Global Power Rental Market Research Report, 2024-29

The global power rental market has been experiencing rapid growth in recent years. The power rental market contributes to economic growth and development by supporting various industries, creating jobs, facilitating infrastructure development, and enabling business continuity in challenging environments and circumstances. Power rental services offer flexibility and scalability, allowing businesses to adjust their power capacity based on fluctuating demand, project requirements, and seasonal variations without the need for upfront capital investment in permanent infrastructure. Power rental companies are expanding their presence globally to serve diverse markets and regions with unique power requirements and challenges. This expansion includes strategic partnerships, acquisitions, and investments in emerging markets and developing countries. Numerous industries and uses, such as construction, events, emergency backup, off-grid power, and infrastructure development projects, employ power rental solutions. Furthermore, advances in technology, such as fuel-efficient engines, remote monitoring systems, hybrid power solutions, and smart grid integration, are driving innovation in the power rental market, enabling companies to enhance efficiency, reduce emissions, and improve customer service. Renting power generation equipment offers cost advantages for businesses compared to purchasing, owning, and maintaining their own fleet of generators. Power rental services provide access to state-of-the-art equipment, maintenance services, and technical support without the upfront capital investment and ongoing operational expenses associated with ownership. According to the research report, “Global Power Rental Market Research Report, 2029” published by Actual Market Research, the market is anticipated to cross USD 14 Billion by 2029, increasing from USD 9.77 Billion in 2023. The market is expected to grow with 6.64% CAGR by 2024-29. Businesses, industries, and communities require backup power solutions to ensure continuity of operations during power outages, natural disasters, and emergencies. Power rental companies provide temporary generators and other equipment to meet these critical needs. Furthermore, the construction industry requires temporary power solutions for various activities such as site lighting, equipment operation, and power tool usage. Infrastructure development projects, including roads, bridges, airports, and power plants, also rely on power rental services to support construction activities. As well as temporary events, festivals, concerts, sports tournaments, and conferences require reliable power solutions for lighting, sound systems, broadcasting equipment, and temporary facilities. Power rental companies cater to the temporary power needs of event organisers and project managers. Furthermore, industries such as manufacturing, mining, oil and gas, telecommunications, and utilities require temporary power solutions to support their operations, particularly in remote or off-grid locations. Power rental services provide reliable and scalable power solutions for industrial applications. Furthermore, stringent environmental regulations and emissions standards push industries to adopt cleaner and more sustainable power solutions. Power rental companies offer modern and fuel-efficient generators that comply with environmental regulations, reducing emissions and minimising environmental impact. Power rental solutions offer flexibility and scalability, allowing businesses to adjust their power capacity based on fluctuating demand, project requirements, and seasonal variations without investing in permanent infrastructure. This flexibility makes power rental services an attractive option for businesses seeking reliable and cost-effective power solutions. Major Drivers

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• Increasing Demand for Temporary Power Solutions: The increasing demand for temporary power solutions is a significant driver of the global power rental market. This demand stems from various industries and applications that require reliable and flexible power sources for temporary periods. Construction projects, events, industrial operations, and emergency situations all contribute to this demand. In construction, temporary power is essential for powering tools, equipment, and site facilities during the building process. Events such as festivals, concerts, and sporting events require temporary power for lighting, sound systems, and other infrastructure. Industrial operations often need backup power during maintenance or unexpected outages to avoid costly downtime. • Infrastructure Development: Infrastructure development is a key driver of the global power rental market. As countries invest in building and upgrading infrastructure such as roads, bridges, airports, power plants, and renewable energy facilities, there is a corresponding need for temporary power solutions to support construction activities. Construction projects often require reliable power sources to operate equipment, machinery, and site facilities. Power rental companies provide generators, transformers, and other equipment to meet these temporary power needs, ensuring that construction projects progress smoothly and on schedule. Additionally, infrastructure development projects may take place in remote or off-grid locations where access to the electrical grid is limited or nonexistent. In such cases, power rental solutions offer a practical and cost-effective way to establish temporary power infrastructure. Major Challenges

