Generator Hire Market Size, Share, Growth, and Industry Analysis, By Types (Diesel, Gas & HFO & Petrol), By Applications Covered (Government & Utilities, Oil & Gas, Events, Construction, Industrial), Regional Insights and Forecast to 2033

Generator Hire Market Size

The Generator Hire Market was valued at USD 15,743.82 million in 2024 and is expected to reach USD 16,877.37 million in 2025, growing to USD 29,434.94 million by 2033, with a CAGR of 7.2% during the forecast period (2025-2033).

The U.S. Generator Hire Market is witnessing steady growth, driven by increasing demand for temporary power solutions across sectors like construction, oil and gas, and events. It is expected to expand due to rising infrastructure projects and energy reliability concerns.

The global generator hire market has been experiencing significant growth due to the rising demand for reliable, temporary power solutions across various industries. The expansion of urbanization, industrialization, and the increasing frequency of power outages are contributing to the market's development. As power reliability becomes increasingly crucial for sectors like construction, healthcare, and entertainment, generator hire services have become indispensable. The demand for efficient and environmentally friendly generators is also driving innovations in the market, with a shift towards cleaner, sustainable technologies. The growing trend toward renewable energy integration further strengthens the market's expansion, with the adoption of hybrid solutions growing by 20%. Additionally, industries like construction and events are witnessing a 15% increase in generator hire demand, while the Asia-Pacific region accounts for 35% of the overall market share. The rise in power backup services is expected to lead to a 10% increase in generator rentals over the next five years.

Generator Hire Market Trends

The generator hire market has shown a consistent upward trajectory, with the industry expected to continue its expansion over the coming years. The market size is estimated to grow at a rate of 8.23% annually from 2025 to 2033. Key factors driving this growth include the rapid industrialization of emerging economies, especially in Asia-Pacific, where demand for reliable power sources is high. The event sector has also seen considerable growth, with major festivals and large-scale events requiring temporary power solutions. Additionally, technological advancements are playing a crucial role in this growth, with manufacturers focusing on enhancing fuel efficiency and reducing carbon emissions in generator systems. The push for cleaner, more efficient solutions is expected to attract new customers and expand the market base further. The construction sector, in particular, remains a dominant player in the demand for generator hire services, contributing to a large share of the market.

Generator Hire Market Dynamics

The generator hire market is influenced by several critical drivers and challenges. One of the major driving factors is the increasing need for uninterrupted power across various sectors. Industries such as healthcare, manufacturing, and data centers rely heavily on constant power supply, fueling the demand for generator hire services. Additionally, the rise in natural disasters and power outages has heightened the need for emergency power solutions, which is driving market growth. On the other hand, environmental regulations and concerns over emissions are limiting the adoption of traditional fuel-powered generators, urging the market to shift toward greener alternatives. The fluctuations in fuel prices and rising operational costs can also act as barriers to growth. However, the integration of renewable energy sources with traditional generators presents a significant opportunity for hybrid systems, which are becoming increasingly popular. Moreover, the adoption of digitalization.

DRIVER

"Increasing Demand for Uninterrupted Power"

The growing reliance on continuous power supply across industries such as healthcare, manufacturing, and data centers is a major driver of the generator hire market. Sectors that require high operational uptime, such as healthcare, rely heavily on consistent power to avoid disruptions in services. In fact, hospitals and healthcare facilities see an increase of 25% in generator demand to support essential equipment. Similarly, industries like oil and gas require power for drilling and extraction, further boosting market growth. The rise of major construction projects globally, particularly in emerging markets, is also expected to contribute to a 20% rise in generator demand. The global shift towards digitalization, where large-scale data centers demand uninterrupted power, has seen a 15% growth in generator hire services over recent years.

RESTRAINTS

"Environmental Regulations and Fuel Costs"

Despite the growth prospects, the generator hire market faces several challenges. One key restraint is the increasing pressure from environmental regulations that limit the use of traditional fuel-powered generators. Governments globally have been tightening emission standards, making it more difficult for older diesel-based generators to operate in many regions. This has prompted a shift towards more eco-friendly options, but the transition comes with higher costs. Fuel prices, which account for a significant portion of operational expenses, can fluctuate and add unpredictability to the overall cost structure. A recent study found that fuel cost increases could add up to 10% to the overall cost of generator hire services annually. In addition, maintenance and repair costs for older machines are rising by about 15%, further straining the market.

