Residential Generators Market Size, Share & Industry Analysis, By Type (Stationary and Portable), By Fuel Type (Diesel, Gas, and Other), By Power Rating (Less Than 20 kVA, 20 kVA - 50 kVA, 50 kVA - 100 kVA and More Than 100 kVA), By Application (Continuous Load, Peak Load, and Standby Load), and Regional Forecast, 2025-2032

The global residential generators market size was valued at USD 7.82 billion in 2024. The market is projected to grow from USD 8.15 billion in 2025 to USD 11.23 billion by 2032, growing at a CAGR of 5.50% during the forecast period.  Asia Pacific dominated the residential generators market with a share of 32.73% in 2024.. Moreover, frequent power cuts in the emerging economies of the region also contributes to the market growth.

A residential generator provides backup electrical power to a home during a power outage. It converts mechanical energy into electrical energy, typically using fuels like gasoline, natural gas, or propane, to power essential appliances and systems. These generators can be portable for temporary use or permanently installed as standby systems.

The market is experiencing steady growth, driven by increasing demand for backup power solutions as homeowners seek to mitigate the impact of power outages and extreme weather events. This is further fueled by rising urbanization, increasing disposable incomes, and government initiatives promoting energy security.  The market growth is also driven by the need for reliable backup power, particularly in regions such as Asia Pacific and Latin America. Key developments include the introduction of portable generators with extended run times and smart features.

Cummins Inc. holds a prominent position in the market, with its products known for reliability, fuel efficiency, and advanced technology. Cummins is a major player in the global power generation industry, especially for diesel engines and generator sets. Its products are also recognized for versatility, long lifespan, quiet operation, comprehensive warranty, and strong brand reputation. 

The presence of large-scale generators sets manufacturing companies in the market, is expected to foster rapid technological advancements and expansion over the forecast period.

MARKET DYNAMICS

MARKET DRIVERS

Rising Demand for Reliable Backup Power to Drive the Market Growth

The rising demand for reliable backup power is a major driver of the market. Homeowners are increasingly seeking generators to provide essential power during outages, which are becoming more frequent due to severe weather and grid failures. Outdated electrical grids are more prone to failure and outages. This need is amplified by the growing reliance on electricity for essential appliances, digital devices, and even medical equipment. Extreme weather such as hurricanes, storms, and even heat waves, can damage power lines and infrastructure, leading to widespread outages.

• In December 2024, Puerto Rico witnessed grid failure leaving with 1.3 million residents without electricity.

Such large-scale grid failures are expected to fuel demand for power backup solutions, which will foster residential generators market growth over the forecast period.

MARKET RESTRAINTS

Environmental Concerns to Limit Market Growth

The market faces several restraints, primarily due to high costs, space limitations, and potential environmental concerns including noise and emissions. The high initial investment and ongoing maintenance expenses can be a barrier for many homeowners. Environmental concerns, particularly noise pollution, and emissions from fossil fuel-powered generators, are significant restraints in the market. These concerns are heightened in environmentally sensitive areas and urban settings where stricter regulations impact the overall market growth.

Additionally, the high upfront and ongoing costs, including fuel, maintenance, and installation, can deter potential buyers. Furthermore, limited outdoor space and restrictive zoning regulations can also restrain installation. Traditional generators also produce noise and emissions, which may be undesirable for some homeowners.

MARKET OPPORTUNITIES

Technological Advancements to Create Growth Opportunities in the Future

The market's future opportunities are fueled by increased demand for backup power due to factors such as rising power outages and the growing reliance on electricity for essential services. Technological advancements in generators, such as dual fuel systems and enhanced fuel efficiency, will also drive market growth. The frequency and severity of power outages, coupled with the growing reliance on electricity for digital connectivity, are making residential generators a necessity for many homeowners.

• In January 2025, FETIS Group launched a hydrogen-powered generator set to meet the growing demand for on-site energy production solutions with low environmental impact.

Government policies encouraging the adoption of residential generators, including tax credits and subsidies, can further boost market growth, particularly in areas with unreliable grid infrastructure.

