Power Rental Systems Market (By Application: Peak Shaving, Continuous Power, Standby Power; By End User) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2022-2030

The global power rental systems market was estimated at USD 21.7 billion in 2021 and it is expected to surpass around USD 35.94 billion by 2030, poised to grow at a CAGR of 5.77% from 2022 to 2030.

Report Highlights

• The government and utility segment held the largest share of 25.8% in 2021. 
• The oil and gas segment is expected to expand at a CAGR of 6.33% from 2022 to 2030.
• The continuous power application segment held the largest share of 46.78% in 2021 and is projected to grow at a significant rate during the forecast period. 
• The peak shaving application segment is expected to expand at a CAGR of 7.32% from 2022 to 2030. 
• Asia Pacific held the largest share of 36.52% in 2021. The region is likely to grow at a significant rate over the forecast period.

Increasing demand for UPS, along with rapid industrial development across the world, is the main factor boosting the market growth. Growing instances of variable electricity supply generated by small and medium-scale power grids and partial access to the larger transmission network have catalyzed the demand for power rental systems across the manufacturing and utility industries.

Moreover, there is an increasing requirement for an accessible rental unit that can stun the problems linked with power outages and voltage sags. Furthermore, growing awareness related to the profits of subcontracting power equipment is positively impacting market growth. Power rental systems allow their customers to acquire equipment according to their necessities in a cost-effective way.

Besides, the execution of supportive government initiatives to develop airport networks and metros, along with the construction of shopping malls and hotels, is increasing the demand for power rental systems across countries. Factors such as increasing deployment of renewable sources of energy as an alternative power generation source to decrease the carbon emissions and the adoption of natural gas-based electricity generations are expected to boost the market growth.

Growing grid uncertainty, coupled with power spikes at the time of peak demand, is anticipated to be a main driver for the market. Besides, amplified focus towards a decrease in the peak power consumption in order to cut power cost is likely to enhance the growth of the market.

The power rental units are used across various industries as there is a higher demand for continuous power application. Major end-user markets for such rental systems were oil and gas, government and utilities, and construction, which altogether accounted for 64.5% share of the global revenue in 2021. Higher dependence on electricity for day to day operation of such industries is a key booster for considerable usage of power rental systems.

Asia Pacific was the largest regional market for power rental systems in 2021, accounting for 35.5% share of the global revenue. This is attributed to the presence of the construction and oil and gas industries.

Scope of The Report

End-user Insights

The government and utility segment held the largest share of 25.8% in 2021. The usage of power rental systems helps these industries distribute power loads between peak and non-peak hours, thereby reducing the electrical power cost considerably.

The oil and gas segment is expected to expand at a CAGR of 6.33% from 2022 to 2030 as it is one of the largest consumers of power across the globe. The usage of power rental systems supports industries to allocate power loads at times between non-peak and peak hours, thereby reducing the electric power cost substantially. Furthermore, the growing oil and gas industry in the Asia Pacific and the Middle East, coupled with the supply and demand gap in the power sector, is likely to boost the segment growth.

Industrial development in emerging countries of the APAC region, particularly in India, China, and Japan, is anticipated to boost the demand for power rental systems in the industrial sector, which ultimately drives the market. Leading companies have moved their manufacturing activities to MEA and APAC regions, which has significantly increased their power demand leading to a supply-demand gap. The construction sector also emerged as a major consumer of power rental units owing to the continuous demand for high power.

Application Insights

The continuous power application segment held the largest share of 46.78% in 2021 and is projected to grow at a significant rate during the forecast period. Power rental systems are progressively finding applications in the oil and gas, construction, and mining sectors. Such sectors generally require a constant supply of electricity as they are far-off from the power grid areas. Some of the renewable and hydroelectric power plants also require an add-on backup power solution. Telecommunication centers, government offices, and hospitals require UPS, thus fueling up the growth of the continuous power application segment.

The peak shaving application segment is expected to expand at a CAGR of 7.32% from 2022 to 2030. Peak saving method is to cut power bills by limiting the electricity consumption during peak hours as power rates are costly. Power rental systems aid in curbing the electricity demand at the time of seasonal hours, which is supporting to lessen the power billing costs.

The main goal of the peak shaving application is to evade the obligation of permanent installation to source out peaks of higher load capacities. Commercial and industrial clients use peak shaving to save utility bills by reducing the peak demand. Power demand increases during summer and winter seasonal peak hours. Hence, peak shaving power rental system demand is expected to rise with increasing alertness to control penalized power bills.

Standby mode consumes up to 25% electricity as compared to the active power mode. The growing IT industry, data centers, and augmented use of electrical appliances that normally work in standby mode are anticipated to drive the standby power application segment in the forecast period. Nevertheless, various regulations executed by Greenpeace and the EPA are projected to curtail standby mode electricity consumption, thereby hindering the demand for rental power systems.

Regional Insights

Asia Pacific held the largest share of 36.52% in 2021. The region is likely to grow at a significant rate over the forecast period owing to the growing awareness of electricity consumption across emerging countries and industrial applications in countries, like China and India. The APAC market is anticipated to witness higher potential growth in the future owing to decreasing ownership demand for power generation systems and increasing demand for continuous power applications from the utility and construction sector.

The market is estimated to grow significantly in regions, like North America, trailed by Europe, in terms of revenue, owing to the growing demand for power rental systems by the end-user segments in numerous countries across these regions. The market across the Middle East and Africa region is projected to witness substantial growth in the coming years due to its collective demand for power rental units in the oil and gas, construction, and industrial sectors across the countries, such as Qatar, Saudi Arabia, Iraq, and UAE. The market in the Middle East and Africa was valued at USD 1,286.5 million in 2021.

Lack of consistent power supply from the grids, mainly to islands, wherein power demand has grown significantly over a year, is likely to keep the market projections optimistic. Power infrastructure in countries such as the Philippines, Indonesia, and Vietnam is expected to sustain the product demand over the coming years.

North America is one of the pioneers of the market. The American Rental Association (ARA) regulates the rental policies and also assists in the development of the rental industry. The region is expected to witness significant growth in the years to come on account of growing consciousness among end-users regarding rental benefits, such as accessibility of additional capital for core activities and abridged equipment obsolescence. However, mature market conditions of the region, coupled with the unfavorable economic climate, are expected to hamper the growth of the power rental industry.

Key Players

• Aggreko
• Herc Rentals Inc.
• APR Energy
• Caterpillar
• United Rentals, Inc.
• Cummins Inc.
• Ashtead Group plc
• Atlas Copco AB
• Al Faris
• Hertz System, Inc.
• Kohler Co.
• Bredenoord
• HIMOINSA
• Altaaqa Global

Market Segmentation

• By End-user Outlook

• Government & Utilities
• Oil & Gas
• Construction
• Industrial
• Event Management
• Others
• By Application Outlook
• Peak Shaving
• Continuous Power
• Standby Power
• By Regional Outlook
• North America

• The U.S.
• Canada
• Mexico
• Europe
• Germany
• Russia
• The U.K.
• France
• Asia Pacific
• China
• India
• Japan
• Australia
• Central & South America
• Brazil
• Argentina
• The Middle East & Africa
• UAE
• Qatar