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The generator market size is forecast to increase by USD 21.38 billion at a CAGR of 8.09% between 2023 and 2028. The generator market is experiencing significant growth due to rapid industrialization and increasing construction activities. Simultaneously, there is a rising concern over power grid failures, leading to an increased demand for backup power solutions. Natural calamities, such as hurricanes and earthquakes, further exacerbate the issue by causing widespread power outages. As a result, the market is poised for substantial expansion, with manufacturers and suppliers capitalizing on the growing need for reliable and efficient power solutions. This trend is expected to continue, as industries and residential areas increasingly prioritize uninterrupted energy supply. Our report examines historical data from 2018 - 2022, besides analyzing the current and forecasted market scenario.
Market Forecast 2024-2028
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The market encompasses the production, sales, and installation of generators for various industries and applications. Key sectors include industrialization and urbanization, where power generation capacity is essential for progress. Generators find extensive use in remote locations such as rural areas, construction sites, mining operations, manufacturing plants, and oilfield projects. These applications require reliable power sources, often in the form of gensets, to ensure uninterrupted operations. Diesel generators dominate the market due to their versatility and availability. Mechanical sources like engines act as prime movers, converting fuel into electrical energy through the process of electromagnetic induction. The rotor and stator play crucial roles in this conversion. Generators cater to diverse sectors, including residential, commercial, agricultural, and public buildings. Industry dynamics continue to shape the market, with ongoing advancements in technology and increasing energy demands driving growth. Our researchers studied the market research and growth data for years, with 2023 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
Rapid industrialization and growing construction equipment is a key factor driving market growth. This trend is particularly noticeable in countries such as China, India, South Korea, South Africa, and Brazil. As the population in these regions continues to expand, the demand for reliable power sources, including generators, is increasing. In rural areas, generators are used to provide energy for essential services and standby loads during power outages. Solar panels and wind turbines are becoming increasingly popular as renewable energy sources for generating electricity in these regions. Strategy planning for third-party service providers is crucial to meet the growing demand for generator services in these areas.
In urban areas, rapid urbanization has increased the demand for electricity from various sectors, including telecom, transportation, and utilities. Generators are used as backup power sources during power outages or as primary power sources in areas not yet connected to the main power grid. The use of generators in urban areas is also essential for telecommunications and other critical infrastructure. Therefore, the market in developing countries is expected to grow significantly in the coming years, driven by the increasing demand for reliable energy sources in both rural and urban areas. The use of renewable energy sources, such as solar panels and wind turbines, is also expected to increase as part of the overall strategy for sustainable energy production and consumption.
Growing rural electrification programs is a primary trend in the market. In the context of escalating energy demands, particularly in rural areas, the market is poised for substantial growth. Factors such as urbanization, industrialization, and the expansion of telecom and transportation sectors are driving the need for reliable power sources in these regions. Solar panels and wind turbines are increasingly being adopted as sustainable alternatives to traditional generators, while standby loads remain essential for ensuring uninterrupted power supply during utility outages.
Further, strategy planning for third-party service providers is crucial in addressing the energy requirements of various industries, including telecommunications and utilities. The integration of advanced technologies, such as stators, into generator designs further enhances their efficiency and reliability. Overall, the market is expected to experience significant growth during the forecast period, as it plays a vital role in meeting the power demands of both urban and rural areas.
The rising adoption of green energy technologies is a significant market challenge. In the realm of power generation, generators are a crucial component, particularly in rural areas and telecom sectors where access to the utility grid may be limited. These generators, including those with stators powered by coal or natural gas, contribute to carbon emissions. However, the adoption of renewable energy sources, such as solar panels and wind turbines, is a strategic response to mitigate this issue. Third-party service providers play a vital role in the implementation of these clean energy solutions. Urbanization and transportation sectors also contribute substantially to carbon emissions.
Furthermore, the integration of efficient energy management systems with monitoring features in new buildings is a proactive measure to reduce power consumption and carbon emissions. In the US, manufacturing facilities account for a substantial carbon footprint, making it essential for organizations to explore renewable energy options. Solar panels and wind turbines are becoming increasingly popular solutions for standby loads and telecommunications infrastructure. By transitioning to green energy, organizations can significantly reduce their carbon emissions and contribute to a more sustainable future.
