Generator in the Healthcare Industry Market Analysis APAC, Europe, North America, Middle East and Africa, South America - US, China, India, Germany, UK - Size and Forecast 2023-2027

Generator in the Healthcare Industry Market Forecast 2023-2027

The Generator in the Healthcare Industry Market size is estimated to grow by USD 1.00 billion at a CAGR of 2.99% between 2022 and 2027. The market experiences growth influenced by critical factors. In developing countries, unreliable power grid infrastructure drives the demand for backup power solutions in healthcare facilities. Additionally, the escalating incidence of natural calamities underscores the necessity for reliable power sources to ensure uninterrupted healthcare services during emergencies. Moreover, the shift towards gas generators reflects a trend towards cleaner and more efficient power generation methods, further shaping the market landscape in the healthcare sector. Our report examines historic data from 2017 to 2021, besides analyzing the current market scenario.

What will be the Size of the Market during the Forecast Period?

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Market Segmentation

In the healthcare sector, the generator market plays a critical role in ensuring uninterrupted power supply, especially during emergencies and critical situations. Power grid infrastructure failures, often exacerbated by natural calamities, can disrupt healthcare services, putting patients' lives at risk. To mitigate such risks, healthcare facilities rely on various types of generators, including gas generators, diesel generators, and alternative fuel sources such as natural gas and renewable energy sources. These generators provide a resilient power supply to hospitals, clinics, and medical centers, particularly in urban areas where power outages are more frequent. Additionally, generators are essential in remote locations like rural areas, mining operations, and construction sites, where access to the main power grid may be limited. With energy storage systems (ESS) and innovative solutions such as hybrid generators and inverter generators, the healthcare sector ensures continuous operation, even amidst fuel cost fluctuations and supply-demand imbalances. Thus, generators in the healthcare sector serve as a crucial backup power source, safeguarding patient care and medical operations during times of need.

By Application Segment Analysis

The hospitals segment is estimated to witness significant growth during the forecast period. Hospitals are anticipated to hold the biggest generator in the healthcare industry market share due to the rising prevalence of chronic illnesses such as heart-related diseases. The growth of the industry is being fueled by factors such as the rising prevalence of chronic diseases leading to the increasing number of surgeries, which need high-tech equipment and well-built operation rooms. 

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The hospitals segment was the largest segment and was valued at USD 4.78 billion in 2017. Such rooms require a steady power supply to avoid any mishap and offer expert healthcare services in other wards, such as diagnostic centers within the hospitals that require healthcare equipment. Owing to the high-quality patient care hospital segment will experience high demand, which, in turn, will drive the growth of the market during the forecast period. Type Segment Analysis

Based on the type, the market has been segmented into stationary and portable. The stationary?segment will account for the largest share of this segment.  Stationary generators in the low-capacity range are ideal for small healthcare facilities due to their cost-effectiveness and space efficiency. These generators, often fueled by diesel, offer reliability during fuel outages, crucial for maintaining uninterrupted medical services. APAC emerges as a significant market, driven by factors like low electrification rates and inadequate energy infrastructure in countries such as China and Southeast Asia. The region's geographical challenges and outdated energy infrastructure further amplify the demand for backup energy solutions. These situations encourage healthcare facilities to depend on auxiliary energy supplies, which will propel the growth of the segment in the market during the forecast period.

Regional Analysis

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APAC is estimated to contribute 41% 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.  In APAC, the rollout of several public healthcare programs, combined with the rising private wealth in the region, is anticipated to drive the region's healthcare spending. Developing countries in the region are registering rapid urbanization with an increasing population.  As per The World Bank Group, in 2022, the global urban population accounted for 57% of the total population, of which the majority of the increase in urban population was due to an increase in urban settlements in major countries in Asia (South and Southeast Asia). 

In addition, the growth of the market in the healthcare sector can be attributed to the rising demand from medical centers, clinics, and private hospitals in the region. The rising need for oxygen generators, which allow hospitals to fulfill the dynamic oxygen demands, is subsequently accelerating the growth in the healthcare industry. For instance, in April 2021, China supplied more than 5000 ventilators and 21,569 oxygen generators to India. This enhanced the demand for the it to provide power backup, further driving the growth of the market in the region during the forecast period.

Market Dynamics

In the market, various factors such as power grid infrastructure, natural calamities, and the increasing demand for resilient power supply drive the adoption of gas generators, natural gas, and fossil fuels, particularly in urban areas, rural areas, and remote locations, including remote construction sites and mining operations, where stationary generators and portable generators, along with energy storage systems (ESS), play a crucial role in providing backup power. Moreover, with a growing focus on renewable energy sources and innovation, hybrid generators, bi-fuel generators, and inverter generators are gaining traction, offering alternative fuel sources amidst fluctuating fuel prices, geopolitical factors, and supply-demand imbalances, thus ensuring continuous power supply in healthcare facilities. 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.   

Key Market Driver

Shift to gas generators is notably driving the market growth. The market's primary driving force is the transition towards gas generators. These mainly rely on natural gas, a cost-effective and efficient fuel source compared to other fossil fuels. Urban areas benefit from readily available natural gas via pipelines, reducing the need for extensive fuel storage. This accessibility contributes to significant cost savings for organizations. As a result, the usage of gas generators is expanding across various sectors, including healthcare, where the adoption of portable generators ensures resilient power supply in urban and remote locations alike.

