Global Generator Sales Market Outlook, 2028

Generators are machines that convert mechanical energy into electrical energy with the help of an electric motor and diesel or gas or any other substance as fuel for the purpose of using it in an external circuit. These devices are primarily adopted for the transmission & distribution of power lines to industrial, residential, and commercial consumption. They are also utilized to generate electric energy for automotive, trains, aircraft, and ships. In nations where regular power outrage occur, generators are crucial because they offer a backup power supply. Generators assist industries in generating power in case of any load shed from the state distribution companies. The last few years have witnessed a colossal growth in the overall number and scale of industries such as power generation, healthcare, etc., across the globe. These industries require uninterrupted power & energy supply for the smooth functioning of operations. Moreover, the demand for energy is rising across the globe due to the surging incidence of blackouts and natural disasters. All these factors contribute to an enhanced demand for generators which in turn is aiding in the expansion of the global generator sales market. Additionally, the leading players operating in the global generator sales market emphasize developing and introducing new and advanced products to cater to the increasing demand from end users. The launch of such innovative products by market players into the market is slated to swiftly boost the growth of the overall generator sales market in the next few years. Furthermore, the rapid industrialization across the globe, the growing demand for power backup systems, the rising environmental concerns, the surging focus of governments on the electrification of rural areas and the rapidly expanding manufacturing sector are among other major factors driving the growth of the global generator sales market.

According to the research report, Global Generator Sales Market Outlook, 2028, the market is anticipated to cross USD 39.66 Billion, increasing from USD 28.41 Billion in 2022. The market is expected to grow at a CAGR of 5.82% by 2023-2028. The increase in the demand for power has exceeded the power supply capacity in many countries, especially in developing countries. The growth of industrialization and urbanization has increased the per capita power consumption and the higher dependence on conventional energy sources has restricted the amount of power generated. Due to this, businesses cannot completely rely on the grid to access power and ensure uninterrupted power supply and invest in generators that supply power on demand, and ensure continuity of the processes in case of a power cut. Often in many industries, many types of equipment and machines require power supply 24/7 otherwise it will cease to work and can cause a substantial financial loss to the organization and essential sectors like healthcare also cannot afford to lose power as it is related to public care. These factors combined have fuelled the growth of the Generator Sales Market. Events such as concerts, festivals, and sports competitions require reliable power sources to operate stages, sound systems, lighting, and other equipment. Generators are often employed to provide on-site power, enabling large-scale events to take place in remote locations or areas with limited electrical infrastructure. While renewable energy sources like solar and wind power are gaining traction, they are intermittent and dependent on weather conditions. Generators serve as a backup power source during periods of low renewable energy production or when the primary system requires maintenance or repairs.

The global market has been assessed across five major regions, including North America, Europe, Asia Pacific, South America and Middle East & Africa. Asia Pacific is anticipated to hold the most significant global generator sales market share in revenue due to various economies in the transition phases. The regional expansion is backed by the rapidly developing infrastructure, paradigm shift towards industrialization & urbanization, and building of new structures, especially in countries like South Korea, Southeast Asia, China, and India. North America is set to experience substantial development during the projection period due to the increasing investments to advance the industrial landscape in developed countries like the U.S. and Canada. The United States dominates the North American generator market, driven by factors such as extreme weather conditions, aging power infrastructure, and a high reliance on technology. The market is witnessing a shift towards cleaner and more fuel-efficient generators, with a growing preference for natural gas and propane-powered units. Europe has a mature generator market with a focus on clean energy solutions. As a result, there is an increasing demand for low-emission generators and hybrid power systems that integrate renewable energy sources. Germany and the United Kingdom are among the leading countries in terms of generator sales. They have stringent emissions regulations and are investing in eco-friendly generator technologies. Additionally, promising legislation to support building energy security and the presence of established genset manufacturers is anticipated to boost market progress in the region. The easy obtainability of oil & gas and a considerably rich occurrence of metals & minerals favour the Middle East & Africa.

