Generator Market

Opportunities: Increasing deployment of hybrid, bi-fuel, and inverter generators

There are various alternative fuels presently being developed to replace fossil fuels. So, this is attracting innovations in the generator industry. Hybrid gensets, which comprise a combination of an internal combustion engine and batteries, are being manufactured by some OEMs. The hybrid genset provides power optimally by using the engine at times of high loads and the battery at lower loads. Hybrid generators benefit much more compared to the conventional gensets. It reduced running times, fuel consumption, and noise. As expected, it finds applications in mobile gensets for rural or remote places, urban construction sites, residential and the mining sector. For example, the US-based company, Ecoflow, designed Delta Pro Ultra - the whole-house battery generator with up to one month's power backup. This system can work for plenty of scenarios with multiple energy sources because it has a single-unit capacity of 6 kWh, 7.2 kW output, and 5.6 kW solar input.

Bi-fuel generators also seem to have a lot of promise, combining the best attributes of both gas and diesel generators and that would make reliable standby power performance. They mainly operate on gas but are made to switch over to diesel in emergency situations. In dual-fuel natural gas is added to the intake system, which in turn reduces the use of diesel while still retaining power density, torque, and transient response. Some of the generator manufacturers have incorporated the bi-fuel technology to cope with the rising high operation costs and to meet the emission standards of diesel engines. The latest kind of inverter generators is advanced electronic circuits combined with sophisticated magnets that yield clean power supply with an AC rating. Thus, their suitability increases for sensitive appliances.

They are gaining grounds in the small residential generator sales market and car industry. This year, Honda is to launch its newest portable inverter generator under brand name EU32i in Europe. It will offer 2.6 kW of output power. In 2021, Cummins launched a new RV inverter generator, Onan QG 2800i and 2500i. These are 60% quieter than previous ones, which makes them excellent for recreational vehicle markets. Onan QG 2800i and 2500i are inverter-based generator sets that attain 2.8 kW and 2.5 kW respectively and are primarily manufactured for Class B and truck campers. Increasing demand for hybrid generators, bi-fuel generators, and inverters offers attractive opportunities for players in the generator sales market. A global leading company, HIMOINSA, has raised the sales percentage in the Asia Pacific region, looking to gain as much as 30% of the firm's total sales over the next three years from 2022. The Hybrid Power Solution (HPS) series, by HIMOINSA, comprises models HPS 1500DCV and HPS 3000DCV hybrid generator sets, designed with variable-speed engines that can save up to 40% of fuel as compared to the standard generator sets market.

Similarly, Generac has brought out its 600 kW Bi-Fuel Generator that can look after on-site fueling for Emergency Systems.

Challenges: Stringent government regulations pertaining to conventional fuel generators

Diesel generators are used for a multitude of residential, commercial, and industrial uses. When diesel is burnt, it emits oxides of nitrogen, carbon monoxide, and particulate matter. These emissions find direct release in the atmosphere and deteriorate the environment and the inhabitants. A number of regulations have been enforced worldwide to minimize air pollution caused by generator sets. Growing environmental concerns have led to the development of regulations and policies related to the reduction of air pollution in each country.

It is thus why governments, variously located around the world, are employing stricter emission standards for fossil-fuelled generators, including diesel and gasoline. For instance, it is the main reason why the United States EPA has implemented regulations such as Tier 4 Final and Nonroad Spark-Ignition Engine Emission Standards for monitoring emission from non-road diesel engines, including generators. The standards force the manufacturers of generators to develop and sell more advanced technologies with emission control, which raises production cost and decreases the availability of traditional fuel generators. The CARB's Low-NOx Regulation which took effect in January 2021 also limits NOx generation from a generator by 90%. It also created a price situation similar.

Another environmental issue that is linked to conventional fuel generators is the problem of noise pollution. Although governments are currently working on noise standards in establishing acceptable limits for all generator sizes, especially in residential and commercial places, conventional fuel generators still represent some level of challenge in achieving compliance. For example, the European Union has emitted standards under its Environmental Noise Directive.