Large Generators Market

Large Generators Market Outlook (2023 to 2033)

The global large generators market is projected to evolve at a CAGR of 5.3% over the decade, thereby increasing from its current value of US$ 4.16 billion to US$ 6.99 billion by the end of 2033.

Large generators are large-scale power generation tools that produce electricity using nuclear energy, renewable energy sources, and fossil fuels. They are used to provide electricity during outages and prevent everyday routines or company operations from ceasing. They transform mechanical energy into electrical energy, which has a variety of uses.

Large generators come in a variety of sizes and power configurations. They benefit companies by acting as a backup power source for the operations of construction, mining, agriculture, and other areas. The market is projected to expand significantly as a result of their increasing applications in several end-use industries.

• With 30% of the market share, large generators remain the most sought-after in the oil & gas industry. Large generators are essential to the oil & gas sector for labor-intensive jobs, including drilling and excavating.

Rise in the demand for power backup solutions in commercial buildings and industrial sectors is responsible for the market expansion. The market is expanding as a result of growing awareness of the advantages of employing generators for emergency power backup.

The market is anticipated to create enormous incremental opportunities across developed as well as emerging economies, owing to an increase in industries across the globe. In the case of large generators, the engine, output power, and fuel system play a key role.

Use of large generators in power plants is rising across some regions. These large generators have gained huge traction across the globe over the last few years, owing to their increased efficiency and quick starting feature. Proliferation of engines and other components has ushered the market into a new phase of business models. Continuous innovation in product specifications of large generators has increased demand across the globe.

Report Attributes	Details
Large Generators Market Size (2023)	US$ 4.16 Billion
Forecasted Market Value (2033)	US$ 6.99 Billion
Global Market Growth Rate (2023 to 2033)	5.3% CAGR
Market Share of Large Diesel Generators (2023)	59%
United States Market Growth Rate (2023 to 2033)	5.1% CAGR
Market Share of Oil & Gas Industry (2023)	30%
Russia Market Growth Rate (2023 to 2033)	6.5% CAGR
China Market Value (2023)	US$ 810.7 Million
Key Companies Profiled	Cummins Inc. Caterpillar Inc. Wärtsilä Mitsubishi Heavy Industries, Ltd. Siemens Energy AG Kohler Power Atlas Copco Rolls-Royce Power Systems AG ABB Generac

What is Driving Large Generators Market Development Globally?

“Surging Need for High-capacity Large Generators in Data Centers”

Manufacturers are relying on data and data analytics to boost their operational performance, productivity, security, and economic efficiency, thanks to the Internet of Things (IoT) and Industry 4.0. Internal data processing is becoming more complicated, time-consuming, and expensive.

• Leading corporations such as Cisco are thinking about closing some of their internal data centers.

Companies have been outsourcing their data-related activities to third-party providers specializing in data center operations, such as colocation data centers. Colocation data centers are known for their physical space, cooling systems, servers, and connections to local communication networks.

Companies such as Equinix, Compass Data Centers, and QTS provide such services. Electronics and machinery such as cooling systems, storage devices, and servers are extensively installed at data centers. As a result, these machines consume a large amount of power.

Data centers must operate without interruption 24x7, necessitating the use of large backup power generators. As a result, demand for large, high-capacity generators is increasing in line with the expansion of data centers. Large generator manufacturers have an opportunity to partner with data centers to supply high-capacity large generators suitable for their operations, which will reflect increased cash flow over the coming years.

“Growing Usage of Large Diesel Generators in Sea Vessels”

The global maritime industry is growing owing to myriad benefits, such as lower transportation costs for products via sea or ocean routes. The vessels used to carry goods are equipped with large diesel generators to power them. Large diesel generators are mainly used over portable generators in sea vessels owing to their high power generation capability and compact construction.

• According to international maritime regulations, at least two main large generators should be present for a ship’s main electrical power system.

A majority of vessels are incorporated with three high-capacity large generators as a precautionary measure, which, in turn, effectively contributes towards increasing sales. As a whole, the growing maritime industry has been contributing its parts towards increasing the adoption of high-capacity large generators, thus reflecting increased sales volume and overall revenue.

“Rapid Growth of Telecom Industry across the World”

An increase in new mobile customers has caused a desire for high-speed data connectivity and value-added managed solutions, which has resulted in a global boom for the telecom sector. The rising popularity of over-the-top (OTT) services, which offer video, audio, and other media content online, is one of the main causes of the rising need for high-speed data access.

