Global Power Rental Market Overview, 2024-29

Market Dynamic

Major Drivers • Increasing Demand for Temporary Power Solutions: The increasing demand for temporary power solutions is a significant driver of the global power rental market. This demand stems from various industries and applications that require reliable and flexible power sources for temporary periods. Construction projects, events, industrial operations, and emergency situations all contribute to this demand. In construction, temporary power is essential for powering tools, equipment, and site facilities during the building process. Events such as festivals, concerts, and sporting events require temporary power for lighting, sound systems, and other infrastructure. Industrial operations often need backup power during maintenance or unexpected outages to avoid costly downtime. • Infrastructure Development: Infrastructure development is a key driver of the global power rental market. As countries invest in building and upgrading infrastructure such as roads, bridges, airports, power plants, and renewable energy facilities, there is a corresponding need for temporary power solutions to support construction activities. Construction projects often require reliable power sources to operate equipment, machinery, and site facilities. Power rental companies provide generators, transformers, and other equipment to meet these temporary power needs, ensuring that construction projects progress smoothly and on schedule. Additionally, infrastructure development projects may take place in remote or off-grid locations where access to the electrical grid is limited or nonexistent. In such cases, power rental solutions offer a practical and cost-effective way to establish temporary power infrastructure. Major Challenges • Competition from Conventional Power Sources: One of the significant challenges facing the global power rental market is competition from conventional power sources such as grid electricity and permanent onsite generators. Many industries and businesses opt to invest in permanent power infrastructure rather than relying on temporary power solutions. While power rental services offer flexibility and scalability, enabling customers to meet short-term power needs without significant capital investment and convincing them of the long-term benefits can be challenging. Additionally, grid electricity is perceived as more reliable and cost-effective in certain regions, reducing the demand for power rental services. • Technical Complexity: The technical complexity of power rental equipment presents another challenge for the global power rental market. Power generation equipment such as generators, transformers, and distribution panels can be complex to install, operate, and maintain, requiring skilled personnel with specialised training. Ensuring the availability of trained technicians and engineers to handle equipment installation, troubleshooting, and maintenance tasks can be difficult, especially in remote or underserved areas. Moreover, power rental companies must keep pace with advancements in technology and equipment to offer the latest and most efficient solutions to their customers.

Key Development

• In December 2022, United Rentals completed the acquisition of assets of Ahern Rentals. The acquisition, treated as a business combination, involved the eighth-largest equipment rental company in North America, primarily serving customers in the construction and industrial sectors across 30 states. The strategic move aims to increase capacity in key geographies, enhance the availability of high-demand equipment, and create cross-sell opportunities for an expanded customer base. • In February 2023, Caterpillar Inc. has announced the introduction of the Cat® XQ330 mobile diesel generator set, a new power solution for standby and prime power applications that meets U.S. EPA Tier 4 Final emission standards. The XQ330 is powered by a fuel-efficient Cat C9. • In June 2022, Cummins Inc. launched a new 1MW twinpack rental generator, the C1000D6RE. The C1000D6RE is a 40ft power unit that combines two Cummins 15L, 500kW generators into a single container and is capable of withstanding extreme weather conditions and has a full sound attenuation package to minimize noise levels. • In November 2021, Caterpillar Inc., announced a three-year project in collaboration with Microsoft and Ballard Power Systems, incorporating large-format hydrogen fuel cells to produce reliable and sustainable backup power for Microsoft data centers. • In June 2021, the first hydrogen power generation units piloted at the Aggreko Plc depot, in Moerdjik, Netherlands, for usage in temporary power applications. • In April 2021, Atlas Copco, introduced ZBC, latest model in its Lithium-ion energy storage system range called ZenergiZe. It can be used as a standalone source, combined with generators, to make a hybrid power solution or renewable sources of energy as well as to create Microgrids.