Generator Rental Market Research Report Information By Fuel Type (Diesel, Natural gas, and Other Fuel Types), By Equipment (Generators, Transformers, Load Banks, and Other Equipment), By Power Rating (Up to 50 kW, 51-500 kW, 501-2500 kW, and Above 2500 kW), By Application (Peak Shaving, Standby Power, and Base load/continuous power), By Rental Type (Retail Rental and Project Rental), By End User (Utilities, Oil & gas, Mining & metals, Manufacturing, Construction, IT & Data centers, Corporate & Retail, Events, and Others), And By Region (Nor

Global Generator Rental Market Overview

Generator Rental Market Size was valued at USD 10.9 Billion in 2022. The Generator Rental Market industry is projected to grow from USD 11.5 Billion in 2023 to USD 18.4 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.00% during the forecast period (2024 - 2032). The growing severity of natural disasters like hurricanes, floods, and earthquakes, increased demand for emergency power to aid rescue operations, and the integration of advanced technologies are expected to be significant market drivers for the Generator Rental Market.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Generator Rental Market Trends

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  Increasing need for electrification, continuous power supply, and stringent emissions regulations is driving market growth

  
  

Market CAGR for Generator Rental is driven by the increasing need for electrification, continuous power supply, and stringent emissions regulations. The emerging economies are experiencing rapid urbanization, industrialization, and infrastructure development, necessitating dependable and easily accessible power to sustain economic growth, improve living standards, and accommodate growing populations. According to the Minister for Power and New & Renewable Energy, there has been a 50.8% increase in energy requirement in the country compared to 2014, with peak demand rising from 135918 MW in 2013-14 to 243271 MW in September 2023. Additionally, Canada's energy consumption surged by 4.2% to 8,585 petajoules in 2022, following a 3.0% increase in 2021. Energy consumption increased across all sectors in 2022, with the transportation sector experiencing the highest increase at 7.8%. Despite this growth, many emerging economies face challenges such as inadequate generation capacity, unstable power infrastructure, and limited grid access, leading to frequent interruptions and power outages. Rental generators, transformers, and other power equipment can swiftly be deployed to ensure a continuous power supply for critical operations, construction sites, remote areas, and temporary structures.

Environmental concerns and stringent emissions regulations are significantly influencing the power rental industry. Governments worldwide are implementing stricter laws on emissions from power generation equipment, compelling companies to adopt cleaner and more efficient technologies. For instance, India has established ambitious targets, including reducing the carbon intensity of the economy by less than 45% by the end of the decade, achieving 50% cumulative electric power installed from renewables by 2030, and reaching net-zero carbon emissions by 2070. India also aims to achieve 500 GW of renewable energy installed capacity by 2030. This shift has resulted in an increased demand for eco-friendly power rental solutions, such as generators powered by natural gas or renewable sources like solar and wind. Moreover, rental companies are motivated to invest in cleaner technologies to attract a broader customer base, thereby driving research and development efforts in the sector.

As a result, it is anticipated that throughout the projection period, demand for the Generator Rental Market will increase due to the increasing need for electrification, continuous power supply, and Stringent Emissions Regulations. Thus, driving the Generator Rental Market revenue.

Generator Rental Market Segment Insights

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  Generator Rental Market Fuel Type Insights

  
  

The global Generator Rental Market segmentation, based on Fuel Type, includes Diesel, Natural gas, and Other Fuel Types. The Diesel segment dominated the market, accounting for 58% of market revenue. The versatility of diesel generators allows deployment across diverse sectors like construction, manufacturing, events, and emergency backup power. Despite the growing interest in alternative fuel sources like natural gas and propane, diesel generators continue to dominate the market owing to their reliability, accessibility, and cost-effectiveness.

Figure 1: Generator Rental Market, by Fuel Type, 2023 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Generator Rental Market Equipment Insights

The global Generator Rental Market segmentation, based on Equipment, includes Generators, Transformers, Load Banks, and Other Equipment. The Generators segment dominated the market, accounting for 58% of market revenue. Increased awareness of the necessity for backup power systems has been fueled by the growing frequency and severity of natural disasters such as hurricanes, wildfires, and storms. This heightened awareness is driving a surge in demand for generator rentals, especially in regions prone to disasters.

