The hire of generators is well-established in the UK and reflects the need for temporary, emergency or back-up power in a wide range of applications. The overall generator hire market includes all types of generators as well as ancillary products. This report reviews the hire market of diesel generators only, with a focus on those with a generator rating up to 2,000 kVA.
Generator hire is a competitive market, but benefits from the wide range of end-use applications which helps underpin market growth. Given the diversity of applications, the performance of the UK economy has a direct impact on the level of generator hire demand, reflecting trends in both construction and non-construction activity.
It is estimated that there are around 35,000 – 40,000 generators available for hire in the UK, with the larger companies holding a significant share. The number of units in the market has increased in recent years as some companies have expanded their fleets and there have also been new entrants into the market, further increasing the number of units available.
These developments have led to increasing competition and have impacted on hire rates and market development. Overall rental rates have remained relatively flat in recent years, although some companies have increased their rates whilst others have reduced their rates.
The effect of the ‘Brexit’ negotiations on levels of confidence and investment remains the biggest risk factor to market development as it is impossible to judge how the economic situation will develop. Consequently, forecasting at this time is difficult and market estimates should be treated with caution.
However, while there is uncertainty, the diversity of applications and range of positive underlying drivers, provides optimism for growth. The generator only hire market is forecast to grow to 2022 as demand for temporary power is expected to rise, supported by increased domestic and non-domestic construction as well as other opportunities such as the growth in the overall events industry.