Generator Sales Market

Generator Sales Market Outlook

The global generator sales market is estimated to reach a valuation of US$ 32.2 billion in 2023. As per Future Market Insights (FMI) analysis, the generator sales market size is expected to surpass US$ 55.3 billion by 2033. Between 2023 and 2033, the market has been forecast to register a 5.6%CAGR.

Global Trends & Scopes Revamping the Generator Sales Market

With ecologically friendly technology available, several market players are making important contributions to the energy transition. They are market leaders in standby power for essential facilities, as well as integrated drive and propulsion systems for ships and heavy-duty land vehicles. The diesel-fueled generator sets offered by leading companies range in power potential from 6 to 5,720 kW (7.5 to 7,150 kVA) and are constructed to world-class standards for high efficiency, low fuel consumption, and worldwide emissions compliance, thus adding fuel to market growth.

The rapid advancement of the industry has increased electricity consumption. Generators have become an essential component of industrial and household equipment due to uninterrupted power demand and peak and continuous power requirements. The growing costs of constructing modern structures in developing nations are projected to encourage the expansion of this construction industry. The constant demand for various minerals and metals to construct goods for various sectors is predicted to drive up demand in the mining industry.

The telecom industry is expected to benefit from the expanding reach of telecommunication lines, needing more telecom stations. The requirement for continuous power supply, which is necessary for the effective operation of heavy machinery and equipment, is favoring the manufacturing segment's expansion.

A Contrast with the Historical Market Scenario

According to a Future Market Insights analysis, the global generator sales forum has risen substantially in recent years. The market's leading rivals are collaborating to fulfill increased demand for generator sales. The CAGR was 5.1% from 2017 to 2022, and it is expected to climb to 5.6% over the forecast period.

Rapid industrialization and urbanization have resulted in greater consumption. This predicament has compelled companies and individuals to cease depending only on power networks, and instead invest in generators to ensure continuous power supply. Power consumption has risen sharply in both emerging and established nations in recent years. Furthermore, rising investments in the extraction of hydrocarbons from reserves have benefited the global market.

For instance, according to the BP Statistical Review of World Energy 2022, global primary energy consumption in 2021 reached 595.15 exajoules, up from 564.01 exajoules in 2020, representing a 5.8% increase year over year.

Category-wise Insights

The industry is fragmented into gas, diesel, and other fuel types based on fuel type.

Due to its dependable operations, considerably high efficiency, reduced maintenance costs, high load operations, and other reasons, the diesel segment is expected to account for the leading generator sales market share globally.

The rise of gas-based generating units is expected to be aided by fewer emissions of hazardous gases, such as nitrogen and sulfur, and more cost-effective operations.

Gensets that run on fuel oil, gasoline, wood gas, and biofuel are included in the others category. Their poor efficiency has hampered their expansion, but rising consumer awareness of environmental issues is expected to drive demand in the forecast term.

By Application Analysis:

The market is divided into three categories based on application: peak load, continuous load, and standby. The continuous load segment demand is likely to be fueled by increased use in heavy-duty applications.

The demand for robust backup power units to withstand abrupt blackouts or power shortages is fueling the standby segment's growth.

Owing to the expanding establishment of high-power applications in remote locations without grid access, the continuous category is expected to have a large generator sales market share in the worldwide market.

By End User:

The market is categorized based on end-user: industrial, commercial, and residential. The industrial sector accounted for the biggest proportion of the market.

The expansion in the number of industries and the increased usage of generators in industrial applications can be attributed to the causes.

In addition, favorable government policies supporting the development of energy infrastructure have aided businesses in increasing the rate of generator adoption.

Nikhil Kaitwade

Principal Consultant

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What are the Key Contributors to the Generator Sales Market?

Rapid industrialization and rising construction expenditure are expected to boost the market growth. Growing investments in constructing new sophisticated industrial sector establishments and upgrading existing ones are likely to propel the generator sales market forward.

Additionally, the demand for generator sales is boosted by rising national building investment in energy-efficient infrastructure. For example, the United States Census Bureau stated in August 2020 that investment in public buildings in the United States was US$ 353.3 billion in June 2020, up from US$ 332.8 billion in 2019.

This is projected to boost power equipment sales. Exploration and production of oil and gas are increasing, which is likely to help the economy grow. Power consumption is steadily increasing in both developed and emerging countries.

What are the Factors Limiting the Growth of the Generator Sales Market?

Clean energy adoption is increasing, which might stifle market growth. Clean energy deployment objectives set by several regional governments and organizations to reduce greenhouse gas emissions might hinder market growth.

Different countries are required to follow strict regulations to incorporate low-carbon generation technology and reduce their carbon footprint. This might limit the potential for generator installation throughout the world.

Furthermore, increasing expenditures to modernize grid infrastructure and enhance transmission and distribution (T&D) lines may cause certain product acceptance issues.

