Generator Rental Market

Generator Rental Market Size (2023-2028):

The Global Generator Rental Market was worth US$ 8.96 billion in 2022 and is projected to reach a valuation of US$ 13.85 billion by 2028 and is predicted to register a CAGR of 7.80% during the period 2023-2028.

Market Overview:

In the oil and gas business, generators are critical power sources, particularly for drilling and excavating operations. The operations are the most important step in the hydrocarbon production process, and they demand a lot of power to run the enormous gear, which is why mobile power generators with voltages ranging from 500 to 2,500 kilovolts are commonly utilized. Rather than incurring additional costs by purchasing a new generator, most companies opt to rent rather than purchase. Furthermore, projects from diverse industries vary in location and are spread throughout different areas. Rather than hauling one's generator between several places, renting from different locations appears to be more convenient and cost-effective. The expense of acquiring new generators, as well as huge advancements in many industries such as oil and gas, construction, and others, are driving the generator rental business.

To diversify their revenue sources, generator rental companies are investing in creating countrywide and international service sites. Flexible rent packages are created to match a client's period, fuel, and power requirements, as well as their budget. Suppliers are diversifying their generator portfolios to ensure that utilities, mining, and construction sites get the exact quantity of electricity they need. Suppliers in the generator rental industry are building a load-on-demand configuration where portable generators automatically turn on and off based on the site's load demand in scenarios when clients' power demands fluctuate. This aids clients in reducing fuel use, pollutants, and expenditures.

With the growing population, more projects from many sectors are likely to emerge to address everyday necessities such as energy, commercial and residential space, and manufacturing units. Construction growth suggests a significant likelihood of an expansion in the global generator rental industry.

Market Drivers:

One of the key drivers of the generator rental market is the increase in the number of power outages. Natural disasters, transmission line failure, distribution line failure, and equipment defects at power-producing stations or substations throughout the world have all contributed to an increase in the number of days with power outages in recent years. The worldwide generator rental industry is projected to be driven by this. Generator leasing is a popular way to supplement electricity from transmission and distribution lines. Manufacturing companies in rural places rely heavily on rental power services, such as rental generators, because power outages occur often in remote parts of various nations across the world. This enhances the market for generator rentals.

Electric equipment can be severely harmed by power fluctuations. Humans using the equipment or machinery may potentially be harmed. Electricity distribution is hampered by a lack of regular repair of power grids across the world, which increases reliance on rented generators. As a result, the generator rental industry is boosted. Power outages also lower industrial output and result in revenue loss. They also cause pain, malfunction, and unproductivity in homes, businesses, government buildings, and other institutions. As a result, most users prefer generator sets to protect their equipment and reduce power usage during peak hours. As a result, rising worldwide electricity consumption and the occurrence of power outages are likely to enhance the global generator rental market throughout the forecast period.

Market Restraints:

However, market growth is projected to be limited by the expansion of power distribution networks and the increased development of renewable energy projects.

GENERATOR RENTAL MARKET REPORT COVERAGE:

Market Segmentation:

Generator Rental Market - By Type:

• Diesel.
• Natural Gas.

Diesel Generators are expected to possess the dominant share within the Global Generator Rental Market during the forecast period. Diesel generator sets are employed in regions where there's no access to the facility grid, as an emergency power source if the grid fails, and for more complicated applications like peak-lopping, grid support, and facility export. To minimize low-load or power shortages, diesel generators must be properly sized. The peculiarities of the latest electronics, particularly non-linear loads, make sizing difficult. An open cycle turbine is more efficient at full load than a diesel array in size ranges of fifty MW and above, and much more compact, with comparable capital costs.

Natural Gas Generators are expected to have a significant share and growth in the Global Generator Rental Market during the forecast period. A natural gas generator is a type of generator that uses natural gas rather than gasoline or diesel to power it. Natural gas generators are more cost-effective, efficient to operate, and environmentally friendly than other fossil-fuel generators. They are, however, less adaptable than other types of generators and may not be the ideal option for all applications.

Generator Rental Market - By End-User:

• Oil & Gas.
• Construction.
• Mining.
• Manufacturing.
• Data Centres.

Construction is expected to have the dominant share in the Global Generator Rental Market during the forecast period. Due to rising urbanization and industrialization, the construction industry has recently seen tremendous growth across the world. In the construction business, generators are used to keep heavy equipment like concrete mixers, air compressors, and welders running when there is a power outage. As a result, the worldwide generator rental market is expected to be propelled by the construction industry's quick rise throughout the projected period.

Oil and gas are expected to have a significant share and growth in the Global Generator Rental Market during the forecast period. The generator rental business is dominated by the oil and gas sector. Because the majority of the projects are in distant locations with varying expected oilfield depths, high-capacity generators that can withstand harsh conditions are required. Generators provide electricity for both drilling and digging as well as power backup. Drilling and excavating equipment require a lot of power to function. Generators also serve as a power backup for oil and gas installations in the event of an emergency or disaster.

Market Regional Analysis:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

North America is expected to have the dominant share in the Global Generator Rental Market during the forecast period. Diesel generators are a very common type of generator. However, as environmental rules tighten in order to minimize carbon footprints, the focus on alternative fuel generators is growing. Natural gas generators have greater dependability since they have fewer failures during operation. Furthermore, while operating, natural gas generators often save between nice figures of the amount per kilowatt. Growing energy consumption, infrastructure projects, and the need for contact power are just a few of the key reasons driving the power generator rental industry in North America.

Asia-Pacific is expected to have a significant share and growth in the Global Generator Rental Market during the forecast period. The market for generator rental is growing in the Asia Pacific area because they are low-cost to install and maintain, and they provide a consistent and stable power source. The absence of sufficient grid infrastructure and the region's regular power outages are driving the Asia Pacific generator rental business. Aside from that, the increased number of infrastructure development projects has resulted in a significant need for a consistent and stable power supply. Furthermore, governments in a number of nations are working to develop their metro rail and airport networks.

Impact of COVID-19 On the Global Generator Rental Market:

COVID-19 and its ramifications have infiltrated nearly every part of our lives, including power generation and transmission. In certain locations, electricity consumption has decreased dramatically, particularly in industrial sectors such as mining, building, and the event management business, among others. During the coronavirus epidemic, this hampered the expansion of the generator rental business. Domestic uses, on the other hand, have given generator rental a minor boost. Concerns over the stability of electricity systems prompted a surge in generator sales and rentals as homebound Americans scrambled to upgrade and safeguard their houses. Individuals in the industrial, commercial, and residential sectors are investing in generators to avoid future COVID-19-like scenarios, which is turning into increased prospects for generator rental firms.

Market Key Players:

1. Caterpillar
2. Cummins Inc.
3. HIMOINSA
4. AKSA POWER GENERATION
5. Aggreko plc
6. United Rentals, Inc.
7. APR Energy
8. AGCO Corporation
9. Herc Rentals Inc.
10. Ashtead Group plc

Market Recent Developments:

• Starline Group Inc. is happy to announce that Mobile Generators Ltd has been acquired. Starline will be able to expand into the mobile power sector and continue to assist the rapidly developing Ontario film production market as a result of this purchase.