Rental Gensets Industry, Global, 2024-2034

Rapid Infrastructure Development and Increasing Emergency Power Needs Drives Growth

The global rental genset market is experiencing steady growth, valued at $6.61 billion in 2024 and expected to exceed $11 billion by 2034. This growth is driven by the increasing demand for temporary and backup power across sectors such as construction, mining, oil & gas, utilities, and events. Diesel Gensets still make up about 70 to 80% of rental units due to their reliability and fuel availability, but environmental regulations are pushing rental providers towards cleaner alternatives like natural gas and hybrid systems, particularly in developed regions. North America leads the market in revenue, primarily due to its disaster recovery and infrastructure needs. Meanwhile, the ASEAN region is experiencing the fastest growth.

Additionally, the market is witnessing advancements in technology, particularly through the adoption of telematics and remote monitoring. These innovations enable better tracking of usage and maintenance.

The market has moderate to highly competitive intensity, influenced by both global original equipment manufacturers (OEMs) and regional specialists such as Aggreko, United Rentals, Cummins, Caterpillar, and Atlas Copco. These companies compete based on factors like reliability, fleet size, service responsiveness, and environmental performance. While developing regions tend to be fragmented with more affordable diesel units, developed markets are increasingly focusing on cleaner technologies, such as gas and hybrid systems.

Despite challenges such as tightening emission regulations and rising fuel prices, the long-term outlook remains positive. Rental companies are diversifying their fleets and expanding their hybrid offerings, positioning rental Gensets as essential components of resilient energy strategies worldwide.

Revenue Forecast

The revenue estimate for the base year 2024 is $6.61 billion, with a CAGR of 5.5% for the study period 2024-2034.

The Impact of the Top 3 Strategic Imperatives on the Rental Gensets Industry

Disruptive Technologies

• Why
• Connectivity and 5G adoption are the main digitalization enablers of gensets. Predictive applications are in high demand in many segments. The technologies appear most promising in construction, data centers, oil and gas, utilities, healthcare, and the public sector. Predictive applications and advanced analytics can boost flexibility and planned outcomes. They can also increase operational and capital efficiency by improving equipment control and utilization.
• Frost Perspective
• Research indicates that widespread use of the technologies will not occur for at least 2 to 5 years in emerging regions. Most global manufacturers already use predictive applications and advanced analytics from North America and Europe.

Competitive Intensity

• Why
• Market fragmentation and high barriers to entry stem from substantial capital requirements and logistical complexities. Advances in technology aimed at increasing efficiency and reducing emissions, combined with the variability in customer needs, make it challenging to navigate price pressures. As demand rises in sectors such as data centers, construction, and utilities, competition is intensifying. Companies are responding by investing in larger fleets, implementing digital monitoring systems, and offering low-emission products to set themselves apart.
• Frost Perspective
• In 2 to 5 years, intense competition could put global companies at a disadvantage, causing them to miss predictable opportunities to smaller companies.

Transformative Megatrends

• Why
• Electricity generation is the largest source of global greenhouse gas emissions, at 25%. The urgency to reduce emissions is shifting consumer and government preferences toward cleaner energy sources, with many countries targeting net-zero carbon emissions in the long term. Government-led pro-green policies, increased energy consumption, and advancements in hybrid-photovoltaic (PV) and battery storage-options will drive the growth of the gas genset industry.
• Frost Perspective
• Demand trends for gas gensets will likely drive gas businesses in 5-7 years. The leap to net-zero emissions, representing ubiquitous technology adoption, is forecast to happen in 2030 as diesel technologies reach maturity.

Key Competitors

• Global
  • AGGREKO
  • CATERPILLAR
  • CUMMINS
  • ATLAS COPCO
• North America
  • AGGREKO
  • UNITED RENTAL
  • CATERPILLAR
  • CUMMINS
  • GENERAC POWER SYSTEMS
  • SUNBELT RENTAL
• Europe, Russia and CIS
  • SPEEDY HIRE (UK)
  • BOELS RENTAL (NETHERLANDS)
  • PRAMAC (ITALY)
  • AGGREKO
  • CATERPILLAR (CAT RENTAL AND CES)
  • CUMMINS
• China
  • AGGREKO
  • ATLAS COPCO
  • SHAANXI DIESEL HEAVY INDUSTRY
  • WEICHAI POWER
  • YUCHAI MACHINERY
  • JICHAI POWER EQUIPMENT
• ANZ and Pacific ASEAN East Asia
  • NISHIO RENT ALL (JAPAN)
  • AGGREKO
  • KENNARDS HIRE
  • GENSET POWER
  • COATES (FORMERLY COATES HIRE)
  • DENYO
• India and South Asia
  • AGGREKO
  • ATLAS COPCO
  • POWERCA
  • PERFECT RENTAL POWER SOLUTIONS
  • KIRLOSKAR OIL ENGINES
  • SUDHIR POWER
• Latin America
  • TECNOGERA (BRAZIL)
  • AGGREKO
  • ENERGYST
  • FINING CAT
  • RENTASUR
  • CUMMINS
• Middle East & Africa
  • BYRNE EQUIPMENT RENTAL
  • JUBAILI BROS
  • ALTAAQA GLOBAL
  • RENTAL SOLUTIONS & SERVICES (RSS)
  • GENERAC

Growth Drivers

• Increased demand for cost-effective and flexible backup power solutions will drive genset sales.
• Grid failures and power outages continue to be an important growth driver for the rental gensets industry.
• Rapid industrial growth and urbanization are increasing the demand for rental gensets in both developed and developing countries.
• Greater customer awareness about the benefits of backup power will cultivate the need for small gensets. Shift towards sustainable solutions is driving demand for low-emission and renewable energy-powered rental gensets, as companies prioritize environmental sustainability.
• Improvements in genset features and capabilities, such as advanced predictive technologies, remote monitoring, and enhanced connectivity, increase the appeal of rental gensets in the construction, oil and gas, and mining sectors.

Growth Restraints

• Rising fuel costs and volatility directly impact operational expenses and rental prices, pressuring the growth of traditional rental models as cost-sensitive customers increasingly seek more energy-efficient or hybrid solutions.
• Global supply chain issues, particularly concerning engines, alternators, and electronic control units, have resulted in longer lead times and higher costs, limiting rental companies' ability to quickly expand fleets or modernize.
• Competition from battery storage and hybrid systems limits the potential of the medium to large segment, as events and construction often prefer quieter, cleaner alternatives for regulatory and public relations reasons.
• The high capital investment required for fleet modernization limits market growth, as many smaller players struggle to replace their legacy fleets.
• Regulatory uncertainty in developing countries results in market fragmentation, safety concerns, and competition from informal providers, hindering market development.