This market growth is further propelled by advancements in alternative fuel sources, hybrid and energy storage systems, aligning with the evolving landscape of renewable energy sources and the need for backup power solutions amidst natural calamities and geopolitical factors affecting fuel prices and supply-demand dynamics.

Significant Market Trends

The development of new stationary generators is an emerging trend shaping market growth. The market has been mainly driven by the rising development of new stationary generators over the past few years. There have been ongoing innovations in it that aim at improving the demand. As a result, companies across the globe are launching new innovative products. For instance, in November 2020, A and I Power announced the launch of the Revolutionary Sustainable Power Generator, which offers a highly efficient method of electricity production.

Similarly, in July 2020, Taylor Power Systems launched a new standby generator to fulfil the needs of the fish farming industry in the state of Mississippi. Such launches of new products by the companies are anticipated to initiate positive market trends in the healthcare sector during the forecast period.

Major Market Challenge 

The rising adoption of energy storage systems is a major challenge hindering the growth of the market. In recent years, the adoption of renewables has remarkably increased to cater to the growing demand for power and lower emissions, and several countries have implemented favorable regulations and guidelines. The energy storage system is a critical tool to derive the advantages of a resilient and clean power supply from renewables. The adoption of energy storage system technology is backing grid operators in controlling the variations of renewable supply from renewable energy sources, such as wind and solar. This stored energy is supplied to end-users when the conditions for electricity generation are not optimum, as renewable sources of energy are intermittent in nature.

In addition, energy storage systems, such as traditional batteries and flow batteries, store energy generated during peak generation hours. A combination of ESS and renewable technologies is being used as an option for generators and mobile power plants, particularly in the commercial and industrial sectors. Thus, the rising adoption of energy storage systems will hinder the growth of the global market during the forecast period.

Who are the Major Market Companies?

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.

ATLAS Corp. - The company offers generators such as QAX60, QAX80, and QAX100.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:

ATLAS Corp., Caterpillar Inc., Cummins Inc., Generac Holdings Inc., Guangdong Westinpower Co. Ltd., Yanmar Holdings Co. Ltd., J C Bamford Excavators Ltd., Kohler Co., Mitsubishi Heavy Industries Ltd., NOVAIR MEDICAL, Atlas Copco AB, Guangzhou huadong electromechanical technology co. ltd, Honeywell International Inc., Rolls Royce Holdings Plc, Kirloskar Group, Kubota Corp., Guangzhou Wanon Electric and Machine Co., Siemens AG, Wacker Neuson SE, and DuroMax Power Equipment 

Technavio's market growth and forecasting report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies 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.  

Segment Overview

The market growth analysis 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. 

• Application Outlook 
  • Hospitals
  • Clinics

• Type Outlook
  • Stationary
  • Portable

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile 
    • Brazil
    • Argentina
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The generator in the healthcare market increasingly relies on generators for resilient power supply, particularly in urban areas prone to grid failures. Generator usage spans from portable to stationary units fueled by natural gas or traditional fossil fuels. Companies like A and I Power and Taylor Power Systems drive innovation in generator technology, integrating energy storage systems (ESS) and exploring renewable sources. Especially vital in developing countries and regions susceptible to natural calamities, generators ensure uninterrupted medical services, highlighting their critical role in healthcare infrastructure worldwide.

Further, the healthcare sector faces unique challenges in ensuring uninterrupted power supply due to factors like power demand, industrialization, and population growth. To meet this demand, hospitals and healthcare facilities rely on generators, especially in remote locations, rural areas, and construction sites, as well as during mining operations. Traditionally, diesel generators have been prevalent, but rising fuel costs and crude oil prices have led to a shift towards hybrid and bi-fuel generators utilizing alternative fuel sources. Original Equipment Manufacturers (OEMs) are developing innovative solutions such as inverter generators to address noise reduction concerns and comply with stringent government regulations on air pollution, oxides of nitrogen, carbon monoxide, and particulate matter emissions.

However, these regulations in the generator in the healthcare market drive the adoption of environmentally friendly generators and shape regulations and policies governing their usage in the healthcare sector. Challenges such as supply-demand imbalances and geopolitical factors can affect fuel prices, impacting the affordability of power generation. Hospitals often rely on generators with internal combustion engines to mitigate power disruptions, particularly in remote construction sites or areas with limited infrastructure. However, fluctuations in power generation capacity and fuel prices due to geopolitical tensions can strain resources.

Market Scope
Market Report Coverage	Details
Page number	169
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 2.99%
Market growth 2023-2027	USD 1.00 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	2.51
Regional analysis	APAC, Europe, North America, Middle East and Africa, and South America
Performing market contribution	APAC at 41%
Key countries	US, China, India, Germany, and UK
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	ATLAS Corp., Caterpillar Inc., Cummins Inc., Generac Holdings Inc., Guangdong Westinpower Co. Ltd., Yanmar Holdings Co. Ltd., J C Bamford Excavators Ltd., Kohler Co., Mitsubishi Heavy Industries Ltd., NOVAIR MEDICAL, Atlas Copco AB, Guangzhou huadong electromechanical technology co. ltd, Honeywell International Inc., Rolls Royce Holdings Plc, Kirloskar Group, Kubota Corp., Guangzhou Wanon Electric and Machine Co., Siemens AG, Wacker Neuson SE, and DuroMax Power Equipment
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 market forecasting report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in the Market Research and Growth Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the market in the healthcare sector size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across APAC, Europe, North America, Middle East and Africa, and South America
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of the market in the healthcare sector companies

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