Residential Generator Market

Residential Generator Market Outlook from 2024 to 2034

The residential generator market is expected to be valued at USD 10.1 billion in 2024 and is expected to rise to USD 15.0 billion by 2034. It is expected to grow at a CAGR of 4.1% during the forecast period. The residential generator market is growing due to increasing concerns about power outages, natural disasters, and the need for reliable backup power sources.

Key Market Drivers

• The rising frequency of severe weather events and grid failures has led homeowners to recognize the importance of having a reliable backup power source for essential services and comfort during outages.
• In today's digitally connected world, households rely heavily on electricity to power essential appliances, electronics, and medical equipment, creating a growing demand for residential generators to provide uninterrupted power.
• Continuous innovation in the residential generator market has led to advanced generators featuring improved fuel efficiency, quieter operation, automatic start-up/shutdown capabilities, and remote monitoring and control functionalities, driving market growth.
• As disposable incomes rise and homeownership rates increase, more households are investing in residential generators as a long-term solution to safeguard their homes and families against power outages, particularly among affluent homeowners.
• Incentives, subsidies, or tax credits offered by some governments encourage the adoption of residential generators, especially in areas prone to frequent power outages or those experiencing unreliable grid infrastructure.
• Rapid urbanization and aging grid infrastructure in many urban areas have contributed to grid instability and increased vulnerability to blackouts and brownouts, resulting in homeowners turning to residential generators as a reliable backup power solution.

Attributes	Key Statistics
Residential Generator Market Value (2024)	USD 10.1 billion
Anticipated Market Value (2034)	USD 15.0 billion
Estimated Growth (2024 to 2034)	4.1 % CAGR

Consumption Analysis of the Residential Generator Market

• The demand for residential generators is rising as homeowners become more aware of the importance of uninterrupted power supply.
• Automatic start-up and shutdown features and the seamless power supply to essential appliances during power outages make residential generators a reliable backup power solution.
• Manufacturers and retailers are witnessing increased sales volumes and revenues as homeowners prioritize the purchase of residential generators for long-term peace of mind and security.
• The adoption of residential generators is not limited to specific demographics. Still, it encompasses a broad spectrum of households that seek to safeguard their electrical systems and maintain comfort and safety during outages.
• Manufacturers are responding to advanced features and technologies, such as remote monitoring and control, automatic load shedding, and compatibility with renewable energy sources, by continually innovating and introducing new products with enhanced capabilities to meet evolving consumer needs and preferences.

Factors Adversely Affecting the Residential Generator Market

The residential generator market is anticipated to surpass a global valuation of USD 15.0 billion by 2034, with a growth rate of 4.1% CAGR.

While the residential generator market is experiencing growth, several restraining factors can adversely affect its development and expansion.

• The high upfront and ongoing expenses associated with purchasing, installing, and maintaining residential generators may deter homeowners with limited financial resources from investing in a backup power solution.
• Limited outdoor space or restrictive zoning regulations can make it challenging for homeowners to install larger or fossil fuel-powered generators, limiting market penetration and adoption rates.
• Traditional fossil fuel-powered generators can produce noise and emissions during operation, which may be perceived as undesirable by homeowners concerned about environmental impact or neighborhood disturbances.
• The complexity of installing and maintaining residential generators, especially for larger or more sophisticated models, can act as a barrier to adoption, particularly for those lacking access to qualified technicians or facing additional costs associated with service contracts.
• The availability and accessibility of fuel sources for residential generators, particularly during emergencies or natural disasters, can be a significant concern for homeowners dependent on fossil fuels, such as gasoline or propane.
• Regulatory requirements, permitting processes, and zoning restrictions may present obstacles to residential generator installations, particularly in areas with stringent building codes or environmental regulations, leading to delays, complications, and increased costs.

Category-wise Insights

Flexibility and Affordability of Portable Generators

Attributes	Details
Top Type	Portable
CAGR (2024 to 2034)	4.0%

Based on the type, the portable segment dominates the residential generator market, expanding at a CAGR of 4.0% through 2034. The segment’s popularity is rising due to the following factors:

• Portable generators typically come at a lower initial cost than standby or whole-house generators, making them more accessible to a broader range of homeowners, including those with smaller properties or limited budgets.
• The advancements in portable generator technology, such as inverter generators offering cleaner and more stable power output, have further enhanced their appeal in the residential market, driving their dominance in this segment.
• Portable generators' ease of use and maintenance also make them attractive to homeowners seeking cost-effective backup power solutions without requiring extensive installation or professional assistance.

Diesel’s Durability, Reliability, and Longer Shelf Life Compared to Gasoline

Attributes	Details
Top Fuel	Diesel
CAGR (2024 to 2034)	3.8%

Based on fuel, sales of diesel generators are rising at a 3.8% CAGR. This rising popularity is attributed to:

• Diesel fuel provides better fuel efficiency and lower operating costs, making it a cost-effective solution for larger generator models.
• Diesel generators offer higher power output capabilities, making them suitable for powering larger residential properties or appliances with higher energy demands.
• Diesel generators are a reliable and cost-effective option for homeowners seeking backup power solutions in the residential generator market.

Country-wise Insights

The section analyzes the global residential generator market by country, including the United States, the United Kingdom, China, Japan, and South Korea. The table presents the CAGR for each country, indicating the expected market growth in that country through 2034.

Countries	CAGR (2024 to 2034)
United States	4.4%
United Kingdom	5.1%
China	4.8%
Japan	5.5%
South Korea	6.7%

Extreme Weather Events like Hurricanes and Wildfires in the United States

The United States dominates the residential generator market in the North American region. It is expected to exhibit an annual growth rate of 4.4% until 2034.

