Generator Sales Market Size, Analysis, Share & Forecast 2031

Report Description

The global generator sales market size was valued at around USD 20.03 billion in 2021 and is expected to reach USD 30.43 billion by 2030, expanding at a CAGR of 5.5% during the forecast period, 2022–2030. The growth of the market is attributed to the growing demand for seamless and reliable power from the end users such as IT, telecom, residential, healthcare, mining, utility and power generation, oil & gas, chemical, construction sectors, and manufacturing sectors propelling the demand for generators across the globe.

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The generator is a converting device which employs to transform mechanical energy into electrical energy with the purpose of providing a seamless and reliable power supply. The first electromagnetic generator was invented by Michael Faraday in 1831. It was called the Faraday Disk. Generators do not create energy; instead, they use mechanical energy to convert it into electrical energy. Mechanical energy varies in types such as hand cranks, internal combustion engines gas turbines, steam turbines, and water turbines, which are converted further into electrical energy through generators. Mechanical energy forces the movement of electric charges, which are present in wires winding through electric circuits in generators. The flow of electrons composes electric current in generators.  

Generators are considered as useful and efficient devices for providing power backup in data centers, industrial buildings, residential and others at times of emergencies. Generators are used to provide power, work as a power backup, regulate fuel consumption, and others. The sales of the generator market are positively affected due to the high demand for generators in rural regions where power outages and fluctuations are very frequent. In many developing countries, the demand for power is growing exponentially owing to the ongoing growth of industrialization and urbanization. Businesses cannot completely depend on the grid to access power and ensure seamless power supply, which increases the demand to invest in generators that supply power on demand and ensure uninterrupted processes in case of a power cut. Several types of machines and equipment require power supply all the time to keep them operating, which can cause financial loss to the organization and some essential sectors such as IT, telecom, medical & healthcare, and others. Several sectors such as healthcare and others need constant power, as it is related to providing continuous public care and services. 

COVID-19 Impact

The COVID-19 pandemic affected the global generator sales market negatively. Several necessary safety measures were taken during the pandemic situation such as lockdown, social distancing, travel restrictions, and other restrictions. The suspension of industrial activities resulted in an economic slowdown and negatively impacted many sectors. The unexpected industrial shutdowns hampered the deployment of generators for end-user industries worldwide. Restrictions in cross-border trades, increasing hesitations in new project investments, reduced workforce, and shortfall in required capital impacted the generator sales market negatively. It hindered the growth of the generator sales market across the globe.

Market Dynamics

The research report presents a complete overview by providing detailed information about the current market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The global generator sales market report has up-to-date insights about market dynamics and market scenarios that can shape the overall market performance and output during the forecast period, 2022 to 2030.

Major Trends:

Wide adoption of bi-fuel, hybrid, and inverter generators is one of the key market trends

Several continuous research and development activities are carried out to find alternative energy sources to replace traditional fuels. Several companies offer hybrid, bi-fuel, and inverter generators as alternatives to traditional power sources. Hybrid generators provide power directly to engines and reduce fuel consumption, noise, and running time of generators. Bi-fuel generators use natural gas with diesel to reduce diesel consumption, maintain diesel engine emission standards, and manage high operational costs. Inverter generators are used to provide clean AC power in comparison with traditional generators. Increasing adoption of these types of generators is one of the current key market trends. 

Key Drivers:

Rapid industrialization and urbanization drive the global generator sales market growth

Rapid industrialization and urbanization across the globe increase the demand for power backup systems and continuous power supply during long power cuts in peak hours is expected to propel the generator market expansion in the coming years.

Continuous growth in the construction industry fuels the generator sales market growth 

Increasing construction activities and growing investment in the construction industry across the globe are expected to drive the demand for generators in the coming years. Generators provide power backup during power failures on construction sites. Wide adoption of generators in the continuously growing construction industry is projected to boost the generator sales market growth during the forecast period. 

Existing Challenges:

Wide adoption of renewable energy sources hampers the global generator sales market growth

The clean energy initiatives launched by the government act as a major challenge to the global generator market, as the government has become more sensitive to the issues of environmental pollution, global warming, and carbon emissions. These government initiatives pushed several countries to adopt more clean energy sources than traditional energy sources. Various countries are progressively investing in renewable energy sources as well as energy storage technologies. The strict emission norms imposed by the USEPA on the use of diesel-powered generators hamper the demand for generators. The wide adoption of renewable energy sources is anticipated to hinder the global generator sales market growth in the coming years.

Emerging Opportunities:

Growing demand for continuous power supply in various industries offers growth opportunities to the key market players

There is a large demand for continuous power supply in various industries for various applications. The continuous power supply ensures seamless operations for several commercial applications. Residential areas in several places across the globe rely on generators for continuous power supply on a large scale. The increasing demand for continuous power supply offers lucrative opportunities for growth to the major market players across the globe.  

