Power Generator Rental Market - Growth, Trends, and Forecasts (2023 - 2028)

The power generator rental market is expected to record a CAGR of greater than 5.2% during the forecast period.

The market was negatively impacted by COVID-19. Presently, the market has reached pre-pandemic levels.

Key Highlights

• The drivers for the power generator rental market include the cost associated with purchasing new generators and tremendous developments in various sectors, such as oil and gas, construction, etc.
• However, the expansion of power distribution networks and rising development in renewable energy projects are expected to act as a restraint for the market's growth.
• With the rising population, projects from different sectors are expected to increase to meet the requirements, like energy, commercial and residential space, and manufacturing units, for daily needs. For instance, the global population is estimated to reach nearly 8.5 billion by 2030, which may boost global construction spending to USD 17.5 billion. Growth in construction implies a high possibility of an increase in the worldwide power generator rental market.
• North America is a significant region for the power generator rental market. It is estimated that scheduled power shutdowns, new projects installations for various industries, and enplanements, such as natural disasters and seasonal peak power demand, may primarily drive the regional power generator rental market.

Power Generator Rental Market Trends

Power Generators in the Oil and Gas Industry to Witness Significant Growth

• The oil and gas industry has a prominent share in the power generator rental market. With most of the projects located in remote areas, with different anticipated oilfield depths, power generators with high capacity that can work in rigorous environments are required.
• Power generators act as a power supply for both drilling and digging and power backup activities. During drilling and digging, huge power is required to operate the equipment. Power generators act as a power backup to the oil and gas facilities during any emergency or disaster.
• According to IEA, in 2021, oil and gas upstream investment accounted for USD 384 billion. With an annual growth rate of 8.8%, upstream is expected to increase during the forecast period, which, in turn, may drive the power generators market in the oil and gas industry as drilling and digging require a large amount of power.
• Typically, six poles of 1,200 rpm alternators, with two bearings for assembling on an oilfield, are most preferable in the oil and gas industry. The generator's alternator should also withstand voltage dips as large as 25-30% that an electric motor can cause while starting.
• During the forecast period, the oil and gas industry is expected to boost the power generator rental market, as expenditure for exploration and production (E&P) activities is increasing. By 2025, the oil and gas industry is expected to have nearly USD 700 billion in investment, which may drive the power generator rental market.

North America is Expected to Become a Significant Market

• North America's power generator rental market is estimated to grow significantly, with diesel generators being the most dominating segment. However, with tightening environmental policies to reduce carbon footprints, the focus on alternate fuel generators is increasing.
• The oil and gas industry requires a huge amount of power for its upstream and downstream processes. Oil consumption in North America is increasing Y-o-Y, thus creating demand for oil production, which, in turn, is expected to drive the power generator rental market during the forecast period. In 2021, total North American oil consumption accounted for 22,264 thousand barrels daily with an annual growth rate of 7.6%.
• The United States is one of the prominent countries that use natural gas power generators to have a cleaner environment. The country highly relies on natural gas generators due to their less failure during operation. Natural gas generators typically save USD 1,000 per kilowatt to USD 3,000 per kilowatt during operation.
• Growing demand for energy, infrastructure projects, and requirement for contact power are a few primary factors driving the North American power generator rental market. The US oil and gas sector is expected to see an investment of around USD 250 million, which is anticipated to drive the market during the forecast period.
• The region's construction sector is expected to exceed USD 1 trillion in investment during the forecast period. The sector's growth is anticipated to further boost the rental generator market, along with the oil and gas industry.

Power Generator Rental Industry Overview

The power generator rental market is fragmented. Some of the key players in the market (not in a particular order) include Atlas Copco (India) Ltd, Cummins Inc., Ashtead Group PLC, Modern Hiring Service, United Rentals Inc., Herc Rentals Inc., Generac Power Systems, Wacker Neuson Group, and Wartsila Corporation.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support