Europe Power Rental Market Growth Analysis Report - Market Size, Share, Forecast Trends and Outlook (2025-2034)

The Europe power rental market value reached around USD 4.14 Billion in 2024 due to the increasing frequency of power outages and the ageing infrastructure of power grids. This necessitates reliable temporary power solutions, particularly in sectors like utilities and construction. The construction industry is witnessing a surge in demand for power rentals due to ongoing projects like the Hinkley Point C nuclear power plant, which requires consistent energy supply amidst fluctuating grid availability. Furthermore, the cost-effectiveness of renting over owning equipment allows companies to allocate resources more efficiently. As a result, the industry is expected to grow at a CAGR of 3.80% during the forecast period of 2025-2034 to attain a value of USD 6.01 Billion by 2034.

Europe Power Rental Market Growth

The Europe power rental market is driven by the need for temporary power sources during large commercial and infrastructural construction. Generators are a reliable source of power for several sectors, including oil and gas and mineral mining to run heavy equipment for drilling and digging. Rental power services are also demanded during outdoor events or as a backup power supply during long-term power outages. Another key reason for hiring rental power services is the difficulty in transporting heavy generators from the office to different project sites. As a result, companies often opt for rental units closer to their worksite.

The growth of the Europe power rental market is driven by various factors, such as the demand for continuous power during outages, rising construction projects, and the demand for power rentals based on clean energy sources. Some of the key trends are the cost-effectiveness of renting a generator, governmental focus on clean power sources, and frequent power supply cuts in the region. These factors are collectively influencing the market growth. Rising demand for cost-effective power and frequent power outages in Europe are creating several opportunities in the market.

Key Trends and Developments

Rising demand for clean power sources, increasing cost-effectiveness of power rentals, and growing frequency of natural disasters are the key trends propelling the market growth.

October 2023

Atlas Copco Group acquired ACJ, s.r.o., a compressor distributor based in Slovakia. This acquisition is part of Atlas Copco's strategy to enhance its service offerings and product availability in Slovakia. This move aligns with the increasing demand for reliable power rental solutions in the region.

July 2023

Hune Rental S.L.U., a subsidiary of the Loxam Group, acquired Talleres Arteixo S.L.U. (Arteixo Maquinaria). This acquisition solidifies Loxam's position in the competitive Spanish equipment rental market, which includes power rental services.

March 2023

Loxam further reinforced its presence in the Nordic region by acquiring JIAB HYRCENTER through its subsidiary Ramirent AB. This acquisition not only solidifies Loxam's status as Sweden's largest machine rental company but also expands its portfolio of power rental services.

November 2022

Atlas Copco made significant strides in the UK market by acquiring Precision Pneumatics Ltd and Wearside Pneumatics Ltd, two firms dealing in compressed air distribution and service. These acquisitions are expected to enhance Atlas Copco’s capabilities in providing power rental solutions, particularly as demand for reliable temporary power sources continues to grow across various sectors.

Demand for Clean Power Sources

Power rental companies are focusing on new forms of power, such as green power produced from solar energy or hydrogenated vegetable oil, owing to their better adherence to environmental regulations. The government’s rising focus on environmental well-being aids the demand for eco-friendly generators. For instance, natural gas generators burn approximately 85% cleaner than diesel-based generators, which can contribute to the demand of Europe power rental market. Moreover, Germany plans to reach greenhouse gas neutrality by 2045 and the country is formulating a plan to reduce emissions by around 65 per cent by 2030 and 88 per cent by 2040. This is expected to fuel the demand for green power sources among rental companies. Further, consumers are adopting renewable energy-based power generators, as they are cleaner and more cost-effective options. The recurring blackouts across Europe, due to an ageing power network and changing climatic conditions are increasing the installation of emergency backup systems.

