Temporary Power Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Fuel Type (Diesel, Gas and Others), By Power Rating (Less than 80 kW, 81 kW–280 kW, 281 kW–600 kW and Above 600 kW), By End-User (Utilities, Oil & Gas, Construction and Others), By Region, Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 9.04 Billion
CAGR (2026-2031)	10.27%
Fastest Growing Segment	81 kW–280 kW
Largest Market	North America
Market Size (2031)	USD 16.25 Billion

Market Overview

The Global Temporary Power Market will grow from USD 9.04 Billion in 2025 to USD 16.25 Billion by 2031 at a 10.27% CAGR. The Global Temporary Power Market is defined by the provision of electricity through the rental of independent generators, mobile power plants, and auxiliary systems to support operations during grid outages or in off-grid locations. The primary drivers fueling this market include the robust demand for continuous energy in infrastructure development and the increasing necessity for backup solutions due to utility grid instability. According to the American Rental Association, in 2024, the construction and industrial equipment rental segment, which encompasses power generation assets, was projected to generate $62.3 billion in revenue in the United States. This significant financial valuation reflects the critical reliance industries place on rental energy sources to maintain operational continuity.

However, a major challenge impeding market expansion is the enforcement of stringent environmental regulations regarding emissions. Governments worldwide are implementing rigorous standards that mandate drastic reductions in nitrogen oxides and particulate matter from diesel engines. This regulatory framework compels providers to incur high capital expenditures for fleet modernization and compliant technologies, thereby increasing operational costs and potentially stalling the broader adoption of conventional temporary power solutions.

Key Market Drivers

The expansion of data centers, driven by the rapid adoption of artificial intelligence and cloud computing, serves as a primary catalyst for the Global Temporary Power Market, specifically through the demand for bridging power. As data center construction outpaces the timeline for local utility grid upgrades, facility operators increasingly rely on rental power generation to bridge the gap between construction completion and permanent utility interconnection. This structural lag creates a critical dependency on interim power solutions to ensure timely facility commissioning. The scale of this demand is evidenced by the surge in development activity; according to CBRE, August 2024, in the 'North America Data Center Trends H1 2024' report, under-construction activity in primary markets reached a record-high 3,871.8 megawatts, representing a 69% increase year-over-year.

Simultaneously, the deterioration of aging utility grid infrastructure and the rising frequency of outages are necessitating robust backup and emergency power strategies. Extreme weather events and the electrification of broader industrial sectors are placing unprecedented stress on existing power networks, forcing commercial entities to secure independent energy resilience to maintain continuity. This systemic strain is projected to worsen; according to the North American Electric Reliability Corporation (NERC), December 2024, in the '2024 Long-Term Reliability Assessment', summer peak electricity demand is forecast to increase by 15% over the next decade, significantly heightening the risk of supply shortfalls. The financial impact of this reliance on auxiliary systems is substantial; according to United Rentals, in 2025, the company's specialty rental segment, which includes power and HVAC assets, reported 17% organic revenue growth for the full year 2024.

Download Free Sample Report

Key Market Challenges

The enforcement of stringent environmental regulations regarding emissions constitutes a formidable barrier to the expansion of the Global Temporary Power Market. As regulatory bodies globally prioritize the decarbonization of industrial operations, rental providers face intense pressure to retire older, less efficient diesel generators in favor of low-emission alternatives. This transition imposes a steep financial burden, as the acquisition of compliant equipment equipped with advanced filtration and after-treatment systems requires significant capital expenditure. These rising operational costs often necessitate higher rental rates, which can deter cost-conscious customers and slow the overall adoption of temporary power services in developing regions where price sensitivity is acute.

The severity of these regulatory demands is highlighted by recent industry data that underscores the technical and financial leaps required for compliance. According to the Association of Equipment Manufacturers, in 2024, the California Air Resources Board proposed new standards aiming for a 90 percent reduction in nitrogen oxide emissions and a 50 to 75 percent decrease in particulate matter relative to current Tier 4 Final levels. Compliance with such rigorous benchmarks mandates extensive fleet modernization and technical upgrades, diverting funds that could otherwise be allocated to market expansion. This regulatory uncertainty forces companies to adopt a cautious approach to asset procurement, directly dampening the growth momentum of the sector.

Key Market Trends

The integration of Battery Energy Storage Systems (BESS) into hybrid power configurations is transforming the market by optimizing fuel efficiency and reducing engine runtime. These hybrid systems manage variable load demands more effectively than standalone generators, allowing engines to operate at peak efficiency or shut down completely during low-load periods, which significantly lowers operational costs and noise pollution. Rental providers are aggressively capitalizing on this shift by expanding their fleets of modular storage units to support microgrid applications and renewable energy integration. Highlighting this investment trajectory, according to Power Progress, May 2024, in the article 'Aggreko extends BESS fleet with $200 million investment', Aggreko increased its global investment in mobile battery storage to approximately $200 million to expand its fleet of small to large-scale storage units.

