Temporary Power Market By Fuel Type (Diesel, Gas, Others (Dual Fuel & HFO Generators, and Mobile Gas Turbine)); By Power Rating (Less than 80 kW, 81 kW–280 kW, 281 kW–600 kW, Above 600 kW); By End-User (Utilities, Oil & Gas, Events, Construction, Mining, Manufacturing, Others (Shipping and Contracting)); By Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa) - Global Market Analysis, Trends, Opportunity and Forecast, 2022-2032

Temporary Power Market Overview and Definition

The global temporary power market size was valued at around USD 11.6 billion in 2022 and is projected to grow at a compound annual rate of growth (CAGR) of around 6.7% from 2022 to 2032.The market size is projected to succeed in USD 22.3 billion by 2032.

The global temporary power market is estimated to grow at a CAGR of 6.7% during the forecast period 2022-2032. The temporary power market provides short-term power solutions to meet the demand for electricity in various industries such as construction, events, and oil & gas. The market includes generators, distribution equipment, and related services. The market is expected to grow due to the increasing demand for electricity and the need for reliable power supply. The Asia-Pacific region is expected to be the fastest-growing market, driven by rapid industrialization and urbanization.

Temporary Power Market Key Drivers

The temporary power market is driven by several factors, including:

Increasing demand for electricity: As the global population grows, so does the demand for electricity. The temporary power market provides short-term power solutions to meet this growing demand.

Growing construction industry: The construction industry requires reliable and temporary power solutions to power equipment and tools on job sites.

Expansion of the oil and gas industry: The oil and gas industry requires temporary power solutions for drilling, exploration, and production activities in remote locations.

Rising demand for events: Concerts, festivals, and sporting events require temporary power solutions to provide electricity to stages, sound systems, and lighting.

Growing use of renewable energy: Renewable energy sources like solar and wind power are intermittent, and temporary power solutions are needed to ensure a consistent power supply.

Need for reliable power supply: In industries where power outages can result in significant losses, temporary power solutions are used to ensure a continuous power supply.

The utilities segment recorded the largest market size. The growth is due to aging power grid infrastructure in developed countries and in developing regions such as Asia Pacific and Africa due to the lack of electricity. Frequents blackouts are caused by poor grid infrastructure, thus giving rise to the need for rental power. The oil and gas industry held the second-largest share. The rise in demand for continuous power supply and growing industrialization are expected to increase the temporary power market share. Based on power rating, temporary power is classified into less than 80kW, 81- 280kW, 281 kW -600kW and above 600 kW. The power generators which are rated 600kW, their demand is expected to increase since they are used in a wide range of applications such as in the oil and gas, utilities and mining sectors. Based on fuel, the temporary is divided into diesel, gas, and other generators. During the coming years, the demand for diesel generators is expected to increase as they are used in a wide range of applications across various sectors. The largest market share is held by North America, followed by the Asia Pacific and South America.

The key market drivers are the growth in power demand and capacity expansion plans by temporary power companies. Due to the low rate of electrification and poor grid infrastructure that propel the demand for diesel generator in the Asia Pacific and Africa, they are estimated to grow faster. In the Asia Pacific, China dominated the temporary power market due to an increase in the number of planned events. The independent source of electric power, which supports various sectors with the power supply in situations such a blackouts and power outage is known as temporary power. It helps end-users to run equipments and tools over an extended period since it is a continuous, uninterrupted and reliable power source. The temporary power is used in events, utilities, construction, and mining, and these solutions help end users save lead time and monetary expenditures. 

One of the key end-users for temporary power is the utility as they use temporary power sources to meet the increasing demand for electricity during peak hours. Factors such as rising investments globally and payment issue are the factors which will hinder the growth of the temporary power market across the globe. The demand for temporary power is expected to grow due to increased dependence on renewable energy sources against the backdrop of rising fuel prices, stringent emission standards and increasing global energy demand. Moreover, mobile, hybrid, and portable temporary power installations are expected to drive the market for temporary power. In the temporary power market, Asia Pacific is expected to have the fastest growth during the coming years.

