Generator Rental Market

Generator Rental Market Growth Outlook (2023 to 2033)

The global generator rental market is estimated to reach a valuation of US$ 10.3 billion in 2023 and expand at a CAGR of 5.6% to reach US$ 17.7 billion by the end of 2033.

There is a surge in the use of generators in events such as concerts, festivals, trade shows, and sporting events to fulfill the need for temporary power supply solutions. Additionally, an increase in construction activities that require temporary power supply solutions for various tools and equipment is also contributing to the growth of the generator rental market.

Report Attributes	Details
Generator Rental Market Size (2022A)	US$ 9.7 Billion
Estimated Market Value (2023E)	US$ 10.3 Billion
Forecasted Market Value (2033F)	US$ 17.7 Billion
Global Market Growth Rate (2023-2033)	5.6% CAGR
China Market Share (2023)	23.3%
China Market Growth Rate (2023-2033)	6.7% CAGR
United States Market Growth Rate (2023-2033)	5.9% CAGR
Market Share of Top 3 Countries	50.3%
Key Companies Profiled	Aggreko BlueLine Rental Cummins Power Generation Generac Rental Services Herc Rentals Rental Solutions & Services (RSS) United Rentals

Historic to Future Growth Analysis of the Generator Rental Market

Generator rental services provide a flexible and cost-effective solution to meet this demand. Purchasing a generator is expensive, and the maintenance and storage costs add up. Renting generators provides a cost-effective alternative, especially for short-term or intermittent power requirements. It also allows businesses to scale up or down based on their needs without the long-term commitment of ownership.

Advancements in generator technology, such as increased fuel efficiency, quieter operation, and cleaner emissions, have made generator rentals more attractive. Rental companies often update their fleets with the latest models, ensuring customers have access to efficient and environmentally friendly power solutions.

Hence, with the growing need for temporary power solutions across various sectors such as construction, events, oil and gas, manufacturing, disaster recovery, and technology advancements the generator rental market is likely to witness immense growth opportunities during the forecast period.

• Short Term (2023-2026): Rapid infrastructure development in both developed and developing countries requires power sources during construction phases. Generator rentals fulfill the temporary power requirements until permanent power infrastructure is established creating growth opportunities for the market.
• Medium Term (2026-2029): Events such as concerts, festivals, sports tournaments, and corporate functions require reliable and scalable power solutions. Generator rentals offer the flexibility to meet varying power needs, ensuring uninterrupted operations during events and creating growth opportunities for the market players during the assessment period.
• Long Term (2029-2033): Generator rentals are vital for remote locations and off-grid applications where access to the electrical grid is limited or non-existent. Industries like mining, oil and gas exploration, and telecommunications often rely on rental generators to power their operations fueling the market growth during the forecast period.

Over the 2018-2022 historical period, the global generator rental market registered a CAGR of 5.8%, and according to Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit growth at 5.6% CAGR between 2023 and 2033.

Market share analysis of generator rental based on the fuel source and region is illustrated briefly in the above image. Under the fuel source segment, the diesel sub-segment will dominate with 65.1% market share in 2023.

Market Dynamics Overview

“Plethora of Applications to Fuel Generator Rental Market Growth”

Industrial facilities need continuous backup power to guarantee smooth operation in the event of power shortages or grid breakdowns. Renting a generator offers a dependable way to sustain output and prevent expensive downtime. The need to use temporary electricity during construction and maintenance work is necessary. Such projects are commonly undertaken by the industrial sector, and generator rentals provide a simple and adaptable power source for tools, equipment, and temporary structures used in construction.

Businesses that operate in remote areas, such as mining and oil and gas exploration, rely on generator rentals to provide dependable electricity in areas with poor or nonexistent grid access. Additionally, businesses that experience seasonal or irregular surges in power demand rent generators to handle their higher capacity needs without having to invest in long-term infrastructure improvements are likely to create immense growth opportunities for the market during the forecast period.

“Factors Affecting the Generator Rental Market Growth”

The market for renting out generators has some restrictions and constraints due to the use of diesel fuel. Diesel generators produce pollutants and contribute to air pollution, raising environmental concerns and calling for stronger emission laws. Due to this reason, there is now a necessity for cleaner and eco-friendlier power sources, which affects the market for diesel-powered generator rentals which are commonly used.

Further, changes in fuel prices have an impact on generator rental companies' operational costs, which have an impact on their profitability and pricing competitiveness. The process of renting generators is made more difficult and expensive by the need for specific infrastructure and safety issues related to the storage, handling, and transportation of diesel fuel.

Country-wise Insights

What are the Factors Driving Generator Rental Market in China?

In China, there is a significant demand for generator rentals due to rapid urbanization and developing infrastructure, which is fueling the generator demand to meet the temporary power requirements to run the construction equipment.