Simultaneously, the usage of Hydrotreated Vegetable Oil (HVO) and biofuels is gaining traction as a drop-in solution for immediate decarbonization without requiring new hardware infrastructure. Unlike complex equipment overhauls, HVO allows rental providers and end-users to utilize existing diesel fleets while significantly lowering net carbon emissions, making it a pragmatic choice for short-term projects with strict environmental targets. This adoption is increasingly formalized through large-scale strategic supply agreements between equipment rental firms and construction giants. According to International Rental News, November 2024, in the article 'Sunbelt and Kier in HVO partnership', Sunbelt Rentals UK secured a deal to supply Kier Group with over 3 million liters of HVO fuel over the subsequent 12 months to replace diesel across its fleet operations.

Segmental Insights

Based on trusted market intelligence, the 81 kW–280 kW segment is identified as the fastest-growing category in the Global Temporary Power Market due to its optimal balance between high power output and logistical mobility. This range serves as the primary solution for the construction, events, and utility sectors, effectively managing heavy loads while remaining compact enough for rapid deployment across changing sites. Furthermore, strict emission regulations are driving a fleet renewal cycle, prompting operators to invest heavily in modern, fuel-efficient generators within this specific power band to ensure compliance and operational efficiency.

Regional Insights

North America currently stands as the dominant region in the Global Temporary Power Market, driven primarily by the critical need for grid resilience and operational continuity. The region’s aging utility infrastructure remains vulnerable to instability, particularly during frequent severe weather events such as hurricanes and winter storms, which necessitates reliable backup power solutions to prevent economic loss. Furthermore, robust activity in the construction, mining, and oil and gas sectors across the United States and Canada sustains high demand for independent power sources. Stringent environmental standards established by the Environmental Protection Agency (EPA) also influence the market, accelerating the adoption of cleaner, compliant power generation equipment.

Recent Developments

• In October 2025, United Rentals entered into a strategic partnership with Greener Power Solutions to expand its fleet of hybrid power equipment across Europe. This collaboration aimed to combine United Rentals’ extensive range of power support equipment with Greener Power Solutions’ expertise in advanced battery technology and smart energy software. The partnership focused on delivering integrated mobile power solutions that pair battery packs with generators to optimize energy efficiency and reduce emissions on jobsites. Through this agreement, the companies sought to provide customers with intelligent, data-driven power setups capable of managing variable loads and meeting strict environmental regulations.
• In July 2025, Atlas Copco launched the ZBC 1000-1200, its largest containerized battery energy storage system designed for the prime power market. This new unit offered a power output of 1MW and an energy capacity of 1.2MWh, making it suitable for demanding applications such as mining, construction, and large-scale events. The system was developed to operate either as a standalone power source or in hybrid mode alongside diesel generators, enabling users to significantly reduce fuel consumption and carbon dioxide emissions. The launch highlighted the company’s focus on providing scalable, plug-and-play solutions that support the transition to more sustainable temporary power infrastructure.
• In December 2024, Caterpillar Inc. introduced the Cat XQ20 mobile diesel generator set, expanding its portfolio of compact power solutions for the temporary power market. The new 20 kVA unit was engineered to meet U.S. EPA Tier 4 Final emission standards, targeting applications in construction, disaster relief, and outdoor events where portability is critical. The company designed the generator with a high-efficiency engine that eliminates the need for diesel exhaust fluid, thereby lowering operational costs and simplifying maintenance. Additionally, the model featured advanced telematics for real-time monitoring of fuel levels and battery status, ensuring reliable performance in diverse operating conditions.
• In August 2024, Aggreko announced a multi-year partnership with Formula 1 to become an official provider of temporary power solutions for the championship. Under this agreement, the company committed to delivering low-carbon energy generation systems at all European Grands Prix starting from the 2025 season. The collaboration involved deploying centralized power generation compounds utilizing renewable energy sources such as hydrotreated vegetable oil, biofuel, and solar panels to power key areas including the paddock, pit lane, and broadcast centers. This initiative was designed to replace individual generators with a unified, sustainable system, significantly reducing carbon emissions associated with the events.

Key Market Players

• Aggreko PLC
• Cummins Inc.
• APR Energy Ltd
• Kohler Co.
• Caterpillar Inc.
• Atlas Copco AB
• Atco Ltd.
• Rental Solutions & Services LLC
• Ashtead Group plc
• Temp-Power Inc.

By Fuel Type	By Power Rating	By End-User	By Region
Diesel Gas and Others	Less than 80 kW 81 kW-280 kW 281 kW-600 kW and Above 600 kW	Utilities Oil & Gas Construction and Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Temporary Power Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Temporary Power Market, By Fuel Type:

• Diesel
• Gas and Others

• Temporary Power Market, By Power Rating:

• Less than 80 kW
• 81 kW-280 kW
• 281 kW-600 kW and Above 600 kW

• Temporary Power Market, By End-User:

• Utilities
• Oil & Gas
• Construction and Others

• Temporary Power Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE