France Power Rental Market - Strategic Assessment & Forecast 2023-2029

INDUSTRY INSIGHTS

The France power rental market by value accounted for USD 200.1 million in 2022 and is expected to reach USD 277.1 million by 2029 growing at a CAGR of 4.76% during the forecast period. Government outlay towards revitalizing the industrial sector, uncertainty in power supply with the rising demand in consumption, upcoming major projects and events, energy transition, and decarbonization are key demand drivers in the France power rental market.

KEY HIGHLIGHTS

Greater Paris Project, Paris Olympics 2024 To Fuel The Demand For Rental Power Equipment In France

• Uncertainty in the electric power supply in 2022 had driven the sale and rentals of generators in the France power rental market. Since a few nuclear reactors shut down in 2022, the government has implemented load-shedding practices. Due to the hike in electricity prices and load-shedding practices, many companies came out of the grid and used generators to power to reduce their electricity bill. Since the power outage will force stop their operations since most of the equipment longer time to restart. All these factors put heavy pressure on the manufacturers to meet the demand. For instance, in Perlin, Industrial generator manufacturer Gelec received a huge number of orders as of August 2022, with almost an 80% hike compared to the same period in 2021.
• OVHcloud, the largest French cloud services provider, had prepared for possible power outages in Q4 2022 by arranging diesel generators as a backup. These generators will be in place to ensure uninterrupted power supply and maintain the services provided by OVHcloud.
• The Grand Paris Express is currently the largest infrastructure project being constructed in Europe. It aims to build a modern public transport network spanning 200 kilometers, with a planned budget of €30 billion (USD 32.6 billion). The project includes extending the metro's line 14 and building new lines 15, 16, 17, and 18, improving regional transportation.
• Loxam and GL events allied by providing power and temperature control rental services, including project management services, temporary power solutions, and uninterrupted power supplies on all sites, including the international broadcast center for the 2024 Olympics and Paralympics in Paris. They are committed to including SMEs in their supply chain. Biofuels and green hydrogen are preferred as fuels in the temporary power equipment, which will be used to back up the renewable electricity supply from the electricity grid.
• A zero-emission generator was tested in Nantes on July 26, 2022, as a step towards producing zero-emission generators for the 2024 Olympic Games. It replaces traditional diesel generators with twelve rechargeable lithium batteries, reducing emissions. The prototype generator can be set up quickly, providing 160 kW of electricity for three hours. Although the prototype's cost is high, the price of batteries is expected to decrease in the future, making this technology more affordable and environmentally friendly. This prototype is being tested on construction sites in Loire-Atlantique to support Enedis in their daily operations.
• Netflix requested the testing of a mobile GEH2® solution by TSF, a technical resource supplier, in July 2022. The solution involved placing an electro-hydrogen generator on a 19-ton truck with compressed hydrogen and an expansion plate. This mobile installation provided the film crew with emission-free electricity for their lighting system while filming a Netflix series in the park of the Château de Courances in the Paris region. This innovative approach saved approximately 700 kg of CO2 compared to a diesel generator and showcased the potential of electro-hydrogen generators for sustainable power generation.

CRMA, French Investment Plan to Revitalize Industrial Economy and Spending on Transitioning to Renewable Energy to Generate the Demand for the Market

• France has launched the "France 2030" national investment plan, with a budget of €34 billion (~ USD 40 billion) to revitalize the industrial economy and adopt technological advancements in strategic sectors such as semiconductors, robotics, electric vehicles, nuclear energy, and renewable sources. The plan includes substantial funding for the energy sector, targeting the development of small nuclear reactors, green hydrogen projects, and industrial decarbonization. Currently, nuclear energy accounts for 69% of France's electricity mix.
• In addition, the French government has set a target to increase the installed capacity of renewable energy sources to 100 GW by 2050, ten times the current level. To achieve this, the government allocates €1 billion (USD 1.1 billion) under the "France 2030" National Investment Plan, with a significant portion dedicated to offshore wind farms, which alone will account for 40 GW of capacity.
• The European Union presented its flagship proposal in March 2023 for Critical Raw Materials Act (CRMA) to lessen the dependence on foreign countries for resources and ongoing green and digital transition. As of June 26, 2023, Italy and France proposed public investments of around USD 1.1 billion and USD 545.7 million to invest in joint projects and corporate closely on the Critical Raw Materials Act with Germany.
• On March 10, 2023, the Statement of Cooperation on Energy was signed between the UK's Secretary of State for Energy Security and Net Zero and the French Minister for Energy Transition. This agreement focuses on enhancing energy resilience, including interconnection and security, promoting low carbon technologies such as hydrogen, offshore wind, and carbon capture, usage, and storage (CCUS), as well as collaborating on civil nuclear activities like new construction, research and development, and decommissioning.

Ongoing Energy Transition and the Importance of Temporary Power at Construction Sites to Provide Lucrative Opportunities to France Power Rental Market.            

• A five-year agreement between the France Government and Action Logement group for 2023-2027 will involve funding with a capital investment of USD 15.7 billion for various activities. A budget of USD 6 billion for financing landlords in housing renovation and construction, USD 4 billion for aiding employees, and USD 5.7 billion will be utilized for public housing policies similar to Urban Renewal (NRNRU ) and Action Coeur de Ville.
• As part of the ongoing energy transition, a lithium mining project, the EMILI project (Imerys' lithium mica mining project) in Imerys, France, was announced in October 2022. This project is located at the Beauvoir site in the Allier region and will enable 34,000 tonnes (37,478.6 tons) of lithium hydroxide production annually starting in 2028. This project will also aid in France's industrial dominance in Europe. This shall create an integrated battery production site in the country with an overall budget of USD 1.1 billion.
• In the Grand Arénas business district, a spacious international exhibition and convention center spanning 65,000 m² is planned for construction. The project will prioritize environmental considerations, incorporating 40,000 m² of green space surrounding the building. The anticipated completion is in 2027, with an estimated budget of €200 million (USD 217.4 million). Once completed, this exhibition and convention center will provide a significant venue for hosting international events.

VENDOR LANDSCAPE

• The key players in the France power rental market are Loxam, Sunbelt, United Rentals, Aggreko, Atlas Copco, Caterpillar, and Kohler Power.
• Loxam, Aggreko, and Sunbelt account for 29% of the France power rental market share.
• In France, Kiloutou had introduced a program for long-term rentals of power tools, partnering with Milwaukee. The program, called 'KFleet,' offers rental contracts spanning three or four years and includes theft protection, fleet management, and after-sales service provisions. It covers a range of 600 products provided by Milwaukee.