U.S. Power Rental Market - Strategic Assessment & Forecast 2025-2030

The U.S. power rental market size by value is expected to grow at a CAGR of 7.68% from 2024 to 2030.

IMPACT OF TARIFF

The impact of U.S. tariffs on the U.S. power rental market is low to moderate because rental companies already have enough equipment in stock, so they don't feel the price increases right away. If the U.S. relies on Chinese manufacturing, tariffs on imported equipment, especially generators, engines, and components, significantly increase costs, directly impacting capital expenditures for power rental companies.

Higher equipment costs are often passed on to end users in the form of increased rental prices. Sectors heavily reliant on power rentals-such as construction, mining, events, and oil & gas-face budget pressures, potentially delaying or scaling back projects. As a result, customers may seek longer rental contracts to hedge against future price hikes or shift toward less costly power solutions like hybrid or solar-powered units. Moreover, some tariffs target replacement parts or components rather than finished machinery. This can raise the cost of maintaining and repairing the fleet, especially if companies run a mix of older or imported models.

US POWER RENTAL MARKET TRENDS & DRIVERS

Shift Toward Clean and Hybrid Solutions

Innovations in energy storage are revolutionizing portable power, making it more efficient and more sustainable. Leading the transformation are battery energy storage systems (BESS). A BESS paired with a mobile power generator forms a hybrid power solution that produces lower emissions or zero emissions and consumes significantly less fuel. For instance, Aggreko provides 100 kW Tier 4F Generator Rental, with innovative features that reduce regulated emissions (NOx, CO, VOCs) to near-zero levels, reduce fuel usage and costs, arc Flash detection and physical safety barriers to provide safety to the operators, and more.

Rise in Infrastructure Development

The surge in infrastructure development in the U.S. is driving demand for temporary power solutions in construction and industrial projects, particularly in remote or underserved areas. As projects like roads, bridges, and urban development expand, flexible and reliable power rental options are essential for meeting energy needs. For instance, in January 2025, OpenAI, SoftBank, and Oracle are investing up to $500 billion in the Stargate initiative to build 10 to 20 large-scale U.S. data centers, aiming to support AI infrastructure. This project is expected to drive significant growth in the data center and construction industries. These facilities often require substantial and continuous power supply, leading to a higher reliance on power rental services to meet their energy needs during peak loads or as backup solutions.

INDUSTRY RESTRAINTS

Fluctuating Fuel Prices

Gasoline is the most common fuel source for portable generators. A standard 5-kilowatt generator will typically consume about 0.75 gallons per hour. The portable generator for a day, that would consume about 18 gallons, meaning the cost to run the generator would be more than $52 a day. The price of gas does fluctuate, which can make running this type of portable generator expensive over a prolonged period. Fluctuating diesel prices directly impact the U.S. power rental market, which depends heavily on diesel generators.

U.S. POWER RENTAL MARKET SEGMENTATION INSIGHTS

INSIGHTS BY FUEL

Diesel has the highest incremental opportunity in the U.S. power rental market and is preferred over other fuels as it is more easily available. Despite reservations and resistance from environmental groups, regulators and localities are reluctantly approving diesel generators because of the current grid realities-specifically, the lack of reliable renewable infrastructure, limited energy storage capacity, and the urgent need for dependable backup power during peak loads or grid instability. Furthermore, other segments are gaining traction with an increase in power generation through renewable sources to enhance clean energy practices.

Segmentation By Fuel

• Natural Gas
• Diesel
• Others (Propane, Hydrogen, Renewable Sources)

INSIGHTS BY POWER RATING

In 2024, the above 1,000 kVA segment accounted for 40% of the revenue share in the U.S. power rental market. The increasing need for reliable, high-capacity power solutions in industries such as construction, manufacturing, and large-scale events has fueled demand for powerful rental generators capable of supporting heavy machinery and critical operations. Additionally, the growing emphasis on backup power systems for data centers, hospitals, and commercial buildings amid rising concerns over grid reliability and natural disasters has further boosted the uptake of high-capacity units. Furthermore, infrastructure development projects and expanding urbanization require robust and scalable power solutions, which are often met by rental generators above 1000 kVA due to their flexibility and cost-efficiency compared to permanent installations.

Segmentation By Power Rating

• <75KVA
• 75-375KVA
• 375-1,000KVA
• Above 1,000 KVA

INSIGHTS BY EQUIPMENT

In 2024, generators dominated the equipment segment in the U.S. power rental market. The increasing frequency of power outages and natural disasters has heightened the need for reliable backup power solutions across residential, commercial, and industrial sectors. Additionally, rapid infrastructure development and ongoing construction projects require temporary power sources, further boosting generator rentals. The growing adoption of renewable energy sources, which can sometimes lead to grid instability, also increases reliance on generators for a consistent power supply. Moreover, businesses aiming to minimize downtime and maintain operations during maintenance or unexpected power failures are increasingly turning to generator rentals as a flexible and cost-effective solution.

Segmentation By Equipment

• Generators
• Load Banks
• Transformers
• Others

INSIGHTS BY END USER

The construction end-user segment in the U.S. power rental market is the fastest-growing segment, exhibiting the highest CAGR of more than 7.9% during the forecast period. This robust growth is primarily driven by increasing infrastructure development projects, urbanization, and the expansion of residential and commercial construction activities across the country. The growing emphasis on sustainable and efficient construction practices also fuels the demand for modern, energy-efficient power rental equipment. Additionally, the rise in government investments targeting infrastructure upgrades and disaster recovery initiatives further propels the demand for temporary and reliable power sources in construction projects.

Segmentation By End-User

• Construction
• Retail
• Oil & Gas
• Mining
• Events
• Utilities
• IT & Data Center
• Manufacturing
• Others

INSIGHTS BY APPLICATION

In 2024, standby power solutions accounted for a significant 45% share of revenue within the application segment of the U.S. power rental market. Increasingly stringent regulations on power reliability and uptime across critical industries such as healthcare, data centers, and manufacturing have heightened the need for reliable backup power systems. The expanding adoption of digital infrastructure and the rise of remote work have further underscored the importance of a consistent power supply, fueling the demand for standby generators.

Segmentation By Application

• Standby
• Continuous
• Peak Shaving

GEOGRAPHICAL ANALYSIS

The Southern U.S. holds the largest share of the U.S. power rental market. States like Texas, Florida, and Georgia have significant construction, oil & gas, and manufacturing activities that drive demand for power rentals. Large infrastructure developments, including power plants, commercial buildings, and data centers, increase rental needs. Furthermore, the West holds a significant share, reflecting strong activity, especially in states like California, Washington, and Colorado. Renewable energy projects (solar, wind) and mining operations contribute to the demand for mobile power solutions. Wildfires and droughts create demand for emergency power solutions.

The Midwest remains a manufacturing powerhouse requiring temporary power for maintenance, shutdowns, and expansions. Large-scale construction projects (e.g., energy infrastructure projects, highways, bridges) often require temporary power solutions. Furthermore, the Northeast's industrial sector needs backup and supplemental power to avoid production downtime. Large-scale events, festivals, concerts, and sports events require mobile power solutions, especially in urban centers.

Segmentation By Region

• The U.S.
  • South
  • West
  • Midwest
  • Northeast

U.S. POWER RENTAL MARKET VENDOR LANDSCAPE

The U.S. power rental market is dominated by major players such as United Rentals, Sunbelt Rentals, Herc Rentals, and Home Depot. These companies hold significant U.S. power rental market share due to extensive fleets, nationwide presence, and strong brand recognition. Beyond the major players, the market includes many regional and local rental companies. These smaller firms often compete on price, customer service, or specialization in niche sectors (e.g., events, construction, or emergency services).

Growing environmental regulations and customer demand for sustainability are driving competition toward hybrid generators, battery storage, and lower-emission equipment. Companies offering green or Tier 4 Final-compliant equipment are gaining favor in the U.S. power rental market.

Key Developments in the U.S. Power Rental Market

• In 2024, Aggreko's PowerMX range launched fuel-efficient, low-emission generators with Stage V engines in a compact container. These units feature smart load-on-demand capabilities, high fuel efficiency, and compatibility with alternative fuels like HVO and B10. With advanced controls, remote monitoring, and scalability, PowerMX offers eco-friendly, reliable energy solutions for ultra-low emission zones.
• In 2024, United Rentals and Termaco launched the TREE 500kW battery, one of the largest in the rental market, to cut fuel use, emissions, and downtime. It pairs smartly with generators, reducing run time by 91% and fuel consumption by 80%. Proven in tough conditions, it boosts efficiency, sustainability, and safety. This drives customer satisfaction, higher equipment utilization, and new revenue opportunities in clean energy rentals.
• The U.S. power rental market has experienced significant merger and acquisition (M&A) activity in recent years, with companies actively expanding their power rental capabilities. In 2025, Herc Holdings completed the acquisition of H&E Equipment Services, further expanding its equipment rental portfolio and market reach. This strategic move strengthens Herc's position in the construction and industrial sectors.

Prominent Vendors

• United Rentals
• Ashtead Group plc
• Herc Holdings Inc
• The Home Depot, Inc.

Other Prominent Vendors

• Atlas Copco
• Cummins Inc.
• Aggreko
• Caterpillar
• GENERAC
• Sunstate Equipment Co., LLC
• Red-D-Arc Inc.
• Taylor Power Systems, Inc
• Rehlko

KEY QUESTIONS ANSWERED:

1. Which are the key vendors in the U.S. power rental market?

2. How big is the U.S. power rental market?

3. What are some significant growth opportunities in the US power rental market?

4. What is the growth rate of the U.S. power rental market?

5. Which fuel type is projected to dominate the U.S. power rental market?