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The generator market size is estimated to grow by USD 19,891.16 million accelerating at a CAGR of 8.04% between 2023 and 2027. The market report extensively covers market segmentation by Type (stationary and portable), End-user (industrial, commercial, and residential), and Geography (APAC, Europe, Middle East and Africa, North America, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021. Request Free Sample
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Growing instances of power grid failure are a key driver boosting the market growth. The surging occurrence of power grid failures has spurred the global uptake. In our contemporary world, electricity is the lifeblood of nearly every facet of life, from transportation networks and computer databases to common appliances such as ovens, washing machines, televisions, lights, fans, and virtually all daily-use electrical or electronic devices.
Rapid urbanization in developing nations, driven by burgeoning populations and increased industrialization, has elevated overall energy demand. The immense strain placed on antiquated, low-capacity components in existing power grids results in overloads and subsequent grid failures, culminating in blackouts and power interruptions. Consequently, to surmount power scarcity and outages, industrial consumers are progressively embracing it for uninterrupted power provision. Industries are increasingly adopting backup generators for various applications necessitating seamless operations. The growing incidence of power grid failures is poised to augment market expansion in the foreseeable future.
The incorporation of bi-fuel technology in this is a key trend shaping the market growth. Fuel costs constitute a significant portion of generator operational expenses, and their volatility in the past decade is primarily due to fluctuating oil and gas prices tied to supply and demand dynamics. Gas generators, with lower power output capacity compared to high-capacity diesel generators, sometimes fall short of meeting the needs of large-scale users.
Large diesel generators, while capable of meeting these demands, are challenged by price fluctuations in diesel fuel. To address this, many suppliers now offer engines that can run on both diesel and compressed natural gas (CNG). Technological advancements have led to bi-fuel engines, which maintain diesel-like performance while running on a mix of diesel and CNG, offering cost-effective and reliable operation. This shift is expected to boost the global generator market as it allows for a significant reduction in fuel expenses, potentially up to 70%.
The rising adoption of green energy technologies is a key challenge hindering the growth of the market. During operation, this release carbon dioxide. The amount of power consumed by manufacturing facilities can help in determining carbon emissions. The manufacturing plants that use coal-generated electricity emit more carbon than others, such as renewable energy sources.
Many large organizations are expanding their business with the development of new buildings. The installation of efficient power management systems with monitoring features will aid in reducing power consumption and carbon emissions in these facilities. On average, the manufacturing facilities in the US account for a significant amount of carbon footprint per year, which is high compared with many other countries. With growing awareness about this harmful emission, many organizations have initiated using green energy or renewable energy. Moreover, favorable government initiatives in the adoption of renewable energy will hinder the market's growth during the forecast period.
The market share growth by the stationary segment will be significant during the forecast period. Stationary generators in the low-capacity range are mostly used in small facilities where the total load is not much and the time duration for which it operates is not long. The principal advantages are that they are priced cheaper, do not require much space compared with stationary generators with high-power ratings, and fulfill most energy requirements.
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The stationary segment was valued at USD 24,333.40 million in 2017 and continued to grow until 2021. To maintain uninterrupted business operations during a power outage, backup generators are necessary within industrial buildings. Critical equipment such as communication equipment, advanced lifeline equipment, operation theaters, and automated monitoring systems, along with safety systems such as fire suppression systems, relief valves, system monitoring, and necessary alarms, can run on backup power to ensure normalcy before utility grid supply is available. Therefore, these benefits encourage end-users to depend on stationary generators. Hence, factors like these will boost the growth of the market during the forecast period.
Based on end-users, industrial segment holds the largest market share. These are widely adopted as an auxiliary power source across various industrial sectors, including construction, mining, chemical manufacturing, and semiconductor fabrication. With rapid industrialization happening globally and especially in developing countries, such as China, Brazil, and India, the need for an uninterrupted power supply has become of paramount importance. This segment is expected to be more inclined toward the use of gas generators during the forecast period on account of the various environmental regulations imposed on the use of diesel in engines and generators. Extensive construction activities and increased spending on the same worldwide are expected to drive the market.
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APAC is estimated to contribute 44% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Developing countries in APAC such as India, China, and South Korea are registering rapid industrialization and urbanization. The population in this region is also increasing at a higher rate than that of the developed countries. Therefore, electricity demand is increasing due to the ever-rising population. Furthermore, poor power infrastructure in Asian countries causes power outages, which also increases the demand for power backup.
Moreover, the growth of the market in APAC can be attributed to the increasing demand from the residential, commercial, and several small-scale industries. Due to power shortages and lack of access to the grid, backup power sources have become a necessity in the region. Some of the major markets in APAC are China, India, Bangladesh, Indonesia, and Australia, where the demand is high. Therefore, the market in the region is expected to register tremendous growth during the forecast period.
In 2020, the market in APAC witnessed certain challenges due to the outbreak of COVID-19. However, with the sudden rise of shift-making hospitals and the increased need for uninterrupted power supply from healthcare facilities, the market registered steady demand in 2020. Moreover, the reopening of the production unit and the restructured supply chain, along with rescheduled construction activities since 2021, boosted the growth of the market. Furthermore, the flourishing industrial sector in the region is also anticipated to augment the growth of the regional market 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.
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The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
ABB Ltd., AKSA Power Generation, Atlas Copco AB, Briggs and Stratton LLC, Caterpillar Inc., Cooper Corp. Pvt. Ltd., Cummins Inc., Doosan Corp., Eaton Corp. Plc, Generac Holdings Inc., General Electric Co., Honda Motor Co. Ltd., Kirloskar Oil Engines Ltd., Kohler Co., Kubota Corp., Mitsubishi Heavy Industries Ltd., Multiquip Inc., PR INDUSTRIAL Srl, Siemens AG, and Yamaha Motor Co. Ltd.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The 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.
Generator Market Scope |
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Report Coverage |
Details |
Regional analysis |
APAC, Europe, Middle East and Africa, North America, and South America |
Performing market contribution |
APAC at 44% |
Key countries |
US, Nigeria, China, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., AKSA Power Generation, Atlas Copco AB, Briggs and Stratton LLC, Caterpillar Inc., Cooper Corp. Pvt. Ltd., Cummins Inc., Doosan Corp., Eaton Corp. Plc, Generac Holdings Inc., General Electric Co., Honda Motor Co. Ltd., Kirloskar Oil Engines Ltd., Kohler Co., Kubota Corp., Mitsubishi Heavy Industries Ltd., Multiquip Inc., PR INDUSTRIAL Srl, Siemens AG, and Yamaha Motor Co. Ltd. |
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, Market condition analysis for 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.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by 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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