OTT services such as Netflix, Amazon Prime Video, Hulu, and others have become more well-known in recent years. To use these applications, consumers are actively investing in high-speed internet connections. Numerous telecom providers have been erecting additional towers throughout the world to meet this rising demand.

Telecom towers have backup high-capacity large generators installed to prevent signal interruptions in case of power outages. As a result, the growing telecom industry, which also helps to open up new business opportunities and boost market revenue, is the primary driver of the need for large generators.

What Might Restrain Global Demand Growth for Large Generators?

“High Maintenance Costs and Stringent Government Regulations for Controlling Carbon Emissions”

Market growth is constrained by strict government rules aimed at reducing carbon emissions. Large generator's high operating and maintenance costs and unsteady operating capabilities of large generators are restricting market expansion.

How are New Manufacturers Establishing Themselves in This Space?

“New Companies Introducing High-performing Power Generators”

Emerging market players are placing a high priority on research and development to introduce innovative products that will increase market penetration. They are emphasizing new developments and quality control to offer high-performing power generators.

• A Finnish start-up called 21TDMC offers the Pentti engine, which effectively converts low-grade heat into power. The engine circulates heat to obtain the most mechanical power possible from the fuels that have been burned. This lowers the fuel requirements and carbon dioxide emissions of combustion-based power generators.

Country-wise Insights

Why is Demand for Large Generators Continuously Rising in the United States?

“Easy Availability of Raw Materials for Manufacturing and Huge High-end Infra”

• Use of large generators in the United States is valued at US$ 1 billion in 2023.

The United States is the most prominent market for large generators, owing to more customers leaning towards electricity backup and growing apprehensions over downtimes. The United States has the presence of a majority of large generator manufacturers due to the easy availability of raw materials and high-end infrastructure. Also, a rise in end-use industries such as oil & gas and IT & telecom is driving demand for large generators.

A majority of prominent players in the country have been offering rental services for end users on a project base. Such a service is very profitable for end users, as they do not have to pay for the maintenance of these large generators. However, few third-party rental service providers are actively involved in purchasing high-capacity large generators, and thus, are contributing towards the growing demand.

How Lucrative is the Market for Large Generator Manufacturers in Russia?

“Rising Consumption of Power in Commercial Sector”

• The large generators market in Russia is expected to reach US$ 342.3 million by 2033.

In Russia, commercial venues, including malls, shops, and hotels are rapidly increasing. This is boosting the need for power supply in the commercial sector, which in turn fuels the sales of large generators. The need for large generators is anticipated to rise as a result of increased investments in data centers.

Which Aspect is Driving the Sales of Large Generators in China?

“Increasing Government Investments in Infrastructure Development”

• Sales of large generators in China are set to increase at a CAGR of 6% over the next ten years.

China, the world’s eminent market for large generators will continue to affect global prospects. Some manufacturers are aiming big and looking forward to competing in the global market. The market is expected to benefit from expanding manufacturing facilities, high demand for power products, and an increase in construction activities.

Impact of the rising demand from China means that manufacturers and suppliers with local know-how and expertise will benefit in a big way. Increasing government investments in infrastructure development and rising demand for wind turbine generators are the key factors predicted to fuel market expansion throughout the projection period.

Category-wise Insights

Why is Demand for Large Diesel Generators Gaining Traction?

“Large Diesel Generators Come with Better Fuel Efficiency”

The market is classified into diesel- and gas-based on the fuel type.

• Large diesel generators account for 59% of the global market due to their numerous benefits such as low operating costs and better fuel efficiency.

A diesel generator is a machine that transforms fossil fuel energy into electric power. They are mostly used in emergency scenarios without access to the grid, including accidents or natural disasters. Large diesel generators are more user-friendly than gas generators since they are easy to install and run.

Big diesel can be utilized anywhere because the fuel they consume is portable. Diesel is more easily available than natural gas, and diesel generators have a long operating life.

Competitive Landscape

Major industry players are focusing on product standards, new product releases, collaborations, and supply chain management to diversify their service offerings. Leading companies are introducing affordable products to strengthen their position in the market.

For instance :

• In 2020, Generac Power Systems unveiled a 24 KW generator that is affordable and highly efficient.

Key Segments of Large Generators Industry Research

• By Capacity :

  • 1 to 2 MW
  • 3 to 5 MW
  • 6 to 10 MW
  • 11 to 20 MW
  • 21 to 50 MW
  • Above 50 MW

• By Fuel Type :

  • Diesel
  • Gas

• By End Use :

  • Power & Utility
  • Oil & Gas
  • Marine
  • Airports
  • Construction & Mining
  • Manufacturing
  • IT & Telecom
  • Others

• By Region :

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