As the manufacturing sector grows in China, a more consistent and uninterrupted power supply will be required for operations. For backup power and peak season, generator rentals offer a flexible and affordable solution.

Natural catastrophes like typhoons and earthquakes, which can result in power disruptions, are common in China. In these cases, renting generators is essential for delivering emergency electricity. Also, China has a sizable number of isolated and off-grid regions with poor grid access. Businesses that operate in these areas rely on generator rentals to maintain operations.

Temporary power solutions are required in China due to the increase in fairs, trade exhibits, and festivals. The power needs of these events are met via generator rentals. The strong demand for generator rentals in China is a result of various factors, including construction projects, industrial needs, natural disasters, isolated locations, and events.

With respect to the aforementioned dynamics, China’s generator rental market is likely to grow at a CAGR of 6.7% during the forecast period.

What does role the U.S. play in the growth of the generator rental market?

The growing lithium mining activities in the USA drive the demand for the generator rental market. Lithium mining often takes place in remote or off-grid areas where access to the electrical grid is limited. In such cases, generator rentals become essential to power mining operations, providing temporary or backup power until permanent infrastructure is established. This drives the demand for generator rentals in these mining regions.

With the growing demand for lithium, mining companies are expanding their operations and establishing new mines across the USA. These expansion projects often involve the construction of new infrastructure and mining facilities, which require temporary power during the construction phase. Generator rentals fulfill the power requirements for construction sites, driving market growth.

Category-wise Insights

Which Fuel Source is Preferred in Generator Rental Market?

Under the fuel source segment, the diesel sub-segment is anticipated to hold a prominent share of the market. The segment is attributed to holding 65.1% of the market share in the year 2023. Owing to stable electricity supply, and cost efficiency, diesel generators are more popular than other variants.

The consumer preference for diesel over natural gas is creating market potential due to the easy availability and accessibility of diesel. Owing to which diesel segment is expected to grow with a compound annual growth rate of 4.9% over the assessment period.

How Growing Commercial Activities to Drive the Market Growth?

With the growing investment in construction activities, the infrastructure development commercial industry creates immense growth opportunities for the generator rental service providers to exploit the growth opportunities. An increase in construction activity directly influences the expansion of the generator rental market. Due to the need for temporary power solutions, the construction industry is a significant contributor to the market for generator rentals. The need for electricity to run tools, equipment, lighting, and other electrical systems on construction sites grows along with the activity level.

The surge in building projects, such as those for residential buildings, commercial complexes, and infrastructure development, stimulates the demand for generator rentals to supply temporary power during different construction phases. These projects frequently call for electricity in off-grid or distant areas where grid connectivity may be spotty or nonexistent.

For construction enterprises, renting generators provides an affordable and adaptable alternative that enables them to acquire the required power capacity without having to make substantial capital investments in long-term power infrastructure.

Competitive Landscape

Prominent generator rental service providers are Aggreko, BlueLine Rental, Cummins Power Generation, Generac Rental Services, Herc Rentals, Rental Solutions & Services (RSS), Sunbelt Rentals, and United Rentals.

Generator rental service providers maintain a diverse fleet of generators to cater to a wide range of power requirements. This includes generators of various sizes, power capacities, fuel types, and technological features. Offering a comprehensive selection ensures that customers can find the most suitable generator for their specific needs.

Further, generator rental service providers offer flexible rental terms and packages to accommodate the diverse needs of their customers. This includes short-term and long-term rentals, customized rental durations, 24/7 availability, and flexible delivery and pickup options. By providing tailored solutions, providers can attract a wider customer base and build long-term relationships.

Fact.MR has provided detailed information about the key rental service providers of generator rental, their total fleet, service portfolio, and revenue growth, in the recently published report.

Segmentation of Generator Rental Industry Research

• By Product Type :

  • AC Generator
  • DC Generator

• By Output :

  • Upto 60 KW
  • 61 to 250 KW
  • 251 to 500 KW
  • 501 to 1,000 KW
  • 1,000 kW- 4,000 kW
  • Above 4,000 kW

• By Fuel Source :

  • Diesel Generator
  • Gasoline Generator
  • Gas Generator
  • Others (Bi-Fuel, Natural Gas, Etc)

• By Installation :

  • Stationary
  • Mobile and Portable

• By Cooling Type :

  • Air Cooled
  • Hydrogen Cooled
  • Water Cooled

• By Application :

  • Standby
  • Peak Shaving
  • Continuous

• By End User :

  • Commercial
    • Datacenter
    • Healthcare Facilities
    • Telecom
    • Hospitality Centers
    • Others
  • Residential
  • Industrial
    • Mining
    • Oil & Gas
    • Power and Energy
    • Water Treatment Facility
    • Others
  • Military
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA