Generator Sales Market Size, Share & COVID-19 Impact Analysis, By Power Rating (Below 75 kVA, 75-375 kVA, 375-750 kVA, and Above 750 kVA), By Fuel Type (Diesel, Gas, and Others), By Application (Continuous Load, Peak Load, and Stand By Load), By End User (Mining, Oil & Gas, Construction, Residential, Marine, Manufacturing, Pharmaceuticals, Commercial, Telecom, Utility, and Others), and Regional Forecast, 2022-2029

The global generator sales market size was USD 26.73 billion in 2021 and is expected to grow from USD 28.45 billion in 2022 to USD 42.29 billion in 2029 at a CAGR of 5.8% in the forecast period, 2022-2029. The global impact of COVID-19 has been unmatched and staggering, with the generator sales market witnessing a lower-than-anticipated demand across all regions compared to the pre-pandemic levels. Based on our analysis, the global market exhibited a steep decline of -9.5% in 2020 as compared to 2019.

The remarkable development in industrialization has led to increasing power demand. The requirement of uninterrupted power demand and peak and continuous power requirement has made generators or gensets a piece of vital equipment in residential, commercial, and industries. Gensets convert mechanical energy to provide optimum electrical power for various uses. A genset unit contains multiple components such as an engine, fuel system, alternator, main assembly, cooling & exhaust system, and others to create and manage current effectively.

COVID-19 IMPACT

Sudden Industrial Shutdowns to Hinder Deployment of Gensets for End-Use Industries during COVID-19 Pandemic

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.

LATEST TRENDS

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Growing Rural Electrification Programs to Boost Market Growth

A significant global population still belongs to rural areas with inadequate access to power grids for most people. For example, in June 2022, the World Bank recounted that electricity was available only to around 91% of the global population until 2020. The World Bank further said that the number of people without electricity declined from 1.2 billion in 2010 to 733 million in 2020. Diverse national and regional governments have considerably started initiatives, such as Deendayal Upadhyaya Gram Jyoti Yojana in India and the Integrated National Electrification Programme in South Africa. These systems target to provide a stable power source to the houses to enhance living standards and inflate the prospective development areas.

Growing Concerns to Mitigate Operational Risks Due to Power Outages to Favor Growth

Various natural calamities or machine errors leave residential, commercial, and industrial operations vulnerable to performing daily tasks owing to a power outage efficiently.

• On 25 January 2022, the cities of Kyrgyzstan and Uzbekistan faced a severe power outage due to grid failure caused by a water drought and a recent explosion in cryptocurrency mining. Accordingly, government and private establishments are widely developing energy storage technologies to diminish such problems. The wide adoption of energy storage will aid in enduring erratic conditions.

DRIVING FACTORS

Increasing Construction Expenditure to Boost Market Growth

The growing funds in evolving new industrial establishments and the progression of the predominant systems are expected to drive the generator sales market growth. Additionally, the growing expenditure on national construction to build energy-efficient setups boosts the requirement for gensets. For instance, as published by the U.S. Census Bureau in July 2022, the spending on public buildings across the U.S. totaled about USD 353.1 billion.

Mounting Exploration & Production Activities in the Oil & Gas Sector to Stimulate Growth

The power demand has abruptly increased across developing and developed economies over the years. Furthermore, the growing investments to produce hydrocarbons from reserves have favored the market at the global level. For example, the BP Statistical Review of World Energy 2022 stated that the total primary energy consumption equaled 595.15 exajoules in 2021, rising from 564.01 exajoules in 2020 with a year-on-year increment of over 5.8%.

RESTRAINING FACTORS

Rising Adoption of Green Energy Technologies May Hinder Market Growth

Numerous regional administrations and organizations provide strong clean energy deployment targets to curb greenhouse gas emissions may hinder the market growth. Different nations are bound to abide by stringent regulations to integrate low-carbon generation technologies to lower carbon footprint. This may lead to weakening the potential for genset installation across the globe. Furthermore, the growing investments to transform the grid infrastructure and reinforce the transmission & distribution (T&D) lines may pose problems for product adoption.

SEGMENTATION

By Power Rating Analysis

Above 750 kVA Segment is Projected to Experience Significant Growth Due to Technological Advancements in the Segment

Based on the power rating, this market can be classified as below 75 kVA, 75-375 kVA, 375-750 kVA, and above 750 kVA. The frequent unveiling of new gensets with superior fuel efficiency and high power output is set to propel the above 750 kVA segment outlook. The swiftly emergent residential and small commercial structures in remote locations will likely amplify below 75 kVA generator sales.