By fuel type, the diesel segment is expected to be the largest contributor to the generator sales market during the forecast period. The diesel segment is expected to hold the largest market share by 2028 because of its wide use in the manufacturing, healthcare, oil & gas, marine, and IT/telecom sectors. Diesel generators are easy to install and operate, making them more user-friendly than gas gensets. In addition, the fuel used in these gensets is easy to transport, allowing them to be used in any location. Diesel generators have a long operational life and diesel is more readily available than natural gas. Thus, diesel generator sets are ideal for long-term (prime) operations with a load range of 7080% and applications that need extended runtimes. This is a major factor driving market growth. However, to reduce emissions, developed countries such as the US, Canada, the UK, Germany, France, the Netherlands, and Japan are rapidly adopting natural gas-based power generation technologies due to which the gas generators sales market is expected to grow at a faster pace during the forecast period. However, the rising transmission & distribution expenditure, the high operation & maintenance costs associated with generators, and the implementation of stringent government regulations may act as major hindrances to the growth of the global generator sales market during the forecast period of 2023-28. The others segment includes gensets working on gasoline, fuel oil, biofuel, wood gas, and others. Their low efficiency has hindered their growth, but the increasing environmental conscience among consumers is anticipated to propel demand in the projected period.

In the generator sales market, the standby application has traditionally been the dominant application. In the event of a power outage, standby generators are commonly used as backup power sources. They are commonly used in applications such as hospitals, data centres, and commercial buildings where a continuous power supply is required. Standby generators are designed to start and provide power automatically in the event of a power outage. Continuous power generators are used in applications that require a consistent and reliable power supply, such as industrial manufacturing, marine, and oil and gas. These generators are built to run continuously for extended periods of time and at full power output without interruption. The segment is growing at a higher CAGR of 7.15% by 2023-28. Further, based on the power rating, this market can be classified as below 100 kVA, 100-350 kVA, 350-1,000 kVA, 1,000-2,500 kVA, 2,500-5,000 kVA and Above 5,000 kVA. The demand for up to 50 kW power rating generators is driven by increased demand for backup power solutions in the residential sector. Generators up to 50 kW power rating are also used for providing power backup solutions for small-scale commercial activities such as telecom, retail, and others. These generators also find application in recreational vehicles, fire and emergency trucks, utility and telecom fleets, and other specialty vehicles for prime power solutions. The frequent unveiling of new gensets with superior fuel efficiency and high power output is set to propel the segment outlook. The swiftly emergent residential and small commercial structures in remote locations will likely amplify below 100 kVA generator sales. 100-350 kVA gensets are designed for easy incorporation in data centers, commercial structures, the manufacturing sector, and others. The products also offer economical initial and operating costs. The growing setup of industrial operations in distant locations that require continuous electricity is anticipated to bolster the 350-1000 kVA segment growth.

Based on the sales channel, indirect sales channel are expected to dominate the market in 2022. Indirect sales channel such as OEMs, third-party service providers, procure generators and equipment from manufacturers and provide services to different end users. With most generators used for standby power, it is important that they are in working condition when needed, primarily during a power cut. Owing to which distribution/sales network and service play the most important role in the customer’s decision-making process. Nowadays, companies are focusing on expanding their distribution and services network, which is driving the generator sales market. Better product reach and preference for procurement of generators through indirect sales channel also provide ample opportunities to boost market growth. Thus, indirect sales channel expected to emerge as the largest growing market. Based on the design, stationary segment is expected to hold the largest market share during the forecast period during the forecast period. The increasing use of low-noise engine technology and the growing oil & gas, chemicals & petrochemicals, telecommunications, and manufacturing industries are expected to fuel the growth of the stationery segment. Further, the global market is categorised into three types of end users including industrial, commercial and residential. Among them, industrial is dominating the market with 53% share in 2022. The industrial end user segment is witnessing a high demand for diesel & gas generators, particularly in developing countries. The growth of this segment is attributed to the increase in demand from mining, marine, chemicals, defence, and manufacturing industries. Industrial generators continuously supply power in the event of power failure from the grid system. The growth of the industrial segment is mainly driven by the increasing demand for distributed power generation in Asia Pacific and the oil and gas boom in North America. However, the residential segment is growing at a prominent CAGR of more than 7% in the market due to the increasing demand for consistent power backups and increased urbanization. The rising remote working trend is a major driving factor for the market. Generally, standby-type gensets of low power ratings are chosen for this segment.

