Temporary Power Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Temporary Power Market is projected to experience substantial growth, expanding from USD 9.04 Billion in 2025 to USD 16.25 Billion by 2031 at a CAGR of 10.27%. This market involves providing electricity through the rental of independent generators, mobile power plants, and auxiliary systems designed to sustain operations during grid outages or in off-grid environments. The primary forces driving this sector include the strong demand for continuous energy to support infrastructure development and the growing need for backup solutions due to the instability of utility grids. According to the American Rental Association, the construction and industrial equipment rental segment, which includes power generation assets, was expected to generate $62.3 billion in revenue in the United States in 2024, highlighting the critical reliance industries place on rental energy sources for maintaining operational continuity.

However, the enforcement of strict environmental regulations regarding emissions presents a significant challenge to market expansion. Governments around the world are implementing rigorous standards that require drastic reductions in nitrogen oxides and particulate matter emitted by diesel engines. This regulatory landscape forces providers to undertake high capital expenditures for fleet modernization and the adoption of compliant technologies, which increases operational costs. Consequently, these financial pressures threaten to stall the broader adoption of conventional temporary power solutions by raising expenses for providers and end-users alike.

Market Drivers

The rapid growth of data centers, fueled by the widespread adoption of artificial intelligence and cloud computing, acts as a major catalyst for the Global Temporary Power Market, particularly regarding the demand for bridging power. Because data center construction is outpacing the timeline for local utility grid upgrades, facility operators frequently rely on rental power generation to cover the gap between construction completion and permanent utility interconnection. This structural lag creates a critical dependency on interim power solutions to ensure timely facility commissioning. The scale of this demand is evident in development activity; according to a CBRE report from August 2024 titled 'North America Data Center Trends H1 2024', under-construction activity in primary markets reached a record-high 3,871.8 megawatts, marking a 69% increase year-over-year.

Concurrently, the deterioration of aging utility grid infrastructure and the increasing frequency of outages are driving the need for robust backup and emergency power strategies. Extreme weather events and the electrification of broader industrial sectors are placing unprecedented stress on existing power networks, compelling commercial entities to secure independent energy resilience to maintain continuity. This systemic strain is expected to worsen; the North American Electric Reliability Corporation (NERC), in its '2024 Long-Term Reliability Assessment' released in December 2024, forecasts that summer peak electricity demand will rise by 15% over the next decade, significantly increasing the risk of supply shortfalls. The financial impact of this reliance on auxiliary systems is substantial, as evidenced by United Rentals in 2025, where the company's specialty rental segment, including power and HVAC assets, reported 17% organic revenue growth for the full year 2024.

Market Challenges

The enforcement of stringent environmental regulations regarding emissions serves as a formidable barrier to the growth of the Global Temporary Power Market. As regulatory bodies globally prioritize the decarbonization of industrial operations, rental providers face intense pressure to retire older, less efficient diesel generators in favor of low-emission alternatives. This transition imposes a steep financial burden, as acquiring compliant equipment equipped with advanced filtration and after-treatment systems requires significant capital expenditure. These rising operational costs often necessitate higher rental rates, which can deter cost-conscious customers and slow the overall adoption of temporary power services in developing regions where price sensitivity is acute.

The severity of these regulatory demands is underscored by recent industry data highlighting the technical and financial leaps required for compliance. According to the Association of Equipment Manufacturers in 2024, the California Air Resources Board proposed new standards aiming for a 90 percent reduction in nitrogen oxide emissions and a 50 to 75 percent decrease in particulate matter relative to current Tier 4 Final levels. Compliance with such rigorous benchmarks mandates extensive fleet modernization and technical upgrades, diverting funds that could otherwise be allocated to market expansion. This regulatory uncertainty forces companies to adopt a cautious approach to asset procurement, directly dampening the growth momentum of the sector.

Market Trends

The integration of Battery Energy Storage Systems (BESS) into hybrid power configurations is transforming the market by optimizing fuel efficiency and reducing engine runtime. These hybrid systems manage variable load demands more effectively than standalone generators, allowing engines to operate at peak efficiency or shut down completely during low-load periods, which significantly lowers operational costs and noise pollution. Rental providers are actively capitalizing on this shift by expanding their fleets of modular storage units to support microgrid applications and renewable energy integration. Demonstrating this investment trajectory, Power Progress reported in May 2024 that Aggreko increased its global investment in mobile battery storage to approximately $200 million to expand its fleet of small to large-scale storage units.

Simultaneously, the usage of Hydrotreated Vegetable Oil (HVO) and biofuels is gaining traction as a drop-in solution for immediate decarbonization without requiring new hardware infrastructure. Unlike complex equipment overhauls, HVO allows rental providers and end-users to utilize existing diesel fleets while significantly lowering net carbon emissions, making it a pragmatic choice for short-term projects with strict environmental targets. This adoption is increasingly formalized through large-scale strategic supply agreements between equipment rental firms and construction giants. For instance, according to International Rental News in November 2024, Sunbelt Rentals UK secured a deal to supply Kier Group with over 3 million liters of HVO fuel over the subsequent 12 months to replace diesel across its fleet operations.

Key Players Profiled in the Temporary Power Market

• Aggreko PLC
• Cummins Inc.
• APR Energy Ltd.
• Kohler Co.
• Caterpillar Inc.
• Atlas Copco AB
• Atco Ltd.
• Rental Solutions & Services LLC
• Ashtead Group PLC
• Temp-Power Inc.

Report Scope

In this report, the Global Temporary Power Market has been segmented into the following categories:

Temporary Power Market, by Fuel Type:

• Diesel
• Gas
• Others

Temporary Power Market, by Power Rating:

• Less than 80 kW
• 81 kW-280 kW
• 281 kW-600 kW
• Above 600 kW

Temporary Power Market, by End-User:

• Utilities
• Oil & Gas
• Construction
• Others

Temporary Power Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Temporary Power Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

This product will be delivered within 1-3 business days.