Generator Market

Generator Market Outlook (2022-2032)

The global generator market is set to surpass a valuation of US$ 32,170.8 mn in 2022 and expected register at a CAGR of 5.5% to reach US$ 54,873.6 mn by the end of 2032.

Sales of Generator are expected to grow by 1.7X times over the period of 2022 to 2032.

Report Attributes	Details
Generator Market Size (2021A)	US$ 30,575.4 Mn
Estimated Market Value (2022E)	US$ 32,170.8 Mn
Forecasted Market Value (2032F)	US$ 54,873.6 Mn
Global Market Growth Rate (2022-2032)	5.5% CAGR
North America Market Share (2022)	~ 19.9%
North America Market Value (US$ Mn), 2022	US$ 6,396.1 Mn
Europe Market Share (%), 2022	~16.2%
Europe Market Value (US$ Mn), 2022	US$ 5,209.5 Mn
China Market Share (%), 2022	~22.6%
China Market Value (US$ Mn)	US$ 7,285.4 Mn
Top 3 country Market Share (%)	~44.9%
Key Companies Profiled	AKSA Power Generation Briggs & Stratton Corporation Caterpillar Inc. Cooper Corporation Cummins Inc. Doosan Corporation Generac Power Systems General Electric Corporation Honda Power Equipment Kirloskar Oil Engines Limited Kohler Co.

Sales Analysis of Generator (2017-2021) Vs. Market Forecast Outlook (2022-2032)

In nations where regular power outages occur, generators are crucial because they offer a backup power supply. In the rapidly urbanizing world, the requirement for a reliable and constant power supply has increased the demand for generators on a global level. Several commercial sectors depend on generators for their smooth operations. During the historic period, the market witnessed growth at a CAGR of 2.1%.

With the increasing industrialization, this number is only expected to increase in the future. The industrial sector had a valuation of US$ 19,697.2 Mn in 2021. Several residential complexes also depend on generators for power backup as lifts and building lights depend on them for their functioning in case of a power outage. By 2032, the residential segment is expected to reach US$ 3,422.7 Mn.

Furthermore, with the increasing number of data centers, industries, hospitals, and other commercial complexes, the sales of generators have witnessed an increase in demand terms of sales, and the market is expected to register at a CAGR of 5.5% over the forecast period.

East Asia has the highest market share among all other regions in the market. As the nation with the biggest market value in 2021 among all others, China has a significant impact on this. Due in large part to the U.S.'s high demand as a high-income nation, North America ranks in second.Short Term (2022 Q2 to 2025): Increasing growth of the construction, mining industries, etc. will enhance the demand for generators.

• Medium Term (2025-2028): Adoption of low-emission generators will improve the sales of the generators.
• Long Term (2028-2032): Adding more innovation to generators along with an increased emphasis on improving the technology and design of the product to make it more efficient will improve its long-term growth in the market.

Over the 2017-2021 historical period, the global Generator market registered a CAGR of 2.1%, and according to the Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit growth at 5.5% CAGR between 2022 and 2032.

Market share analysis of generator based on output and region is provided in a nutshell in the above image. Under the output segment, the above 1000 KW sub-segment will dominate with 45% market share in 2022.

What’s Driving Demand for Generators?

“Oil & Gas Industry to Increase the Global Market for High Capacity Generators”

Over the past years, the increasing population and urbanization have led to an increase in the demand for oil & gas and iron ore consumption at a very fast pace. The increasing economic expansion and technological advancements are causing the developing country to increase their need for energy and metal resources.

Also, increased investment in the exploration of oil & gas and mining is being promoted in various countries for meeting future demands. High production activities, growth in the industry, and increasing investments have increased the demand for high-capacity industrial generators. In 2022, the oil and gas segment are expected to have a market value of US$ 4,738.6 Mn.

The oil & gas and mining industry relies on these generators for a variety of heavy-duty tasks such as drilling and digging. These tasks require a lot of electricity and power generators assist in such tasks, which often help to ensure that no power failure occurs.

