The Temporary Power Market was valued at USD 6.75 billion in 2025 and enters its forecast window at USD 7.37 billion in 2026, climbing to USD 16.82 billion by 2035 at a 9.6% compound annual growth rate. Two catalysts anchor that trajectory: the record pipeline of hyperscale data centre construction, where commissioning load banks and bridging generation are contractually required months before utility interconnection is energised, and the wave of transmission rebuild work funded under programmes such as the U.S. Grid Resilience and Innovation Partnerships allocation of roughly USD 10.5 billion, which forces planned outages that must be covered by mobile generation.

Report Key Statistics

Fleet composition is changing faster than fleet size. Operators are retiring older Tier 2 and Stage IIIA diesel sets and replacing them with Stage V-compliant units, battery energy storage skids, and containerised gas gensets that run on pipeline or LNG supply. Aggreko, Cummins, and Atlas Copco have each committed nine-figure sums to hybrid fleet conversion since 2023, and the International Energy Agency estimates global grid investment reached about USD 400 billion in 2024.

Fuel type segmentation shows diesel gensets accounting for 64.9% of revenue in 2025, retaining the installed-base advantage, with gas at USD 1.44 billion on pipeline access and lower emissions profile, and hybrid and renewable-integrated systems forecast to expand at a 15.8% CAGR through 2035, the fastest of any fuel class.

Power rating segmentation shows up to 50 kW growing at 8.6% CAGR on small events and remote monitoring sites, 51–500 kW at USD 1.85 billion for construction sites and commercial backup, 501–2,000 kW at 34.6% share for industrial and utility bridging, and above 2,000 kW growing at 11.7% CAGR for data centres and utility outage cover.

Application segmentation shows base-load and continuous duty at 41.2% share for interim capacity and off-grid operations, grid support and transmission outage growing at 11.2% CAGR on network rebuild programmes, standby and emergency at USD 1.36 billion for storm response and unplanned outages, and peak shaving growing at 8.9% CAGR on demand charge management.

End-user segmentation shows utilities and power generation capturing 33.6% of revenue in 2025, oil and gas contributing USD 1.31 billion, data centres and ICT set to record a 13.0% CAGR as the steepest end-user trajectory, construction and infrastructure at 13.9% share, events and entertainment growing at 8.4% CAGR, and mining and others at USD 0.63 billion.

Industry Trends

Data centre commissioning load is the first trend. Hyperscale campuses now routinely need 40–150 MW of temporary capacity between building topping-out and utility energisation, and the IEA's 2024 assessment put global data centre electricity consumption near 415 TWh, roughly 1.5% of world demand, with a doubling trajectory to 2030. Because interconnection queues in the PJM and ERCOT territories stretch beyond four years, developers increasingly budget bridging generation as a line item rather than a contingency.

Grid modernisation outage windows form the second trend. Rebuilding a live transmission corridor requires taking it out of service, and regulators will not approve the outage without a firm backup plan. European transmission operators face a parallel obligation under the EU's Action Plan for Grids, which identified around EUR 584 billion of grid investment need to 2030.

Weather-driven emergency response is the third trend. Billion-dollar weather and climate disasters in the United States alone numbered 27 in 2024, according to NOAA's disaster database, and each event triggers utility mutual-assistance calls, with rental fleets mobilised within 48 hours under pre-negotiated standby agreements.

Challenges

Diesel emissions regulation reduces CAGR by approximately 1.4 points, with EU Stage V and EPA Tier 4 Final effectively stranding a large slice of older rental inventory, and aftertreatment systems adding roughly 12–18% to unit acquisition cost. Fleet capital intensity and financing costs reduce CAGR by approximately 1.0 point, with policy rates high in most OECD economies until 2024–2025 dramatically increasing the carrying cost of fleet assets. Skilled technician and logistics shortages reduce CAGR by approximately 0.8 points, with field service technician vacancy rates in North America and Western Europe still above 10%. Permanent capacity additions displacing bridging demand and fuel price volatility complete the constraint set.

Future Outlook

Battery-first hybrid packages open bids for selling packages with storage as primary and generation as backup, with urban infill construction and city centre locations the natural beachhead. Emerging-market utility bridging offers multi-year interim power purchase agreements at 50 to 300 MW for three to five years, guaranteeing utilisation that no construction rental arrangement can equal. Data monetisation and fleet telematics convert a rental transaction into a recurring software relationship. Grid services participation allows aggregated rental fleets to bid into capacity and ancillary service markets, with FERC Order 2222 opening U.S. wholesale markets to distributed resource aggregation. Modular substation and switchgear rental command premium rates because the alternative is an 18-month procurement wait.

Expert Discussion

Concentration is moderate, with the estimated Herfindahl-Hirschman Index near 680 and the top five suppliers holding roughly 38–45% of global revenue. Aggreko holds approximately 11–14% through large-frame gensets, mobile substations, and battery storage, positioned as global emergency and utility specialist. Cummins Inc. holds approximately 7–10% through diesel and gas gensets, distribution, and aftertreatment, positioned as OEM with integrated rental channel. Caterpillar holds approximately 7–9% through diesel gensets, transformers, and switchgear, with dealer-network reach and service depth. United Rentals holds approximately 5–8% through mobile power, HVAC, and distribution equipment, as North American scale leader. Ashtead Group holds approximately 4–7% through power packages, climate control, and site services, with a multi-line cross-sell strategy.

Recent developments include Aggreko announcing a multi-year investment programme in battery storage and Stage V fleet in March 2024, targeting a material reduction in customer site emissions and signalling that hybrid capability is now a tender qualification. The U.S. Department of Energy awarded the first tranche of Grid Resilience and Innovation Partnerships funding in October 2023 across dozens of transmission projects. Cummins expanded its fuel-agnostic engine platform in June 2024 with configurations covering natural gas and hydrogen-capable variants. United Rentals completed the Yak Access acquisition in April 2024. The European Commission published the Action Plan for Grids in November 2023. Atlas Copco launched an expanded modular energy storage range in September 2024. Wärtsilä signed interim power capacity agreements in Africa covering several hundred megawatts in February 2025. Ashtead Group reported continued growth in specialty power and climate solutions in January 2025.

Conclusion

The sector shows strong growth fundamentals. Current momentum rests on diesel dominance and utilities end-user leadership. Emerging opportunities lie in battery-first hybrid packages, emerging-market utility bridging, and data monetisation. Technological developments in hybrid fleet economics and fleet telematics are steadily improving efficiency. The long-term outlook anticipates the Temporary Power Market reaching USD 16.82 billion by 2035, supported by data centre commissioning, grid modernisation, and weather-driven emergency response worldwide.