UK Power Rental Market Assessment & Forecast Report 2025-2030 with Focus on the Impact of Tariffs - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "UK Power Rental Market - Strategic Assessment & Forecast 2025-2030" report has been added to ResearchAndMarkets.com's offering.

The UK Power Rental Market was valued at USD 335 Million in 2024, and is projected to reach USD 451.10 Million by 2030, rising at a CAGR of 5.08%.

The UK is a leading power rental market in Europe, with total rental equipment valued at USD 6–7 billion in 2024, according to the Europe Rental Association (ERA). The power rental segment is highly fragmented, with the top four companies holding only one-third of the market. The UK rental market offers a diverse range of equipment, from large earth-moving machines to small power tools.

Diesel-powered equipment continues to dominate the UK power rental market. However, growing environmental concerns are driving demand for alternative fuels such as HVO, hydrogen, and biofuels. The 375 KVA–1000 KVA range sees the highest demand due to its widespread use across industries like construction and mining.

Power rentals are especially in demand in the construction, utilities, and IT & data center sectors, fueled by rising investments in infrastructure and a surge in data center development. England and Scotland show particularly strong demand, with extreme weather conditions—including heavy rainfall and storms—further increasing the need for temporary power solutions.

Generators are the most commonly rented power equipment. Diesel generators are widely used for backup power in events, retail, and utilities, while natural gas-powered generators are gaining a growing share of the market.

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.

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 and 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.

IMPACT OF TARIFFS

• 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.

COMPETITIVE LANDSCAPE

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 Attributes:

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