The power rental market offers portable generators, generators, and temporary power solutions to various end-use industries that require reliable and continuous power supply. Power rental solutions provide backup power during power outages and intermittent power supply. They are also used in construction, mining, oil & gas, utilities, and event management industries where there is a need for temporary or portable power.
The global power rental market is estimated to be valued at US$ 27.5 Billion in 2024 and is expected to exhibit a CAGR of 5.6% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the power rental market are Caterpillar Inc., Aggreko Plc., United Rentals Inc., Cummins Inc., and Herc Holdings Inc. Caterpillar dominates the diesel generator segment with wide product portfolio catering varied power solutions.
The Power Rental Market Demand of infrastructure development projects across emerging nations in Asia Pacific and Middle East & Africa is fueling the demand for power rental solutions. Rapid industrialization and expanding manufacturing sector necessitates reliable power supply, thereby boosting market growth.
Power rental suppliers are expanding their global footprint by entering new geographies and consolidating through acquisitions. Favorable rental agreements and service contracts allow customers to reduce upfront capital investment. This has encouraged several industries to opt for rental power solutions over owning diesel generators.
Market Key Trends
Transition towards Power Rental Companies energy along with diesel generators. It provides emissions reduction and fuel cost savings. Leading suppliers are introducing hybrid generators integrated with solar PV panels, wind turbines and energy storage systems to cater growing customer demand for sustainable power solutions. This emerging technology is expected to accelerate market penetration over the coming years.
Porter’s Analysis
Threat of new entrants: Power rental market demands large capital investments and established brand names. However, new companies can enter the market by focusing on niche customers.
Bargaining power of buyers: Buyers have moderate power as they can negotiate on pricing and demand additional services. They can also opt for in-house power generation if rental costs increase significantly.
Bargaining power of suppliers: A few major companies dominate the supply of power generators globally. This allows suppliers to influence pricing and other commercial terms to some extent.
Threat of new substitutes: Alternatives like in-house power generation using solar, wind etc pose a challenge. However, switchover costs are high and intermittent nature of renewables limits their use as substitutes in the short-run.
Competitive rivalry: Major players compete on the basis of product offerings, service quality, rental packages and global presence. This intense competition keeps pricing and profits under check in the industry.
Geographical Regions
The power rental market in terms of value is highly concentrated in North America and Europe currently. Both regions account for over 50% of the worldwide market led by widespread industrial and construction activities. The U.S., Germany, U.K. are among the leading country-level markets.
The Asia Pacific region is poised to witness the fastest market growth during the forecast period from 2024 to 2030. This can be attributed to ongoing infrastructure projects, urbanization and industrialization drives in countries like China and India. Mega events like the FIFA World Cup 2022 will also drive short-term power rental demand in the Middle East.
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)
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