UK Power Rental Market - Strategic Assessment & Forecast 2025-2030

The U.K. power rental market is expected to grow at a CAGR of 5.08% from 2024 to 2030.

IMPACT OF TARIFF

• In 2025, the UK government imposed a 10% baseline tariff on goods imported from the UK. In addition to the baseline tariff, the US government also imposed a 25% tariff on all aluminum, steel, automobile parts & passenger vehicles. However, the UK government has not announced any new tariffs on US goods yet. The UK government is seeking a consultation on potential tariffs on the US.
• The US government announced a temporary pause in tariff hikes, but the situation remains uncertain after 90 days, with a 10 % minimum tariff in effect. This trade tension significantly impacts the UK, which imports machinery & transport equipment, including power equipment such as generators.
• According to National Statistics, the UK imported over USD 7 billion of mechanical power generators in 2024. With the potential implementation tariff, the cost of importing the generator for rental purposes would rise significantly due to increased duties, shipping complexities, and currency fluctuations.
• These added costs are likely to be passed on to UK consumers, causing a notable increase in rental prices of power equipment. As a result, demand for locally manufactured power equipment is expected to grow.
• Some power rental companies, such as United Rentals & Finning CAT, are importing products from the United States market to rent in the UK market. A surge in tariff rates is expected to increase the rental prices of the equipment.
• However, the UK government stated its priority is to strike a deal with the US that would lead to the removal of the newly imposed U.S. tariff.

U.K. POWER RENTAL MARKET KEY INSIGHTS

• The UK is one of the leading power rental markets in the European region. According to ERA (Europe Rental Association), the UK rental equipment is around USD 6-7 billion in 2024.
• The U.K. power rental market is extremely fragmented, with the top 4 power rental companies accounting for one-third of the market.
• The equipment rental market in the UK is extremely diverse, offering a range of products from large earth-moving equipment to small power tools.
• The U.K. power rental market continues to be dominated by diesel-powered equipment. However, due to increasing concerns about environmental safety, there is a growing demand for alternative fuel options, such as HVO, hydrogen, and biofuels, in power rental equipment.
• The demand for 375 KVA -1000 KVA power rating equipment is highest due to its diverse applications in various industries such as construction, mining & others,
• Power rentals are in high demand in the construction, utilities, and IT & data center sectors in the UK. The increase in investment in infrastructure projects and the surge in the construction of new data centers have positively impacted the rental of power equipment.
• Both England and Scotland particularly demonstrate a heightened demand for power rental equipment due to their greater power needs. Supply issues can arise from extreme weather conditions, such as heavy rainfall and storms, which have led to a growing requirement for rental power solutions to meet these demands.
• Generators are the most rented type of power equipment in the U.K. power rental market. Diesel generators are primarily used for backup power supply in events, retail, and utilities, while natural gas-powered generators are also capturing a significant market share.

MARKET DRIVERS & OPPORTUNITIES

UK Government Policies for Energy Transition Support the Power Rental Market Growth

• The UK government has increased its focus on achieving the goal of carbon neutrality in 2025. The government has introduced several policies for energy transition across the country.
• In 2021, the UK government started the Net Zero Strategy with an investment of USD 31.7 billion for the green industrial revolution.
• The government planned to invest in a cleaner and resilient energy system under the Powering up Britain program in 2024. It aims to achieve the goal of carbon neutrality by 2050 through various initiatives such as expanding renewable energy sources such as wind, hydro & solar, and boosting the domestic energy production of the country.
• In 2024, the Industrial Decarbonization and Hydrogen Revenue Support (IDHRS) scheme witnessed total funding of USD 27.9 million. The scheme allocated the funds for industrial carbon capture, utilization, & storage projects and hydrogen production. The funding is also directed towards the development of new hydrogen-to-power business models.