Cost-Effectiveness of Power Rentals

Companies in downstream markets, such as construction, manufacturing, and mining, with temporary power requirements, consider investing in a rented generator more feasible than purchasing a new one, which boosts the Europe power rental market value. As per the Eurofer forecasts, the construction sector in the region is expected to reach a growth rate of 2% year-on-year in 2025. The renovation subsector is also expected to witness growth in 2025. The housing market in the Netherlands witnessed an upward trend in the construction sector with a rise in building permits as well as growth in the sales of new homes in 2024. Spain’s construction sector, on the other hand, witnessed a growth rate of 4.5% in 2023. These positive trends in the construction sector of the region indicate a rising demand for power rentals.

Ageing Infrastructure and Increased Reliability Needs

The ageing power infrastructure across Europe is a significant driver for the power rental market. Many countries are facing challenges related to outdated electrical grids, which often lead to frequent power outages. For instance, in the UK, approximately 30% of the electricity distribution network is over 40 years old, necessitating ongoing maintenance and upgrades. During these maintenance periods, utility companies increasingly rely on rental power solutions to ensure uninterrupted service, leading to Europe power rental market expansion. In Germany, the government has recognised the need to modernise its energy infrastructure, leading to initiatives that involve substantial grid upgrades. During these upgrades, rental generators are deployed extensively to maintain service continuity. Similarly, in France, during the maintenance of aging electrical grids, rental companies have provided backup generators to ensure that essential services such as hospitals and emergency services remain operational. In 2023, a major upgrade in Paris required the use of temporary generators to support public transportation systems while work was being completed on the main electrical lines. The upgrade involved extensive work on the Grand Paris Express, a massive public transport project aimed at enhancing connectivity across the city and its suburbs.

Growing Demand from Events and Emergencies

The demand for temporary power solutions during events and emergencies is surging across Europe. The region hosts numerous large-scale events annually, such as music festivals and sports tournaments, which require substantial temporary power setups. For example, the Glastonbury Festival in the UK attracts over 200,000 attendees each year and relies heavily on rental generators to provide power for stages, lighting, and amenities. In 2023 alone, it was estimated that outdoor events in Europe would require over 1 GW of additional temporary power capacity, highlighting the scale of this demand. Moreover, the increasing frequency of natural disasters in Europe necessitates reliable backup power solutions for emergency response teams. For instance, Slovenia faced devastating floods in August 2023, which were reported to have caused damage equivalent to approximately 16% of the country's GDP. The floods overwhelmed infrastructure and led to power outages across affected regions. In response, local authorities used rental generators to power emergency response centers and medical facilities, allowing them to provide aid and support to those impacted by the disaster. Another example is the Eurovision Song Contest, which requires extensive temporary power setups for its elaborate staging and broadcasting needs. In 2023, when held in Liverpool, UK, organisers used multiple rental companies to provide sufficient power for performances and audience facilities. This trend drives revenue for rental companies but also enhances their role as critical partners in both planned events and unplanned emergencies across Europe.

Europe Power Rental Market Trends

The occurrence of frequent natural disasters and the prevalence of extreme climate conditions have been creating difficulties in electricity supply and consumption across Europe. This has created the demand for power rentals to ensure continuous power supply, propelling the Europe power rental market revenue.

For instance, in 2023, Europe was affected by wildfires in many regions such as Greece, Portugal, Spain, and Italy. As per the industry reports, the wildfire in Greece was the largest ever recorded in Europe with around 96,000 hectares affected by it. In Jun 2024, Germany, on the other hand, witnessed floods that caused significant damage to life and property. Moreover, in September 2024, Central and Eastern European regions were widely affected by floods due to Storm Boris. These calamities greatly boosted the demand for power rental supplies.

Figure: Advantages of Rental Power Generators over Permanent Generators

Europe Power Rental Market Restraints

The European Union's stringent emission standards and regulations can greatly affect the demand for power rentals. Green power rentals which are powered by renewable energy sources such as solar and wind often come at higher costs compared to the generators powered by traditional sources, hindering their adoption due to budget constraints.

