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The dual fuel generator market size is estimated to grow at a CAGR of 4.46% between 2022 and 2027. The market size is forecast to increase by USD 204.67 million. The growth of the market depends on several factors such as the high benefits of dual fuel generators, unreliable power grid infrastructure and fluctuations in the prices of crude oil. Our report examines historic data from 2017 to 2021, besides analyzing the current market scenario.
This report extensively covers market segmentation by fuel type (gasoline and liquid propane, natural gas and liquid propane), end-user (industrial, commercial, and residential), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
Dual Fuel Generator Market Forecast 2023-2027
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Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
Unreliable grid infrastructure is one of the primary reasons for power outages worldwide. While electricity powers numerous devices, including household appliances, commercial computers, and industrial equipment, the electrical infrastructure is not reliable in many regions, leading to major power cuts. Most of the growing urban areas lack sufficient transmission and distribution (T and D) infrastructure and power-generating capacity to meet the high demand for electricity.
As a result, more people worldwide are turning to dual fuel generators for backup power supply to counter power outages and electricity shortages. The increasing frequency of power grid failures is expected to boost the demand for dual fuel generators and drive the global dual fuel generator market during the forecast period.
A microgrid is a smaller power grid compared to the traditional grid. It functions similarly by producing, distributing, and controlling the flow of electricity to consumers. Depending on the specific needs, a microgrid can operate either independently or in conjunction with the central grid system. During a power outage, microgrids can isolate their generation loads and function autonomously with the help of automatic transfer switches. Rural areas with increased demand for utility services have also driven the need for microgrids.
Moreover, governments around the world are providing incentives to promote renewable power generation and increase microgrid facilities to fulfill the energy demands in remote locations. In addition, microgrid investment is expected to exceed USD 3 billion by 2022, and private investments are also increasing in the US. However, this increasing investment in microgrids may have an adverse impact on the demand for dual fuel generators and this in turn drives the market growth during the forecast period.
Renting or leasing generators is a more cost-effective option than buying the equipment, especially for short-term needs. However, the growth in equipment rental is expected to negatively impact the sales of dual fuel generators for manufacturers. The increase in investments in new constructions, oil and gas, and mining activities is driving the rental market for dual fuel generators. Despite significant growth in these industries over the past six months, the market is expected to remain unpredictable, which may discourage companies from making large capital investments.
However, as more end-users become aware of the benefits of renting dual fuel generators, the sale of new dual fuel generators is expected to decline slightly. Therefore, due to such factors, the global dual fuel generator market is likely to face challenges during the forecast period.
The market share growth by the gasoline and liquid propane segment will be significant during the forecast period. Because of the imposition of Tier 4 emission regulations on diesel generators by the US Environmental Protection Agency (EPA), generators powered by gasoline and liquid propane are increasing in popularity. Diesel generators are not sustainable methods as they cause air and noise pollution, and thus, gasoline and liquid propane generators are preferred by residential and commercial end-users.
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The gasoline and liquid propane segment functional segment was valued at USD 504.72 million in 2017. Gasoline and liquid propane are supplied consistently to residential and commercial end-users through pipeline infrastructure. Compared to diesel generators, generators powered by gasoline and liquid propane offer benefits such as zero or minimal emission and do not require storage. The major factor driving the market is the compatibility of generators with gasoline and liquid propane, which are readily available and reasonably priced fuel sources. The use of these generators for backup power during emergencies, camping excursions, and building sites is common among homeowners, outdoor enthusiasts, and enterprises. Such factors are expected to fuel the growth of the segment which in turn drive the market growth during the forecast period.
Based on end-user, the market has been segmented into industrial, commercial, and residential. The industrial will account for the largest share of this segment. ?The industrial segment generates the highest revenue in the global dual-fuel generator market. Previously, backup generator fuel selection was not a concern in the industrial sector, as diesel was the only option. However, with the increasing demand for reliable power backup, industries are now opting for dual-fuel generators that can run on both diesel and natural gas. This allows them to switch between fuels based on availability, ensuring a continuous power supply in case of grid failure and reducing the risk of downtime. The demand for dual-fuel generators as the industrial sector continues to grow which is expected to contribute to the overall market growth during the forecast period.
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North America is estimated to contribute 36% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. Another region offering significant growth opportunities to vendors is APAC. Developing countries in the Asia-Pacific (APAC) region are experiencing fast-paced industrialization and urbanization. The population in this region is growing at a higher rate than in other developed countries. In 2020, the global urban population was 56.2% of the total population, with significant growth in urban settlements in major countries in South and Southeast Asia. The real estate, telecommunications, IT services, and other sectors are growing, which will require large-scale deployment of dual fuel generators across diverse industries.
Additionally, the government's strengthening of measures and initiatives towards rural electrification to mitigate the electricity supply-demand gap will further drive the demand for dual fuel generators in the region. Therefore such factors are expected to drive market growth in the region during the forecast period.
The outbreak of the COVID-19 pandemic has slowed down the growth of various industries, thereby adversely influencing the regional dual fuel generator market. However, in 2021, mass vaccination drives led to the normal resumption of economic activities in the region. Hence, the dual fuel generator market started recovering as operations in the infrastructure sector resumed in 2021. Therefore, with the growing industrial sector across the region, the regional dual fuel generator market is likely to grow at a considerable pace during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Briggs and Stratton LLC - The company offers dual fuel generators such as 5500 watt portable generator with co guard, 8000 watt elite series portable generator with bluetooth and co guard, and 7000 watt elite series portable generator with co guard.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
All Power America, Briggs and Stratton LLC, Brookfield Business Partners LP, Caterpillar Inc., Champion Power Equipment Inc., Cummins Inc., DuroMax Power Equipment, Electrogene Ltd., Generac Holdings Inc., Island Generator Co., Jiangsu SUMEC Group Co. Ltd., Kohler Co., MAN Energy Solutions SE, North tool and Equipment, Pulsar Products Inc., Qianjiang Group, Shandong Heavy Industry Group Co. Ltd., Sportsman Series, Tillotson Ltd., and WEN Products
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The dual fuel generator market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Dual Fuel Generator Market Scope |
|
Report Coverage |
Details |
Page number |
158 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.46% |
Market growth 2023-2027 |
USD 204.67 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.04 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 36% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
All Power America, Briggs and Stratton LLC, Brookfield Business Partners LP, Caterpillar Inc., Champion Power Equipment Inc., Cummins Inc., DuroMax Power Equipment, Electrogene Ltd., Generac Holdings Inc., Island Generator Co., Jiangsu SUMEC Group Co. Ltd., Kohler Co., MAN Energy Solutions SE, North tool and Equipment, Pulsar Products Inc., Qianjiang Group, Shandong Heavy Industry Group Co. Ltd., Sportsman Series, Tillotson Ltd., and WEN Products |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Fuel Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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