RESIDENTIAL GENERATORS MARKET TRENDS

Increasing Demand for Smart Technology to Fuel the Market Growth

The market is experiencing technological trends focused on fuel efficiency, quieter operation, smart integration, and enhanced safety features. These trends are driven by increasing demand for reliable backup power, growing concerns about the environment, and advancements in smart technology. There's a growing emphasis on developing generators that are more fuel-efficient and utilize alternative fuels like natural gas, hydrogen, or hybrid renewable solutions. This is influenced by both environmental regulations and consumer demand for more sustainable options.

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Segmentation Analysis

By Type

Increasing Demand for Temporary Backup Power Solution to Fuel Stationary Segment Growth

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

In the market, the stationary segment is expected to dominate the market, particularly for providing uninterruptible power during outages or emergencies. While both stationary and portable generators have their place in the residential market, stationary generators are more prevalent due to the growing need for reliable backup power in areas prone to power cuts or experiencing natural disasters.

Portable generators, while also important for specific needs such as outdoor activities, are primarily used for temporary power solutions.

• In May 2024, Trime announced plans to launch a new range of portable and stationary diesel generators with a range of 6 kVA and 670 kVA featuring technologically advanced.

By Fuel Type

Increasing Adoption of Diesel Generator is Set to Boost the Segment Growth

Based on Fuel Type, the market is segmented into diesel, gas, and others.

In the market, the diesel segment is the dominant fuel type. This is attributed to its high efficiency, reliability, and long lifespan, as well as being relatively affordable and easy to maintain. While other fuel types such as gasoline, natural gas, and propane are also used, diesel remains the leading choice for residential applications.

• In February 2025, AFC Energy developed a 2nd Generation H-Power S+ 200kW Generator to cater to the rising need for clean backup power solutions. Such developments indicate the small-scale developments in generator sets technology catering to residential end users in coming years.

However, the shift toward cleaner fuel sources and options and the potential benefits of using natural gas generators over diesel alternatives are also contributing to other segments’ growth. Moreover, government initiatives promoting clean energy and regulations regarding emission standards and the acceptance of gas generators as a reliable energy source are significant drivers.

By Power Rating

Suitability Portable Generator Sets to Boost the 20 kVA - 50 kVA Segment Growth

Based on power rating, the market is segmented into less than 20 kVA, 20 kVA - 50 kVA, 50 kVA - 100 kVA, and more than 100 kVA.  

The 20 kVA - 50 kVA segment is expected to dominate the market, particularly for power backup solutions. This is due to its suitability for powering common household appliances such as water pumps, AC units, and other appliances.

The 50 kVA to 100 kVA segment is experiencing strong growth, particularly in developing economies, driven by increased demand for reliable backup power solutions in both residential and small-scale settings. Homeowners are prioritizing reliable power backup due to factors such as increasing power outages and the need for uninterrupted operation of essential appliances and systems. Such factors are expected to foster the segment growth over the forecast period.

By Application

High Demand Backup Power to Augment the Standby Load Generators Segment Growth

Based on application, the market is segmented into continuous load, peak load, and standby load. 

Standby load generators are expected to be a dominant in the application segment due to their crucial role in providing backup power during outages. These generators are designed to automatically start and supply power when the primary electrical grid fails, ensuring essential services and operations continue uninterrupted.

In the residential sector, continuous load generators, also known as prime or continuous power generators, are increasingly in demand due to the need for reliable and uninterrupted power supply, especially in areas with unreliable grid connections or frequent power outages. These generators are designed to run continuously at a consistent power output, making them suitable for providing primary power to homes, especially in remote locations or where grid power is unreliable or unavailable.

• In February 2025, Suncoast Energy announced expansion, which included the installation residential standby generator in Los Angeles, U.S.

The demand for these standby load segment is driven by factors such as the increasing demand for backup power in residential apartments, as well as the rising need for backup power in community-based residential establishments.

Residential Generators Market Regional Outlook

By geography, the market is categorized into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

North America

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The North American market is experiencing significant growth, driven by increased demand for backup power due to weather-related disasters and aging power infrastructure. The market is projected to expand, with a notable increase in portable generators for residential use. Rising electricity prices can make residential generators more attractive, especially for those with high energy consumption. The growing adoption of renewable energy sources, such as solar and wind, is also driving the demand for portable generators and battery storage systems.