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• Competition from Conventional Power Sources: One of the significant challenges facing the global power rental market is competition from conventional power sources such as grid electricity and permanent onsite generators. Many industries and businesses opt to invest in permanent power infrastructure rather than relying on temporary power solutions. While power rental services offer flexibility and scalability, enabling customers to meet short-term power needs without significant capital investment and convincing them of the long-term benefits can be challenging. Additionally, grid electricity is perceived as more reliable and cost-effective in certain regions, reducing the demand for power rental services. • Technical Complexity: The technical complexity of power rental equipment presents another challenge for the global power rental market. Power generation equipment such as generators, transformers, and distribution panels can be complex to install, operate, and maintain, requiring skilled personnel with specialised training. Ensuring the availability of trained technicians and engineers to handle equipment installation, troubleshooting, and maintenance tasks can be difficult, especially in remote or underserved areas. Moreover, power rental companies must keep pace with advancements in technology and equipment to offer the latest and most efficient solutions to their customers. Based on the fuel types, they are segmented into diesel, natural gas, and others. In terms of equipment, it is bifurcated into generators, transformers, load banks, and others. Natural gas significantly contributes to the market; natural gas is considered a cleaner-burning fuel compared to diesel and other fossil fuels, emitting lower levels of pollutants such as sulphur dioxide, nitrogen oxides, and particulate matter. As governments and industries increasingly prioritise environmental sustainability, there is growing demand for cleaner and more sustainable power solutions, driving the adoption of natural gas in the power rental market. The expansion of natural gas infrastructure, including pipelines, liquefied natural gas (LNG) terminals, and distribution networks, has facilitated the use of natural gas in power generation. Power rental companies can easily access natural gas supplies and infrastructure to deploy natural gas-powered generators for temporary or backup power applications. Furthermore, load banks are a growing segment; for the testing and upkeep of electricity generation and distribution networks, load banks are indispensable instruments. In order to confirm the functionality, efficiency, and capacity of generators, transformers, UPS systems, and electrical distribution networks, they replicate real-world electrical loads. The need for load banks as a component of power leasing equipment is rising as organisations and industries place a higher priority on reliability testing and preventative maintenance in order to minimise expensive downtime. Furthermore, the load banks offer flexibility and scalability, allowing users to simulate a wide range of electrical loads and conditions. Power rental companies offer load banks of various capacities, voltages, and configurations to meet the diverse testing and maintenance needs of their customers. The ability to rent load banks on a short-term or temporary basis provides cost-effective solutions for testing and commissioning projects without the need for significant capital investment in equipment. According to the report, the power ratings are categorised on the basis of below 75 kVA, 75–375 kVA, 375–750 kVA, and above 750 kVA. In terms of application types, they are segmented into base load, standby power, and peak shaving. Furthermore, the 375-750 kVA power rating range is ideal for medium- to large-scale applications in a variety of sectors and industries, contributing to the growing power rental market. These applications include places of construction, industrial buildings, factories, data centres, events, and infrastructure projects whose machinery and equipment need a lot of electricity to run. As industries continue to grow and expand, there is a corresponding increase in power demands. Medium- to large-scale operations often require higher power capacities to support their activities effectively. The 375–750 kVA power rating segment provides sufficient power output to meet these increasing demands while offering scalability and flexibility for various applications. In terms of application, the base load contributes to the market because, in order to maintain the lowest possible level of demand on the electrical grid, base load power generation offers a steady and uninterrupted supply of electricity. For vital activities and infrastructure in sectors such as industry, healthcare, telecommunications, and data centres, a consistent supply of electricity is necessary. The need for base-load power rental solutions is rising as companies depend more and more on consistent power to keep up output and prevent expensive outages. Base-load power rental solutions offer flexibility and scalability to match varying levels of energy demand. Power rental companies can provide generators of different capacities and configurations to meet the specific needs of their customers, whether for continuous operation or as part of a hybrid power system. This flexibility allows businesses to adjust their power capacity as needed without the need for significant capital investment in permanent infrastructure. Based on the end user, they are segmented into mining, construction, manufacturing, utility, events, oil and gas, and others. Numerous oil and gas activities, including drilling, production, and exploration, are carried out in isolated or off-grid areas where it is difficult or impossible to obtain dependable grid electricity. In these isolated locations, power rental solutions offer the necessary electricity to run drilling rigs, pumps, compressors, and other equipment required for extraction and processing activities. Oil and gas projects often have fluctuating power requirements throughout different stages of operations. Power rental services offer a flexible solution for meeting temporary power needs during exploration, construction, commissioning, and decommissioning phases without the need for permanent infrastructure investments. Ensuring uninterrupted power supply is critical for maintaining safety, operational continuity, and regulatory compliance in the oil and gas industry. Power rental companies provide emergency backup generators and standby power solutions to mitigate the impact of power outages, equipment failures, or natural disasters on production and safety systems. Further, renting power generation equipment offers cost advantages for oil and gas companies compared to purchasing, owning, and maintaining their own fleet of generators. Power rental services provide access to state-of-the-art equipment, maintenance services, and technical support without the upfront capital investment and ongoing operational expenses associated with owning and operating power generation assets.