Fluctuating fuel prices can also negatively affect the power rental demand forecast. Many power rental companies depend on diesel generators but regular volatility in fuel prices can increase their cost. For instance, fuel prices increased in 2024 with the latest diesel price being 150.1 pence/litre. Furthermore, the retailers also increased their diesel margins more than for petrol in 2023, which meant paying 13 pence per litre more for diesel in the first five months of 2023.

Market Dynamics

Rental power units allow companies to meet their temporary power needs cost-effectively. Instead of spending funds to pay for a permanent unit that would be sold with depreciation on project completion, companies opt to lease one for the short term. As per the Eurostat data, around 99% of the companies in the EU region are small and medium-sized, creating more demand for power rentals in SMEs. Rental power units also help companies overcome the challenges of transporting their permanent generators from the office location to the worksite, boosting the power rental demand. Companies often choose power rental companies located closer to the project site to save time and achieve a reliable power source.

In remote project areas with no direct connection to a traditional power source, rental generators provide construction, mining, or infrastructure power services without having to purchase the equipment outright. Further, as the demand for commodities increases, the need for a stable power source to conduct mining operations, is rising.

Europe Power Rental Industry Segmentation

“Europe Power Rental Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Based on fuel type, the market is divided into:

• Diesel
• Gas
• Alternative Fuels

On the basis on rating, the market is classified into:

• Up to 50 kW
• 51-500 kW
• Above 501 kW

Based on application, the market is segregated into:

• Peak Shaving
• Standby Power
• Base Load/Continuous Power

On the basis of end use, the market is divided into:

• Utilities
• Oil and Gas
• Construction
• Mining
• Manufacturing
• Shipping
• Data Centres
• Events
• Others

Based on country, the market is classified into:

• United Kingdom
• Germany
• Italy
• France
• Others

Europe Power Rental Market Share

Market Analysis by Fuel Type

According to the Europe power rental market analysis, diesel-based generator sets are utilised across various sectors. They offer a continuous power supply, whether it's for managing peak demand, serving as backup during emergencies, or meeting the energy requirements of industrial, commercial, and residential settings. Diesel’s low volatility rate makes it a safe option in mining fields. Diesel generators play a vital role in providing power supply in remote locations. In mining, over 70% of power for heavy machinery is through diesel generators, boosting the Europe power rental demand growth.

Residential standby generator installers favour natural gas, eliminating the burden of refuelling, as it's seamlessly delivered through utility lines when required. Gas generators offer advantages over other fuel-operated generators such as fuel storage duration, cost-effective usage, ease of use, and sustainability.

Key power rental companies like United Rentals, Boels, and Speedy have added solar-powered or hybrid generators to their product portfolio. Compared to traditional generators that are loud, create exhaust and require to be refuelled, solar generators are quiet, and clean and can operate independently without on-site supervision.

Market Analysis by Rating

Larger industries and offices require generators exceeding 100 kW due to their substantial power demands, capable of extended operation on a full tank. Further, generators for oil and gas operations typically have power ratings ranging from 501 to 2500 kW, ensuring they can provide prime-rated or continuous operating power as needed, and contribute to the growth of the Europe power rental industry.

Generators with lower power ratings are employed mostly in the residential and among SMEs with lower power requirements. Homes and small offices can operate on 1 kW to 10 kW generators. A 5-kW generator can power lights, fans, electric motors, and a refrigerator. Many households opt for reliable 50 kW generators as standby power sources, running on fuels like diesel, natural gas, or propane.

Market Analysis by Application

Peak shaving accounts for a large power rental market share in Europe and is expected to witness a CAGR of 3.7 in the forecast period as many companies in the region are offering rental generators for temporary power supply during high-demand periods. Businesses, such as those specialising in the manufacturing sector, can save a lot of operational costs by not relying on the grid for power supply during peak hours. Standby power applications are also gaining prominence in the market due to rising demand for backup power supply from data centres and hospitals which need continuous power supply.

Market Analysis by End Use

Power rental demand is growing in the utilities sector as it is expected to have a CAGR of 4.0%. Several countries, mainly in the Western European region, are dealing with ageing infrastructure which requires constant maintenance, During the maintenance period, utility providers depend on power rental services which can offer constant power supply, boosting the Europe power rental market opportunities.