Based on the industrial end user, the oil & gas sector sub-segment is anticipated to hold the central position among various industries due to the increasing funds to explore reservoirs and discover new assets. The rising construction spending by various governments to establish energy-efficient buildings is likely to favour the growth of the construction segment. The continuous requirement for various metals and minerals to manufacture raw materials and products for various industries is expected to drive the growth of the mining segment. The intensifying reach of communication lines needing new telecom stations is projected to boost the telecom segment landscape. The manufacturing segment growth is favoured by the continual high power requirement to competently run heavy machinery that will propel the demand for gensets globally. Furthermore, the companies are increasingly focusing on integrating with other players to strengthen their foothold and outline the competitive landscape. For instance, in July 2021, Rolls Royce publicized the delivery of its generator to the renovated Testbed 108 in Bristol, U.K., from the company’s facility in Norway for the use in 2.5 MW Power Generation System 1 (PGS1) demonstrator program.

Recent Developments:

• In January 2022, Caterpillar launched Cat G3516 natural gas-fueled Fast Response generator set with US EPA Certification for use in emergency and non-emergency applications.
• In January 2022, Rolls-Royce, along with its distributor partner Knopf & Wallisch (K&W), supplied three mtu customized and containerized combined cooling, heat and power plant (CCHP) trigeneration units to Romanian cloud service provider ClusterPower.
• In April 2022, the acquisition of OK Generators by GenServe was announced by GenNx360 Capital Partners. GenServe is a portfolio company of GenNx360, a private equity firm located in New York that invests in industrial and middle-market business services providers. The acquisition of OK Generators significantly strengthens its presence in the South Florida market.
• In October 2021, Generac announced the introduction of two new large diesel units the MDE330 and MDE570 diesel mobile generators, which are aimed at providing ease of operation and maintenance. The rental-ready machines feature wide-opening removable doors to maximize serviceability.
• In January 2022, Honda revealed that it would soon start selling the brand-new EU32i portable generator with a newly created specialized engine (maximum output: 3.2kVA). Sales will start in the European zone, then they will spread to other parts of the world. The EU32i is suitable for precision equipment that requires high-quality electricity because it can deliver a consistent stream of high-quality electrical output with a smooth waveform.
• In August 2021, Toho Gas and MHIET Successfully Conduct Test Operation of City Gas and Hydrogen Mixed-fuel Combustion in a Commercial Gas Engine for a Cogeneration System.
• In March 2021, Cummins Power Systems introduced the C2750D5BE. The new model complements the successful QSK60 series, extending its standby power range from 2500kVA to 2750kVA for 50Hz markets.

Covid-19 Impacts:

The sudden outbreak of the novel coronavirus has significantly impaired industrial operations across the globe. The number of affected cases has witnessed a constant rise pushing different nations to adopt numerous combat measures such as national lockdowns and social distancing. Consequently, the shutdown of industrial operations has substantially affected this market due to this global pandemic. The growing hesitations in investment for new projects, limitations in cross-border trade, shortfalls in required capital, preventive government measures reducing the workforce, and many other factors have adversely impacted the industry growth. For instance, in May 2020, the International Energy Agency (IEA) stated that the global investment in the oil and gas industry is projected to fall by about 33% in 2020 compared to the preceding year due to the weakened demand caused by the COVID-19 pandemic.

Major Companies present in the market:

Caterpillar Inc., Cummins Inc., Atlas Copco Group, ABB Limited, Wacker Neuson SE, Siemens AG, Rolls-Royce Holdings Plc, General Electric Company, Deere & Company, Toshiba Corporation, Ingersoll Rand Inc., Generac Holdings Inc. (GNRC), Honeywell International Inc., Briggs & Stratton Corporation, Mitsubishi Heavy Industries, Limited, Kubota Corporation, Honda Motor Co., Limited, Greaves Cotton Limited, Kirloskar Electric Co. Limited, Bharat Heavy Electricals Limited.

Considered in this report

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

Aspects covered in this report

• Global Generator Sales market with its value and forecast along with its segments
• Region-wise Artificial Turf market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Regions & Countries covered in the report:

• North America (United States, Canada, Mexico)
• Europe (Germany, United Kingdom, France, Spain, Italy, Russia)
• Asia-Pacific (China, Japan, India, Australia, South Korea)
• South America (Brazil, Argentina, Colombia)
• Middle-East & Africa (UAE, Saudi Arabia, South Africa)

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.