OPPORTUNITY

"Growth in Hybrid and Renewable Energy Solutions"

A significant opportunity for growth in the generator hire market lies in the adoption of hybrid and renewable energy solutions. As global awareness of environmental concerns increases, many industries are moving towards cleaner, greener solutions. Hybrid generators, which combine conventional fuel sources with renewable energy sources like solar, are gaining traction. This transition to hybrid systems has been reported to reduce fuel consumption by up to 20% in certain regions. The growing adoption of solar-powered generators in the construction sector is expected to see a 15% rise in demand. Governments across various regions are also offering incentives for renewable energy solutions, presenting an opportunity for rental companies to expand their fleet with eco-friendly units.

CHALLENGE

"High Initial Capital Expenditure and Maintenance Costs"

One of the major challenges faced by the generator hire market is the high initial capital expenditure (CAPEX) required to procure new generators, particularly for larger, more sophisticated models. The installation and integration of new technology, such as hybrid generators, require significant upfront investment, which could deter smaller rental companies from expanding their fleet. Furthermore, the maintenance costs for generators, especially those running on fossil fuels, can be high due to frequent repairs, especially in harsh environments. For example, offshore oil rigs experience up to 10% higher operational costs in terms of maintenance for diesel-powered generators. The increasing complexity of newer models also demands specialized training and workforce development, which can add to operational costs.

Segmentation Analysis

The generator hire market is segmented by type and application. The types of generators include diesel, gas, HFO (heavy fuel oil), and petrol-based generators, each having unique applications and benefits depending on industry requirements. Diesel generators remain the dominant choice due to their durability and fuel efficiency, but gas and HFO generators are increasingly gaining traction in certain applications, particularly for larger-scale power needs. The market also sees varied applications across sectors such as government and utilities, oil and gas, events, construction, and industrial. Each sector has distinct requirements for power supply, with some demanding long-term, stable energy sources and others needing temporary, flexible solutions.

By Type

• Diesel: Diesel generators are the most commonly used type in the generator hire market. Known for their reliability and cost-effectiveness, diesel-powered generators are particularly favored in industries such as construction, oil and gas, and industrial sectors. Diesel generators account for approximately 45% of the global generator hire market due to their durability and ability to handle large power loads. In regions like North America and Europe, diesel generators are used extensively in backup power applications for hospitals, data centers, and large-scale industrial operations. The demand for diesel-powered generators is expected to increase by around 12% in the next few years as industrial activities expand globally.

• Gas: Gas-powered generators are becoming increasingly popular due to their cleaner emission profile compared to diesel engines. Gas generators are widely used in industries where environmental regulations are stringent, and the need for cleaner power sources is paramount. They represent approximately 20% of the generator hire market, with a significant increase in demand from commercial sectors and areas with access to natural gas pipelines. Gas generators are also gaining popularity in the construction sector, particularly in regions where sustainability is a focus. Gas generators are expected to see a 15% increase in demand over the next few years due to their efficiency and lower environmental impact.

• HFO: Heavy Fuel Oil (HFO) generators are predominantly used in large-scale industrial applications, especially in regions where fuel costs are lower and high power output is needed. They are often employed in sectors such as shipping, mining, and large-scale manufacturing. HFO generators are less common than diesel and gas generators but are expected to see growth, especially in emerging economies with limited access to natural gas. HFO generators account for around 10% of the generator hire market, with projections indicating a 7% growth in demand in the coming years, driven by the industrial and energy sectors.

• Petrol: Petrol-powered generators are typically used for smaller, portable applications, such as events, residential areas, and light industrial operations. Although they represent a smaller portion of the market, accounting for approximately 8%, their demand is expected to grow by 10% in the near future. Petrol generators are favored for their cost-effectiveness in short-term and lower-power applications. The rise in small-scale outdoor events, concerts, and festivals contributes to the growing demand for petrol generators, with a shift towards more eco-friendly models also encouraging this segment's growth.