Generator Rental Market Power Rating Insights

The global Generator Rental Market segmentation, based on Power Rating, includes Up to 50 kW, 51-500 kW, 501-2500 kW, and Above 2500 kW. The 51-500 kW segment dominated the market, accounting for 60% of market revenue. These generators often boast advanced technological features like remote monitoring and automated load management, enhancing operational efficiency. The ability to adjust power consumption within this range in real time offers businesses flexibility, contributing to cost-effectiveness. This adaptability allows businesses to match their energy usage precisely to their needs, resulting in potential savings.

Generator Rental Market Application Insights

The global Generator Rental Market segmentation, based on Application, includes Peak Shaving, Standby Power, and Base load/continuous power. The base load/continuous power segment dominated the market, accounting for 60% of market revenue. Advancements in technology have spurred the creation of generators renowned for their efficiency and reliability, which are capable of satisfying the demanding requirements of continuous operation. These generators frequently incorporate functionalities such as real-time monitoring and predictive maintenance, effectively diminishing the probability of unforeseen downtimes.

Generator Rental Market Rental Type Insights

The global Generator Rental Market segmentation, based on Rental Type, includes Retail Rental and Project Rental. The Project Rental segment dominated the market, accounting for 60% of market revenue. Opting to rent generators for particular projects frequently offers a more economical alternative to outright purchase. This approach negates the necessity for initial capital investment and diminishes the ongoing expenses related to equipment maintenance and storage typically associated with ownership. Businesses can efficiently allocate their financial resources by selecting rental solutions customized to meet the requirements of each project.

Generator Rental Market End User Insights

The global Generator Rental Market segmentation, based on End User, includes Utilities, Oil & gas, Mining & metals, Manufacturing, Construction, IT & Data centers, Corporate & Retail, Events, and Others. The utilities segment dominated the market, accounting for 60% of market revenue. Utilities play a vital function in power generation, transmission, and distribution, delivering electricity to residential, commercial, and industrial consumers. These entities frequently need temporary or supplementary power solutions to aid in maintenance operations, grid enhancements, peak demand instances, and emergency responses. Power rental services provide utilities with a flexible and economically viable choice for acquiring extra power capacity during such periods, guaranteeing uninterrupted service to consumers and upholding grid stability.

Generator Rental Market Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The generator rental market in North America is witnessing significant growth, driven by the increasing occurrence of extreme weather events like hurricanes, wildfires, and storms. These events often result in power outages, necessitating the use of temporary power solutions. According to our recently published Annual Electric Power Industry Report, the average duration of electricity interruptions for U.S. customers decreased by almost two hours in 2022 compared to 2021, with customers experiencing approximately five and a half hours of interruptions. Furthermore, in 2022, the United States encountered 18 weather-related disasters causing damages exceeding $1 billion each. Additionally, the region's industrial and infrastructural advancements require a stable and dependable power supply, making rental power services indispensable for construction sites, manufacturing plants, and temporary facilities. Moreover, the North American market benefits from technological advancements in generator equipment, including more energy-efficient and environmentally compliant models, which businesses are increasingly adopting to adhere to stringent regulatory standards.

Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: GENERATOR RENTAL MARKET SHARE BY REGION 2023 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's Generator Rental Market accounts for the second-largest market share. Several factors, including a growing demand for temporary power solutions, events, and construction activities, have spurred the need for generators in the region. For instance, the Sackville Road Residential Community project, with a budget of USD 332 million, involves constructing a residential community comprising six blocks ranging from 2 to 15 stories on 3.59 hectares of land in Hove, the UK. Construction commenced and is projected to conclude in Q2 2025. According to initial estimates from Eurostat, the statistical office of the European Union, seasonally adjusted production in the construction sector increased by 1.3% in both the euro area and the EU in October 2022 compared to September 2022. In September 2022, construction production rose by 0.5% in the euro area and by 0.3% in the EU. Further, the German Generator Rental Market held the largest market share, and the UK Generator Rental Market was the fastest-growing market in the European region.

The Asia-Pacific Generator Rental Market is expected to grow at the fastest CAGR from 2024 to 2032. In China, the demand for generator rentals is significant due to rapid urbanization and ongoing infrastructure development, driving the need for temporary power solutions to support construction equipment operations. With the expanding manufacturing sector, there is a growing requirement for a consistent and uninterrupted power supply to sustain operations. According to data from the National Bureau of Statistics (NBS), the value-added industrial output, a key economic indicator, increased by 3.6 percent year on year in 2022, reaching $4,975.61 billion, representing a 1.36% rise from 2021. The Ministry of Industry and Information Technology (MIIT) predicts a 3.6% growth in China's industrial output in 2022 compared to the previous year. Generator rentals prove to be a flexible and cost-effective solution for backup power and peak demand periods. Given the prevalence of natural disasters like typhoons and earthquakes, which often result in power disruptions, rental generators play a crucial role in providing emergency electricity during such emergencies. Additionally, China encompasses a significant number of isolated and off-grid regions with limited access to the grid. Businesses operating in these areas rely on generator rentals to sustain their operations effectively. Moreover, China’s Generator Rental Market held the largest market share, and the Indian Generator Rental Market was the fastest-growing market in the Asia-Pacific region.