Demand for Rental Equipment Backed by Infrastructure Investments by the Government

• In 2024, the UK government has committed to unlocking USD 95.92 billion for private investment by 2030 and supporting the development of green industries by 2050.
• The government has laid out USD 490.2 billion for the infrastructure in its National Infrastructure and Construction Pipeline. This investment will include USD 74.6 billion for the transport infrastructure and USD 45.8 billion for social structures such as schools, housing, and healthcare.
• Government infrastructure investment is focused on accelerating the construction of critical infrastructure projects across the country. Key focus areas of investment include decarbonization of the electricity grid and investment in net-zero power generation capacity. Investment is directed toward clean energy generation through wind, solar, and nuclear, and upgrading the energy distribution infrastructure.
• In addition to this, the government is also planning to invest in housing projects under the New Town Development projects and the development of essential infrastructure such as healthcare facilities and public transport. Investment is also directed toward the development of rail and roadways to improve connectivity across the country. Such a growing number of investments in the project is projected to support the U.K. power rental market growth.

Use of Alternative Fuel in Rental Equipment

• In 2025, European rental companies are focusing on reducing carbon emissions and transitioning to more sustainable energy solutions. Presently, diesel-powered rental equipment is mainly used for rental purposes across the UK. However, the rental companies are exploring alternative fuel options like biofuels, hydrogen, and electricity for powering their rental equipment.
• In June 2021, Aggreko undertook its first pilot project of a 50kVA hydrogen combustion power generation unit at its depot in Moerdijk, Netherlands.
• The companies in the U.K. power rental market are attempting to transition towards fleets powered by low-carbon fuel alternatives such as hydrotreated vegetable oil (HVO) or natural gas, which are less polluting than diesel. HVO is made from waste vegetable and animal fats that can be used as a replacement for diesel, which leads to high carbon emissions.

Fluctuation in Diesel Prices Impacts U.K. Power Rental Market

• Diesel-powered generators have a significant market share of over 70% in the U.K. power rental market. It is mainly used in construction, mining, retail, oil & gas & IT industries. However, fluctuations in the prices of diesel can negatively impact the U.K. power rental market.
• In 2025, the diesel prices witnessed an increase, with the average price rising from 142.9p in January to 145.7p in February 2025. The prices of diesel have increased fourth consecutive month. The prices increased by over 4% in February 2025 compared to February 2024.
• Several factors have led to the rise in diesel prices in the UK market. Rise in crude oil prices in the global market, supply chain constraints, and variation in currency exchange of the pound & dollar.

U.K. POWER RENTAL MARKET GEOGRAPHICAL ANALYSIS

According to an IEA report, the UK's total electricity consumption in 2024 was 324.084 GWh. The power demand was highest in the England region, followed by Scotland and Wales.

In 2024, the UK experienced extreme weather conditions, including heavy rainfalls and thunderstorms, such as those from storms Henk, Kathleen, and Bert, which caused flooding and strong winds that disrupted the power supply. As a result, these regions are expected to see higher demand for power rentals and support the U.K. power rental market growth.

Segmentation By Region

• Scotland
• England
• Northern Ireland
• Wales

COMPETITIVE LANDSCAPE

• Aggreko, Sunbelt, Speedy Hire, Atlas Crop, Cummins, United Rentals, CAT, and Kolher are prominent vendors in the U.K. power rental market.
• Other prominent vendors include Generac, Boels Rental, Hireman, & others in the U.K. power rental industry.

Prominent Vendors

• Aggreko
• United Rentals, Inc.
• Sunbelt Rentals, Inc.
• Speedy
• Caterpillar
• Atlas Copco
• Cummins Inc.
• KOHLER

Other Prominent Vendors

• WB Power Services
• Boels Rental
• CES Power
• The Hireman
• Vital Power

SEGMENTATION & FORECAST

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

KEY QUESTIONS ANSWERED:

1. How big is the U.K. power rental market?

2. What is the growth rate of the U.K. power rental market?

3. Which fuel type is projected to dominate the U.K. power rental market?

4. What are some significant growth opportunities in the U.K. power rental market?