Preference for diesel power rental solutions to expand at a significant momentum

Ashwin Avhad
3 min readNov 9, 2021

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The rising penetration of sensitive electronic or computer systems has fueled the need for high-quality and uninterrupted power supply. The increase in instances of brownouts, power outages, as well as other emergencies has paved the path for temporary power generation solutions that offer reliability and continuous availability. Owing to these growing emergency electric power needs, the popularity of power rental companies has considerably scaled across several institutional, industrial, and residential verticals for offering supplemental or bridge power in periods of high demand.

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Power rentals are used not only to provide temporary power in cases of planned equipment shutdowns, repair, replacements, or maintenance but are also preferred in building construction, renovations, and expansions. The escalating issues pertaining to scheduled power system maintenance and disaster relief along with the growing obligation for standby and UPS quality power supply is a major booster for the market growth.

Taking note of these factors, it has been estimated that the global power rental market size will exceed a valuation of USD 16 billion by 2027.

Here is a peek into some pivotal trends that could play a crucial role in escalating the power rental demand:

Preference for diesel-based power rental equipment is anticipated to reach a significant value driven by their robust abilities to deliver maximum fuel efficiency and reliability. As these rental solutions consume less fuel, they are found to be suitable for meeting the unique operational and environmental requirements. They are generally preferred by consumers for catering to their specific power generation needs as they can be accessed in an assortment of configurations, sizes, and voltage output capacities. However, diesel generators produce more noise and tend to emit a harsher odor in comparison to natural gas models.

Power rental demand in standby applications is projected to record appreciable gains ascribing to the higher dependency of IT/ITES, banks & insurance companies, and data centers on continuous power for keeping the systems running. The large cost impacts caused by power disruptions have necessitated the adoption of backup power solutions in numerous applications and industries. There are also growing concerns over short- or long-term power failures mainly in the hospitals and mining applications.

Asia Pacific is expected to observe a higher penetration of power rental solutions over the next few years. This is owing to the rising frequency of unscheduled and scheduled power cuts, and the rising obligation for additional power to oppose the breakdown of internal power systems. There is a surging emphasis on standby power in residential, commercial, and industrial establishments in the region to ensure the continuity of operations. There is a greater need for a relatively unreliable grid supply across most parts of India.

The increasing demand for limited maintenance issues and zero downtime has stirred the adoption of generator renting across the event management, construction, oil and gas, mining, infrastructure, power utilities, and healthcare in APAC.

Speaking of which, a vast number of power rental companies across the world are increasingly taking up targeted efforts, including mergers, partnerships, and acquisitions for capacity expansions and product diversification in a bid to enhance their global presence. To state the same with an instance, in August 2021, Herc Rentals entered an agreement to purchase all the assets of CBS Rentals to emerge as a preeminent equipment rental provider in Texas while catering to several industrial, construction, and government customers.

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Ashwin Avhad

Enthusiast in exploring new career opportunities in Web Development ,Digital Marketing, Strategy Making, Product and Brand Development