Generator Sets Market: Global Industry Analysis and Forecast (2022-2029) by Current Type, Fuel Type, Power Rating, Application, End-Use, and Region

Generator Sets Market size was valued at USD 20.87 Bn. in 2021 and the total Generator Sets revenue is expected to grow at a CAGR of 9.85% from 2022 to 2029, reaching nearly USD 44.25 Bn.

Generator Sets Market Overview:

A power outage may cost a business a significant amount of money in terms of product, revenue, production, and consumers. With more severe weather events and natural disasters causing more costly power outages, there is a growing demand for generators for reliable backup power. Businesses are either exploring adding backup generators or, in the case of institutions such as hospitals and airports, which are mandated to have backup power and already have it, are investigating redundant backup systems for greater resilience against grid disruptions. Industrial generator sets have grown in popularity in recent years due to the benefits they provide, such as lengthy maintenance intervals, low-temperature starting capacity, high power density, and so on. Because of the invention of a common rail injection engine, which uses less fuel and makes less noise, industrial generator sets are efficient and simple. Growth in industrial applications and a rise in construction projects are expected to drive the global industrial generator sets market during the forecast period. The growing demand for electricity and emergency power backup solutions is driving the global generator sets market. Rapid industrialization, an expanding population base, and recurrent electricity shortages are driving up demand during the forecast period. Other significant causes are the growing susceptibility of grid power infrastructure to natural catastrophes, demand from the industrial industry, and the rising pace of building major commercial enterprises such as malls and superstores. Customers are becoming more aware of emergency power options and intelligent technology advancements. This is expected to generate highly lucrative opportunities, driving the generator sets market during the forecast period. In addition, emerging countries are rapidly constructing infrastructure and implementing smart city initiatives. Other changes might be found in the constantly developing IT sector and the rising trend of working from home. The organizational growth of data centers is resulting in the widespread use of generator sets. As a result, the market has a significant amount of space to grow. However, there are certain constraints for the generator sets market, such as customer desire for environmentally friendly options like solar cells and many governments supporting the use of cleaner backup power sources. They are enacting laws to reduce the high amount of carbon emissions. Generator Sets MarketTo know about the Research Methodology :- Request Free Sample Report

Generator Sets Market Dynamics:

Rapidly growing industrial sector around the world to drive generator sets market The industrial sector has played an important part in the economic development of various countries. Rapid urbanization is increasing the demand for goods and services, which is driving the growth of the industrial sector. Besides that, governments around the world have negotiated extra-regional trade agreements to establish themselves as global industrial centers. According to the ASEAN Economic Community (AEC), if implemented properly, the Regional Comprehensive Economic Partnership (RCEP) would be a positive step toward a larger Asia Pacific Free Trade Area (FTAAP). It can serve as an appropriate intergovernmental platform for free trade, increasing the growth of diverse sectors and supplementing the development of the region's manufacturing sector. The growth of the industrial sector has driven the demand for generator sets and is expected to further drive the market growth. New oil refineries are being built, as well as new power generation projects, in China, Brunei, India, and Thailand. Since 2001, China's pulp and paper sector has grown significantly. China is presently one of the world's major manufacturers of pulp and paper products. Thailand is a key Southeast Asian center for the vehicle assembly sector. Thailand's economy is additionally supported by the agricultural processing, food and beverage, tobacco, cement, tourist, textile, and garment sectors. As a result, the government has made beneficial steps toward digitalizing industrial businesses. Rapidly increasing industrial sectors are expected to drive the generator sets market during the forecast period. Thailand 4.0, which is defined as a digitally integrated commercial and social system with modern infrastructure, was launched in 2017 by the government and corporate leaders. To turn itself into a digital economy, the government also intends to innovate in target areas such as aircraft and robotics. Such beneficial government measures have fostered the rise of manufacturing industries, increasing demand for standby generators and driving the Thailand generators sets market during the forecast period. Vietnam produces high-quality goods at reduced rates, which drives businesses in the country. Renewable energy has been used in the country's manufacturing sector. For example, the DBW facility is Vietnam's first air-conditioning factory to be outfitted with solar panels, which may generate up to 20% of the energy needed for operations during the dry season. The rise of the manufacturing sector increases the demand for backup diesel generators since the outdated transmission and distribution infrastructure is unable to fulfill the demand for continuous and dependable power supply in the manufacturing sector. As a result, the rising demand for uninterrupted electricity by practically every industry is driving the generator sales market during the forecast period. High implementation of renewable energy sources and rising energy storage technologies The power storage industry has grown significantly over the past few years. governments around the world are making investments in energy storage technology. Greenko Energy Holdings spent around USD 1 billion on a new battery storage company in 2020, which also includes plans to manufacture lithium-ion batteries in India for power grid-scale applications. In 2018, Hitachi Chemical Co. Ltd. agreed to pay USD 74 million for Thai Storage Battery (BAT-3K), a battery producer and distributor. The acquisition is expected to promote technical transfers, assisting (BAT-3K) in the future development of more efficient rechargeable batteries. Governments were developing measures in 2020 to address various ecological challenges such as global warming, carbon emissions, and growing pollution, which drove countries to shift toward clean energy sources. Governments are taking various efforts to support renewable energy-producing projects. Several European countries, including the EU, and major Asian countries are aiming for net-zero emissions, with Japan and South Korea aiming for 2050 and China aiming for 2060. Renewables could replace coal as the world's leading source of energy generation in 2025, according to the International Energy Agency. Renewables contributed 29% of global power output in 2020, up from 27% in 2019. Renewable power generation is expected to increase by 10% by 2023, reaching 8,800 TWh. In 2021, China contribute to about half of the global increase in renewable power, followed by the United States, the European Union, and India. Over the next 10 years, the power production mix is expected to shift, with significant growth in solar (utility-scale), distributed generation and storage, grid-scale energy storage, and wind. Global investments in renewable energy technology have increased over the previous decade. Even though the COVID-19 pandemic impacted the electricity market, global capital spending for renewables climbed by roughly 7% in 2020 compared to 2019. The rapidly dropping installation cost of solar panels as a result of rapid technological breakthroughs, as well as the turn of many countries toward green energy generation, are all contributing to the growing demand for renewable energy solutions. Thus, during the forecast period, the rising acceptance of energy storage products and the development of renewable energy power generation technologies are expected to restrict demand for power generator sets market. Growing demand for hybrid, bi-fuel, and inverter generators in emerging economies Unique and modern forms of energy are currently being developed in an attempt to find alternative sources of energy to replace conventional fossil fuels in emerging economies. Many OEMs are now providing hybrid generators, which are essentially internal combustion engines plus a battery. When the load is high, these hybrid gensets supply electricity directly to the engine, but when the load is low, the battery supplies power. They reduce generator operating time, fuel consumption, and noise. They have various benefits over traditional generators and are expected to make inroads into mobile generators, which are mostly implemented in rural region applications, urban building sites, and the mining industry. Bi-fuel generators outperform both gas and diesel generators, increasing the dependability of standby power systems. They usually operate on gas, but in an emergency, they can run entirely on diesel. When the engine is in dual-fuel mode, natural gas is fed into the intake system, which reduces diesel consumption while retaining the same power density, torque, and transient responsiveness as the standard diesel engine. To overcome diesel engine pollution restrictions and high running expenses, some generator manufacturers are implementing bi-fuel technology. As a result, traditional diesel generator sets are being replaced with bi-fuel generators and are expected to bring lucrative opportunities for the generator sets market growth during the forecast period. Inverter generators are a relatively new technology and emerging trend in the generator sets market that makes use of complex electrical circuitry and high-tech magnets. Inverter generators, as opposed to standard generators, provide pure AC power and are mostly used to power current-sensitive appliances. They are gaining traction in the small residential generator sets market.

Generator Sets Market Segment Analysis:

Based on Fuel Type, the Diesel generator sets segment held the largest market share of about 72% and dominated the generator sets market in 2021. The segment is further expected to maintain its dominance at the end of the forecast period. The global energy demand is growing faster than the supply. In developing countries, factors such as continual population growth, infrastructural development, and fast industrialization are outpacing electricity demand. Diesel generators provide various benefits, including cheap running costs and improved fuel economy. As a result, they are far more popular in emerging economies, particularly in the Asia Pacific. Along with its benefits, it had several downsides, including noise pollution and the release of dangerous gases. According to the World Nuclear Association, the power demand would be more than treble present use. Solar energy, according to the US Department of Energy, will be the most plentiful energy source accessible. By 2050, major developing countries such as India, Brazil, and others are expected to have significant growth. In terms of GDP (gross domestic product) at PPP, India is expected to rise from third to the second largest economy in the world, trailing only China (purchase power parity). Countries like Brazil, India, and South Africa are already suffering from a lack of power. Emerging economies were responsible for 65% of global GDP in 2020. The diesel generator sets market in the United States is expected to grow significantly due to increased costs of power outages across various IT-enabled service businesses and data centers, as well as growing consumer awareness of the need for dependable emergency power supply. Additionally, the segment is being driven by the increased susceptibility of grid power plants to disasters induced by shifting weather patterns throughout the region. Generator Sets MarketThe key focus of solution providers in the diesel generator industry is generator system production, installation, maintenance, and repair. Generator dealers or electrical contractors get into product supply and maintenance contracts with end-market users in commercial, residential, and small-business settings that use generators as emergency power backup systems. Additionally, in industrial-scale operations, corporations appoint an in-house monitoring engineer to manage a big number of generators. Stringent government measures aimed at reducing harmful carbon emissions are expected to increase the use of gas-powered generators over diesel generators. This trend is expected to restrict segment demand for diesel generators in all end-use industries. Minimal running costs and low initial investment, on the other hand, are major reasons supporting the present demand for diesel generator sets and driving the diesel generator sets market during the forecast period.

Generator Sets Market Regional Insights:

The global rise in energy use is driving the global generator sets market. The continued increase in socioeconomic variables such as population, urbanization, net capital income, and industrial activity in both established and emerging economies has led to an increase in global power consumption. As businesses, commercial, and residential units engage in portable power units such as gas generators to counteract frequent power outages, demand for generator sets is expected to increase during the forecast period. According to the International Energy Agency's (IEA) Energy Market Report July 2021, global electricity consumption is a rise by 5% between 2020 and 2021, and by 4% between 2021 and 2022. It is believed that China and India alone contribute to 9% of global growth. As a result, the growth in global energy demand is expected to increase the consumption of generator sets during the forecast period. The Asia-Pacific region held the largest share of about 42% in terms of value and dominated the global generator sets market in 2021. The region is further expected to grow at a CAGR of about 6.0% during the forecast period. The generator sets market is being driven by factors such as rising power consumption, a lack of dependable grid infrastructure, the requirement for emergency backup power solutions, and the desire for consistent power delivery. However, obstacles such as expensive installation and running costs, as well as consumer desire for eco-friendly alternatives (solar, fuel cells, and so on), are restraining market growth. China is the largest generator sets market in the Asia-Pacific region, due to the increasing infrastructure improvements, expanding power demand-supply gap, advancement of manufacturing plants across the country, and rising commercial office spaces. The country benefits from the low cost and high efficiency of diesel generators while rising living standards increase demand for power backup equipment. Generator Sets MarketThe significant advancement of various end-use industries in China, including infrastructure, communications, information technology (IT), and IT-enabled services, is expected to drive demand for electric generators during the forecast period. Factors such as the development of existing manufacturing facilities across the country and the Chinese central government's focused 'Made in China' effort are expected to drive china's generator sets market. The Indian generator sets market is expected to grow at a CAGR of about 5.7% during the forecast period. The growth is expected to be driven by the high demand and adoption of medium and high-horsepower diesel gensets across the country. Besides that, macroeconomic growth, along with a revival in infrastructure, growth in manufacturing, and an increase in commercial construction projects, is expected to drive demand for these gensets during the forecast period to meet prime and auxiliary power requirements in a variety of facilities and plants. In addition, the rapid growth in various end-use sectors is expected further to drive the demand for generator sets in India. For example, in September 2021, Bharti Airtel announced fresh plans to invest roughly INR 50 billion (USD 673 million) to expand its data centers business in India in order to fulfill the country's rising client base. Such telecom developments are projected to raise demand for generator sets throughout the forecast period. Power outages have affected Indonesia's manufacturing sectors, leading to an increase in the use of generator sets in the country to provide a continuous and consistent power supply. Due to frequent power outages, South Sumatra and Jakarta are the primary drivers of the growth of the Indonesian generator sets market. The significant backup power needs in hotels, malls, and other commercial buildings such as data centers and offices drive the Singapore diesel generator set industry. Singapore is a major economic hub and tourism attraction, attracting over 18.5 million foreign visitors each year. As a result, there is a considerable need for diesel gensets in commercial areas, especially hotels, to provide a continuous power supply.

