The Asia-Pacific generator sets market is expected to grow at a CAGR of more than 6.7% over the period of 2020-2025. Factors such as the ever-increasing demand for power, lack of reliable grid infrastructure, the need for emergency backup power solutions, and the demand for steady power supply are driving the generator sets market. However, factors, such as high installation and operating costs and the consumer preference towards eco-friendly alternatives (solar, fuel cells, etc.) are restraining the market’s growth.
- Below 75 kVA capacity generators are estimated to have the largest market share during the forecast period, supported by the increase in demand from telecom, retail, other commercial buildings, and residential sectors.
- The commercial and industrial sectors of emerging economies, the residential sector of developed economies, and the increasing need for power in defense operations are expected to create significant opportunities for market participants in the near future.
- China accounted for the largest share in the market in 2019, with majority of the demand coming from across the nation and rising commercial office spaces and small-scale vendors.
Key Market Trends
Below 75 kVA Generator Sets to Dominate the Market
- Less than or equal to 75 kVA diesel generators are used in the telecom sector, commercial complexes, small restaurants, small-scale industries, petrol stations, among others, primarily as backup power in grid-connected areas and as the main power source in off-grid areas.
- The purchase of small generators is mostly based on price and requirement rather than efficiency, as they offer emergency backup power. The unreliable and limited power access, especially in rural areas has been the major reason for the high demand for low capacity generators.
- The demand for small generators in range 0-75 kVA is increasing drastically, with the change in the landscape of the commercial sector, especially in the developing countries of Asia-Pacific.
- As of 2018, India has close to 450,000 telecom towers, which requires a continuous power supply. Since 0-75 kVA diesel generators are used in the telecom sector for backup power in grid-connected areas and as the main power source in off-grid areas, the generator sets market is expected to grow exponentially.
- Further, the building & construction market is on the rise in India and China due to current government initiatives such as smart cities and green building initiatives, which are expected to create the demand for portable generators during the forecast period., and in turn, drive the generator set market.
China to Dominate the Market
- China is the leading generator sets market in the Asia-Pacific region owing to increasing infrastructure projects, widening power demand-supply gap, expansion of manufacturing facilities across the nation, and rising commercial office spaces.
- The country benefits from the cost and effectiveness of diesel generators, with improved living standards increasing the demand for power back-up devices.
- In China, the rapid growth in various end-use sectors, such as infrastructure, telecommunication, and information technology (IT) and IT-enabled services is expected to further spur the demand for electric generators.
- Factors such as the expansion of existing manufacturing units across the country and the dedicated ‘Made in China’ initiative launched by the Chinese central government are expected to drive the electric generators market in the country.
The Asia-Pacific generator sets market is fragmented. Some of the key players in this market include Cummins Inc, Mitsubishi Heavy Industries Ltd, Siemens AG, Caterpillar Inc., and ABB Ltd.
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Table of Contents
1.2 Market Definition
1.3 Study Assumptions
4.2 Market Size and Demand Forecast in USD billion, till 2025
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
5.1.1 Below 75 kVA
5.1.2 75-350 kVA
5.1.3 Above 350 kVA
5.3.1 Standby Backup Power
5.3.2 Prime/Continuous Power
5.3.3 Peak Shaving
5.4.4 Rest of Asia-Pacific
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Cummins Inc
6.3.2 Mitsubishi Heavy Industries Ltd
6.3.3 Siemens AG
6.3.4 Caterpillar Inc
6.3.5 ABB Ltd
6.3.6 Generac Power Systems
6.3.7 Kohler Co
6.3.8 Honda Siel Power Products Ltd
6.3.9 Doosan Corporation
A selection of companies mentioned in this report includes:
- Cummins Inc
- Mitsubishi Heavy Industries Ltd
- Siemens AG
- Caterpillar Inc
- ABB Ltd
- Generac Power Systems
- Kohler Co
- Honda Siel Power Products Ltd
- Doosan Corporation