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Market Overview

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In 2022, the size of the UK power rental market was USD 303.1 million. It is expected to reach USD 429.8 million by 2029, with a compound annual growth rate (CAGR) of 5.12% during the forecast period. To support infrastructure development, the UK government allocated USD 104 million to Able Marine Energy Park and USD 27 million to the Tees works offshore Manufacturing Centre in 2022. Additionally, USD 32 million was planned for biomass production, and USD 5 million for innovative technology to generate hydrogen from biomass. This investment in infrastructure has increased the demand for rental models, equipment, and a more reliable renting process, which will drive the growth of the UK power rental market.

National Grid has submitted its application to the Planning Inspectorate for the Yorkshire Green Energy Enablement Project, with development consent expected in November 2022. If approved, the reinforcement works would begin in the summer of 2024 and be operational in 2027. This project is part of the UK’s efforts to upgrade its electricity network and achieve the government’s net-zero targets for 2050.

Severe weather events like Storm Franklin in February 2022 have highlighted the need for backup power. UK Power Networks restored electricity to 98% of properties affected by the storm, but 8,500 remained without power. This underscores the importance of rental power equipment in bringing such situations under control and driving the growth of the UK power rental market.

The reconstruction of Battersea Power Station, with a capital investment of USD 11 billion, is underway in seven phases. The project aims to convert the 80-year-old structure into a mixed-use development that includes restaurants, shops, bars, residential units, and office spaces. The entire project is expected to be completed by 2025.

The joint strategy Construction 2025 sets out a partnership between the construction sector and the government to position Britain as a global construction leader in the coming years. Furthermore, the construction of energy projects such as the Clay Tye battery storage site (99MW) in Essex and the Kype Muir onshore wind farm extension (155 MW) in South Lanarkshire will contribute to the demand for power rental in the UK.

Aggreko served as the Official Modular Energy Solutions supporter for the Birmingham 2022 event. It provided energy solutions to major venues like Alexander Stadium and Coventry Stadium & Arena, as well as the Birmingham 2022 Athletes’ Villages. Aggreko supplied the event with the latest stage V generators using HVO as fuel, marking a significant step in its Net Zero path. Additionally, Aggreko produced around 10.8 MWh of clean solar energy at Victoria Park in Royal Leamington Spa through hybrid generators.

To achieve its goal of net-zero emissions by 2050, the UK government plans to increase its offshore wind power capacity from 30GW to 40GW by 2030. This plan aligns with the global climate goals outlined in the Paris Climate Agreement. The government also aims to upgrade the country’s ports with an investment of USD 223 million and has committed USD 132 million to construct two offshore wind ports.

Aggreko partnered with the R&A to deliver a renewable energy solution at the 149th Open Championship held in July 2021. The hybrid system reduced carbon emissions by up to 40% compared to older fossil fuel systems. Two renewable microgrids provided 100% reliable electricity without a grid connection. Since March 2021, the solution has generated over 21000 kWh of solar energy and saved 25 tons of CO2. Additionally, all generators on the site operated on HVO, a sustainable biodiesel.

The UK government allocated USD 9 million to support 24 projects under the Longer Duration Energy Storage (LODES) competition. This funding aims to develop new energy storage technologies and facilitate the transition to renewable energy sources, further contributing to the UK power rental market.

The UK government’s Build Back Greener and Net Zero Strategy in 2021 have led to the development of the country’s first decarbonized industrial cluster. The government has also committed to unlocking USD 95.92 billion for private investment by 2030, supporting the growth of green industries by 2050.

HVO has been approved as a renewable fuel by the UK government, meeting EN15940 standards, with imported HVO certified by SCC (International Sustainability & Carbon Certification). Aggreko has switched its operations to HVO and only stocks white HVO fuel at their depots. The transition to HVO is due to government reforms affecting red diesel starting from April 1, 2022. HVO significantly reduces nitrogen dioxide and carbon monoxide emissions.

The UK government plans to invest USD 4.3 billion in constructing 40 hospitals by 2030. New guidelines will standardize hospital design and utilize modular construction methods to accelerate the building program. An additional USD 1 billion has been allocated for upgrading facilities in existing 20 hospitals, contributing to the demand for power rental in the UK.