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Based on the report, the major regions covered include North America, Europe, Asia Pacific, South America, the Middle East, and Africa. North America significantly contributes to the market. The industrial environment in North America is vibrant and diversified, encompassing a variety of industries such as manufacturing, oil and gas, utilities, events, telecommunications, and construction. Power leasing services are in high demand since these businesses have different power requirements and frequently need backup or temporary power solutions to maintain their operations. North America is prone to natural disasters such as hurricanes, tornadoes, wildfires, and winter storms, which can cause widespread power outages and disruptions. Power rental companies play a crucial role in providing emergency backup power solutions to businesses, municipalities, and utilities to maintain essential services and operations during and after natural disasters. North America hosts numerous events, festivals, concerts, sports tournaments, and conferences throughout the year, which require reliable power solutions for lighting, sound systems, broadcasting equipment, and temporary facilities. Power rental services cater to the temporary power needs of event organisers, providing generators and ancillary equipment for various event applications. North America is a hub for technological innovation and advancements in power generation equipment, including cleaner and more fuel-efficient generators, advanced monitoring systems, and hybrid power solutions. Power rental companies in North America offer state-of-the-art equipment and services to meet the evolving needs of customers and industries. The increased research and development spending, as well as technological collaborations between major market players, will boost the market potential. In order to maintain their market position, the manufacturers are implementing initiatives such as mergers, partnerships, expansions, and acquisitions. Aggreko, for example, was given a contract in December 2018 to provide rental power services for the 2020 Tokyo Paralympic and Olympic games. The market is influenced by major participants across the globe. Major players such as Aggreko, Caterpillar, Cummins, Inc., Atlas Copco, and Kohler Power constitute around one-fourth of the market and the remaining market is dominated by a large number of regional and local players. Aggreko is established as one of the leading players and operates under different verticals in the power rental industry. The company offers a wide range of generator sets with different power ratings and has a global footprint with around 10,000 MW of power on hire in the year 2020. In December 2018, for instance, Aggreko was awarded a contract for providing rental power services to the 2020 Tokyo Paralympic and Olympic games. The contract is estimated to be worth around US$ 200 Million. • In December 2022, United Rentals completed the acquisition of assets of Ahern Rentals. The acquisition, treated as a business combination, involved the eighth-largest equipment rental company in North America, primarily serving customers in the construction and industrial sectors across 30 states. The strategic move aims to increase capacity in key geographies, enhance the availability of high-demand equipment, and create cross-sell opportunities for an expanded customer base. • In February 2023, Caterpillar Inc. has announced the introduction of the Cat® XQ330 mobile diesel generator set, a new power solution for standby and prime power applications that meets U.S. EPA Tier 4 Final emission standards. The XQ330 is powered by a fuel-efficient Cat C9. • In June 2022, Cummins Inc. launched a new 1MW twinpack rental generator, the C1000D6RE. The C1000D6RE is a 40ft power unit that combines two Cummins 15L, 500kW generators into a single container and is capable of withstanding extreme weather conditions and has a full sound attenuation package to minimize noise levels. • In November 2021, Caterpillar Inc., announced a three-year project in collaboration with Microsoft and Ballard Power Systems, incorporating large-format hydrogen fuel cells to produce reliable and sustainable backup power for Microsoft data centers. • In June 2021, the first hydrogen power generation units piloted at the Aggreko Plc depot, in Moerdjik, Netherlands, for usage in temporary power applications. • In April 2021, Atlas Copco, introduced ZBC, latest model in its Lithium-ion energy storage system range called ZenergiZe. It can be used as a standalone source, combined with generators, to make a hybrid power solution or renewable sources of energy as well as to create Microgrids. Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • Power Rental market Outlook with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Fuel Type • Diesel • Natural Gas • Others By Equipments • Generators • Transformers • Load Banks • Other Equipments By Power rating • Below 75 kVA • 75-375 kVA • 375-750 kVA • Above 750 Kva By Applications • Base Load • Standby Power • Peak Shaving By End Users • Mining • Construction • Manufacturing • Utility • Events • Oil & Gas • Others The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Power Rental, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.