Temporary Power Market Challenges

The temporary power market faces several challenges, including:

Stringent government regulations: Temporary power providers are subject to regulations and permits that may vary by region, which can lead to increased costs and longer lead times.

Volatile fuel prices: Fuel costs are a significant expense for temporary power providers, and fluctuations in fuel prices can impact profit margins.

Dependence on diesel generators: Diesel generators are the most commonly used temporary power solution, but they emit pollutants and are noisy, which can be a challenge in urban areas.

Competition from alternative power solutions: Alternative power solutions, such as battery storage, can be more cost-effective and environmentally friendly in some cases.

Unpredictable weather conditions: Extreme weather events, such as hurricanes or heat waves, can increase the demand for temporary power solutions and create logistical challenges for providers.

Lack of skilled labor: Temporary power providers may struggle to find skilled labor to install and maintain their equipment, which can impact service quality and reliability.

Temporary Power Market Segmentation

By Fuel Type

• Diesel 
• Gas 
• Others (Dual Fuel & HFO Generators, and Mobile Gas Turbine) 

By Power Rating

• Less than 80 kW 
• 81 kW–280 kW 
• 281 kW–600 kW 
• Above 600 kW 

By End-User

• Utilities 
• Oil & Gas 
• Events 
• Construction 
• Mining 
• Manufacturing 
• Others (Shipping and Contracting) 

By Region 

• North America (The U.S. and Canada)
• Europe (U.K., Germany, France, Italy, Spain, Russia, Poland, Turkey, Switzerland, and Rest of Europe)
• Asia Pacific (Japan, China, India, Australia, South Korea, Vietnam, Philippines, Malaysia, Indonesia, Thailand, and Rest of Asia Pacific)
• Latin America (Brazil, Mexico, Columbia, Argentina, Chile, and Rest of Latin America)
• Middle East & Africa (South Africa, Saudi Arabia, UAE, Oman, Egypt, and Rest of Middle East & Africa)

Temporary Power Market Regional Synopsis

The temporary power market is segmented into several regions, including:

North America: The temporary power market in North America is driven by the construction and events industries. The market is expected to grow due to the increasing demand for electricity and the need for reliable power supply.

Europe: The temporary power market in Europe is driven by the expansion of the construction industry and the growing use of renewable energy sources. The market is expected to grow due to the need for reliable and sustainable power solutions.

Asia-Pacific: The temporary power market in the Asia-Pacific region is driven by rapid industrialization and urbanization, which has increased the demand for electricity. 

Middle East & Africa: The temporary power market in the Middle East & Africa is driven by the expansion of the oil and gas industry and the need for reliable power solutions in remote locations.

Latin America: The temporary power market in Latin America is driven by the expansion of the construction industry and the increasing demand for events. 

Temporary Power Market: Recent Developments

Here are some recent developments in the temporary power market:

Growing use of hybrid power solutions: Temporary power providers are increasingly using hybrid power solutions that combine diesel generators with renewable energy sources like solar or wind power. This helps to reduce fuel costs and emissions.

Focus on sustainability: Many temporary power providers are focusing on sustainability by investing in more fuel-efficient equipment and using renewable energy sources. This is driven by customer demand for environmentally friendly solutions.

Expansion of rental options: Temporary power providers are expanding their rental options to offer more flexible solutions to customers. This includes options for short-term rentals and customized power solutions.

Adoption of digital technologies: Temporary power providers are adopting digital technologies to improve their operations and customer service. This includes the use of remote monitoring and predictive maintenance to reduce downtime and improve reliability.

Strategic partnerships and acquisitions: Key players in the temporary power market are forming strategic partnerships and making acquisitions to expand their product offerings and geographic reach. This includes acquisitions of smaller competitors and partnerships with technology companies to develop new products and services.

Temporary Power Market Key Players

• Aggreko PLC (U.K.) 

• APR Energy Inc. (U.S.)
• Ashtead Group Plc (U.K.) 
• Caterpillar Inc. (U.S.)
• Power Electrics (U.K.)
• Speedy Hire (U.S.)
• United Rentals (U.S.) 
• Cummins Inc. (U.S.)
• Hertz Corporation (U.S.)
• Kohler (U.S.)
• Smart Energy Solutions (UAE)