Portable Inverter Generator Market

Portable Inverter Generator Market Outlook (2022-2032)

The portable inverter generator market reached a valuation of US$ 2.78 Billion in 2021, and is likely to register a Y-o-Y growth rate of 8.0% in 2022, closing at US$ 3.05 Billion. Furthermore, across the 2022-2032 period of assessment, growth is expected to accelerate at a whopping 9.7% CAGR, reaching US$ 7.7 Billion.

Portable generators are designed to provide alternating current (AC-based) for non-hardwired and standalone applications. Increasing business downtime across the globe, owing to rise in weather-related power outages, has resulted in an increasing demand for uninterrupted power supply. This is a major factor in driving product demand.

Increasing adoption of portable generators owing to a rapidly growing construction industry is also propelling market growth. Power tools of all sizes, such as drills, drives, compressors, and air hammers, are widely used in the construction sector. Portable generators are used majorly for new construction projects, where most of the work is carried out at night and in conditions where power from power grids is not accessible.

Increasing awareness of global warming has resulted in growing demand for portable generators based on biofuel, a sustainable energy source. Biofuel has chemical characteristics similar to that of petroleum-based fuels and hence, it can be used as a direct substitute for diesel fuel.

Additionally, biofuel provides energy independence to countries such as Japan and Italy, which import petroleum and natural gas from other countries. Biofuels can be produced from soybean, canola, corn, used cooking oil, and animal fats. Rising demand for biofuel powered generators will provide an opportunity to market players over the forecast period.

Report Attribute	Details
Anticipated Base Year Value (2021)	US$ 2.78 Billion
Expected Market Value (2022)	US$ 3.05 Billion
Projected Forecast Value (2032)	US$ 7.7 Billion
Global Growth Rate (2022-2032)	9.7% CAGR
Expected Growth Rate of the US Market (2022-2032)	9.6% CAGR
Anticipated Growth Rate of the Japan Market (2022-2032)	9.5% CAGR
Prominent Portable Inverter Generator Service Players	Honda Motor Co., Ltd. Hyundai Motor Company Lifan Industry (Group) Co. Ltd. Toshiba Corporation Yamaha Motor Co. Ltd.

2017-2021 Revenue Analysis of Portable Inverter Generator Market vs. Growth Outlook 2022-2032

According to Fact.MR- a market research and competitive intelligence provider-sales of Portable Inverter Generator products experienced an incline at around 4.4% value CAGR from 2017-2021. The global portable inverter generator market has illustrated a growth rate of around 0.5% CAGR in past half decade owing to the unprecedented outbreak of COVID-19.

Emerging countries like China, India, Indonesia and South Korea are expected to navigate the demand curve. Whereas, economies including the US, Germany and UK is expected to account for a notable share in portable inverter generator market.

Portable inverter generator market is gaining momentum over conventional generators, due to its advanced technological features, high quality outputs, minimal NV (Noise & Vibration) levels and ease of carrying it anywhere.

Residential application is most addressable segment by Tier-1 manufacturers owing to high demand, it is presumed that the residential customer will continue to be dominant owing to the need of power backups. After weighing the key factors and consumer behavior, Fact.MR foresee a global portable inverter generator market value of US$ 7.7 Bn by the end of evaluation period (2032).

Key Market Drivers Influencing Portable Inverter Generator Industry Expansion

Rise in Demand for Uninterrupted Power Supply to Foster Market Growth Prospects

Electricity is the key to the economic progress of a nation, but several countries around the world do not have proper grid infrastructure. Inadequate power supply severely hampers operations of small and medium enterprises (SMEs) as well as commercial spaces. Portable gensets not only provide a reliable power supply in the event of a blackout but also ensure continuous electricity supply, augmenting the portable genset market growth.

The United Nations reported in 2018 that around 55% of the world’s population lives in urban areas, which is projected increase to 68% by 2050. Extensive population shifting to metro cities is increasing the demand for electricity.

Moreover, enormous construction activities to build commercial spaces, business parks and housing societies set to spike power demand. These factors are creating a gap between production and supply of electricity which eventually provides lucrative opportunities for the growth of the market for portable generators.

Inadequate Grid Infrastructure in Emerging Economies to Accelerate the Market Growth

Millions of people around the world do not have access to electricity owing to lack of grid infrastructure. Emerging economies are mostly affected on account of massive population growth, rising demand for energy, and deficient energy infrastructure. Many housing societies, apartments, commercial spaces, and SMEs opt for portable generators to get reliable power supply, which has brightened the portable generator market outlook.

Additionally, the demand for portable generators increases in the event of environmental tragedies such as tsunamis, earthquakes, floods, bushfires, storms, hurricanes, and volcanic eruptions, among others. Certain regions in the world are highly prone to frequent natural disasters that disrupt the national grid infrastructure, causing inconsistent electricity supply. In such events, portable gensets are extensively used to provide electricity in rescue operations.

Key Challenges encountered by Portable Inverter Generator Industry

Initiatives by Governments and International Authorities to Improve Access to Electricity

Developing countries are taking serious notes on the frequent power outages and inadequate electricity supply. Growing interest by local governments to expand the grid infrastructure to meet the end-user demand is likely to limit the scope of the market. Moreover, rising concerns over greenhouse gas emissions and shifting trends toward clean energy technology are set to inhibit the growth of the market.