The demand for power rentals in the construction sector is expected to have a CAGR of 3.7%. With the rising investment in residential and commercial buildings as well as transportation networks, the demand for power rentals, specifically if grid power is not available constantly in the region, is rising. For instance, the construction of the Hinkley Point C nuclear power plant began in 2016 and is expected to be completed by 2026, creating great demand for power rentals.

Europe Power Rental Market Country Insights

United Kingdom Europe Power Rental Market Drivers

In 2023, the United Kingdom construction market was valued at approximately USD 386 billion, employing nearly 2.8 million individuals. According to the Europe power rental industry analysis, the most robust sector within the construction market is infrastructure. The government has pledged USD 127.4 billion for economic infrastructure support from 2022 to 2025, with roughly half of the infrastructure investment coming from public funds.

Germany Europe Power Rental Market Trends

In the German market, players such as MITTES Engineering GmbH, Krauter, and The Power Company offer a diverse range of power rental products. These products are deployed by various end-use sectors, such as mining, residential sector, and utilities, increasing the Europe power rental industry revenue.

France Europe Power Rental Market Analysis

France witnessed an increase in non-residential construction activity by 6.6% at constant prices in 2022. The country observed 468 thousand permits for residential construction in 2021. The country hosts various international events, such as fashion shows, conferences, and cultural festivals, which require temporary power solutions. Some of the key players in France for power rental and temporary power solutions include Atlas Copco, Delta Service Location, Atawa, and Gearbooker, amongst others.

Competitive Landscape

The market is highly competitive due to its moderately fragmented structure. It is characterised by numerous global and regional players providing rental services within the region. Power rental companies in Europe power rental market are investing in eco-friendly technologies to comply with stringent European Union emissions regulations. The companies are readily developing hybrid solutions that combine diesel generators with renewable energy sources like solar power to reduce carbon emissions as these green solutions help them cater to the growing demand for sustainable energy rentals.

Aggreko Ltd

Founded in 1962 and based in Scotland, United Kingdom, the company is mainly known for its mobile modular power, energy and temperature control services.

Caterpillar Inc.

Founded in 1925 and based in Texas, United States, the company is known for its Power generation rentals including diesel and natural gas units. The company is also known for the manufacture of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives.

Atlas Copco AB

Founded in 1873 and based in Stockholm, Sweden, the company in Europe power rental market is known for its rental gensets, diesel generators, modular power stations, energy storage modules, transformers, etc.

Boels Topholding B.V.

Founded in 1977 and based in Limburg, The Netherlands, the company is known for its Rental solutions such as power generators, fuel tanks, Earthmoving equipment, Railways equipment, etc.

Other key players in the Europe power rental market include Zwart Techniek B.V. and LOXAM Group, among others.

Innovative Europe Power Rental Startups

There are many startups working on product innovation like Power Equipment (EST) Digital Monitoring, and Remote Management Systems. With this technology, users can improve fuel efficiency, track real-time performance, and minimise operational costs resulting in efficient rental power solutions. As per the Europe power rental market dynamics and trends, other companies are offering reliable temporary power supply to the construction; events and utility sectors, namely peak shaving and continuous power requirements combined with emergency standby power.

Tesvolt

Based out of Germany, this startup focuses on manufacturing energy storage systems specifically targeted at industrial and commercial use cases. The move is in line with the increasing requirement for sustainable power solutions across Europe, responding to the need for grid-balancing and renewable energy integration by offering a series of power rental services that are underpinned by energy storage.

Instagrid

Based in Germany, this start-up in Europe power rental market specialises in portable battery-driven generators intended to take over conventional diesel devices. These are designed to lower emissions and clean power systems for the construction, events, and mobile workspace markets. Instagrids´s products offer this flexibility without compromising portability or zero-emission energy, making them sustainable alternatives to standard diesels.