the rest of Europe. The Generator Rental Market in Asia-Pacific has been segmented into China, India, Japan, Australia, South Korea, and the rest of Asia-Pacific. The Rest of the World Generator Rental Market comprises the Middle East, Africa, and Latin America.

The largest market share for the Generator Rental Market was maintained by the North American regional sector. North America boasts a mature and well-established economy characterized by high levels of industrialization, urbanization, and infrastructure development. This stimulates demand for temporary power solutions across various sectors such as construction, manufacturing, oil and gas, utilities, events, and entertainment. In January 2023, the Federal Highway Administration (FHWA) announced a USD 2.1 billion expenditure on bridge infrastructure upgrades, forming part of the national government's substantial commitment to repairing highway bridges nationwide. Consequently, the region enjoys a broad and diverse customer base for power rental services, thereby contributing to market expansion. Furthermore, North America benefits from a robust regulatory framework and dependable power infrastructure, fostering the adoption of power rental solutions.

Moreover, the Europe market has been persistently growing over the forecast period. The demand for generators in the region has been propelled by various factors, including the increasing need for temporary power solutions, events, and construction activities. France and Italy are experiencing notable growth in this market. In France, numerous companies are investing in backup power solutions, including emergency generators, to ensure seamless operations during emergencies. The French government has advised businesses to ensure the functionality of their backup power generators, underscoring the crucial role of load banks in meeting governmental guidelines. Italy is confronted with significant energy challenges stemming from extreme weather conditions such as heavy snowfall, freezing temperatures, avalanches, and scorching heat. These conditions can disrupt electricity networks and power generators, leaving many without access to power.

In Asia Pacific, the rising occurrences of power outages stemming from weather-related events, grid malfunctions, or maintenance activities are driving the demand for generator rentals. Businesses prioritize the availability of reliable backup power to ensure uninterrupted operations, leading to an increased reliance on rental services. In India, the total electricity shortage has reached 623 million units, with a LocalCircles survey indicating that two out of three households in the country experience power outages. Furthermore, one in three households faces outages lasting over two hours daily. In Japan, power utilities anticipate a reserve power supply capacity ratio of 5.8%, falling below the recommended 8%. This deficit in power supply has triggered warnings and heightened demand for backup power during peak demand periods, particularly witnessed in February 2022. These factors contribute to a growing market for rental power equipment, especially in regions prone to outages and among companies grappling with load-shedding issues.

Furthermore, the rest of the world's Generator Rental Market is divided into the Middle East, Africa, and Latin America. As the population across the region continues to grow rapidly, cities and urban areas are experiencing expansion. With the increase in urban population comes a need to address infrastructure challenges related to transportation capacity, urban sprawl, and housing development. Growing cities will need to allocate more resources towards public infrastructure expenditure to enhance citizens' living standards, consequently driving up the demand for generator rentals.

Key Findings of the Study

• The global Generator Rental Market is expected to reach USD 18.4 billion by 2032, at a CAGR of 6.00% during the forecast period.


• The Asia-Pacific region accounted for the fastest-growing global market because of the rapid development of the industrial sector and the increasing demand for an uninterrupted and stable power supply.


• Based on Fuel Type, the Diesel segment was attributed to holding the largest market in 2022, with an approximate market share of 55–60%.


• Aggreko (UK), Ashtead Group plc (UK), United Rentals, Inc. (US), Herc Rentals Inc. (US), Generac Power Systems, Inc. (US), Wacker Neuson SE(Germany), Caterpillar (US), Atlas Copco AB (Sweden), Cummins Inc. (US), and Briggs & Stratton (US).