Generator Sales Market Size Analysis

According to a recent survey conducted by ChemView Consulting, the Global Generator Sales Market grew at a CAGR of 4.7% between 2017-2021 and is estimated to be US$ 23,546.1Mn in 2022. Currently, the market is anticipated to grow at a CAGR of 5.3% and is expected to reach a valuation of US$ 39,464.1Mn by 2032 end.

The rise in demand for consistent and dependable power from a variety of end-users, including those in the residential, IT/telecom, healthcare, utility and power generation, marine, chemical, oil & gas, mining, and construction sectors, can be attributed to the growth of the generator sales market. The continuously increasing manufacturing sector fuels the demand for generators and power generation equipment.

Market Dynamic

RAPIDLY EXPANDING MANUFACTURING SECTOR FUELING DEMAND FOR GENERATORS AND POWER GENERATION SYSTEMS

The manufacturing industry has been crucial to expanding the economy of various Asia Pacific nations. The demand for goods and services is rising due to growing urbanization, fueling the manufacturing industry’s expansion.

Additionally, to establish themselves as hubs for global manufacturing, the governments of some Asian nations have inked extra-regional trade agreements. The Regional Comprehensive Economic Partnership (RCEP), if executed properly, would be a step toward a larger Free Trade Area in the Asia Pacific, according to the ASEAN Economic Community (AEC) (FTAAP).

It can work as a good intergovernmental platform for free trade, foster the expansion of numerous industries, and support the growth of the region’s manufacturing sector. The development of the manufacturing industry has driven the demand for power generation systems and generators in the area.

GROWING ADOPTION OF RENEWABLE ENERGY SOURCES AND ENERGY STORAGE TECHNOLOGIES

Over the past several years, the energy storage business has experienced exponential growth. To speed up investments in battery storage for electric power networks in low- and middle-income countries, the World Bank Group (WBG) pledged to contribute USD 1 billion to a program in 2018. Additionally, the World Bank granted a loan of USD 300 million for the China Renewable Energy and Battery Storage Promotion Project, which will be used to scale up the deployment of battery storage systems to boost the integration and exploitation of renewable energy.

This project aimed to lower carbon emissions by increasing the use of wind and solar energy while also enhancing grid stability, reliability, and electricity quality in developing nations. Battery energy storage systems can store these energies during periods of peak production.

INCREASING REQUIREMENT FOR HYBRID GENERATORS, BI-FUEL, AND INVERTER GENERATORS

New and creative fuel sources are currently being created to identify alternative energy sources to conventional fossil fuels. In essence, hybrid generators are internal combustion engines coupled with batteries offered by many OEMs. When the load is high, these hybrid gensets directly power the machine; when the load is low, the battery powers the engine.

They lessen the noise generated by generators as well as their fuel consumption. They have several advantages over traditional gensets and are predicted to gain ground on mobile gensets, usually employed in mining, construction sites, and remote applications.

Market Segments Covered in Report

By Power Rating:

• Up To 50 KW
• Up To 10 KW
• 11–20 KW
• 21–30 KW
• 31–40 KW
• 41–50 KW
• 51–280 KW
• 281–500 KW
• 501–2,000 KW
• 2,001–3,500 KW
• Above 3,500 KW

By End-User:

• Industrial
• Utilities/Power Generation
• Oil & Gas
• Chemicals & Petrochemicals
• Mining & Metals
• Manufacturing
• Marine
• Construction
• Others (Agriculture, Transportation, and Aerospace & Defense)
• Commercial
• IT & Telecom
• Healthcare
• Data Centers
• Others (Hotels, Shopping Complexes, Malls, and Public Infrastructure)
• Residential

By Application:

• Standby
• Prime & Continuous
• Peak Shaving

By Fuel Type:

• Diesel
• Gas
• Others (LPG, biofuel, coal gas, producer gas, gasoline, and propane gas)

By Sales Channel:

• Direct
• Indirect

By Region and Country:

• North America (U.S., Canada)
• Latin America (Brazil, Mexico, Rest of Latin America)
• Europe (Germany, Italy, France, UK, Spain, Netherlands, Norway, Russia, Rest of Europe)
• Asia-Pacific (China, Japan, South Korea, India, Indonesia, Thailand, Vietnam, Australia & New Zealand, Rest of Asia-Pacific)
• Middle East (Saudi Arabia, Turkey, UAE, Rest of Middle East)
• Africa (South Africa, Nigeria, Egypt, Rest of Africa)

Segment-Wise Analysis

Why is the diesel segment expected to be the largest contributor market during the forecast period?

Diesel, gas, and other fuel types segment the generator sales market in the report. Due to its extensive use in the manufacturing, healthcare, oil & gas, maritime, and IT/telecom industries, as well as other sectors, the diesel segment is anticipated to hold the biggest market share. Diesel generators are more user-friendly than gas gensets since they are simple to install and run.

Additionally, these gensets may be utilized anywhere because their fuel is portable. Diesel is more easily available than natural gas, and diesel generators have a long operational life. Diesel generator sets are best suited for long-term (prime) operations with a load range of 70–80% and applications that require prolonged runtimes. This is a significant driver of market expansion.

Why is the up to 50 kW segment expected to grow at the highest CAGR during the forecast period?

During the projected period, the category with a power rating of up to 50 kW is anticipated to have the highest CAGR. The increased need for backup power solutions in the residential sector drives the market for generators with power ratings up to 50 kW.

For small-scale commercial activities like telecom, retail, and others, power backup solutions using generators with power ratings up to 50 kW are also used. These generators are also used for prime power solutions in recreational vehicles, fire and emergency vehicles, utility and telecom fleets, and other specialist vehicles.

Why are standby generators expected to be the most significant contributor market during the forecast period?

During the projected period, standby is anticipated to be the largest and fastest-growing segment. The demand for standby gensets is rising due to expanding healthcare infrastructure and data center demand. In addition, the US has seen a rise in the market for backup generators due to extreme weather and related power disruptions. Power outages and an increasing need for continuous power during peak hours are predicted to enhance the market for generators.

Region-Wise Analysis

The regions analyzed for the market include North America, Europe, Latin America, Asia Pacific, Middle East, and Africa.

• A market share of 48.6% is anticipated for Asia Pacific, which is likely to be the largest and fastest-growing region due to China and India’s increasing need for power goods. The industrialization of the region’s nations has boosted the demand for generators, driving substantial changes in the manufacturing sector in the Asia Pacific.
• Due to rising investments to advance the industrial landscape in industrialized nations like the U.S. and Canada, North America is expected to undergo significant development during the forecast period. Furthermore, it is projected that the existence of reputable Genset manufacturers and promising laws to assist in building energy security will accelerate market growth in the area.

Competition Analysis

The sector has seen numerous product manufacturers provide units with various power ratings for regional and international applications. This market has seen a significant number of small and large-scale players with well-established manufacturing lines to meet the demands of the various end-user industries. Furthermore, to improve their position and define the competitive environment, corporations are concentrating more and more on combining with other players.

The recent developments in the Global Generator Sales Market:

• In July 2021, Rolls Royce announced the transfer of its generator from the company’s factory in Norway to the upgraded Testbed 108 in Bristol, United Kingdom, for use in the 2.5 MW Power Generation System 1 (PGS1) demonstrator program.