The UK has proposed a temporary Electricity Generator Levy, separate from the Energy Profits Levy, starting from January 1, 2023. The government has not yet published draft legislation but has issued a technical note summarizing the proposals.

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Market Segmentation

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The market is segmented based on various factors, including fuel, power rating, equipment, end-user, application, and geography.

Segmentation By Fuel
Natural Gas
Diesel
Others (Propane, Hydrogen, Renewable Sources)

Segmentation By Power Rating
>75KVA
75-375KVA
375-1,000KVA
Above 1,000 KVA

Segmentation By Equipment
Generators
Load Banks
Transformers
Others

Segmentation By End-User
Construction
Retail
Oil & Gas
Mining
Events
Utilities
IT & Data Center
Manufacturing
Others

Segmentation By Application
Standby
Continuous
Peak Shaving

The diesel fuel type offers the highest incremental opportunity in the power rental market due to its reliability and durability, making it the preferred choice over other fuels. However, the Others segment is also gaining traction as power generation through renewable sources increases, reflecting a growing emphasis on clean energy practices.

Among different power ranges, those above 1,000 KVA remain the most favored and present the highest incremental opportunity. The demand for continuous power supply drives this trend, with sectors such as mining, manufacturing, oil & gas, and petroleum refining requiring significant amounts of power. Additionally, the 375 – 1,000 KVA range is expected to witness gaining incremental opportunity during the forecast period, driven by the power-intensive needs of various industrial sectors.

Generators hold the dominant market share, primarily due to the increasing reliance on power and ongoing energy transition. As a result, the demand for backup power generators has surged, leading to the highest incremental opportunity during the forecast period. Power outages caused by weather patterns across the nation further contribute to this trend.

The construction sector is poised to experience significant incremental opportunity, fueled by various infrastructure projects in the pipeline from the federal government.

Among the different segments, continuous power has the highest incremental value. This is attributed to the constant necessity of meeting supply and demand challenges, driving the surge in demand for continuous power solutions.

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Competitive Landscape

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The key players in the power rental market in the United Kingdom encompass United Rentals, Sunbelt, Aggreko, Speedy, Atlas Copco, Caterpillar, Cummins, and Kohler power.

The top four prominent vendors, namely United Rentals, Sunbelt Rentals, Aggreko, and Speedy, collectively hold a market share of 44% in the UK power rental market.

Sunbelt Rentals has introduced alternative fuel options for its hired equipment in the UK, which involves utilizing combustion engines that burn red diesel derived from fossil fuels.

Speedy, on the other hand, launched the UK’s first Net Zero service center in October 2022. This facility received an A+ energy rating in January 2023, emphasizing its commitment to sustainable practices.

In May 2021, Atlas Copco expanded its Power Technique business segment through the acquisition of Eco Steam and Heating Solutions, a Netherlands-based company. This strategic move further strengthened their presence in the power rental market.

Key companies profiled in this report include United Rentals, Inc., Sunbelt Rentals, Inc., Aggreko, Speedy, Caterpillar, Atlas Copco, Cummins Inc., KOHLER, Generac Power Systems, Inc., Boels Rental, HSS Hire Group, The Hireman.

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Key Questions Answered

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What is the size of the power rental market in the United Kingdom?

The power rental market in the United Kingdom had a valuation of USD 303.1 million in 2022 and is anticipated to reach USD 429.8 million by 2029.

What is the growth rate of the power rental market in the United Kingdom?

The power rental market in the United Kingdom is projected to grow at a compound annual growth rate (CAGR) of 5.12% from 2022 to 2029.

What are some significant opportunities in the power rental market in the United Kingdom?

The power rental market in the United Kingdom is expected to benefit from trade agreements between the European Union (EU) and the UK as well as regulations aimed at controlling carbon emissions. These factors present significant opportunities for increased sales of power equipment rental in the UK market.

Which fuel type is expected to have the largest market share in the power rental market in the United Kingdom?

The diesel fuel type is projected to dominate the market share in the power rental market in the United Kingdom. The reliability and durability of diesel-powered equipment are expected to contribute to the highest incremental opportunity for the diesel segment.

Which companies are the key vendors in the power rental market in the United Kingdom?

The key vendors in the power rental market in the United Kingdom include United Rentals, Inc., Sunbelt Rentals, Inc., Aggreko, Speedy, Caterpillar, Atlas Copco, KOHLER, and Cummins Inc.