Europe Generator Rental Market - Focused Insights 2024-2029

EUROPE GENERATOR RENTAL MARKET SIZE & SHARE

The Europe generator rental market was valued at USD 1.47 billion in 2023 and is projected to reach USD 1.83 billion by 2029, growing at a CAGR of 3.74% during the forecast period. Factors such as rising frequency of power outages, energy transition facilitating the Europe generator rental market, and rising events and temporary power needs will positively impact the Europe generator rental market during the forecast period. Furthermore, major players focus on strategic agreements, acquisitions, and collaboration with emerging players to enter the Europe generator rental market to gain access to commercially launched products.

The Europe generator rental market sees increasing demand as they are crucial in the energy transition, offering backup power during low renewable energy generation. The demand for temporary power solutions is rising, driven by events, construction, and emergencies. Generator rentals support disaster management, providing essential power during outages. Technological advancements, like remote monitoring, optimized fleet management, proactive maintenance, and enhanced operational efficiency, are reshaping Europe'sgenerator rental market landscape.

Technological advancements in the market have further driven the market in the region. In addition, market players are focusing on investing in modern generator fleets that offer improved efficiency, reduced emissions, and advanced monitoring capabilities to meet stringent environmental regulations.

EUROPE GENERATOR RENTAL MARKET NEWS

In 2023, Kohler, one of the key vendors, introduced 700- and 750-kW models in its KD Series industrial gen-set line for 60 Hz markets. These units, like other KD gen-sets, are compatible with certified renewable hydrotreated vegetable oil and diesel fuels, without needing modifications. They are manufactured in Kohler's U.S. and France facilities. A KD800 unit for 50 Hz applications will be produced in France and released in late 2023.

EUROPE GENERATOR RENTAL MARKET TRENDS & DRIVERS

Rising Demand for Sustainable Solutions

Customers are increasingly seeking generators that use alternative fuels, such as natural gas or biodiesel, to reduce environmental impact. Rental companies responding to this trend by incorporating cleaner technologies into their fleets and promoting environmentally conscious practices are likely to gain a competitive edge. European Green Deal Regulations put into effect will create an impact on the equipment manufacturers, and they need to focus on research and development of sustainable energy sources and the latest technological machines. The key factors that will help in building their future fleets would be looking out for alternative energy options, the rate of carbon emission by equipment, updating facilities to adjust production capacity, and adhering to sustainability goals.

Rise in Digitization in Equipment

The digitization of power equipment through advanced sensors, communication technology, and data analytics has revolutionized power systems. Real-time data collection enables predictive maintenance, minimizing downtime, and extending equipment lifespan. Remote monitoring enhances operational efficiency and safety, allowing adjustments and troubleshooting from a central location. Data-driven insights optimize energy usage, support grid stability, and foster a sustainable and resilient energy infrastructure. For rental companies, implementing digitalization solutions can be a game-changer, streamlining processes and improving customer experience. While some companies may lack the resources to develop their solutions, off-the-shelf software and platforms provide accessible alternatives.

Rising Frequency of Power Outages

The increasing frequency of power outages, whether due to severe weather events, grid vulnerabilities, or maintenance activities, is a key driver for generator rentals. Businesses and industries are recognizing the importance of having reliable backup power sources to ensure uninterrupted operations, creating a heightened demand for generator rental services. For instance, in April 2023, France's main energy workers union threatened to disrupt power supplies during the 76th edition of the Cannes Film Festival in Cannes as part of ongoing protests against pension reforms, which will raise the retirement age from 62 to 64 years by 2030. These factors demand backup power generation rental equipment in regions facing outages and companies undergoing loadshedding practices to fuel the sales of rental power equipment.

EUROPE GENERATOR RENTAL MARKET SEGMENT INSIGHTS

• Based on the power rating, the <75KVA market is growing at a CAGR of 5.34% during the forecast period. Generators with a capacity of less than 75KVA are versatile and well-suited for small-scale applications. They are commonly used for events, residential backup power, and smaller construction projects across Europe, providing a reliable power source for modest energy demands. Small generators in this segment are generally cost-effective to rent, making them an economical choice for users with limited budget considerations.
• Based on application, the continuous power market is showing prominent growth. Continuous power generators are often deployed in industrial settings where a reliable and uninterrupted power supply is essential for continuous manufacturing. Telecommunication infrastructure relies on continuous power to maintain network connectivity. Generators are designed for continuous power supply in the oil and gas industry, where continuous power is critical for drilling operations, refineries, and extraction processes.
• The IT & data centers market segment is growing significantly, with a CAGR of 5.05% during the forecast period. Data centers require uninterrupted power to maintain the operation of servers and prevent data loss. Generator rentals provide emergency backup power, ensuring continuous data center functionality during grid outages. Emergency backup power from generator rentals safeguards data storage facilities within data centers. This is essential for preventing data corruption and ensuring the integrity of stored information during power disruptions.

EUROPE GENERATOR RENTAL MARKET REGIONAL ANALYSIS

Germany dominates and holds the largest Europe generator rental market share in 2023. In Germany, increasing demand for the generators segment is driven by the need to provide required power access in remote locations. Generators are used in two fundamentally different applications: to guarantee a constant power supply even in the event of power failures or to supply places with power that do not have access to the public power grid. Germany has been providing aid of support to Ukraine and other countries with ongoing socio-economic conditions. Generators are being donated or supplied to various other European Union countries due to the energy crisis as part of the Russian invasion of Ukraine. These actions will likely push demand for generator sales and rentals since the demand from other countries is rising, and the supply within the country might be affected, leading locals to choose renting options.

France and Italy are showing prominent growth in the market. In France, many companies invest in backup power solutions, including emergency generators, to ensure uninterrupted operations during emergencies. The French government has advised businesses to ensure their backup power generators are in working order, highlighting the critical role of load banks in meeting government recommendations. Italy faces severe energy challenges due to extreme weather conditions such as heavy snowfall, freezing temperatures, avalanches, and scorching temperatures. These conditions can disrupt electricity networks and power generators, leaving thousands without access to power.

EUROPE GENERATOR RENTAL MARKET VENDOR LANDSCAPE

The Europe generator rental market's competitive scenario is intensifying, with global and domestic players offering diverse products. A few major players dominate the market in terms of market share. Some companies currently dominating the market are Aggreko, Ashtead Group, Atlas Copco, Caterpillar, Cummins, Kohler, Speedy, Himoinsa, United Rentals, and Loxam Group.