Generator Sets Market

Market Definition

The global Generator Sets Market size was valued at USD 27.50 billion in 2021 and is predicted to reach USD 38.10 billion by 2030 with a CAGR of 7.1% from 2022 to 2030.

Generator set is an emergency backup power device that converts the fuel from chemical energy into mechanical energy and further into electrical energy during a power failure or irregular power supply. Generator sets operate on the principle of rotational motion for producing temporary electricity. The components of a generator set include an engine, alternator, fuel system, voltage regulator, and cooling & exhaust systems. These generators are widely used in various industries such as agriculture, defense, science & technology, and construction.

Market Dynamics and Trends

The increasing demand for emergency backup power solutions in remote areas with no or inadequate power supply is driving the generator sets market. Also, growing uncertainties of power supply due to weather-related disasters such as storms, flood, and others that damage the power-grid infrastructure further drives the market growth. Moreover, the growing demand for standby generators for consistent power supply in the manufacturing, healthcare, construction, and mining industries is driving the global market.

However, high capital involved in the installation & maintenance cost of generators and increased levels of carbon emission are the factors that are expected to restrain the growth of the market during the forecast period. On the contrary, growing use of generator sets that function on the mechanism of combination of diesel and renewable energy sources such as natural gas, solar, tidal and wind that are relatively cheap and produce less carbon is expected to create ample growth opportunities for the market of generator sets in the coming years.

Market Segmentations and Scope of the Study

The generator sets market share is segmented on the basis of product type, mechanism, power rating, fuel, industry, application, end user and geography. On the basis of product type, the market is divided into portable, inverter, and standby. On the basis of mechanism, the market is classified into alternating current (AC) and direct current (DC). On the basis of power rating, the market is categorized into below 50 kVA, 50-125 kVA, 125-200 kVA, 200-330 kVA, 330-750 kVA, and Above 750 kVA. On the basis of fuel, the market is bifurcated into diesel, gas, and hybrid. On the basic of industry, the market is classified into Oil & Gas, Manufacturing, Construction, Electric Utilities, Mining, and Transport & Logistics. On the basis of application, the market is classified into standby, peak shaving, and prime/continuous. On the basis on end user, the market is divided into residential and commercial. Commercial end user is further segmented into telecom, healthcare, data centers, educational institutions, hospitality, and real estate. Geographic breakdown and analysis of each of the aforesaid segments include regions comprise of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

Asia-Pacific holds the lion's share of generator sets market and is expected to continue its dominance during the forecast period. This is attributed to factors such as increase in demand for generator sets in commercial and industrial sectors such as IT & telecom, healthcare and utilities & power generation for meeting the growing need to support life sustaining machines, wireless communication, anti – theft system, and others.

Also, the presence of major key players such as Mitsubishi Heavy Industries Ltd., Honda Siel Power Products Ltd, and Himoinsa prominent players are expected to boost the market growth in this region. For instance, in March 2022, Mitsubishi Heavy Industries Ltd. launched a series of MGS-R Series of diesel generator sets that aimed at meeting the growing needs of emerging commercial avenues such as data centers, shopping malls, and office buildings in this region. The MGS-R series of diesel generator provided reliable, consistent power supply which is critical for various commercial facilities.

On the other hand, North America is expected to show a steady rise in the global market due to the rapid evolution and adoption of technologies such as the IoT, edge computing, and 5G connectivity that help to monitor day-to-day engine efficiency, carry out 24/7 fuel tank monitoring, maintain permissible emission limit. Also, the presence of major companies such as Caterpillar Inc., Cummins Inc., Kohler Co., Generac Holdings Inc., and General Motor is expected to drive the generator sets market growth in this region.

For instance, in January 2022, General Motors collaborated with Renewable Innovations to manufacture mobile power generators for charging electronic vehicles (EVs). This venture combined the use of hydrogen fuel cell hardware and software of General Motors and power integration & management systems of Renewable Innovations that ensured low carbon emissions. 

Competitive Landscape

Various market players operating in the generator sets industry include Aggreko, Cummins, Generac Power Systems, Siemens AG, Kohler Co., Caterpillar, Trane Technologies, ABB Group, Atlas Copco, and Mitsubishi Heavy Industries. These market players are adopting making strategies such as technological advancements to maintain their dominance in the market. For instance, in March 2022, ABB Group upgraded the conventional shaft generator that is used in marine vehicles with the introduction of permanent magnet technology to be used in shaft generators.

