India Power Rental Market Report, By Fuel Type (Diesel, Natural Gas, Others), By Power Rating (Up to 50 kW, 51-500 kW, 501-2,500 kW, above 2,500 kW), By Application (Peak Shaving, Standby Power, Base Load/Continuous Power), By End Use and Regions 2024-2032

Market Overview:

"The India power rental market was valued at US$ 1.13 Billion in 2023 and is expected to register a CAGR of 5.2% over the forecast period and reach US$ 2.1 Bn in 2032."

Power rental market in India is taking a paradigm shift on the energy map of the country as it caters to reliable and scalable power generation solutions for a fixed period of time to many industries. Rental power services are becoming an integral component of India’s infrastructure that caters to the standby power requirements of construction and oil & gas, manufacturing, events, and public work sectors. With frequent power cuts, the need for constant power during important processes and the delays in establishing permanent power plants, there has been a rise in the need for power rental services.

As a result of India's rapid industrialization and urbanization, the requirement for variable power sources has increased. To fill the gap, power rental companies provide diesel and gas generators that can be installed on site quick and flexible to address the short-term power needs of remote areas, building sites and even unexpected situations. Such flexibility is critical in a country where energy requirements are fluctuating, with some areas having unstable power grids.

What is more, the industry is undergoing changes due to the transition to more environmentally-sound and energy efficient technologies. Power rental providers are also offering hybrid systems that combine conventional diesel generators with alternative sources of energy such as solar power. This enhances the solutions’ eco-friendliness while also bringing down their operational costs. This is in line with the increasing emphasis on sustainable energy practices in India.

In general, the Indian power rental sector is acting as an intermediate which is helping the industries seeking reliable energy sources while focusing on innovation in energy efficiency and thus contributing to the growth of the country as well.  

India Power Rental Market Trends and Drivers:

The rental power market in India is witnessing high growth on various fronts and factors indicating its importance. For instance, the growth of infrastructure and industrialization has led to an increase in energy demands across construction and manufacturing industries, oil & gas, and utility sectors. Such industries require round the clock supply of power especially in remote locations and at peak load times fuelling the demand for power rental solutions significantly.

Considerable expansion of the market has also been observed in regions where the instability of the electrical grid and frequent blackouts is common. Power rental solutions are gaining importance as industries require uninterrupted power for operations especially in the critical stages of projects. In addition, the increasing government programs directed towards rural electrification, provision of services and infrastructure is enhancing the temporary power sources deployment in areas with no grid connectivity.

Another upcoming trend has been the transition towards sustainable and efficient power rental solutions. There is an increasing inclination towards environment friendly rental power systems that use hybrid power systems incorporating solar energy. This trend is in sync with the Indian culture where there is a concern to conserve emission levels and encourage the use of green energy.

Furthermore, temporary power supply solutions are necessary to fulfil short-term high energy needs such as events, festivals and even large-scale gatherings which are also increasing the demand for rental power. All in all, these dynamics are working together to enable growth and advancement of the power rental industry in India in the long run.

India Power Rental Market Restraining Factors:

The India power rental market is beset with considerable challenges limiting its growth. A prominent restraint is the high operational and maintenance costs that come with the rental power equipment. This becomes a challenge to the service providers in keeping their prices low especially in a market such as India that is very sensitive to prices. In addition to this, the volatile prices of fuels especially diesel escalates the operational cost narrowing the profits of rental companies.

Another important challenge is the heightened regulatory requirements with respect to emissions and their impact on the environment. There is a clear ambition by India to cut down on the carbon emissions, hence the rental power industry is under pressure to implement technologies that are more environmentally friendly, which in most cases, come at a cost.

India Power Rental Market Opportunities:

The India power rental market is expanding with the recent increase in demand of industrialization, infrastructural development and energy consumption. One such opportunity is the construction and infrastructure sector which is rapidly growing, and where power is needed on a continuous and reliable basis for any project, even the ones located in hard-occupied areas. The huge burden of temporary electricity supply is even worse as the country is focusing on many big projects such as smart cities and roads, highways, etc.

Also, the rise in the number of blackouts experienced by the population either in towns and rural areas leads to the high standby power demand especially for sectors such as health care, manufacturing as well as information technological services. Also, the upsurge in the behavior towards the management of events i.e. power sports spectacles, huge corporate gatherings, and shows has increased the demand for power rentals for concise periods.

 India Power Rental Market Segmentation:

By Fuel Type

• Diesel
• Natural Gas
• Others

Diesel dominates the Indian market due to its widespread use in various industries, particularly transportation, agriculture, and power generation. Diesel-powered vehicles and machinery are preferred for their efficiency and reliability, especially in rural areas where infrastructure for other fuel types like natural gas is less developed. Additionally, diesel is more readily available and cost-effective, making it the fuel of choice across multiple sectors in India.

By Power Rating

• Up to 50 kW
• 51-500 kW
• 501-2,500 kW
• Above 2,500 kW

On the basis of power rating, the India Power Rental market is segmented into Up to 50 kW, 51 -500 kW, 501 -2,500 kW, above 2,500 kW.  

By Application

• Peak Shaving
• Standby Power
• Base Load/Continuous Power

The Base Load/Continuous Power segment dominates the Indian market due to the country’s increasing demand for uninterrupted power supply in industries such as manufacturing, mining, and utilities. Continuous power is crucial for maintaining operations in these sectors, particularly in areas with inconsistent grid reliability. India's rapid industrialization and infrastructure growth further boost the demand for base load power solutions to ensure stable and long-term energy access.

By End Use

• Government and Utilities
• Oil & Gas
• Construction
• Industrial
• Event Management
• Others

The Government and Utilities segment dominates the Indian market due to significant investments in public infrastructure, energy, and utility projects. As the government focuses on expanding and modernizing power grids, water supply systems, and other essential services, the demand for reliable energy solutions increases. Additionally, utility projects require continuous power supply, driving the growth of this segment in India’s rapidly developing urban and rural regions.  

By Region

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Leading Companies in India Power Rental Market & Competitive Landscape:

The competitive landscape of the India power rental market is characterized by the presence of key players such as Aggreko, Caterpillar, and Cummins, among others. These companies are adopting strategies like expanding their rental fleet, offering flexible rental contracts, and providing customized power solutions to cater to diverse industries such as construction, oil and gas, and utilities. Additionally, leading players are leveraging technological advancements, such as hybrid power solutions and smart monitoring systems, to enhance efficiency and sustainability, thus gaining a competitive edge in the market.

These companies include:

• Caterpillar Inc.
• Cummins Inc.
• Atlas Copco AB
• Generac Holdings Inc.
• Johnson Controls International Plc
• Aggreko Ltd
• Perennial Technologies
• Fuji Technical Services Pvt. Ltd
• Modern Energy Rental Pvt. Ltd
• Among Others

Recent Development:

• September 2024, During the recent BOILER INDIA 2024 Expo, Atlas Copco Specialty Rental introduced the new line of modular steam rental solutions. With a plug-and-steam design, the steam rental capacities are available in modular form from a minimum of 0.6 to a maximum of 8.0 tonne per hour. Their compact design ensures easy and fast installation with minimal time for commissioning and the production of steam is continuously and consistently delivered.
• June 2022, Cummins Inc. has launched a new 1MW twinpack rental generator, the C1000D6RE, which offers a competitive rental power solution for a diverse range of applications throughout North America.

India Power Rental Market Research Scope