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The global stationary generator market size was USD 21.53 billion in 2021. The market is expected to grow from USD 23.04 billion in 2022 to USD 35.41 billion by 2029, exhibiting a CAGR of 6.3% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with stationary generators experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of -10.8% in 2020 as compared to 2019.
The remarkable development in the industrial sector worldwide has led to the growth of energy requirements for long hours and remote locations. Revolution in various fields, such as oil & gas, mining, automobile, pharmaceutical, telecommunication, and manufacturing, has led to rapid industrialization and urbanization, making the stationary and portable generator industry crucial for development.
Blockades in Industry Operations Have Harmed Stationary Generator Market Growth amid COVID-19
The global health crisis caused by the sudden spread of the novel coronavirus or COVID-19 pandemic had a damaging impact on the stationary generator industry. Industries suffered significant losses in operational time due to the imposition of strict rules, such as nationwide lockdowns, to limit the spread of the COVID-19. Accordingly, the outbreak of the virus has altered the demand for stationary generator. As the market is majorly dependent on industries, the biggest downfall faced by the global industrial landscape in a long time has also impacted the investment in the market.
The stoppage of all industries significantly affected the demand for their constant power supply, leading to a crash in the market. According to a report by United Nations Conference on Trade & Development, the pandemic is responsible for the death of over 1 million people and the contraction of the global economy by over 4.3%.
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Exponential Infrastructure Development to Provide Stimulus to Stationary Genset Market
In road, rail, and airport infrastructure, tremendous investments by emerging and developed countries are set to boost the demand for stationary generator sets. According to India Brand Equity Foundation, in 2021, India constructed over 13,298 km of highway. This portrayed a whopping 17% growth rate from 2016 to 2021. Moreover, growing trade among countries allows investors to invest in expanding the business, which is likely to increase its demand from the construction sector. Consequently, the exponential construction activities for building commercial spaces will likely bode well for the market. According to an article published in October 2021 by Financial Express, mall developers are anticipated to develop over 4.5 million square feet of mall space in India. Furthermore, massive population growth and growth in urbanization are augmenting the development of the market.
Rising Exploration Activities to Meet Growing Demand for Fossil Fuels is a Vital Trend
Conventional fuel is vital in varied industry verticals such as transportation, manufacturing, chemicals, power generation, and others. In addition to population growth, sizeable growth in industries is set to offer lucrative market opportunities. Further, colossal mining activities worldwide to meet the growing requisition for minerals and metals required in pharmaceuticals, automotive, space and aviation, chemicals, and others are projected to leverage the demand for stationary generators. In July 2021, it was reported that India planned on investing around USD 2-3 billion in Russian offshore upstream assets. In 2020, Russia announced plans to enhance its offshore oil and gas exploration and production in the Arctic Circle.
Inadequate Power Infrastructure Set to Boost Stationary Genset Market
Electricity is an integral part of daily life; however, millions of people worldwide live in the dark due to inadequate grid infrastructure. Consistent population growth and expansion of urban areas are straining the available grid infrastructure. In 2022, Ghana Grid Company Limited announced its aim to acquire over USD 1 billion investments for the upgradation of grid infrastructure in the country. The current infrastructure is obsolete and is a major cause of power outages. Subsequently, stationary gensets are increasingly used to access an uninterrupted power supply and avoid frequent power outages. Following this trend, the stationary genset market is expected to see progressive growth in the forthcoming years.
Inflation of Electricity Demand to Bolster Stationary Genset Market Growth
Due to technological advancements, the global economy has been witnessing sizeable growth in the last couple of decades. Innovative technologies are providing ample opportunities in different industry verticals. Revolutionary technologies such as the internet and information & communication technology have rejuvenated business models worldwide. Hence, the rising exchange of consumer goods and businesses has led to significant growth in infrastructure, transportation, commercial, and industrial sectors. These factors are increasing the electricity demand. The inadequate and unreliable electricity supply from power grids in many parts of the world will generate demand for stationary generator for reliable power supply. According to a 2022 article published by International Energy Agency, the electricity demand surged globally in 2021. However, a supply-demand gap for electricity led to greater reliance on external solutions such as stationary gensets.
Growing Investment in Utility Sector and Rising Adoption of Clean Energy Technology to Restrain Stationary Genset Market
Increasing investments in the utility sector to provide reliable and uninterrupted power supply is anticipated to impede the market size. International and local governments are working to enhance the grid infrastructure and satisfy the growing electricity demand. In January 2022, the U.S. Department of Energy announced the launch of the ‘Building a Better Grid’ initiative to enhance and modernize the grid infrastructure in the country. Moreover, growing concerns over rising greenhouse gas emissions (GHGs) provide impetus to renewable energy technology. This factor will limit the market scope for the expansion of stationary gensets.
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Diesel to Dominate the Fuel Segment
On the basis of fuel type, the market is divided into gas, diesel, and others. Diesel segment accounts for a substantial share in this market due to high fuel economy, lower taxes & government subsidies, suitability for different engines, and highly reliable performance. The increasing use of natural gas and other fuels, such as gasoline, biofuels, and others, is propelling the segment growth over the forecast period.
