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According to Fortune Business Insights, the North America temporary power market stood at USD 3.32 billion in 2024 and is on track to climb to USD 3.49 billion in 2025 before reaching roughly USD 5.06 billion by 2032, representing a compound annual growth rate of about 5.46% over the 2025–2032 forecast window. The report's study period spans 2019 through 2032, with 2024 used as the base year and 2019–2023 treated as historical data.
Temporary power refers to standalone electricity generation — typically supplied through generators, uninterruptible power supply (UPS) units, or battery systems — deployed in locations lacking a permanent grid connection. Such systems help businesses avoid costly downtime and are increasingly important as digitization drives growth in data centers requiring uninterrupted electricity.
Key Market Drivers
Several forces are pushing demand higher across the region. Construction and industrial activity is a major contributor: building sites often need reliable power for machinery, lighting, safety systems, and networking equipment well before a permanent utility connection is established, and temporary generation bridges that gap. Growth in planned events, infrastructure rehabilitation, and general industrialization is compounding this need.
Renewable energy expansion is another significant growth factor. Temporary generation supports wind and solar projects during construction and commissioning, and it also provides backup capacity when weather conditions cause output to dip. Offshore installations, for example, rely on backup power to run auxiliary equipment like heaters, dehumidifiers, and hydraulic systems used to rotate turbine blades when wind is insufficient.
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Policy has also played a role. U.S. incentives tied to clean-energy investment — including an investment tax credit for standalone storage — have accelerated battery storage deployment nationally, indirectly supporting demand for temporary and backup power infrastructure. Utility-scale battery capacity was near 9 GW by the end of 2022, and the market anticipated roughly 40 GW of storage capacity coming online by the end of 2025, with states such as California and Texas playing an outsized role through storage mandates and expanding solar capacity.
Restraints
Emissions regulation is the primary headwind identified for the market. Diesel generators, which remain the leading fuel source in this space, emit significant volumes of greenhouse gases and pollutants such as nitrogen oxides, carbon monoxide, and particulate matter. U.S. EPA rules — including New Source Performance Standards for stationary diesel engines — require substantial reductions in particulate and nitrogen oxide emissions, adding compliance costs and complexity for equipment operators.
Market Segmentation
By fuel type, the market splits into diesel, gas, renewable, and other sources. Diesel retains the largest share thanks to its wide availability, comparatively low cost, and strong efficiency, and it remains heavily used across manufacturing applications.
By end-user, segments include oil & gas, utilities, construction, shipping, mining, manufacturing, and others. Utilities represent the largest end-user segment, driven by inconsistent power access in developing infrastructure, aging systems, and a growing volume of rehabilitation projects — spanning telecommunications, transportation, and wastewater operations. Oil & gas ranks as the second-largest segment, as remote extraction sites operating in harsh climates depend on dependable backup power where grid access and staffing are both limited.
Country Insights
The United States leads the regional market, propelled by ongoing industrial expansion, a rising number of data centers, and continued technology investment that demands steady, uninterrupted electricity. Canada is also seeing rising demand, driven by construction projects, outdoor events, and the need for emergency backup during unplanned outages.
Competitive Landscape
The market includes both established and emerging players. Prominent companies named in the report include Aggreko, Vertiv, United Rentals, Ashtead Group, Caterpillar Inc., Smart Energy Solutions, APR Energy, Energyst, Cummins Inc., and Kohler Power. Recent developments highlighted include Aggreko's multi-year power partnership with the Las Vegas Grand Prix (October 2023) and its earlier agreement to supply the 2023 Ryder Cup, Vertiv's launch of its scalable Liebert APM2 UPS system, Caterpillar's release of its Cat XQ2280 mobile power module compliant with EPA Tier 4 Final standards, and Kohler's acquisition of Heila Technologies to broaden its energy storage and generation portfolio.
Summary
Overall, the North America temporary power market is positioned for steady, mid-single-digit growth through 2032, underpinned by construction activity, renewable energy build-out, and rising reliance on uninterruptible power for digital infrastructure — tempered somewhat by tightening emissions standards on diesel-based systems.
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