The oil and gas industry had a market share of 22.9% in the 2021 of the industrial segment. With oil & gas and mining growing owing to increased consumption from the end-use industry, the demand for high-capacity generators is also growing and thus, contributing its part balancing in the supply-demand chain reflecting towards growing generators industry.

“The Growth in the Telecom Industry to Propel Generators Demand in the Market”

The telecom industry has witnessed a global boom owing to the number of new mobile subscribers leading to demand high-speed data connectivity, and value-added managed solutions. One of the prime reasons for the increasing demand for high-speed data connectivity is the increasing interest of consumers in Over-The-Top (OTT)  platforms that provide video, audio, and other media content via the internet.

OTT applications such as Netflix, Amazon Video, Hot star, Hulu, and so on. have been gaining popularity in recent years. In 2021, Netflix users consumed content worth 452,000 hours.  Consumers are actively investing in high-speed internet connections to use these applications. To cater to this growing demand, various telecom companies have been setting up more towers across the globe.

For avoiding interruption in signals, these telecom towers are incorporated with high-capacity industrial generators for backup in case of power cuts. As a result, the need for generators is being driven by the expanding telecom sector, which also plays a role in creating new business prospects and raising market profits.

What Concerns Should Generator Manufacturers Avert?

“Regional Government Regulations to Act as an Obstacle to Manufacturers”

The generators of the diesel fuel type are susceptible to various government regulations globally. Since the generators cause both noise and air pollution various regional governments have drafted specific rules about it. In The United States of America, every generator having a capacity above 56 KW have to comply with the Environmental Protection Agency (EPA) Tier 4 regulation.

Similarly, Emission Control Equipment for Automotive (ECEA) and NCAP (National Clean Air Program) monitors generator-related regulations in India. With such different regulations on diesel generators in various regions, it has been challenging for the manufacturers to cope with them. Such regulations are volatile and may change as the facts pertaining to the effect of such high-capacity diesel get discovered in the coming times.

These regulations may force the companies to make changes in the existing generators if they don’t meet the compliance and thus, posing additional costs on it, which has been a major restraint for the generator manufacturers. Due to these facts, producers strictly adhere to the requirements of the regulatory framework for the primary product supply globally. Thus, government regulations is acting as one of the key restricting factors.

Country-wise Insights

How is the Generator Market Performing in the US?

North America has the second-highest share in the global market. The market in the US has a major role to play in this, it is expected to register at a CAGR of 4.4% over the forecast period, IT firms and data centers are major consumers of generators in the US.

Constantly developing infrastructure of data centers and other commercial complexes, paired with the increasing vulnerability of the power grid to varying weather, has increased the demand for generators, majorly diesel generators in the country.

In the installation segment, portable generators which are internal combustion engines and are expected to have a market share of 90.3% in 2022.

These generators find application in places where frequent power outages are witnessed. They help keep essential devices running and are also considered low-priced alternatives to standby generators with minimal operating and installation costs.This factor makes this generator ideal for residential complexes, small businesses, and so on.

In the US, weather-related power outages remain a constant issue, especially due to hurricanes and heat waves. These natural calamities lead to power disruption.

Globally generator sales are anticipated to increase and reach USD 30 Billion by 2026. Among the available variant, diesel generators hold a major share of the generator market. The oil and gas industry is increasing in the U.S. from USD 211.9 Billion in 2021.  This increasing projection is anticipated to drive demand for generators in this segment.

Portable generators are dominant in this market owing to their efficiency in use and compact size. The portable generators market is anticipated to cross USD 2.5 million by 2024.  Based on the market share diesel generators dominated the demand in recent years. North America dominated the share with 20 percent of the global generator market.

The ever-increasing urbanization in countries like the USA has propelled the demand for generators in commercial, residential, and industrial applications. Natural gas is overtaking the coal segment that contributes to US electricity generators. Electricity generators operated by natural gas amounts to 1575 Terawatt hours last year 2021.

How is China’s Contribution to the Generator Market Giving East Asia the Highest Market Share?

