Air-Cooled Generator Market Size, Share, and Industry Analysis By Type (Portable and Stationary), By Fuel Type (Natural Gas, Diesel, Propane, and Others), By End-User (Mining, Healthcare, Oil and Gas, Construction, Manufacturing, Telecommunications & Data Centers, Utilities, and Others), and Regional Forecast till 2032

The global air-cooled generator market is expected to witness significant growth owing to the increasing demand for backup solutions and electricity in major regions across the globe. The increased adoption of electric vehicles, digital devices, and smart home technologies is driving higher electricity demand. Furthermore, the construction and infrastructure sectors are expected to be major drivers of market growth.

• According to the International Energy Association, the electricity demand is expected to increase by 2.5% in 2024, assuming average weather conditions. This is due to the expectation of recovery from 2023 when the demand declined.

Hence, the expected increase in electricity demand in major regions will augment the demand for air-cooled generators in the near future.

Air-Cooled Generator Market Driver

Increasing Demand for Power Backup Solutions to Foster Market Growth

The surging demand for power backup solutions is driving the growth of the air-cooled generator market. Frequent power outages are increasing the demand for continuous power supply. Moreover, the increasing frequency and severity of weather-related disasters are driving the demand for power backup solutions in regions such as North America. As people become more dependent on technology, the demand for reliable power solutions is increasing.

• In May 2024, Ashita launched a portable air cooled diesel generator with a maximum AC output of 6.5 kW while operating at a voltage of 230V, delivering a current of 26A for powering sensitive electronics and critical systems.

Hence, such types of generators are gaining prominence due to their portability and reliable power source, which will drive the market growth over the forecast period.

Air-Cooled Generator Market Restraint

Government Regulations for Emission Control May Restrain the Market Growth

Governments are implementing stricter environmental regulations to reduce carbon emissions. Diesel generators are a major source of environmental damage, producing carbon dioxide, particulate matter, nitrogen oxides, and carbon monoxide. For instance, the European Union has set a climate neutrality target for 2050, which is likely to lead to the use of cleaner alternatives to power generators. Hence, these factors are likely to pose a restraint for the market growth.

Air-Cooled Generator Market Opportunity

Surging Demand for Emergency Backup Power Solutions to Create New Growth Opportunities

The generator market is expected to grow over the coming years, with opportunities in the commercial and industrial sectors, residential sector, and defense operations. There is a need for emergency backup power solutions and a steady power supply in several regions across the globe. Moreover, geopolitical conflicts and natural disasters in certain regions are expected to foster market growth over the coming years.

• In February 2024, Cummins Power Generation announced a supply contract for Advanced Medium Mobile Power's contact with the U.S. Army worth USD 509.5 million to cater to tactical and defense component power requirements.

Segmentation

Key Insights

The report covers the following key insights:

• Recent Advancements in the Air-Cooled Generator Market
• Key Industry Trends
• Regulatory Landscape for the Market
• Key Industry Developments (Mergers, Acquisitions, and Partnerships)
• Impact of COVID-19 on the Market

Analysis by Fuel Type

Based on fuel type, the market is segmented into natural gas, diesel, propane, and others.

The diesel segment is expected to record the largest share in the air-cooled generator market due to its adaptability, reliability, and affordability. Diesel generators are often used for short-term power supply applications, such as powering a home during a power outage.

• In October 2023, Briggs & Stratton Corporation launched PowerProtect air-cooled home standby generators leveraging NGMax technology. The company is offering these generators at power levels of 13kW, 18kW, 22kW, and 26kW.

Furthermore, the natural gas generators segment is expected to witness significant growth as a substitute for diesel generators due to the increasing adoption of renewable energy solutions and the rising demand for power in remote areas.

Analysis by Type

Based on type, the market is segmented into portable and stationary.