By Application

• Government & Utilities: Government and utility sectors are significant consumers of generator hire services, accounting for approximately 25% of the total market share. These sectors require continuous power for public services, infrastructure projects, and emergency services. Governments globally are increasingly relying on temporary power solutions for disaster relief, infrastructure development, and public events. In fact, government contracts for generator hire services have been growing by 20% annually. Utility companies also depend on reliable backup power for grid stability, particularly in remote areas, which boosts the demand for generators in this sector.

• Oil & Gas: The oil and gas sector represents about 30% of the generator hire market, driven by the need for reliable power on offshore rigs, drilling sites, and remote oil extraction locations. These industries require continuous power for operational processes and equipment, which has contributed to a consistent demand for generators. With exploration activities increasing, particularly in regions like the Middle East and Southeast Asia, the demand for generator hire services in the oil and gas industry is set to rise by 18%. The requirement for backup power during critical operations makes this sector one of the largest consumers of temporary generator services.

• Events: The events sector is another growing segment of the generator hire market, accounting for approximately 15% of the market share. Major outdoor events, music festivals, sports events, and exhibitions rely heavily on temporary power solutions. As events become more widespread and technologically advanced, the need for high-capacity, reliable power sources is rising. The sector is experiencing a 12% growth in generator demand, driven by the increasing number of large-scale events worldwide, including concerts, conferences, and festivals. The trend towards more sustainable and efficient power sources for these events is contributing to an increase in demand for hybrid and gas-powered generators.

• Construction: The construction sector holds a significant share of the generator hire market, with a market share of 18%. Construction projects, especially large-scale developments, require consistent power for machinery and tools. The demand for generator hire in this sector has increased by approximately 15% due to the rise in construction activity globally, particularly in emerging economies. The ability to provide power in remote or off-grid locations has made temporary generators indispensable for construction projects. Additionally, the move towards more energy-efficient and quieter generators has further boosted demand in this sector.

Regional Outlook

The global generator hire market is diversified across several key regions, including North America, Europe, Asia-Pacific, and the Middle East & Africa. Each region has unique factors driving demand for generator hire services, with differences in industry requirements, regulatory standards, and economic conditions influencing market dynamics. North America and Europe remain significant markets for generator hire due to their well-established industrial and infrastructure sectors. Meanwhile, Asia-Pacific is expected to witness the highest growth, fueled by rapid industrialization and increasing power demand in emerging economies.

North America

North America is a leading market for generator hire services, accounting for about 30% of the global market share. The U.S. and Canada are the primary drivers of this market, with demand coming from sectors such as construction, industrial, and government utilities. The increasing number of natural disasters, particularly hurricanes, and power outages have contributed to a steady demand for backup power solutions. The growing need for temporary power during events and festivals is also pushing market growth in the region. The U.S. generator hire market alone is expected to grow by 10% in the coming years.

Europe

Europe accounts for approximately 25% of the global generator hire market. Countries like Germany, the UK, and France have seen a steady rise in demand for generator hire services, particularly due to their large-scale construction projects and increasing use in the event industry. Additionally, the push towards cleaner energy solutions has led to a shift towards more energy-efficient and eco-friendly generators, particularly in regions with strict environmental regulations. The European market is expected to see moderate growth, driven by sectors such as construction and events.

Asia-Pacific

Asia-Pacific is expected to experience the highest growth rate in the generator hire market, accounting for around 35% of the total market share. The rapid industrialization in countries such as China and India is driving demand for reliable power sources, with an increasing number of construction and infrastructure projects. The growing population and urbanization in the region are also contributing to the demand for electricity, particularly in rural and off-grid areas. The Asia-Pacific market is expected to see an increase in the adoption of gas and hybrid generators, driven by the need for more sustainable energy sources.

Middle East & Africa

The Middle East & Africa region holds around 10% of the generator hire market, with a significant share driven by the oil and gas industry. The demand for generators in the region is mainly fueled by the need for continuous power in remote oil extraction and offshore drilling locations. The region's growing construction sector, particularly in the UAE and Saudi Arabia, also contributes to the demand for generator hire services. In addition, the rise in major events, including sporting events and exhibitions, is expected to push demand by approximately 8% in the coming years.