Region-wise Overview

Key Players in the United States are Eager to Represent Power Solutions for Better Infrastructure

The United States generator sales market is significant, accounting for 4.5% of total North American sales. The United States generator sales market is predicted to reach a high of US$ 6.2 billion. Unexpected power outages have raised customer demand for dependable backup power sources in the residential and commercial sectors, boosting the generator sales industry in the United States. Furthermore, the capacity to remain operational across industrial infrastructures without grid power sources has pushed users to implement a variety of techniques to combat blackout scenarios.

In the United States, key players are willing to install, maintain, and service household and commercial generators. These businesses are eager to represent power solutions that are industry leaders in innovative standby power systems. Furthermore, they have the most advanced power management smart technology available today. Key players refit or enhance the customer's power generation to meet their exact specifications. They also have in-house generator servicing professionals to ensure that the generators are always ready when the customer needs them.

Rapid development and urbanization have increased the demand for continuous electric power. As a result, power backups have become an essential component of growth. Fully licensed, bonded, and insured electricians from key companies are available to do a load estimate on electrical service consumption at the end user's home or company. Moreover, they can source a new backup or standby generator for the customer that meets the criteria. They can even create concrete pads for a new generator.

According to the United States Energy Information Administration, energy output and consumption in the United States increased by about 6% in 2019. As a result, the United States has made significant investments in the exploration and production of natural gas and crude oil from both onshore and offshore regions. In addition, several companies are implementing biofuel generators to reduce carbon emissions and operating expenses. This element is projected to generate an opportunity for generator sales companies in the United States market.

Consumers of the United Kingdom Prefer Brand New Generators since they Come with a Warranty

The United Kingdom is a significant generator sales market, with an estimated value of US$ 1.3 billion and a 4.6% revenue growth rate throughout the forecast period. Key businesses in the country provide generators suitable for a wide variety of recreational and professional applications. Camping, sailing, building, and small company applications are among them. Additionally, the solely United Kingdom-based design, fabrication, and manufacturing process imply that clients receive unrivaled product quality and support services.

Key players in the United Kingdom sell a wide choice of diesel generator ranges ranging from 67Kw to 67Kw. They are professionally developed to provide customers with a stress-free experience. As a result, they may avoid having to tolerate significant amounts of noise while the generator is running. The goal of leading participants is to deliver easy, well-informed, and trouble-free solutions for emergency and prime power needs. Certain significant players have authorized generator dealers. These generators are manufactured by well-known industry firms and are designed to give a stable power source.

English consumers prefer brand-new generators, since they come with a complete warranty. This implies that if any unexpected issues develop, the manufacturer is expected to address them for free. With a warranty, the consumer is not liable for any unanticipated difficulties. Second-hand or reconditioned generators may also come with a warranty in some situations. However, these are likely to have a shorter lifespan than brand-new generators.

Purchasing a second-hand generator does not have to be a gamble. Certain market participants offer used generators and are dedicated to supplying just the best-used diesel generators. They also say that all used generators they offer go through a 75-point service inspection and a complete load test before being dispatched. Furthermore, all of their service experts are highly experienced and well-versed in all of the typical difficulties related to diesel and gasoline power generation. They are eager to install equipment fast and monitor performance to provide ongoing, dependable service.

Market Players concentrate on Producing Intelligent Generator Sets to supply Superior Generators

China currently dominates the generator sales market, accounting for 5.2% of total sales. The Chinese generator sales market is valued at US$ 4.2 billion. This is attributed to increased infrastructure projects, a widening power demand-supply mismatch, manufacturing facility development, and burgeoning commercial office space across the country. The country benefits from the low cost and high efficiency of diesel generators, while rising living standards increase demand for power backup equipment.

Key businesses concentrate on producing intelligent generator sets, intending to supply superior intelligent generator sets. This is done to support ‘Made in China’ products and the application of the ‘innovation-driven development’ strategy. Additionally, they are prepared to provide the world's consumers with the most effective, complete, and timely intelligent cloud hybrid energy solution.

The industrial sector held the strongest market share for diesel generators in China in 2019. This is attributed to the industrial sector's growing need for a consistent and dependable power supply. In addition, the development of hybrid power solutions, which combine diesel generators with renewable energy sources like solar PV, is anticipated to open up a lot of potential for market players soon.

Generators are made scientifically from just raw materials and come in enhanced designs and a wider variety. These are easily accessible in a range of designs and specifications based on the preferences of the consumer. Prominent companies provide both generic and specialized generator set solutions. Through their foreign dealers and distributors, this is particularly feasible. Additionally, they strive to provide premium quality manufacturing with excellent company ideas, honest product sales, and top-notch, prompt customer service.

Manufacturers Invest Considerably in the Establishment of Cutting-edge Facilities for Producing High-quality Generators

With a revenue growth rate of 5% and a predicted value of US$ 1.1 billion over the projection year, India is a very profitable generator sales market. Technological improvements in generators are projected to significantly influence the Indian industry. Owing to constant technological breakthroughs, diesel generators are the most popular in the country and have a substantial share among other fuel-based generators.