This upgradation made the generator 30% lighter, enhanced the efficiency & performance of ocean vessels, and cut fuel costs by 4% which lowered carbon emissions and lowered installation costs comparatively. Moreover, in February 2022, Kohler Power Systems, part of Kohler Co., announced that its entire range of diesel generators can be operated using a blend of Hydrotreated Vegetable Oil (HVO) and conventional diesel. The use of HVO in the generator sets requires no engine adaptation and ensures low carbon emissions.

Key Benefits

• The generator sets market report provides the quantitative analysis of the current market and estimations from 2022 to 2030. This analysis assists in identifying the prevailing market opportunities to capitalize on.

• The study comprises of a detailed analysis of the global market trends including the current and future trends for depicting the prevalent investment pockets in the market.

• The information related to key drivers, restraints, and opportunities and their impact on the market is provided in the report.

• The competitive analysis of the market players along with their market share in the generator sets market is mentioned.

• The SWOT analysis and Porter’s Five Forces model are elaborated in the study.

• The value chain analysis in the market study provides a clear picture of the stakeholders’ roles.

Generator Sets Market Key Segments

By Power Rating

• Below 50 kVA

• 50-125 kVA

• 125-200 kVA

• 200-330 kVA

• 330-750 kVA

• Above750 kVA

By Product Type

• Portable

• Inverter

• Standby Generators

By Mechanism

• Alternating Current (AC)

•  Direct Current (DC)

By Fuel

• Diesel

• Gas 

• Hybrid

By Application

• Standby

• Peak Shaving

• Prime/Continuous

By End-User

• Residential

• Commercial

  • Telecom

  • Healthcare

  • Data Centers

  • Educational Institutions

  • Hospitality

  • Real Estate

By Industry

• Oil & Gas

• Manufacturing

• Construction

• Electric Utilities

• Mining

• Transport & Logistics

By Geography

• North America

  • U.S

  • Canada

  • Mexico

• Europe

  • Germany

  • France

  • Italy

  • Spain

  • United Kingdom

  • Russia

  • Sweden

  • Rest of Europe 

• Asia-Pacific

  • Australia

  • China

  • India

  • Japan

  • South Korea

  • Indonesia

  • Singapore

  • Rest of Asia-Pacific

• RoW

  • UAE

  • Brazil

  • South Africa

  • Israel

  • KSA (Kingdom of Saudi Arabia)

  • Turkey

  • Remaining Countries

Key Players

• Kohler Co.

• Atlas Copco

• Caterpillar

• Cummins

• Generac Power Systems

• Aggreko 

• Siemens AG

• Trane Technologies

• Mitsubishi Heavy Industries.

• ABB Ltd.

REPORT SCOPE AND SEGMENTATION

Parameters	Details
Analysis Period	2021–2030
Base Year Considered	2021
Forecast Period	2022–2030
Market Size Estimation	Billion (USD)
Market Segmentation	By Power Rating (Below 50 kVA, 50-125 kVA, 125-200 kVA, 200-330 kVA, 330-750 kVA, Above750 kVA) By Fuel (Diesel, Gas, Hybrid) By Application (Standby, Peak Shaving, Prime/Continuous) By End- User (Commercial, Residential), By Industry (Oil & Gas, Manufacturing, Construction, Electric Utilities, Mining, Transport & Logistics)
Geographical Segmentation	North America (U.S., Canada, Mexico) Europe (Germany, France, Italy, Spain, United Kingdom, Russia, Sweden, Rest of Europe), Asia-Pacific (Australia, China, India, Japan, South Korea, Indonesia, Singapore, Rest of Asia-Pacific), Rest of the World (UAE, Brazil, South Africa, Israel, KSA (Kingdom of Saudi Arabia), Turkey, Remaining Countries)
Companies Profiled	Kohler Co., Atlas Copco, Caterpillar, Cummins, Generac Power Systems, Aggreko, Siemens AG, Trane Technologies, Mitsubishi Heavy Industries., ABB Ltd.