Scope of the Report

The report on the global generator sales market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Diesel segment to expand at a robust growth rate

Based on types, the global generator sales market is divided into gas, diesel, and others. The diesel segment is expected to expand at a robust growth rate during the forecast period, due to its wide usage in healthcare, oil & gas, manufacturing, IT/telecom, marine, and other sectors. Diesel generators have lower maintenance costs, higher efficiency, high load capacity, and reliable operations. The diesel generators are ideal for the long-term duration, easy to transport, allowing them to relocate to any location. These key factors are expected to boost the diesel segment growth in the coming years.

The gas segment is anticipated to hold a key share of the market in the coming years, owing to increasing demand to reduce emissions of hazardous gases in many developed and developing countries. These developed and developing counties are gradually adopting natural gas-based power generation technologies to reduce emissions and enhance the gas generator sales market in the coming years.

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Stationary segment to hold a large market share

In terms of designs, the global generator sales market is bifurcated into stationary and portable. The stationary segment is expected to hold a key market share during the forecast period, owing to the wide adoption of low-noise engine technology in stationary generators. Rapid growth in various industries such as chemicals, telecommunications, oil & gas, manufacturing, and others spurs the stationary segment growth. 

Standby segment to register a considerable CAGR

On the basis of applications, the global generator sales market is segregated into standby, peak shaving, and continuous power. The standby segment is projected to be the fastest-growing segment during the forecast period, owing to the rapid growth of healthcare infrastructure across the globe. The rising demand for data centers worldwide is creating a huge demand for standby gensets. The severe weather condition and power outages in several countries such as the US generate demand for power backup generators. The growing demand for continuous power supply, especially during peak working hours and power outages, boosts the adoption of generators in several industries. These are the major factors spurring the standby segment growth.

The continuous power segment is anticipated to hold a significant market revenue share in the coming years, owing to the increasing demand for continuous power supply in various industries for various applications. The growing number of set-ups for high-power applications placed in distant and unreachable areas without grid connectivity boosts the demand for generators. This is the major factor propelling the continuous power segment. 

Up to 50 KW segment to register a high CAGR growth

On the basis of power rating, the global generator sales market is segmented into below up to 50 kW, 51–280 kW, 281-500 kW, 501-2000 kW, 2001-3500 kW, and above 3500 kW, based on power rating. The up to 50 kW segment is anticipated to drive the global market during the forecast period, owing to a growing demand for power backup solutions in the residential sector. The generators with a power rating of up to 50 kW are used as a power backup solution in the retail, telecommunication, and other sectors for small-scale commercial activities. These generators are used as the main power solution in fire trucks, emergency vehicles, recreational vehicles, utility vehicles, and other specialty vehicles. These factors facilitate the expansion of the segment. 

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Indirect segment holds a key market share

Based on distribution channels, the global generator sales market is bifurcated into direct and indirect. The indirect segment is estimated to witness significant growth during the forecast period, as an increasing number of third-party services providers procure generators from manufacturers and provide them to various end-users. The third-party providers offer services to their customers including maintenance and others. An increasing number of consumers prefer third-party providers, due to the ease of the decision-making process and reliable services of the third-party providers. These are the major factors fueling the indirect segment growth. 

The industrial segment to register a considerable CAGR

On the basis of end-users, the global generator sales market is segregated into utilities/power generation, residential, oil & gas, manufacturing, it & telecom, industrial, healthcare, data centers, construction, commercial, chemicals & petrochemicals, and others. The industrial segment is projected to witness growth during the forecast period, owing to the high demand for diesel & gas generators, especially in developing countries such as China, Mexico, India, and others. Favorable government policies in countries such as India, China, and Brazil boost the growth of several industries in these countries. Industrial generators require an uninterrupted supply of power continuously during the event of power failure from the grid system. The rising demand for distributed power generation drives the industrial segment. 

The manufacturing segment is anticipated to expand in the coming years, owing to a growing demand for continuous power supply for the functioning of machines and equipment in several industries. The rising construction activities, growing demand for metal and minerals for fabrication in several industries, and increasing reach of telecommunication lines fuel the demand for generator sales for manufacturing activities, which aids in the expansion of the manufacturing segment growth. 

The oil & gas segment is anticipated to account for a major market share during the forecast period, due to the growing funds for the production of hydrocarbons from bulk unconventional and conventional reserves. The funds are used to explore large-scale reservoirs for oil & gas. These are the key factors boosting the oil & gas segment growth. 

The Asia Pacific expected to dominate the market

In terms of regions, the global generator sales market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market in Asia Pacific is expected to register a high CAGR during the forecast period, owing to the growing focus on rapid infrastructural development, industrialization, and urbanization. The new policy reforms and initiatives taken by governments in the region to support the growth of industries have made the country a very immense market for OEM manufacturers. The data center industry is witnessing rapid growth in countries such as China, India, Japan, Singapore, and Australia. These are the key factors driving the generator sales market in Asia Pacific.

The market in North America is anticipated to expand at a rapid pace during the forecast period, due to increasing public and private expenditures on industrial development in developed countries such as Canada and the US. Growing government investments, policies, and regulations to develop building energy security in the region boost the market in North America. The presence of major market players in North America fuels the market growth in the region. These are the major factors boosting the generator sales market in North America.