A list of some of the key suppliers present in the market are:

• Caterpillar
• Cummins
• Rolls-Royce Holdings
• Weichai Group
• Kohler Co.
• Atlas Copco
• Denyo
• Wacker Neuson
• Doosan
• Greaves Cotton Limited
• Kirloskar Oil Engines Ltd.
• Siemens
• Aksa Energy
• Wärtsilä
• Honda
• Briggs & Stratton
• ABB
• Yanmar

Report Coverage and Highlights

• Our comprehensive, data-backed, and facts-oriented report provides niche and cross-sectional analysis at global and country levels.
• Assessment of the historical (actual data) and current market size (2017-2021), market projections (2022-2032), and CAGR.
• The market assessment across North America, Europe, East Asia, South Asia & Pacific, Latin America, Middle East, and Africa.
• Competitive tactical intelligence, key strategies adopted by top players, production capacity and company shares analysis, product brand surveys, and export-import analysis
• Pricing analysis to set and benchmark your current or future offerings across each product type helps you understand whether your pricing strategy is aligned with market expectations and can be compared to market disruptions.
• Predictions on critical supply and demand trends and technological expertise needed to address operations scalability.
• Consumer behavior shifts and their implications for players, list of end-users, and their consumption analysis.
• Key drivers, restraints, opportunities, and emerging trends impacting the market growth.
• Value chain analysis (list of manufacturers, distributors, end-users, and average profitability margins).
• Strategic market analysis, recommendations, and future headways on crucial winning strategies.

• Report Includes

  Market Size Data

  • Global market size data, historical (2018 to 2022) and forecast (2023 to 2033), by each segment and region
  • Regional level market size data, historical (2018 to 2022) and forecast (2023 to 2033), by each segment and country
  • Country level market share data, historical (2018 to 2022) and forecast (2023 to 2033), by each segment
  • Market attractiveness analysis based on market share index and CAGR index for each of the segments and regions
  • Incremental dollar opportunity generated in the forecast period would be indicated
  • Key Takeaways, Recommendations, and key investment pockets for the relevant segments would be highlighted

  Market Background

  • Macroeconomic factors that impact the market developments
  • Market dynamics (Drivers, Restraints, Opportunities) that positively or negatively influence market growth
  • Supply Side and Demand Side trends – trends witnessed from buyers and suppliers side
  • Production and Consumption Gap Analysis – analysis of gap between production and consumption in any geography to fulfil unmet demand
  • Trade analysis and analysis of key supply and demand hubs
  • Identification of hotbed opportunities existing in the market
  • Porter’s and PEST analysis to understand the business environment of the geography
  • Regulatory scenario – Identification of key sector specific and trade regulations, and assessment of whether it helps or hinder market development & growth

  Pricing Analysis

  • Regional-level product pricing analysis to set and benchmark your current or future product offerings across each product type
  • Historical and projected pricing trends of the product which helps in determining the product’s price and/or services beneficial for companies product lifecycle
  • Cost teardown analysis and key factors impacting pricing

  Value Chain Analysis

  • Country-wise list of raw material suppliers
    • Raw material price trends and buyers’ sentiment
    • Overview of Intelligent Sourcing Technique
    • Raw material procurement requirements
    • Vendor selection criteria
  • Country-wise list of product manufacturers
  • Country-wise list of distributors/traders
  • Country-wise list of end-users
    • End-Users/Customers consumption mapping
    • Key End-Users/Customers client list
  • Country-wise list of other key channel partners
  • Average profitability margins
  • Regional value chain dynamics

  Competition Analysis

  • Market shares and production capacities of key players
  • Tier structure analysis of market
  • Comprehensive competition dashboard representing the top 10-15 players in the market
  • Individual company profiles of top 15 to 20 manufacturers
    • Business Overview
    • Product Portfolio
    • Key Financials
    • Recent Developments
    • SWOT Analysis
    • Strategies

Country Coverage
North America: U.S., Canada
Latin America: Brazil, Mexico, Argentina, Central America, Rest of Latin America
Western Europe: Germany, Italy, France, UK, Spain, Poland, Romania, Rest of Western Europe
Eastern Europe: Russia & Belarus, Balkan Countries, Baltic Countries, Central Asia, Rest of Eastern Europe
Middle East & Africa: KSA, UAE, Turkey, Israel, Northern Africa, South Africa, Rest of Middle East & Africa
East Asia: China, Japan, South Korea
South Asia & Pacific: India, ASEAN, Australia & New Zealand, Rest of South Asia & Pacific

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