Power Rental Market Size, Share, Growth, Demand, and Revenue Estimation

The demand for power in emerging economies is increasing rapidly. This can primarily be attributed to the surging population in countries such as India and China. In addition to this, countries including South Korea, Qatar, Thailand, Brazil, and Turkey are witnessing technological advancements. Furthermore, the investments in the construction is also increasing, which is further predicted to drive the demand for power in these countries in the years to come. This is resulting in the growing demand for rental power in emerging economies.

European and North American enterprises have acknowledged the potential in these countries and are increasingly trying to establish their footing. Owing to these factors, the global power rental market is projected to generate a revenue of $16,855.5 million in 2023, increasing from $9,167.6 million in 2017, progressing at a 10.3% CAGR during the forecast period (2018–2023). Other than the rising demand for power, outdated permanent power plants are also creating need for rental power in developing countries.

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Diesel generators are available at low cost, in addition to which, their maintenance cost is low as well. Power rental systems are being used in a number of sectors including mining, utilities, construction, oil & gas, events, and industrial. The utilities sector is expected to make considerable use of rental power in the coming years. The ageing network of thermal power plants is predicted to drive the demand for rented power in the utilities sector in the coming years.

Apart from this, the construction sector is projected to create considerable demand for rental power in the coming years as well. The major applications of rental power are continuous power, prime power, and standby power, out of which, the need for continuous power was the highest in the past. These generators are being utilized at an extensive range of settings such as industrial sites, mines, oil & gas plants, and construction sites. Other than this, the demand for standby power is also expected to increase considerably in the near future.

Geographically, the Middle East and African (MEA) region emerged as the major power rental market during 2013–2017, and the region is further predicted to create high demand for rental power in the near future as well. The surging demand for electricity in the construction sector and requirement for supplying power at outdated power plants are creating need for power rental systems in the MEA region.

In conclusion, the surging demand for energy and outdated power plants in emerging economies are driving the growth of the market.

Increasing Need from Developing Nations Driving Power Rental Market

The demand for power from the emerging economies, including Qatar, Turkey, India, China, South Korea, Brazil, and Thailand, is surging at the present time due to their swift transformation in terms of industrialization, acceptance of mixed economy, and technological advancements. In addition to this, these countries are continuously witnessing a surge in infrastructure and construction-related activities, which is further supporting their economic growth. All these developmental activities need electricity for the smooth functioning of operations. But many of these countries are devoid of utility services and are completely dependent on rental power for commercial and residential power applications, which is resulting in increasing demand for rental power.



Rental power is basically temporary power generated by rental systems in order to meet the power requirements and is primarily utilized by industries which are located remotely and do not have access to permanent electricity. According to a study conducted by P&S Intelligence, the power rental market generated a revenue of $9,167.6 million in 2017 and is expected to register a 10.3% CAGR during the forecast period (2018–2023). The two major fuel types utilized by power rental generators are gas and diesel. Other fuel types include hydrogen, solar, and gasoline. Among these, the largest demand during 2013–2017 was created for diesel generators.


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Several sectors make use of rental power: oil & gas, construction, mining, utilities, industrial, events, and others (which include military, manufacturing, shipping, and residential & commercial buildings). Out of these, the highest demand for rental power was created by the utilities sector and the situation is projected to remain the same during the forecast period as well. The reason for this is the conversion of aging thermal power plants into natural gas-fueled plants in order to fill the power supply demand gap during the conversion, which is why utility companies are renting power generators. The fastest growth in demand is predicted to be witnessed by the construction sector in the coming years.



Among different regions, namely Europe, Latin America (LATAM), Middle East & Africa (MEA), North America, and Asia-Pacific (APAC), the highest demand for rental power was created by the MEA region during 2013–2017 and the situation is expected to remain the same during the forecast period as well. This is ascribed to the surging requirement for rental power from various end users, including construction, oil & gas, utilities, and events, swift industrialization, outdated power plants, and ongoing infrastructural development.



A key trend being witnessed in the power rental market is the rising popularity of gas and hybrid generators. Gas-based generators are considered pocket and environment-friendly because they are more affordable than conventional fuel-based generators, release less emissions, and create negligible noise. Apart from this, hybrid generators which work on bi-fuel operation mode, using random combinations of diesel, gas, and solar energy, have also been developed. These generators are sustainable, clean, and easily available. It is due to these factors that different companies and consumers have started preferring hybrid generators over diesel generators.

Occurrence of Natural Disasters Driving Power Rental Market

The global power rental market reached a value of $9,167.6 million in 2017 and is predicted to grow with a CAGR of 10.3% during the forecast period (2018–2023). The market is witnessing growth due to the gross domestic product (GDP) and population rise, natural disasters, and surging demand for power from the events and entertainment industry and emerging economies. Rental power is the temporary electricity generated by rental systems for meeting power requirements. Industries which are located in remote regions without access to permanent electricity supply generally use rental power.

On the basis of fuel type, the power rental market is categorized into gas generators, diesel generators, and others (which include solar fuel-based and gasoline/petrol generators). The market was led by the category of diesel generators during the historical period (2013–2017) with more than 75.0% share in 2017. This is attributed to the easy availability of diesel and increasing demand for such generators from the manufacturing and construction sectors. This category is further expected to dominate the market during the forecast period.

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When end-users are taken into consideration, the power rental market is divided into construction, mining, utilities, industrial, events, oil & gas, and others. The division of others includes manufacturing, residential & commercial buildings, military, and shipping. Among these, the division of utilities contributed more than 45.0% revenue to the market in 2017, and it is predicted to dominate the market during the forecast period as well. This is due to the presence of various thermal power plants which require steady power supply during maintenance, conversion, or shut down.

One of the key driving factors of the power rental market is the upsurge in demand for such devices from the events and entertainment industry. This industry is flourishing currently due to the rising number of events that are being organized, such as concerts, product launches, private functions, sports leagues, weddings, fairs, and festival celebrations. For the smooth running of these events, the industry requires rental power for both short and long durations. Power rental companies provide reliable and efficient light towers and generators of different power ratings for the events.

The occurrence of natural disasters is also leading to the growth of the power rental market. Natural disasters, such as tsunamis, hurricanes, floods, tornadoes, and earthquakes, cause huge economic damage and loss of life. Often, these calamities result in environmental problems, famines, and power cuts. The recovery and mitigation process after such disasters involves large-scale reconstruction activities and relief work, which are primarily facilitated by power rental equipment provided by companies.

A major trend in the power rental market is the growing popularity of hybrid and gas generators. Propane, hydrogen, and natural gas are some gases that are being used in power generators as fuel. As gas-based generators release less emissions and create less noise than traditional fuel-based generators, they are considered cost-effective and environment-friendly. Hybrid generators are those which work on the bi-fuel operation mode, using random combinations of diesel, gas, and solar energy. These generators are easily available, sustainable, and clean, and because of these factors, their popularity is increasing.

Hence, the occurrence of natural disasters and rising demand for rental power from the events and entertainment industry are leading to the growth of the market.