Stringent Government Regulations Pertaining to Emission from Diesel Engines

Portable generators are used for a wide range of residential, commercial as well as industrial applications. When diesel is burnt in a generator, it emits oxides of nitrogen, carbon monoxide, and particulate matter. These emissions are directly released into the atmosphere, and they deteriorate the environment, along with inhabitants.

Several regulations have been implemented globally, in order to reduce air and noise pollution by generator sets. With growing environmental concerns, each country has come up with its own set of regulations and policies to reduce air pollution.

Country-wise Analysis

How will the U.S Perform in the Global Portable Inverter Generator Industry Landscape?

Rise in the Advanced Technological Activities to Boost the Market Growth

According to Fact.MR, the region will likely accelerate at a CAGR of 9.6% through 2032. The presence of leading global manufacturers like Honda, Generac, Briggs and Stratton, etc., in the US is giving rise to the advanced technological activities and product innovations resulting to boost the demand.

Portable inverter generators find multiple applications cross multitude mature industries in US like construction, automotive, etc. Higher levels of affordability and spending capacities of consumers in the US is led to trigger the thriving growth of regional market, making US the most demanding country in global portable inverter generator market.

How will the Growth of Portable Inverter Generator Market Escalate across Japan?

Recovering End-User Industries to Enhance the Market Prospects

According to Fact.MR, Japan will likely accelerate at a CAGR of 9.5% through 2032. Among global portable inverter generator manufacturers, leading players are headquartered in Japan, which gives the region a competitive edge in global portable inverter generator market. Manufacturers in the region are adopting the latest technologies to produce surge-sensitive, fuel efficient, and better performing portable inverter generators.

The recovering end user industries in Japan like construction industry and automotive industry are expected to contribute in the healthy growth of Japan’s portable inverter generator market in the coming years. By complying with global environmental regulations like the US Phase II, European emission regulations, etc., as well as regulations by the authority organizations in Japan like Land Engine Manufacturers Association (LEMA), Japanese manufacturers are planning to capture the wider range of consumer base in order to expand their network.

Country-wise Forecast CAGRs for the Portable Inverter Generator Market

Country	CAGR
US	9.6%
Japan	9.5%
Germany	9.4%
China	9.3%
UK	9.3%

Category-wise Insights

Which is the Most Sought-after Fuel Type Category?

Affordable Nature of Gasoline Segment to Maintain Their Popularity

In terms of power, gasoline is prospective to earn greater traction, expanding at a CAGR of 9.5% over the forecast period.

Gasoline is the primary choice for fuel inverter gensets due to its reasonable cost and easy portability. Due to a variety of benefits associated with gasoline generators such as lower cost, fuel efficiency, and affordability, gasoline portable inverter generators are gaining more popularity than diesel portable inverter generators across the global market. As a result of technological advancements, use of gas-powered portable inverter generators has increased extensively in residential, commercial, and industrial sectors.

Which Segment to Remain Dominant in the Power Category?

1000-2000 Watt Segment to Enhance Growth Prospects

Portable inverter generators with the power output of 1,000-2,000 watt is projected to witness faster growth than any other type of power output, owing to less expensive, compact and minimal noise levels. 1,000-2,000 Watt generators are widely opted for residential power backup purposes.

As power output range is been benchmarked in industry, it is poised to create potential absolute dollar opportunity over the assessment period. A CAGR of 9.4% is projected for this segment.

Portable Inverter Generator Market- Competitive Landscape

Prominent players in the Portable Inverter Generator Industry are taking advantage of the rapidly increasing demand for the Portable Inverter Generator in various applications. To further their outreach, players are relying on collaborations, partnerships and acquisitions with existing small, medium and large-scale vendors. Some prominent market developments are as follows:

• In January 2022, Honda announced planned to begin sales of its new EU32i portable generator equipped with a newly designed dedicated engine (with a maximum output of 3.2kVA). The company also revealed that sales would begin in the European region in March 2022, followed by the expansion of sales to other regions globally.
• In June 2021, Generac Holdings Inc. announced that the company had acquired Deep Sea Electronics Limited, an advanced controls designer and manufacturer. Deep Sea Electronics provides a diverse suite of controller products that provide flexible solutions for multiple applications, including generators, automatic transfer switches, battery charging, and off-highway vehicles.
• In March 2021, Generac Power Systems announced their complete redesign of Powermate portable generators. The new line-up consists of ten modules of portable generators to meet nearly all the demand, and make life easier for homeowners.
• In January 2021, Atlas Copco expanded its QES portable generator range up to 500 kVA. This enables the generators to perform continuously for up to 500 hours and in extreme high and low temperatures.

Key Segments Covered in the Portable Inverter Generator Industry Survey

• By Fuel Type :

  • Gasoline
  • Diesel

• By Power :

  • Under 1,000 Watt
  • 1,000-2,000 Watt
  • 2,000-3,000 Watt
  • 3,000-4,000 Watt
  • Above 4,000 Watt

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa