While renewables and other clean energy technologies are grabbing most of the headlines, other platforms are also experiencing significant growth.

According to a study by the Wilmington, Del.-based market research firm Transparency Market Research, the rental market for generators is growing. According to the study, the rental market is projected to expand at a combined annual growth rate of 5.2%, from $4.7 billion in 2023 to $7.4 billion in 2031.

The study, “Generator Rental Market,” was published in February 2023. It cites a number of factors contributing to the trend. They include an increase over the last five years in the number of days with power outages, which have been caused by natural calamities, transmission line failures, distribution line failures and faults in equipment at power generation stations or substations. Power outages are especially acute for manufacturing and other industrial facilities in remote areas.

The study also points to the lack of timely maintenance of power grid infrastructure, which hinders power distribution, as a contributing factor to the growing demand for generators.

These and other factors make generators a viable option for residential, commercial, government and industrial facilities that need to stabilize their source of power.

Rental generators are a more cost-effective option than purchasing the equipment. Many consumers who need a generator cannot afford the upfront cost of purchasing one. By comparison, rental generators incur lower maintenance and zero installation costs, they are more easily scalable and they provide greater flexibility. These qualities are helping to drive up demand.

Transparency notes that utilities represented the largest share of the market for rental generators last year, compared to oil and gas, mining, construction and events. Utilities are responsible for providing uninterrupted power that supports crucial services in hospitals, communication networks and emergency services, and generators help them fulfill these responsibilities. The research firm also projects growth in the construction industry segment with more infrastructure development in the planning stages.

According to the report, Asia continues to dominate the global market for rental generators, but strong growth is also expected in the United States and Canada, especially as the oil and gas industries continue to grow.

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