Generator Market

The generator market size was valued at $23.1 billion in 2023 to reach $34.5 billion in 2030, growing at a CAGR of 5.9% from 2023 to 2030. The increasing power demand driven by industrialization, urbanization, and population growth, has led to a significant increase in power generation capacity worldwide. Generators are essential for backup power during outages and to ensure uninterrupted operations, driving the demand for generators. Remote and off-grid locations, such as rural areas, remote construction sites, and mining operations, often lack access to reliable grid power. Generators become the primary source of power in such situations.

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Generator Market Dynamics

Driver: Rapid industrialization owing the demand for generator

One of the key drivers of generator is the growing industrial sector. Manufacturing plants, factories, and industrial facilities heavily rely on a consistent power supply to operate their machinery, equipment, and production lines. Any disruption in the grid can result in substantial financial losses, downtime, and compromised productivity. Generators act as a dependable backup power source, ensuring uninterrupted operations during power outages or unstable grid condition

Restraint: High operational costs involved in the diesel generators owing to high fuel price

The generator market has encountered restraints due to the high operational costs associated with diesel generators, primarily caused by the escalating fuel prices. Diesel generators have been widely used as a reliable source of backup power, but the increasing cost of fuel has posed challenges for businesses and industries relying on these generators. The surge in fuel prices has led to concerns over the affordability and sustainability of operating diesel generators, impacting the sales dynamics in the market. Fluctuating global crude oil prices, geopolitical factors, and supply-demand imbalances have resulted in higher fuel costs. Diesel fuel prices can vary significantly across regions and countries, making it a substantial operational expense for businesses that rely on generators for continuous power supply

Opportunity: Rising adoption of hybrid generators, bi-fuel generators, and inverter generators

Various alternative fuel sources are being developed to replace traditional fossil fuels, driving innovation in the generator industry. Original Equipment Manufacturers (OEMs) are offering hybrid generators that combine internal combustion engines with batteries. These hybrid gensets optimize power delivery by utilizing the engine during high-load periods and relying on the battery during lower-load times. By reducing running time, fuel consumption, and noise, hybrid generators offer significant advantages over conventional gensets. They are expected to find applications in mobile gensets for remote areas, urban construction sites, and the mining sector

Challenge: Stringent government regulations for the conventional fuel generators

Diesel generators are used for a wide range of residential, commercial, and industrial applications. When diesel is burnt, it emits oxides of nitrogen, carbon monoxide, and particulate matter. These emissions are directly released into the atmosphere, and they deteriorate the environment and inhabitants. Several regulations have been implemented across the world to reduce air pollution by generator sets. With growing environmental concerns, each country has developed its regulations and policies to reduce air pollution.

Generator Market Ecosystem

Prominent companies in this market include well-established, financially stable manufacturers of generator market and components. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in this market include Caterpillar (US), Cummins (US), Generac (US), and Rolls-Royce Holdings (UK).

Indirect Sales Channel are expected to dominate the market on based on sales channel

Indirect sales channel such as  OEMs, third-party service providers, procure generators and equipment from manufacturers and provide services to different end users. Indirect sales channels typically have a local presence in specific geographic regions. This localized approach allows them to have a better understanding of the local market dynamics, build relationships with customers, and provide prompt after-sales service and support. Indirect sales channels can help generator manufacturers penetrate new markets or reach customer segments that may be challenging to access directly. By leveraging the expertise and networks of distributors or dealers, manufacturers can expand their market reach more efficiently.

Stationary segment, by design, to hold the largest market share during the forecast period during the forecast period

The stationary segment accounted for a larger market share during the forecast Stationary generators are designed for long-term use and can provide continuous power for extended periods. They are built to withstand heavy loads and are commonly used as primary or backup power sources in buildings, factories, data centers, hospitals, and other stationary installations..

Asia Pacific is expected to account for the largest market size during the forecast period.

Asia Pacific is expected to be the largest and fastest-growing market due to the high demand for power products in China and India. The generator market in Asia Pacific is witnessing rapidly growing population, which drives the need for infrastructure development, industrial expansion, and increased power demand. Generators are essential for meeting the rising electricity needs in residential, commercial, and industrial sectors. Governments across the Asia Pacific region are investing heavily in infrastructure development, including energy, transportation, and telecommunications. These projects require reliable power sources, and generators are often used as temporary or backup power solutions during the construction phase and as standby power for critical infrastructure.

Key Market Players

Some of the major players in the generator market are Caterpillar Inc. (US), Cummins Inc. (US), Rolls-Royce Holdings plc (UK), Generac Holdings Inc. (US), Mitsubishi Heavy Industries, Ltd. (Japan).

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Scope of the Report

This research report categorizes the generator market by fuel type, end user, power rating, application, design, sales channel, and region

On the basis of fuel type:

• Diesel
• Gas
• LPG
• Biofuel
• Coal Gas
• Producer Gas
• Fuel Cell

On the basis of application:

• Standby
• Prime & Continuous
• Peak Shaving

On the basis of end- user industry:

• Industrial
  • Utilities/Power Generation
  • Oil & Gas
  • Chemicals & Petrochemicals
  • Mining & Metals
  • Manufacturing
  • Marine
  • Construction
  • Others (Agriculture, Transportation, and Aerospace & Defense)
• Commercial
  • IT & Telecom
  •  Healthcare
  • Data Centers
  • Others (Hotels, Shopping Complexes, Malls, and Public Infrastructure)
• Residential

On the basis of by power rating:

• Up To 50 KW
  • Up To 10 KW
  • 11–20 KW
  • 21–30 KW
  • 31–40 KW
  • 41–50 KW
  • 51–280 KW
  • 281–500 KW
  • 501–2,000 KW
  • 2,001–3,500 KW
  • Above 3,500 KW

On the basis of by sales channel:

• Direct
• Indirect

On the basis of by sales channel:

• Stationary
• Portable

On the basis of region:

• Asia Pacific
• Europe
• North America
• Middle East & Africa
• South America

Recent Developments

• In January 2022, Caterpillar launched Cat G3516 natural gas-fueled Fast Response generator set with US EPA Certification for use in emergency and non-emergency applications.
• In January 2022, Rolls-Royce, along with its distributor partner Knopf & Wallisch (K&W), supplied three mtu customized and containerized combined cooling, heat and power plant (CCHP) trigeneration units to Romanian cloud service provider ClusterPower.
• In October 2021, Generac announced the introduction of two new large diesel units – the MDE330 and MDE570 diesel mobile generators, which are aimed at providing ease of operation and maintenance. The rental-ready machines feature wide-opening removable doors to maximize serviceability.
• In August 2021, Toho Gas and MHIET Successfully Conduct Test Operation of City Gas and Hydrogen Mixed-fuel Combustion in a Commercial Gas Engine for a Cogeneration System.
• In March 2021, Cummins Power Systems introduced the C2750D5BE. The new model complements the successful QSK60 series, extending its standby power range from 2500kVA to 2750kVA for 50Hz markets

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