75-375 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 375-750 kVA segment growth.

By Fuel Type Analysis

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Diesel Generators to Hold Highest Position Due to High Reliability and Lower Costs

The market can be segmented into diesel, gas, and others based on fuel type. The diesel segment is anticipated to account for the maximum portion globally due to its reliable operations, significantly high efficiency, lower maintenance costs, high load operations, and other factors.

The lower discharge of harmful gases such as nitrogen and sulfur, along with cost-convenient operations, favors the growth of gas-based genset units. 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.

By Application Analysis

Continuous Load Segment to Dominate Backed by Rising Measures to Equip Heavy-Duty Operations 

This industry can be divided into continuous, peak load, and standby based on application. The growing need to install sturdy backup power units to combat sudden blackouts or power cuts fosters the standby segment outlook.

The continuous segment is projected to hold a significant share in the market owing to the growing setup of high-power applications in distant places without grid connectivity.

By End User Analysis

Residential Segment to Dominate Backed by Rising Investments across Numerous Industrial Segments 

The market can be segregated based on end-users into oil & gas, mining, pharmaceuticals, commercial, telecom, residential, manufacturing, construction, marine, utility, and others. The residential segment holds a leading position 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.

The oil & gas sector is anticipated to hold the central position among various industries due to the increasing funds to explore reservoirs and discover new assets. The industrial segment is expected to boost generator sales owing to rapid industrialization.

The rising construction spending by various governments to establish energy-efficient buildings is likely to favor 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 favored by the continual high power requirement to competently run heavy machinery that will propel the demand for gensets globally.

REGIONAL INSIGHTS

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The market has been assessed across five major regions, including North America, Asia Pacific, Latin America, Europe, and the Middle East & Africa.

Asia Pacific stood at USD 8.13 billion in 2021 and 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. 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 favors the Middle East & Africa. Furthermore, the region is expected to grow due to the increasing construction expenditures on domestic and public establishments to promote tourism.

KEY INDUSTRY PLAYERS

Rolls Royce Enhances its Collaboration with Other Players to Deliver High Power Products 

The industry has observed many product manufacturers delivering units with different power rating applications at the global and regional levels. This market has observed numerous small and large-scale participants with well-established production lines to cater to specific end-user industry requirements. 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.

LIST OF KEY COMPANIES PROFILED:

• Caterpillar Inc. (U.S.)


• Cummins Inc. (U.S.)


• Himoinsa (Spain)


• John Deere (U.S.)


• Aggreko (U.K.)


• Atlas Copco (Sweden)


• Ingersoll Rand (U.S.)


• Kirloskar Electric Co. Ltd. (India)


• Generac Power Systems (U.S.)


• American Honda Motor Company, Inc. (U.S.)


• Daihatsu Diesel Mfg. Co., Ltd. (Japan)


• Yanmar (Japan)


• Briggs & Straton (U.S.)


• Kohler-SDMO (France)


• BGG UK (U.K.)


• PRAMAC (Italy)


• FG Wilson (U.K.)


• Wacker Neuson (Germany)


• HiPower Systems (U.S.)


• New Way


• JC Bamford Excavators (U.K.)


• Inmesol S.L.U. (Spain)


• Dagartech (Spain)

KEY INDUSTRY DEVELOPMENTS:

• May 2021 – Kohler-SDMO unveiled an M139 genset canopy. This canopy provides corrosion resistance and can be used for harsh outdoor environments. The M139 genset has a power rating of 165 kVA to 250 kVA.


• July 2020 – Honda presented a carbon monoxide detector system known as CO-MINDER, which can be used with its gensets. This technological advancement was made keeping in mind the safety of the users of its gensets to prevent them from CO poisoning.


• December 2021 – Caterpillar's Cat G3520 fast-response natural gas genset won a Gold Award in the company’s Product of the Year program due to its massive use.


• July 2020 – Himoinsa established three gensets through its supplier in Ethiopia. These gensets can be connected to any power grid and used as an uninterrupted power supply.


• October 2021 – Yanmar Group used its trigeneration technology to supply power and HVAC to the Başakşehir Çam Sakura City Hospital in Istanbul, Turkey.

REPORT COVERAGE

An Infographic Representation of Generator Sales Market

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The report provides a detailed analysis of the market. It focuses on critical aspects such as the leading companies' strategies and various segments, including power rating, application, end-user, and fuel type. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, several other factors that have contributed to the growth of the market over recent years have been covered by the study.

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