High Industrial Growth to Bode Well for Above 750kVA Power Rating
On the basis of power rating, the market is categorized into above 750kVA, 375-750kVA, 75-375kVA, and below 75kVA. Industrial equipment and machinery require high power to carry out heavy operations such as excavation, drilling, transportation of material, and others. Expanding industries globally due to massive economic growth is set to increase high power rating generators’ demand. Further, increasing demand for consumer goods is likely to leverage production, ultimately increasing electricity demand. These factors are set to boost the above 750kVA segment.
Demand for Uninterrupted Power Supply to Drive Continuous Load Segment
On the basis of application, the market is trifurcated into standby load, peak load, and continuous load. Reliable and continuous power supply requirements are essential for mining, exploration, and construction activities. The immense demand for fossil fuel, minerals, and metals in varied industries is likely to stretch opportunities for the continuous load segment. Moreover, stationary gensets are deployed for power generation to meet the increasing electricity demand. This factor is projected to drive the growth of the market. The standby load segment is growing rapidly due to the growing backup power requirement in power outages.
Rising Investments across Residential Segment to Bolster the End User Segment
The market is classified into pharmaceuticals, manufacturing, construction, oil & gas, mining, marine, commercial, residential, telecom, electric utility, data centers, and others based on end-user. The residential segment holds a leading position due to the growing requirement for uninterrupted power backup. The increasing remote working trend and massive urbanization are set to positively impact the market. The residential segment mainly uses low-power-rating standby type gensets.
The oil & gas segment requires a consistent power supply for exploration, drilling, production, and refining activities. Due to the high power requirement, large power rating continuous load stationary gensets are generally used in the oil & gas sector. The oil & gas segment is the most dominant end-user segment among the industrial landscape. The industrial segment is anticipated to bolster the stationary gensets market progress due to rapid industrialization in various regions.
Rising manufacturing development, especially in Asia Pacific, to provide finished goods for various consumers is likely to favor the growth of the construction segment. The growing consumerism is anticipated to accelerate the development of the manufacturing segment. The high requirement of different metals, stones, and minerals to fabricate raw materials and end-use products for various industries, especially manufacturing and construction, favors the mining segment.
Asia Pacific Stationary Generator Market Size, 2021 (USD Billion)
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This market is analyzed across five key regions, Asia Pacific, Europe, North America, Latin America, and the Middle East & Africa. Asia Pacific is projected to dominate the stationary generator market share due to high investment by emerging economies in infrastructure development. India and China play a crucial role in shaping the global economy as both countries account for almost 36% of the world’s population. Consequently, the available grid infrastructure is insufficient to satisfy the high power demand and will likely boost the stationary genset market development.
The Middle East & Africa offers profitable opportunities, owing to the constant exploration of oil and gas. In addition, most African countries do not possess grid infrastructure, which is likely to expand the industry's growth. According to the United States Agency for International Development, as of December 2021, every 2 in 3 people in sub-Saharan Africa do not have grid-connected power.
Growing information and communication technology and rising data centers in North America are likely to leverage the demand for an uninterrupted power supply. The U.S. houses some of the top technology companies that require a reliable power supply. This prevalence will enhance the market position in North America.
Latin America is exhibiting steady growth due to mining and exploration activities in Brazil, Argentina, Mexico, and others. Although Europe focuses on clean energy systems, many countries still use generators for power generation. Furthermore, the presence of several top manufacturing and automotive companies is set to boost the market's growth.
Dominant Market Share is Likely to be Enjoyed by Leading Companies
The competitive landscape of the market is highly fragmented. Key players are projected to lead the market due to massive investment in innovation and technology. The companies are looking for expansion by leveraging the performance characteristics of these generators. Growth in the number of stationary generator manufacturers is likely to create healthy competition among the existing companies. Companies are competing based on the cost, efficiency, power rating, durability, and power output of these generators.
An Infographic Representation of Stationary Generators Market
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The global stationary generator market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.
Value (USD Billion)
By Fuel Type
By Power Rating
As per the Fortune Business Insights study, the stationary generator market size was USD 21.53 billion in 2021.
The stationary generator market is likely to grow at a CAGR of 6.3% over the forecast period (2022-2029).
The continuous load segment is expected to lead the market due to the expansion of mining and exploration activities of fossil fuels.
The market size in Asia Pacific stood at USD 6.98 billion in 2021.
The enormous demand for continuous power supply to avoid frequent power outages and increasing construction and mining activities are expected to drive market growth.
Some of the top players in the market are Caterpillar Inc., Himoinsa, Cummins Inc., Atlas Copco, FG Wilson, and Briggs & Stratton.
Asia Pacific dominated the market in terms of share in 2021.
The increasing requirement for a reliable power source to combat power outages due to the rising remote working trend is set to boost the installation of the products across the residential sector.
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