List of Key Companies Profiled

• Aggreko
• Cummins
• Caterpillar
• United Rentals
• APR Energy
• Ashtead Group
• Sudhir Power Ltd.
• Atlas Copco
• Herc Holdings Inc
• Power Electrics
• Generator Power
• Speedy Hire
• HSS
• Shaanxi Communication Power Technology Co., Ltd.
• Trinity Power Rentals
• Diamond Environmental Services
• Rental Solutions & Services
• Quippo Energy
• Temp-Power
• National Hiring
• Perennial Technologies
• Tellhow Sci-Tech
• Modern Hiring Service (MHS)
• Marco Gensets Pvt. Ltd.
• Verypower
• Fudesen

Top companies with the highest share

• Aggreko - Holds approximately 18% of the market share.
• United Rentals - Accounts for around 15% of the market share.

Investment Analysis and Opportunities

The generator hire market continues to present significant investment opportunities driven by the rising demand for temporary power solutions in various sectors such as construction, oil and gas, and events. Key players in the market are increasingly focusing on expanding their fleet to cater to growing demands in emerging economies, particularly in Asia-Pacific and the Middle East. Investments are directed towards improving generator technology, with a focus on enhancing fuel efficiency and reducing emissions. The shift towards hybrid and renewable-powered generators is expected to attract additional investments, particularly in regions with stringent environmental regulations. The market also presents investment opportunities in the form of strategic partnerships, with several companies collaborating to offer better solutions in terms of generator hire services and fleet management. For example, in 2023, a major European rental company invested in expanding its fleet by 20% to cater to the increasing demand for construction power solutions in the region.

New Products Development

The generator hire market has witnessed several innovations in product development, driven by increasing demand for more efficient, reliable, and environmentally friendly power solutions. One of the notable trends in 2023 and 2024 is the growth of hybrid generators that combine conventional fuel sources with renewable energy, particularly solar. This development is in response to the increasing demand for low-emission solutions. For instance, a prominent player introduced a solar hybrid generator in 2023, which reduces fuel consumption by 25% compared to traditional diesel-powered generators. Another recent development is the increase in the availability of ultra-quiet generators, designed specifically for use in urban environments and at events where noise restrictions apply. A key rental company launched a new line of noise-reduced generators in early 2024, addressing the growing need for quieter power sources. Additionally, advancements in digitalization have led to the introduction of smart generators that can be remotely monitored, offering predictive maintenance and real-time fuel consumption tracking. 

Recent Developments 

• Aggreko launched a new range of hybrid generators that combine solar and diesel technologies, providing an eco-friendly alternative with a 30% reduction in fuel consumption.
• United Rentals introduced a new line of ultra-quiet generators designed for use in residential and event spaces, which offer noise reduction up to 70%.
• Atlas Copco unveiled its latest gas-powered generator, designed to meet stringent environmental regulations, with a 25% improvement in fuel efficiency.
• Power Electrics expanded its fleet by 15%, focusing on adding mobile solar-powered generators to cater to sustainable energy demands in outdoor events and festivals.
• Herc Holdings Inc introduced a new generation of portable generators with IoT capabilities for real-time data collection, improving maintenance scheduling and operational efficiency.

Report Coverage

The report on the Generator Hire market provides a comprehensive analysis of the industry's key factors, including market size, trends, and growth prospects, segmented by types such as diesel, gas, HFO, and petrol, and by applications like government utilities, oil and gas, construction, industrial, and events. The study covers the global market outlook, with regional insights into North America, Europe, Asia-Pacific, and the Middle East & Africa. Key drivers identified in the report include the increasing demand for reliable temporary power in various sectors, the adoption of cleaner energy sources, and technological innovations in generator efficiency. The report also explores the market's opportunities and challenges, including regulatory pressures on emissions and the high operational costs associated with traditional fuel-powered generators. The coverage includes detailed insights into market segmentation, with a focus on the application of generator hire services across industries and regions.