Top 10 Power Rental Companies in the World, 2021

The increasing demand for electrification across rural areas and the growing demand for uninterrupted power supply across several industrial applications such as oil & gas, mining, and others have led to higher adoption of advanced power rental solutions worldwide. In March 2021, the Rural Electrification and Energy Access Project in Underserved Areas of Cameroon announced the electrification of 700 localities across six of the ten regions in Cameroon. According to Fortune Business Insights, the global market size for power rental is expected to reach USD 20 billion by 2026.

COVID-19 Results in Delayed Project Development

According to the International Energy Agency (IEA), the global investment in power projects is expected to decline by 10% in 2020 owing to the COVID-19 pandemic. In addition to this, mobility restrictions, reduced demand, and delayed power projects are expected to lead to the market's sluggish growth. In such a scenario, the government policies worldwide will play a pivotal role in smoothing the novel coronavirus’s impact.

China, a major supplier of power equipment, experienced reduced demand in the first quarter of 2020, but since April has moved towards full production. For instance, in 2020, the public utility State Grid of China announced an investment of around 450 billion Yuan to develop its electricity grid infrastructure. Likewise, battling the COVID-19 crisis, several companies are striving to regain normalcy in business processes and strengthen their market position.

Fortune Business Insights lists down the Top 10 Companies Operating in the Global Market for Power Rentals. They are as follows:

1. Aggreko

Aggreko plc is one of the leading suppliers of temporary power generation equipment, headquartered in Glasgow, Scotland, United Kingdom. The company was founded in 1962 and today is listed on the London Stock Exchange. The company’s prominence was at fore when its generators were installed at the 2015 FIFA World Cup held in Japan. In June 2019, Aggreko announced its partnership with Cirque du Soleil to supply temporary power and temperature control to the global live entertainment company.

2. Atlas Copco

The Swedish company positioned in Stockholm was founded in 1873. Atlas Copco, a publically owned enterprise, delivers a wide range of products & services worldwide. A pioneer in the global market, the company has adopted proactive strategies to strengthen its position. For instance, in March 2021, the company completed Cooper Freer’s acquisition, a leading U.K.-based air distributor and service provider in the Midlands region. Moreover, back in May 2020, Atlas Copco joined forces with Energia MTC, a Saudi Arabian power generation and rental equipment provider, to cater to the increasing demand for power rental services across the Middle East & North Africa (MENA) region.

3. Caterpillar, Inc.

Caterpillar, Inc. is a part of the American Fortune 100 companies that deals in developing, designing, manufacturing, and marketing industrial equipment serving various industries. It has its presence in the equipment, power systems, attachments, parts segment. Founded in 1925 with its base in California, U.S., the company stood at 65^th position in the Fortune 500 list and 238 on the Global Fortune 500 list in 2018. Additionally, in 2019, Caterpillar registered sales and revenue worth USD 6.09 billion in 2019 while taking its net worth to USD 53.8 billion. In August 2020, the company introduced the Cat CG132B-16 generator set, rated for continuous power at 1 MW for 50 Hz in natural gas applications. The company is developing strength-to-strength with each passing year, according to the industry analysts.

4. Cummins, Inc.

The U.S.-based Cummins is one of the established companies in the global market for power rental. It designs, manufactures, and distributes filtration, power generation, and energy products with its clientele spread across 190 countries globally. Additionally, it has a network of 600 company-owned distributors with over 6,000 dealers worldwide. On February 10, 2020, the company showcased the 12kW mobile generator set, the latest addition to its Tier 4 Final mobile generator product line, at the American Rental Association Show (ARA) held in Orlando, USA.

5. Generac Power Systems

Founded in 1959, Generac Power Systems has earned a reputation as the preferred company of several home and business owners when the power goes out. The Waukesha, a Wisconsin-based company, has several standby generators that provide cost-effective power solutions for small-and-medium businesses. The company’s aggressive stance on strengthening its position was witnessed when it acquired Enbala Power Networks Inc. on October 05, 2020. Enbala is engaged in supplying distributed energy optimization and control software to ensure the operational stability of power grids.

6. Kohler Co.

Kohler Co. is a United States company having its headquarters in Kohler, Wisconsin. Founded in 1873, the company manufactures complete power systems such as advanced generators, automatic transfer switches, switchgear, monitoring controls, and accessories for emergency, prime power, and energy-management applications catering to its global clients. In November 2020, the company introduced 3500kW and 4000kW (60Hz) / 4000kVA and 4500kVA (50Hz) diesel power generator sets, powered by the KOHLER KD103V20 diesel engine.

7. United Rentals

United Rentals is the largest equipment rental provider with around 960 rental locations across 49 states and every Canadian province. Additionally, the company offers around 3,300 types of equipment for rent with an overall cost of about USD 10.3 billion. United Rentals, in March 2021, will host the Spring Used Equipment sale across 140 rental locations in North America. The customers can browse through several optimum conditioned used equipment.

8. Herc Rentals, Inc.

One of the leading equipment rental suppliers, Herc Rentals, has its presence across 275 locations in North America. The company offers daily, weekly, and monthly basis rates for rental tools and equipment for construction, power, and other industrial applications. With over 50 years of equipment-rental expertise, the company has witnessed an upward trajectory with a strength of over 4,900 employees in Canada and the United States. On January 04, 2021, Herc Rentals Inc. acquired assets of Houston-based Champion Rentals, Inc. The acquisition has surely consolidated its position in the global market.

9. APR Energy

APR Energy is one of the leading global providers of fast power and energy generation solutions and has its presence across 35 countries worldwide. The company is a pioneer in bringing in innovation in the energy sector. For instance, APR Energy’s mobile and scalable turnkey plants, a combination of fuel-efficient technology with industry-leading expertise, enhance the power infrastructure and improve quality of life. In May 2020, APR Energy announced the completion of the installation and 100-hour commissioning test of its 300MW power project specially formulated for the Bangladesh Power Development Board (BPDB).

10. Wärtsilä

A leader in smart technologies, Wartsila provides complete lifecycle solutions for energy and marine markets. In 2019, the company registered net sales of around USD 5.82 billion. The Finland-based company has a net operating income of around EUR 234 million as of 2020 and operates through 200 locations across 80 different companies globally. In January 2021, the company secured an order to supply dual fuel engines for six new 172,500 cbn LNG carrier vessels stationed at Russia’s Arctic waters.

Global Energy Demand to Reach 38,700 Terawatt-hours by 2050

The IEA reports that the global energy demand is expected to reach 38,700 terawatt-hours by 2050. Factors such as the increasing investment in power projects and the growing population rate worldwide are expected to drive the power demand. Moreover, several economies are experiencing a transition from a subsistence to a service or industrial base that is likely to boost the energy demand. However, with the increasing energy demand, one thing that will hold precedence is the utilization of renewables.

The future certainly revolves around renewable energy sources as stringent government regulations and a degrading environmental state has led to the prominence of power sourced from natural sources such as wind and solar. Several companies are investing in clean-energy sources, and this trend is expected to be witnessed in the future too. The power rental companies worldwide will be formulating their strategy to gain the upper hand in the global marketplace with their energy solutions in the near future.