Power Rental Market Size By Power Rating (< 75 kVA, 75 - 375 kVA, 375 - 750 kVA, > 750 kVA), By Fuel (Diesel, Gas), By End-Use (Telecom, Data Center, Healthcare, Oil & Gas, Electric Utilities, Offshore, Manufacturing, Construction, Mining, Marine), By Application (Standby, Peak Shaving, Prime/Continuous), Industry Analysis Report, Regional Outlook, Application Potential, Covid-19 Impact Analysis, Competitive Market Share & Forecast, 2021 – 2027

Industry Trends

Power Rental Market size was valued at over USD 11 billion in 2020 and is expected to register over 4.8% CAGR between 2021 and 2027. Power rental is defined as facility of leasing of equipment or systems that offer prime or standby power supply on a temporary basis when the need arises. The key products involved include generator sets, load banks, and electrical distribution system amongst others.
 

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Robust infrastructural expansion along with rising significance of power backup solutions and emergency preparedness amongst end users is set to propel the industry growth. Burgeoning population count and rapid urbanization has resulted in increased demand for constant electricity supply. The independency from additional infrastructure requirements and minimized setup costs coupled growing urgency to sustain continuous business operations will drive the demand for power rental systems.
 

Expansion of commercial establishments and ongoing digitalization is set to augment the power rental market statistics

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>750 kVA rated units, contributed to over 22% of the global power rental market share in 2020. Wider applicability driven by surging requirements to provide backup power across commercial spaces comprising hotels, telecom towers, and educational institutions is set to enhance the product deployment. Mounting data center costs incurred during a blackout or brownout will impart a substantial thrust to large-scale adoption of these units. In addition, growing implementation of mobile towers to cater to the increasing customer requirements predominantly across the developing nation is set to propel the market forecasts.
 

375-750 kVA rated units will witness increased deployment on account of rising demand from remote locations which lack connection to the central grid and are solely reliant on generators for electrification. Unpredictable and frequent power outages owing to intensifying weather-related disasters that include hurricanes, earthquake, and floods are set to significantly widen the deployment capability of these units. Furthermore, end user awareness and shifting industry inclination toward adoption of reliable & economic power solutions are key parameters accountable for accelerating the power rental market share.
 

Longer life span and better operational performance in comparison to the existing substitutes will stimulate the diesel power rental industry size

Diesel power rental market accounted for over 72% market share in 2020. Diesel fueled units is set to witness a steady deployment rate driven by its ability to provide weather-independent, scalable, and flexible operations. Stringent emission control norms may hamper the sales of these systems, however, their round the clock power availability and low up-front costs will augment the diesel power rentals market. Additionally, increased product life and reliable engine performance coupled with higher operational efficiency are some of the key parameters providing substantial impetus to the power rental industry.
 

Rising urgency to provide consistent electricity supply to the hospitals and data centers will fuel the product adoption

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The unfortunate outbreak of COVID-19 and subsequent second wave affecting major economies has resulted in temporary halting of industry operations on account of implementation of strict lockdowns and nationwide curfews. However, rising construction activities in consequence of rapid development of makeshift hospitals, is projected to trigger the demand for power rental units as an essential electricity supply source. Moreover, urgency to supply constant power to the ICUs to counterbalance the break in operational flow following the surging count of Corona-infected people is set to improve the business outlook.
 

Ongoing digitalization prominently across telecom industry driven by increasing FDIs from global MNCs and government authorities will boost the demand for constant power, thereby strengthening the industry statistics. Moreover, favorable government policies comprising National Digital Communications Policy 2018 in India and National Digital Transformation Program in Vietnam are projected to thrust the business landscape. For instance, the Government of Bangladesh permits 60 percent foreign ownership in telecommunication infrastructure in order to promote the investment scenario across the telecom sector. Additionally, increasing incidences of natural calamities and unprecedent weather conditions subsequent to extended power outages coupled with large scale product adoption will stimulate the industry outlook.
 

Accelerating electricity demand from surging population growth has obligated power utilities to opt for load shedding period, thereby augmenting the power rental market share

Standby power application segment is projected to grow on account of wide applicability of these systems to offer electricity supply in events of electric outage thus avoiding huge financial, reputational, and product losses. Growing product installation across industries including infrastructure, commercial complex, and large industries with an aim to capitalize on their operational performance is set to fuel the power rental business. Improved supply chain networks and expansion of strong distribution channels will further amplify the accessibility to these units thereby facilitating large-scale unit deployment.
 

Asia Pacific power rental market revenue is projected to undergo substantial growth owing to robust development of commercial establishments

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In Asia Pacific, Japan, China and India accounted for over 60% of the revenue share in 2020. Rapid expansion of commercial spaces comprising malls, hotels, and retail stores has significantly attributed to an increased demand for stable power supply, thereby augmenting the utilization of power rentals. Notable Southeast Asian countries including Thailand and Indonesia are witnessing mega commercial infrastructure development on account of increasing government expenditure on public establishments. Moreover, ongoing digitization coupled with prevailing Industrial Revolution 4.0 across the region will impart substantial impetus to the industry expansion.
 

Market expansion in line with R&D investments is anticipated to act as a vital point for key industry players

Increasing investments across R&D coupled with technical collaborations by prime industry players will positively impact the market potential. Manufacturers are adopting strategies including expansions, capacity mergers, partnerships & collaborations, and acquisitions in order to sustain their market presence. Prominent players functioning across the global power rental market include Atlas Copco, Caterpillar, United Rentals, Cummins, Aggreko, Generac, Kohler, Ashtead Group, Herc Rentals, Shenton, Bredenoord, Al Faris, NIDS, Modern Hiring, Perfect Hiring, HIMOINSA, Wärtsilä, Sudhir Power, Wagner Equipment, GMMCO Limited, Energyst, Byrne Equipment Rental, PT. Sumberdaya Sewatama and Shoreline Energy International amongst others.
 

Global power rental market research report includes in-depth coverage of the industry with estimates & forecast in terms of Units and USD from 2017 to 2027, for the following segments:

By Power Rating

• <75 KVA
• 75-375 KVA
• 375-750 KVA
• >750 KVA

By Fuel

• Diesel
• Gas
• Others

By End Use

• Telecom
• Data Center
• Healthcare
• Oil & Gas
• Electric Utilities
• Offshore
• Manufacturing
• Construction
• Mining
• Marine
• Others

 By Application

• Standby
• Peak Shaving
• Prime/Continuous

The above information has been provided for the following regions and country:

• North America
  • U.S.
  • Canada
• Europe
  • Russia
  • UK
  • Germany
  • France
  • Spain
  • Austria
  • Italy
• Asia Pacific
  • China
  • Australia
  • India
  • Japan
  • South Korea
  • Indonesia
  • Malaysia
  • Thailand
  • Vietnam
  • Philippines
• Middle East
  • Saudi Arabia
  • UAE
  • Qatar
  • Turkey
  • Iran
  • Oman
• Africa
  • Egypt
  • Nigeria
  • Algeria
  • South Africa
  • Angola
  • Kenya
  • Mozambique
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Chile