The stationary segment will account for a major share of the market's growth during the forecast period.? In the market, industrial facilities and hospitals are significant consumers, with varying power requirements. For smaller installations in hospitals and public buildings, low-capacity stationary generators, including inverter generators and hybrid generators, are preferred. These generators, which utilize internal combustion engines, offer advantages such as cost-effectiveness, compact size, and compatibility with hybrid power systems.
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The consumer goods segment was valued at USD 25.77 billion in 2018. Hybrid generators, which combine mechanical sources and renewable energy systems, are gaining popularity due to their ability to improve power reliability and reduce noise pollution. In the manufacturing sector, industrialization and the expansion of manufacturing plants necessitate increased energy generation capacity. Prime movers, such as rotors, are employed to drive these generators, with output terminals providing power to production lines and machinery. Industrial infrastructure, including mining operations and oil & gas projects, often relies on standby generators for power supply during energy outages. Large-scale generators, typically fueled by diesel, are preferred for their extended runtime and lower operating costs. Regulations governing emissions and noise pollution are driving the adoption of more efficient and quieter generators, such as those utilizing magnetic fields. Remote locations, such as marine applications, also require reliable energy sources. Microgrids, which can operate independently from the main energy grid, are being employed to address this need.
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APAC is estimated to contribute 48% to the growth by 2027. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period.
The market encompasses various types of power sources, including Industrial facilities and hospitals, which rely on uninterrupted power supply for their operations. Hybrid generators, a fusion of Internal Combustion Engines and Inverter Generators, have gained significant traction in this market due to their ability to provide power reliability and reduce noise pollution. Hybrid power systems, which integrate Mechanical sources with Renewable energy sources, are also gaining popularity in industries such as manufacturing, oil & gas, mining, and pharmaceuticals. Industrial infrastructure and manufacturing sectors, particularly in remote locations, heavily depend on energy sources for their productivity and output terminals. Regulations and industry dynamics continue to shape the market, with a growing emphasis on Power generation capacity and Energy sources that minimize environmental impact. Marine applications and public buildings also require reliable energy sources, leading to the adoption of Microgrids and Renewable energy systems. Prime Movers, such as Rotors, play a crucial role in the functioning of these power sources.
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.
Kirloskar Oil Engines Ltd. - The company specializes primarily produces internal combustion engines, gensets, and parts. Their main focus is on providing generator solutions.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
ABB Ltd., AKSA Power Generation, Atlas Copco AB, Briggs and Stratton LLC, Caterpillar Inc., Cooper Corp., 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.
Technavio market forecast the 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 market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
In the dynamic and ever-evolving business landscape, the Agility, Consistency, and Timeliness of a Generator Marketing strategy are crucial factors for success. The Agility of a marketing strategy refers to its ability to adapt to changing market conditions and consumer preferences. The Consistency ensures that the brand message remains uniform across all channels and platforms. Timeliness, on the other hand, means delivering the right message at the right time to the right audience. The Alternative Generator Market is a significant sector, with various players offering innovative solutions to cater to the growing demand for reliable and efficient power generation. The market is driven by factors such as increasing energy demand, government initiatives, and technological advancements.
The market is segmented based on Type, Application, and Region. The Fuel segment includes various types of fuels used in generator sets, such as diesel, natural gas, and biogas. The Application segment includes Residential, Commercial, and Industrial sectors. The Region segment includes North America, Europe, Asia Pacific, and the Middle East and Africa. The market is expected to grow at a steady pace due to the increasing demand for reliable energy generation and the growing adoption of renewable energy sources. The market is also witnessing significant competition, with several players vying for market share. The market is highly competitive, with several players offering similar products and services.
The market is characterized by its dynamic nature, with new players entering the market regularly and existing players introducing new products and services to stay competitive. The market is also influenced by various factors such as government regulations, economic conditions, and technological advancements. In conclusion, the Generator Marketing strategy plays a vital role in the success of a business in the Alternative Generator Market. Agility, Consistency, and Timeliness are essential elements of an effective marketing strategy. The market is expected to grow steadily, driven by increasing energy demand, government initiatives, and technological advancements. The market is highly competitive, with several players offering similar products and services, making it essential for businesses to have a robust and effective marketing strategy to stay competitive.
Market Scope |
|
Report Coverage |
Details |
Page number |
182 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.09% |
Market Growth 2024-2028 |
USD 21.38 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.32 |
Regional analysis |
APAC, Europe, Middle East and Africa, North America, and South America |
Performing market contribution |
APAC at 48% |
Key countries |
China, Nigeria, US, 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., 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 Forecasting, 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 the market 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. |
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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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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