Generator Rental Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the Generator Rental market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Generator Rental industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Generator Rental industry to benefit clients and increase the market sector. In recent years, the Generator Rental industry has offered some of the most significant advantages to the power generation and infrastructure sectors. Major players in the Generator Rental Market, including Aggreko (UK), Ashtead Group plc (UK), United Rentals, Inc. (US), Herc Rentals Inc. (US), Generac Power Systems, Inc. (US), Wacker Neuson SE(Germany) and Caterpillar (US), Atlas Copco AB (Sweden), Cummins Inc. (US), Briggs & Stratton (US) are attempting to increase market demand by investing in research and development operations.

United Rentals Inc., a leading equipment rental company, specializes in providing a wide range of construction and industrial rental equipment, including aerial work platforms, power and HVAC equipment, trench safety equipment, and fluid solutions equipment. Additionally, United Rentals offers tools and light equipment for both sale and rental purposes. The company also provides on-site maintenance and repair services, as well as maintenance shutdown and turnaround services. Their online platforms enable customers to access the equipment catalog and manage their equipment needs efficiently. Serving various sectors such as manufacturing, utilities, homeowners, municipalities, construction and industrial companies, and government entities, United Rentals operates across the United States, Canada, Germany, France, Belgium, Australia, the Netherlands, and the United Kingdom. The company is headquartered in Stamford, Connecticut, USA.

Cummins Inc. is a prominent power technology company renowned for its design, manufacturing, and distribution of diesel and natural gas engines, as well as power train-related components. Its diverse range of offerings includes air handling systems, after-treatment solutions, fuel systems, control systems, turbochargers, filtration products, electric power generation systems, transmissions, batteries, and electrified power systems. Catering to original equipment manufacturers, dealers, distributors, and various other customers, Cummins operates across North America, Europe, Asia Pacific, and South Pacific. With a global presence encompassing distribution, manufacturing, and other facilities, the company is headquartered in Columbus, Indiana, USA. In June 2022, Cummins Inc. introduced the C1000D6RE, a new 1MW twin pack rental generator. This innovative 40-foot power unit combines two Cummins 15L, 500kW generators within a single container, offering robust performance capable of withstanding extreme weather conditions. Moreover, it features a full sound attenuation package to minimize noise levels, ensuring operational efficiency and environmental compliance.

Key companies in the Generator Rental Market include

• 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)


• Briggs & Stratton (US)

Generator Rental Industry Developments

February 2023: Caterpillar Inc. announced the introduction of the Cat® XQ330 mobile diesel generator set, a novel power solution meeting U.S. EPA Tier 4 Final emission standards for both standby and prime power applications. Fueled by the efficient Cat C9 engine, this generator offers enhanced performance and environmental compliance.

October 2022: United Rentals Inc. announced its plan to augment its rental fleet across North America with multiple hydrogen power generators in the forthcoming months. These generators will serve as a low-emission power source for United Rentals' customers, facilitating the recharging of tools, electric vehicles, and other equipment.

Generator Rental Market Segmentation

Generator Rental Market Fuel Type Outlook

• Diesel


• Natural gas


• Other Fuel Types

Generator Rental Market Equipment Outlook

• Generators


• Transformers


• Load Banks


• Other Equipment

Generator Rental Market Power Rating Outlook

• Up to 50 kW


• 51-500 kW


• 501-2500 kW


• Above 2500 kW

Generator Rental Market Application Outlook

• Peak Shaving


• Standby Power


• Base load/continuous power

Generator Rental Market Rental Type Outlook

• Retail Rental


• Project Rental

Generator Rental Market End User Outlook

• Utilities


• Oil & gas


• Mining & metals


• Manufacturing


• Construction


• IT & Data centers


• Corporate & Retail


• Events


• Others

Generator Rental Market Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  •  Japan
  
  
  •  India
  
  
  •  Australia
  
  
  •  South Korea
  
  
  • Australia
  
  
  •  Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America