• In March 2025, a Power outage in the central U.S. caused by strong winds and bad weather conditions affected 250,000 citizens through several regions of the country.

Europe

In Europe, the demand for residential generators, particularly portable and air cooled & liquid cooled models, is increasing due to factors such as rising power outages, extreme weather events, and the need for backup power during emergencies. This trend is further amplified by the surge in remote work, requiring reliable power for essential appliances and internet connectivity. Expanding infrastructure development and building projects require portable generators to power tools and equipment in remote areas.

Asia Pacific

The Asia Pacific region is expected to dominate the global residential generators market share, driven by factors such as increased power outages and the need for reliable power during emergencies and natural disasters. Japan is a leader in this market, followed by China, which is experiencing significant growth. South Korea is also seeing increased demand due to energy insecurity. Moreover, the increasing frequency and intensity of natural disasters, including hurricanes and floods, have heightened the need for portable generators during power outages.

• In September 2024, China witnessed Typhoon Yagi, with a wind speed of 234 km/h. The typhoon resulted in widespread destruction and power outages in residential areas, which affected the digital payment infrastructure in the affected regions. Such scenarios are expected to fuel demand for generator sets for residential end-users in the region.

Latin America

The Latin American market is experiencing significant growth. The market is dynamic and growing driven by the need for reliable backup power solutions. The region's infrastructure development, increasing electricity demand, and unreliable power grids connectivity contributes to this growth. The market is expected to continue its upward trajectory in the coming years.

Middle East & Africa

The market in the Middle East & Africa is experiencing significant growth, driven by factors such as increasing demand for reliable power. Increased population and urbanization in Middle East & Africa lead to a higher demand for electricity, especially in areas with inadequate grid infrastructure or frequent power outages.

Hence, the market in Middle East & Africa is experiencing robust growth driven by factors such as population growth, industrialization, power outages, and government initiatives. The market is expected to continue expanding in the coming years, with the increasing adoption of hybrid generators and a focus on sustainable energy sources shaping the future of the market in the region.

COMPETITIVE LANDSCAPE

Key Industry Players

Key Companies Are Focused on Technological Advancement across the Globe to Expand Market Share

The global residential generators market is slightly fragmented, with companies such as Cummins Inc., Atlas Copco, HIMOINSA, Honda Motor Co., Inc., Champion Power Equipment Inc., and others that account for a significant market share. For instance, In March 2025, Generac power systems launched next-generation home standby generators with a capacity of 28 kW operating on a 997cc Generac engine. The market players are focused on technological advancements in areas such as inverter technology, fuel efficiency, and remote monitoring has supported the companies’ share in the market.

LIST OF KEY RESIDENTIAL GENERATOR COMPANIES PROFILED

• Cummins Inc. (U.S.)
• Atlas Copco (Sweden)
• HIMOINSA (Spain)
• Honda Motor Co., Inc (Japan)
• Champion Power Equipment Inc. (U.S.)
• GENERAC HOLDINGS INC. (U.S.)
• Scott's Emergency Lighting (U.S.)
• Eaton Corporation Plc (Ireland)
• KOHLER CO. (U.S.)
• Doosan Portable Power (U.S.)

KEY INDUSTRY DEVELOPMENTS

• December 2024: Greenzo Energy India partnered with EODev to introduce hydrogen fuel cell power generators in India. The companies also unveiled plans for a 20-year partnership with the development of local assembly plants and maintenance services.
• June 2024: Sinfonia Technology announced a partnership with Cooper Corporation to launch 10 KVA LPG CPCB4+ certified LPG generator sets in India through the brand name “DAIMON.”
• April 2024: Panasonic launched a pure hydrogen fuel cell generator through a chemical reaction between high-purity hydrogen and oxygen in regions such as Europe and Asia Pacific.
• February 2023: Caterpillar Inc. announced the launch of a Cat XQ330 mobile diesel generator set for standby and prime power applications with a voltage capacity of 310 kVA in power applications of 50 Hz.
• January 2021: Atlas Copco announced the expansion of QES generators range up to 500 kVA with an additional four models, QES 250, QES 325, QES 400, and QES 500, available in 50 Hz and 60 Hz.

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