Generator Sets Market Scope: Inquire before buying

Generator Sets Market
Report Coverage Details
Base Year: 2021 Forecast Period: 2022-2029
Historical Data: 2017 to 2021 Market Size in 2021: US $ 20.87 Bn.
Forecast Period 2022 to 2029 CAGR: 9.85% Market Size in 2029: US $ 44.25 Bn.
Segments Covered: by Current Type • DC • AC (Single Phase, Poly Phase)
by Fuel Type • Gasoline • Diesel • Other
by Power Rating • Below 75 kVA • 75-350 kVA • Above 350 kVA
by Application • Standby Backup Power • Prime/Continuous Power • Peak Shaving Power
by End-Use • Residential • Commercial • Industrial

Generator Sets Market, by Region:

• North America • Europe • Asia Pacific • Middle East and Africa • South America

Generator Sets Market Key Players:

AKSA Power Generation • Briggs &amp • Stratton Corporation • Caterpillar Inc. • Cooper Corporation • Cummins Inc. • Doosan Corporation • Generac Power Systems • General Electric Corporation • Honda Power Equipment • Kirloskar Oil Engines Limited • Kohler • Ingersoll Rand • Yanmar • Sterling • Manlift Group • Atlas Copco • Powerica • John Deere • Mitsubishi • Mahindra Powerol • America Honda Motors • Yamaha Motor • Escorts • Sterling & Wilson FAQs: 1. What are the growth drivers for the Generator Sets market? Ans. The increasing automotive sector, increasing commercialization, growing building activity, rapidly changing customer preferences for customized automobiles, as well as increased demand for lightweight and fuel-efficient vehicles, are expected to be the major driver for the Generator Sets market. 2. What is the major restraint for the Generator Sets market growth? Ans. The Stringent Regulations on Generator Sets adoption are expected to be the major restraining factor for the Generator Sets market growth. 3. Which region is expected to lead the global Generator Sets market during the forecast period? Ans. The Asia-Pacific market is expected to lead the global Generator Sets market during the forecast period due to the ever-increasing demand for power, the lack of reliable grid infrastructure, the need for emergency backup power solutions, and the demand for steady power supply. 4. What is the projected market size & growth rate of the Generator Sets Market? Ans. The Generator Sets Market size was valued at USD 20.87 Bn. in 2021 and the total Generator Sets revenue is expected to grow at a CAGR of 9.85% from 2022 to 2029, reaching nearly USD 44.25 Bn. 5. What segments are covered in the Generator Sets Market report? Ans. The segments covered in the Generator Sets market report are Current Type, Fuel Type, Power Rating, Application, End-Use, and Region.
1. Global Generator Sets Market: Research Methodology 2. Global Generator Sets Market: Executive Summary 2.1 Market Overview and Definitions 2.1.1. Introduction to Global Generator Sets Market 2.2. Summary 2.2.1. Key Findings 2.2.2. Recommendations for Investors 2.2.3. Recommendations for Market Leaders 2.2.4. Recommendations for New Market Entry 3. Global Generator Sets Market: Competitive Analysis 3.1 MMR Competition Matrix 3.1.1. Market Structure by region 3.1.2. Competitive Benchmarking of Key Players 3.2 Consolidation in the Market 3.2.1 M&A by region 3.3 Key Developments by Companies 3.4 Market Drivers 3.5 Market Restraints 3.6 Market Opportunities 3.7 Market Challenges 3.8 Market Dynamics 3.9 PORTERS Five Forces Analysis 3.10 PESTLE 3.11. Regulatory Landscape by region • North America • Europe • Asia Pacific • The Middle East and Africa • South America 3.12 COVID-19 Impact 4. Global Generator Sets Market Segmentation 4.1 Global Generator Sets Market, by Current Type (2021-2029) • DC • AC (Single Phase, Poly Phase) 4.2 Global Generator Sets Market, by Fuel Type (2021-2029) • Gasoline • Diesel • Other 4.3 Global Generator Sets Market, by Power Rating (2021-2029) • Below 75 kVA • 75-350 kVA • Above 350 kVA 4.4 Global Generator