• Extreme weather events in the United States have prompted homeowners to invest in backup power solutions to ensure uninterrupted electricity supply during emergencies.
• The United States' aging power infrastructure and growing reliance on electronic devices also contribute to the surging demand for residential generators, particularly in regions with frequent power outages.

United Kingdom's Concerns over Grid Reliability and Power Supply Disruptions

The United Kingdom is the leading European country in the global residential generator market, and its market is predicted to register an annual growth rate of 5.1%.

• Concerns over grid reliability are exacerbated by the country's aging infrastructure and the transition to renewable energy sources.
• As homeowners prioritize energy security and resilience, there is a growing demand for residential generators to ensure uninterrupted power supply for essential appliances and heating systems, particularly during severe weather events and grid failures.

China's Rapid Urbanization, Industrialization, and Economic Development

China is another Asian country leading in the global residential generator market. The Chinese market is anticipated to register a CAGR of 4.8% through 2034.

• Urbanization and industrialization have increased electricity demand and strain on the power grid, resulting in frequent power outages and voltage fluctuations in many regions.
• Homeowners are turning to residential generators to mitigate the impact of unreliable grid infrastructure and ensure uninterrupted power supply for their homes, thus driving the market's growth.

Japan's Susceptibility to Natural Disasters like Earthquakes, Typhoons, and Tsunamis

Japan is another leading Asian country in the global residential generator market. The Japanese market is anticipated to register a CAGR of 5.5% through 2034.

• Disasters pose significant risks to the stability of the power grid and electricity supply.
• With a strong cultural emphasis on preparedness and disaster resilience, homeowners in Japan are increasingly investing in residential generators to protect their homes and families from the impact of power outages during emergencies.

South Korea's Increasing Demand for Backup Power Due to Energy Insecurity

Japan is the leading Asian country in the residential generator market. The Chinese market is anticipated to register a CAGR of 6.7% through 2034.

• South Korea’s densely populated urban areas and high-tech infrastructure make it particularly susceptible to power disruptions, leading homeowners to invest in residential generators to ensure continuity of essential services and comfort during outages.
• Government incentives and subsidies for energy-efficient home appliances further stimulate market growth in South Korea.

Competitive Landscape

Major companies are implementing multiple strategies to drive growth in the residential generator market. These include investing heavily in research and development to innovate and develop generators with better efficiency, reliability, and ease of use.

They are also expanding their distribution networks and strengthening partnerships with dealers and home improvement retailers to increase their market reach.

Manufacturers are investing in marketing and promotional activities to raise awareness about the benefits of residential generators and educate consumers about the importance of backup power solutions.

By doing so, these companies aim to establish themselves as trusted brands in the market and capitalize on growing consumer demand for residential generators.

Recent Developments

• On September 1, 2023, Jackery revealed its latest consumer-focused portable solar generators at IFA 2023. These products, emphasizing lightweight design and safety, provide outdoor enthusiasts with flexible, eco-friendly power solutions.
• On September 5, 2023, FranklinWH Energy Storage integrated the aHub into its Franklin Home Power Solution, facilitating the linking of V2L-enabled EVs and portable generators. This expanded energy management system ensured continued home operation during grid outages, alleviating homeowner concerns.
• On July 19, 2023, Kohler Co. launched its 26 kW (26RCA) air-cooled home standby generator, completing its range of air-cooled backup power solutions from 6 kW to 26 kW, catering to homeowner and dealer needs.
• On November 2, 2023, BLUETTI introduced its AC2A and AC70 portable generators, catering to the needs of outdoor enthusiasts for reliable power sources during fall adventures, ensuring gadgets remain charged and comforts maintained.

Key Companies in the Market

• American Honda Motor Co., Inc.
• Atlas Copco AB
• Briggs and Stratton Corporation
• Caterpillar Inc.
• Champion Power Equipment Inc.
• EATON CORPORATION PLC
• Cummins Inc.
• KOHLER CO.
• GENERAC HOLDINGS INC.
• HONDA MOTOR CO., LTD.
• Atlas Copco AB
• Scott's Emergency Lighting

Key Coverage in the Residential Generator Market

• Residential Generator Market Revenue Forecast
• Global Residential Generator Market Trends
• Adjacent Study on Portable Inverter Generators Market
• Power Rating of Residential Generators
• Opportunity Analysis of the Residential Generator Market

Market Segmentation

By Type:

• Stationary
• Portable

By Fuel:

• Gasoline
• Diesel
• Gas
• Others

By Power Rating:

• Less Than 20 kVA
• 20 kVA - 50 kVA
• 50 kVA - 100 kVA
• More Than 100 kVA

By Region:

• Asia Pacific
• Europe
• North America
• Middle East & Africa
• Latin America

Frequently Asked Questions

What is the residential generator market currently worth?

The global residential generator market is predicted to be worth USD 10.1 billion in 2024.

What is the sales forecast for the residential generator market through 2034?

The residential generator market is expected to reach USD 15.0 billion by 2034.

At what rate is the residential generator market growing globally?

The residential generator market is growing at a CAGR of 4.1% from 2024 to 2034.

Who are the key companies for residential generators?

Some key players in the market are American Honda Motor Co., Inc., Atlas Copco AB, Briggs and Stratton Corporation, Caterpillar Inc., and Champion Power Equipment, Inc.

Which is the top fuel type in the residential generator market?

Diesel is the top fuel type and its demand is expected to rise at a 3.8% CAGR through 2034.