The portable generators segment is expected to witness significant growth owing to the increasing demand from construction and military end-users. The generators are internal combustion engines that generate electricity. They are useful when temporary or remote power is needed, such as during disaster recovery efforts. These are used by plugging extension cords, electric-powered tools, and appliances into the power outlets on a portable generator.

A stationary air-cooled generator is a type of standby generator that uses air to dissipate heat instead of a liquid coolant. Also known as a backup or standby generator, this generator is usually permanently installed to address industrial or business emergencies. It can be started manually or automatically.

• In March 2022, Yanmar launched its YDG series of portable air-cooled generators with power output in Europe to meet EU stage-V emissions standards. Hence, these kinds of developments signify the demand for portable generators.

Analysis by End-User

Based on end-user, the market is segmented into the mining, healthcare, oil and gas, construction, manufacturing, telecommunications & data centers, utilities, and others.

The telecommunications & data centers and utilities segment is expected to dominate the market owing to continuous backup source requirements from end-users.

• In December 2022, EODev announced the launch of a new hydrogen-powered generator with power outputs of 1050kVA specially designed for hospitals, industrial, airport facilities, water treatment plants, data centers, and construction sectors.

Moreover, the construction segment is expected to grow at a significant rate as air-cooled generators are portable power sources that consist of an engine and a generator. They are often used as backup power sources in case of local outages or emergencies, which propel the market growth with the expansion of the construction sector.

Regional Analysis

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Based on region, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America is expected to emerge as a key market for air-cooled generators owing to the increasing demand for renewable energy sources. The U.S. government has been actively promoting the use of generators due to the lack of electrical service or power failures. Natural gas generators are expected to gain significant prominence in the region.

• The presence of major players such as Cummins, Kohler, Generac Holdings, Caterpillar, and others in the regions also contributes to the market growth.

Europe is expected to witness robust growth due to the rising popularity of hybrid generators in the region to cater to environmental regulations introduced by the European Union. Moreover, the high cost of electricity in the region is expected to contribute to the regional market growth in the coming years.

Asia Pacific dominated the air-cooled generator market due to rapid industrialization and urbanization. The expansion of the data center industry in the region will continue driving the demand for these generators. Moreover, market players in the region are focused on technological advancements in product offerings to follow market trends in the region.

• In September 2024, Mitsubishi Heavy Industries Engine System Asia launched the Mitsubishi Generator Series (MGS-R) designed for 50Hz End-Users. This system is air-cooled and equipped with a V-type sixteen-cylinder, which delivers a maximum output of 3,521 bhp and 1500 rpm.

The Latin America market growth is driven by a lack of reliable grid infrastructure, demand for backup power solutions, and non-availability of electricity in some regions of South America. Emerging commercial and industrial sectors in Colombia and Chile are expected to create opportunities for market players in the near future.

The Middle East & Africa is expected to emerge as a prominent market for these generators. The product demand in the Middle East is propelled through the development of large construction projects such as the Duqm Refinery Expansion Project. Furthermore, the heavy reliance of Western African countries on power backup solutions will propel the market growth over the forecast period.

Key Players Covered

The global air-cooled generator market is moderately consolidated with the presence of a large number of group and standalone providers.

The report includes the profiles of the following key players:

• Siemens Energy (Germany)
• GE Vernova (U.S.)
• Baker Hughes Company (U.K.)
• Generac Power Systems, Inc. (U.S.)
• Briggs & Stratton Corporation (U.S.)
• Kohler Co. (U.S.)
• TOSHIBA CORPORATION (Japan)
• Cummins Inc. (U.S.)
• Yamaha Motor Co., Ltd (Japan)
• Ashok Generators (India)

Key Industry Developments

• In July 2023, Kohler Co., launched 26 kW (26RCA) air-cooled standby generators for residential applications with capacities ranging from 6 kW to 26 kW utilizing fuel resources such as Natural gas or propane.
• In October 2021, Generac Power Systems, Inc., announced the launch of a new Guardian Air-Cooled home standby generator with a capacity of 26kW to power residential properties with large energy consumption.