Sets Market, by Application (2021-2029) • Standby Backup Power • Prime/Continuous Power • Peak Shaving Power 4.5 Global Generator Sets Market, by End-Use (2021-2029) • Residential • Commercial • Industrial 5. North America Generator Sets Market (2021-2029) 5.1 North America Generator Sets Market, by Current Type (2021-2029) • DC • AC (Single Phase, Poly Phase) 5.2 North America Generator Sets Market, by Fuel Type (2021-2029) • Gasoline • Diesel • Other 5.3 North America Generator Sets Market, by Power Rating (2021-2029) • Below 75 kVA • 75-350 kVA • Above 350 kVA 5.4 North America Generator Sets Market, by Application (2021-2029) • Standby Backup Power • Prime/Continuous Power • Peak Shaving Power 5.5 North America Generator Sets Market, by End-Use (2021-2029) • Residential • Commercial • Industrial 5.6 North America Generator Sets Market, by Country (2021-2029) • United States • Canada • Mexico 6. Europe Generator Sets Market (2021-2029) 6.1. European Generator Sets Market, by Current Type (2021-2029) 6.2. European Generator Sets Market, by Fuel Type (2021-2029) 6.3. European Generator Sets Market, by Power Rating (2021-2029) 6.4. European Generator Sets Market, by Application (2021-2029) 6.5. European Generator Sets Market, by End-Use (2021-2029) 6.6. European Generator Sets Market, by Country (2021-2029) • UK • France • Germany • Italy • Spain • Sweden • Austria • Rest Of Europe 7. Asia Pacific Generator Sets Market (2021-2029) 7.1. Asia Pacific Generator Sets Market, by Current Type (2021-2029) 7.2. Asia Pacific Generator Sets Market, by Fuel Type (2021-2029) 7.3. Asia Pacific Generator Sets Market, by Power Rating (2021-2029) 7.4. Asia Pacific Generator Sets Market, by Application (2021-2029) 7.5. Asia Pacific Generator Sets Market, by End-Use (2021-2029) 7.6. Asia Pacific Generator Sets Market, by Country (2021-2029) • China • India • Japan • South Korea • Australia • ASEAN • Rest Of APAC 8. Middle East and Africa Generator Sets Market (2021-2029) 8.1 Middle East and Africa Generator Sets Market, by Current Type (2021-2029) 8.2. Middle East and Africa Generator Sets Market, by Fuel Type (2021-2029) 8.3. Middle East and Africa Generator Sets Market, by Power Rating (2021-2029) 8.4. Middle East and Africa Generator Sets Market, by Application (2021-2029) 8.5. Middle East and Africa Generator Sets Market, by End-Use (2021-2029) 8.6. Middle East and Africa Generator Sets Market, by Country (2021-2029) • South Africa • GCC • Egypt • Nigeria • Rest Of ME&A 9. South America Generator Sets Market (2021-2029) 9.1. South America Generator Sets Market, by Current Type (2021-2029) 9.2. South America Generator Sets Market, by Fuel Type (2021-2029) 9.3. South America Generator Sets Market, by Power Rating (2021-2029) 9.4. South America Generator Sets Market, by Application (2021-2029) 9.5. South America Generator Sets Market, by End-Use (2021-2029) 9.6. South America Generator Sets Market, by Country (2021-2029) • Brazil • Argentina • Rest Of South America 10. Company Profile: Key players 10.1 AKSA Power Generation 10.1.1. Company Overview 10.1.2. Financial Overview 10.1.3. Global Presence 10.1.4. Capacity Portfolio 10.1.5. Business Strategy 10.1.6. Recent Developments 10.2 Briggs &amp 10.3 Stratton Corporation 10.4 Caterpillar Inc. 10.5 Cooper Corporation 10.6 Cummins Inc. 10.7 Doosan Corporation 10.8 Generac Power Systems 10.9 General Electric Corporation 10.10 Honda Power Equipment 10.11 Kirloskar Oil Engines Limited 10.12 Kohler 10.13 Ingersoll Rand 10.14 Yanmar 10.15 Sterling 10.16 Manlift Group 10.17 Atlas Copco 10.18 Powerica 10.19 John Deere 10.20 Mitsubishi 10.21 Mahindra Powerol 10.22 America Honda Motors 10.23 Yamaha Motor 10.24 Escorts 10.25 Sterling & Wilson

About This Report

Report ID 11256
Category Electronics
Published Date Nov 2022
Updated Date
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