China is the market leader in the generator market. It is expected to have a market value of US$ 7,285.4 Mn in 2022. Due to China, East Asia is predicted to have the highest market value of US$ 9,313.5 Mn in 2022. A major reason for this demand is the increasing infrastructure projects, manufacturing facilities expansion, and the increasing number of commercial complexes. Diesel generators are highly preferred in the country since it is cost-effective.

In 2021, China produced 1,337 mn tons of steel, this played a major role in increasing the demand for diesel generators, as the steel industry is highly dependent on diesel generators in case of a power outage.

Government initiatives in the future leading to the expansion of the industrial sector in the country are expected to further propel the diesel generators demand.

Commercial usage of generators is dominated by Data centers and health infrastructure. Developing countries like China and India are anticipated to increase demand for health and IT owing to high populations and are anticipated to gain a major share of the market.

Category-wise Insights

How does the Industrial Sector Contribute to the Generator Market?

Based on end users, the generator market is divided into manufacturing, pharmaceuticals, oil & gas, construction, mining, etc. The oil & gas sector is predicted to hold a market share of 22.9% of the industrial segment in 2022 due to heavy investments in the exploration of huge hydrocarbon reservoirs.

Increasing government expenditure on construction projects to establish advanced infrastructure will increase the demand for generators in the construction sector. The constant requirement for various metals and minerals for the fabrication of end-use products is expected to increase the demand in the mining segment.

The rising need to expand the reach of communication lines to provide customers with high-speed networks is making the telecom sector a major consumer of generators. The manufacturing industry also depends on these devices running their heavy machinery. These factors will increase the demand for generators globally.

How will the Demand for Diesel Generators be affected in the Future?

In 2021, diesel generators held over 77.7% of the market share in the fuel source segment. Since several governments around the world are introducing stringent emission norms, the adoption of clean units has increased manifold. However, diesel generators' flexible functioning, reliable performance, and longer engine lifespan are expected to maintain the product's high demand in the future. By 2032, diesel generators are expected to have a market value of US$ 42,305.2 Mn.

The use of hybrid technologies along with natural gas-fuel-sourced generators may somewhat affect the market share of diesel generators in the future, but they would still account for a majority of the existing market share. The revenue the market will generate from gas generators is predicted to rise in the future due to increasing consumer inclination towards energy security, alternatives to fossil fuels, and stringent emission-based norms. The development of LNG infrastructure by big-time oil & gas companies via their exploration projects is expected to favor the industry's expansion.

Competitive Landscape

Major manufacturers of the generator market worldwide such as AKSA Power Generation, Briggs & Stratton Corporation, Caterpillar Inc., Cooper Corporation, etc. are putting high emphasis on R&D to launch new products which are technologically advanced and help them stand apart from their competitors in order to improve market penetration and gain a larger market share.

In Feb 2021, Generac Power System announced the set-up of new manufacturing, distribution operation, and assembly units in Trenton, South Carolina. The major reason for the set-up of this facility was to support the increasing number of home standby generator demand and other energy-associated technologies. This center will also serve as a distribution center for customers in the southeastern part of the United States.

Fact.MR has provided detailed information about the price points of key manufacturers of Generators positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Generator Industry Research

• By Product Type:

  • AC Generator
  • DC Generator

• By Output:

  • Upto 60 KW
  • 61 to 250 KW
  • 251 to 500 KW
  • 501 to 1000 KW
  • Above 1000 KW

• By Fuel Source:

  • Diesel Generator
  • Gas Generator
  • Others ( Bi-Fuel, Natural Gas, Etc.)

• By Application:

  • Standby
  • Peak Shaving
  • Continuous

• By Installation:

  • Stationary
  • Mobile and Portable

• By Cooling Type:

  • Air Cooled
  • Hydrogen Cooled
  • Water Cooled

• By End User:

  • Commercial
    • Datacenter
    • Healthcare Facilities
    • Telecom
    • Hospitality Centers
    • Others
  • Residential
  • Industrial
    • Mining
    • Oil & Gas
    • Power and Energy
    • Water Treatment Facility
    • Others
  • Military

• By Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • MEA