The global Power Rental Market is estimated to be valued at US$ 6.19 Bn in 2023 and is expected to exhibit a CAGR of 7.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Power rental includes rental of generators, temporary power equipment, and related services by the power rental companies to support temporary or auxiliary power needs at industrial and commercial sites, construction areas, and special events requiring electricity. Rental power equipment range from small and portable generators to large backup power systems. Power rental industry plays a key role in supplying temporary and backup power for various applications where access to stable power is crucial. Key power rental applications include construction, mining, utilities, manufacturing, events, and data centers among others.
Market key trends:
One of the key trends in the power rental market is the development and adoption of natural gas power rental equipment. With growing emphasis on reducing carbon emissions globally, natural gas generators are gaining prominence as they emit 20-30% lesser emissions than diesel generators. Major power rental companies such as Aggreko and United Rental are expanding their natural gas power rental solutions to capitalize on this trend. Another significant trend is the development of hybrid power rental solutions combining diesel generators with batteries or solar panels. Such hybrid systems provide stable power with reduced fuel consumption and lower emissions.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the power rental market is low due to the requirement of high capital investment and established brand names of existing players in the market.
Bargaining power of buyers: The bargaining power of buyers is high given the presence of various rental providers and product substitutes. Buyers can negotiate on prices by playing one rental company against other.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are a large number of component manufacturers. However, switching costs are relatively low.
Threat of new substitutes: The threat of substitutes is moderate as fixed power generators are considered substitutes for rental power equipment. However, rental power equipment offers flexibility of operations.
Competitive rivalry: The competitive rivalry in the market is high due to the presence of numerous international and regional players competing on the basis of product quality, pricing, and services offered.
Key Takeaways
Global Power Rental Market Size is expected to witness high growth, exhibiting CAGR of 7.8% over the forecast period 2023 to 2030, due to increasing demand for uninterrupted power supply from various end use industries.
Regional analysis: North America dominates the global power rental market, followed by Europe and Asia Pacific. The power rental market in Asia Pacific is projected to grow at the fastest rate during the forecast period, owing to rapid industrialization and growth of the construction industry in developing countries of the region.
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. Aggreko and United Rentals collectively account for over 25% of the global market share.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
