South America Generator Sales Market Outlook, 2028

The South American generator sales market has experienced steady growth in recent years, driven by factors such as increasing industrialization, infrastructure development, and the need for reliable backup power solutions. The size of the market is influenced by factors such as economic conditions, energy demand, and investment in various sectors. South America has vast rural and remote regions where access to reliable grid power may be limited. Generators are essential in these areas to meet the electricity needs of households, businesses, and essential services. Agriculture, rural tourism, and off-grid communities also contribute to the demand for generators in rural and remote areas. In urban areas, residential and commercial customers often use generators as backup power solutions. These generators are employed to provide electricity during power outages or in areas with unreliable grid connections. Residential complexes, commercial establishments, and critical infrastructure such as hospitals and data centres require backup power solutions. South America is experiencing growing power demand due to industrialization, population growth, and expanding economic activities. This creates an opportunity for the generator market to provide backup and supplementary power solutions to meet rising electricity needs. The demand for generator rental and leasing services is increasing in South America. Rental companies are providing flexible and cost-effective power solutions for temporary projects, events, construction sites, and short-term power needs. The market can explore opportunities for providing rental and leasing services for generators.

According to the research report South America Generator Sales Market Outlook, 2028, the market is anticipated to add USD 1.03 Billion market size from 2023-28. South America is undergoing significant infrastructure development, including the construction of roads, bridges, power plants, and public facilities. These infrastructure projects often require temporary or backup power solutions, creating opportunities for generator sales and rentals. Based on the fuel types, there are diesel, gas, and others (LPG, biofuel, coal gas, producer gas, gasoline, and propane gas). In South America, the diesel segment is leading generator sales in the generator market. The growth of numerous end-use industries, such as mining, oil and gas exploration, power generation, and construction, which require heavy-duty generators for a continuous and dependable power supply for operation, is primarily responsible for the rise in the region's demand for diesel generators. Diesel fuel is readily available and has a well-established distribution infrastructure in South America. This makes it convenient for users to access diesel fuel for their generators. Additionally, diesel fuel is relatively easier to transport and store compared to other fuel types, making it a practical choice for remote locations or areas with limited infrastructure. Diesel generators generally offer higher power output compared to other types of generators of similar size. They are well-suited for high-power demanding applications, such as industrial machinery, construction sites, and mining operations. Diesel engines are also known for their fuel efficiency, which can result in lower operating costs over time.

There are several opportunities and challenges in South America. Generator sales markets are the some countries in South America face economic volatility and political uncertainties, which can impact investment in infrastructure projects and the purchasing power of businesses and consumers. Fluctuating economic conditions can pose challenges for the generator market. Increasing environmental concerns and regulations may require generator manufacturers and users to meet stricter emissions standards. Adapting to these regulations and ensuring compliance can be a challenge for the generator market, particularly for older and less environmentally friendly generator models. South America's focus on renewable energy sources may pose challenges for the generator market. As renewable energy technologies become more cost-effective and accessible, there may be increased competition from solar, wind, and other renewable energy solutions, potentially reducing the demand for traditional generators. As well as offering much opportunity, South America is witnessing significant infrastructure development, including the construction of power plants, transportation networks, and public facilities. This creates opportunities for the generator market to provide temporary or backup power solutions during construction and for on-going operations. South America is investing in renewable energy sources such as hydroelectric, solar, and wind power. Generators can complement renewable energy systems by providing backup power during periods of low renewable energy generation or in off-grid areas. Hybrid systems that combine generators with renewable energy sources present opportunities for the market. Many rural and remote areas in South America still lack access to reliable grid power. Generators can play a vital role in rural electrification projects, providing power to households, agricultural activities, and small businesses in off-grid areas.

Based on the application segment, which includes standby, prime and continuous, and peak shaving, standby is used more in the region and holds the highest market share in the region. Standby generators are designed to provide extended periods of continuous power backup. They are typically connected to an on-site fuel source, such as a diesel or natural gas supply, enabling them to operate for hours or even days without interruption. This capability makes standby generators ideal for applications requiring extended backup power, such as during prolonged power outages or in remote areas. In the future, the prime and continuous generators will grow at the highest CAGR rate. Moreover, the growing telecommunications industry is a key driving force for the prime-power diesel generator industry in South America. The industrial sector holds the highest market shares in the region and end user categories on the basis of industrial, commercial, and residential. The industrial segment has the highest market share in the region. In South America, manufacturing, oil and gas, mining, healthcare, and construction and commercial establishments, including hotels, shopping malls, restaurants, and entertainment venues, often rely on generators for backup power. Generators ensure uninterrupted operation of lighting, HVAC systems, security systems, and other essential services, preserving customer satisfaction and business continuity. Industries are using the most generators in the region. These industries are using the most generators in the South American region.

Below 100KVA is leading the generator power rating segment. The power rating segment is categorised by below 100KVA, 100-350 KVA, 350-1000 KVA, 1000-2500 KVA, 2500-5000 KVA, and above 5000 KVA. Below 100KVA holds the highest market share in the region. Below 100 KVA, generators are well-suited for residential and small commercial applications where the power requirements are relatively lower. These generators are commonly used to provide backup power for homes, small businesses, shops, and offices. They can easily meet the power needs of essential appliances, lighting, and basic equipment in these settings. Now days in South America, the manufacturers are focusing on developing more fuel-efficient generators below 100 kVA. This includes the use of advanced engine technologies, improved combustion systems, and optimised control systems to maximise fuel efficiency and reduce operating costs. Based on the design types, which include portable and stationary, in South America, stationery design is leading the market. In the future, the portable segment will grow at the highest CAGR rate.

Based on the report, the South American market is segmented into three countries, including Brazil, Argentina, and Colombia. Among them, Brazil will dominate the market in 2022. Brazil has the largest economy in South America, with a diverse range of industries and sectors. The country's large market size and potential for growth make it an attractive market for generator manufacturers and suppliers. Brazil is rich in natural resources, including minerals, oil, and gas. The mining and extractive industries require reliable power sources to operate heavy machinery, processing plants, and infrastructure. Generators are extensively used in these sectors to ensure an uninterrupted power supply. Based on the sales channel, which includes the indirect sales channel and the direct sales channel, in South America, the indirect sales channel is leading the generator sales market. There are several top generator manufacturers in South America, including WEG, Cummins, Generac, and Atlas Copco.

Considered in this report

• Geography: South America
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report

• South America Generator Sales market with its value and forecast along with its segments
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report:

• Brazil
• Argentina
• Colombia

By Fuel Type

• Diesel
• Gas
• Others (LPG, biofuel, coal gas, producer gas, gasoline, and propane gas)

By Application

• Standby
• Prime & Continuous
• Peak Shaving

By End User

• Industrial
• Commercial
• Residential

By Power Ratings

• Below 100 kVA
• 100-350 kVA
• 350-1,000 kVA
• 1,000-2,500 kVA
• 2,500-5,000 kVA
• Above 5,000 kVA

By Sales Channels

• Indirect
• Direct

By Design

• Stationary
• Portable

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Smart Lighting industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.