From Diesel to Hybrid: AMA Research Maps UK Generator Hire Market Evolution

The latest Generator Hire Market Report from AMA Research reveals evolving trends, challenges, and opportunities shaping the sector.

Key Market Insights

Generators rated 21-350kVA dominate the market, but demand for larger units is rising. Diesel generators account for 90% of demand due to reliability, though biodiesel and hybrid models are gaining traction as environmental goals drive change. Increasing affordability is expected to boost adoption of greener options.

Economic and Regulatory Challenges

Resilient post-COVID, the sector faces headwinds from rising energy costs, Brexit, and tax increases from the Labour government in October 2024. These factors impact all sectors, including construction and events.

Sector Highlights

• Construction: Over a third of demand stems from new builds and RMI.
• Infrastructure: Utilities and transport contribute 11-16%.
• Industrial: Accounts for around 20%.
• Events: Represents 10-15% of the market.

Competitive Landscape

Market leader Aggreko competes with Speedy Hire, Sunbelt UK, HSS Hire, and specialists like Power Electrics and Generator Power. Success often depends on sector performance. Regional players also play a pivotal role, leveraging niche expertise and tailored offerings to capture local demand.

Sustainability and Innovation

Sustainability pressures are driving demand for Stage V-compliant models, biodiesel, and hybrid systems. Advances include:

• Engine Management Systems: Boosting fuel efficiency.
• SMART Technologies: Enabling remote monitoring.
• Ultra-Silent Generators: Addressing noise concerns.
• Enhanced Security: Protecting against theft.

As the market evolves, hybrid solutions that combine batteries and diesel generators are becoming more attractive for longer-term applications, despite requiring additional site space. This trend highlights the sector’s ongoing adaptation to environmental regulations and project-specific needs.

Market Outlook

Marginal growth is expected, with shifts toward eco-friendly options and larger units. Compliance and cost challenges persist, but cross-hiring and partnerships will help firms meet fluctuating demand efficiently. Innovation and collaboration will remain central to sustaining market competitiveness.