Generators offered by key players function exceptionally silently owing to breakthrough technologies. Every element has been considered when creating its features to make it a full standby power supply. Significant partnerships, technological know-how assistance, and licensing agreements with chosen industry behemoths have enabled market participants to achieve unprecedented growth. Furthermore, they are renowned to employ high-quality engines from reputable suppliers.

The power supply that is uninterruptible and dependable, as well as the widespread use of DG (diesel generator), sets in healthcare and the IT industry, are responsible for the market's growth. In India, popular generators are outfitted with four-stroke liquid-cooled gas engines and Common Rail Direct Injection (CRDi) technology. These are created mostly in collaboration with other machine and engine manufacturers.

In terms of several characteristics, such as noise and emission, generators available in the nation conform with notices and recommendations published by the Central Pollution Control Board (CPCB). Manufacturers invest considerably in the establishment of cutting-edge facilities for the manufacturing of high-quality generators. Recently, businesses have expressed interest in developing hybrid generators that use both solar and fuel energy. Moreover, several key businesses provide diesel generators at more inexpensive pricing to the general public.

New Entrants Are Catching Up with Key Players: Start-up Economy

Start-up companies are supplying accessories or other solutions, or products based on generators. This is expected to drive the global generator sales market growth:

• GoFenz - It offers tracking and remote management services. Vehicle tracking, diesel generator monitoring, geo fence, employee tracking, position tracking, and more uses are possible. Raymonds, Prestige Group, Inspiredge, and others are among the clients.
• Moxion Power - It produces both commercial and industrial generators. Renewable energy sources are used to power these generators.
• Eco Enerrgias - It is a turnkey project developer specializing in distributed renewable energy projects, both grid-connected and off-grid. The firm completes turnkey projects that include designing, equipment installation, and monitoring of solar systems that are either linked or not connected to the grid. The business claims to have created several off-grid solutions for islands and rural places, including standalone solar systems and diesel generator-solar hybrids.
• EODev - It is a supplier of hydrogen-producing gas generators. GEH2 is a zero-emission hydrogen generator, REXH2 is a zero-emission navigation solution, and STSH2 is a hydrogen production and refilling mobile station. It also offers consultancy and program management services.
• Leading Edge Power Solutions - It provides methods for reducing electric power consumption. The firm offers a variety of services, including utility bill analysis software, electric savings solutions, load and traffic analysis, generator dispatch algorithms, and so on. It provides a natural gas engine known as the LE-240 generator, which works during peak energy usage times to lower utility energy expenditures.

Key Companies Transforming the Generator Sales Market Space

The generator sales market share is very competitive due to the existence of multiple well-established rivals. To capitalize on market growth opportunities, these companies are concentrating on expanding their reach through acquisitions, expansions, product approvals, and launches.

Recent Developments:

• In July 2020, Honda unveiled CO-MINDER, a carbon monoxide detection device that can be used with its generators. This technical innovation was designed with the safety of its genset users in mind, to prevent CO poisoning.
• In February 2021, Generac Power System has announced the establishment of new manufacturing, distribution, and assembly facilities in Trenton, South Carolina. The main motivation for establishing this plant was to serve the growing demand for home backup generators and other energy-related technology.
• In May 2021, Kohler-SDMO revealed a cover for the M139 genset. This canopy is resistant to corrosion and may be utilized in hard outdoor settings. The M139 genset has a power rating ranging from 165 to 250 kVA.
• In January 2022, Caterpillar announced the Cat G3516 natural gas-fueled Quick Reply generating units with US EPA certification for use in emergency and non-emergency scenarios.

Top Market Players in the Market:

• Rolls-Royce
• Caterpillar Inc.
• Atlas Copco
• MAN Energy Solutions
• Zwart Techniek
• Cummins Inc.
• Wacker Neuson
• Himoinsa
• Kohler-SIDMO

Key Segments Profiled in the Market

By Fuel Type:

• Natural Gas
• Diesel
• Others

By Design:

• Stationary
• Portable

By Power Rating:

• Up to 50 kW
• Up to 10 kW
• 11–20 kW
• 21–30 kW
• 31–40 kW
• 41–50 kW
• 51–280 kW
• 281–500 kW
• 501–2,000 kW
• 2,001–3,500 kW
• Above 3,500 kW

By Application:

• Prime & Continuous Load
• Standby
• Peak Shaving

By Sales Channel:

• Direct
• Indirect

By End User:

• Industrial
• Utilities/Power Generation
• Oil & Gas
• Chemicals & Petrochemicals
• Manufacturing
• Marine
• Commercial
• Mining & Metals
• Construction
• Residential
• Healthcare
• IT & Telecom
• Data Centers
• Others

By Region:

• North America
• Latin America
• Asia Pacific
• The Middle East and Africa
• Europe