Segments - by Fuel Type (Diesel, Natural Gas, Propane, Others), by Power Rating (Below 100 kW, 100-500 kW, Above 500 kW), by Application (Residential and Commercial), by End-use Industry (Healthcare, Telecommunications, Data Centers, Industrial, Commercial Buildings, Residential)
The residential and commercial standby power generators market size was USD 10.1 Billion in 2023 and is projected to reach USD 17.4 Billion by 2032, expanding at a CAGR of 6.2% during 2024–2032.
Moreover, the growing emphasis on data security and the need for high availability services compel data center operators to invest in reliable backup power systems that can ensure operational continuity in the event of an outage. The demand for standby generators in this segment is characterized by a demand for high-capacity, high-efficiency, and low-emission generators that can provide immediate backup power without disrupting the critical operations of the data center.
The reliance on digital records and electronically managed healthcare systems further emphasizes the need for constant power supply, making standby generators a critical component of healthcare infrastructure.The demand for generators in the healthcare industry is also influenced by stringent regulatory requirements that mandate the availability of backup power systems to qualify for accreditation and compliance.
The increasing frequency and severity of power outages caused by natural disasters and aging power infrastructure drives the market. As climate change intensifies weather-related disruptions, the demand for reliable backup power solutions has surged across both residential and commercial sectors. In residential areas, the growing dependency on electronic devices and home automation systems further necessitates the need for uninterrupted power supply, driving the adoption of standby generators.Additionally, global digital transformation trends and the expansion of IT infrastructure have propelled the demand for generators in data centers, which require high-capacity power backups to handle unexpected power failures.
High installation and maintenance costs of standby power generators can be a significant barrier for residential users and small businesses. The initial investment for a reliable generator system, including installation and integration with existing electrical systems, can be substantial.
Environmental concerns also pose significant challenges to the market's growth. Diesel generators, which are among the most common types of standby power generators, emit pollutants such as nitrogen oxides, particulate matter, and carbon dioxide, contributing to environmental pollution and climate change.
Technological advancements in generator design and operation, such as the development of hybrid generators that combine diesel with battery storage or renewable energy sources, are opening new avenues for growth. These innovations not only address environmental concerns but also improve efficiency and operational flexibility.The increasing focus on smart cities and IoT-enabled infrastructure offers another significant opportunity.
Smart generators equipped with IoT technologies can provide real-time data on system performance and maintenance needs, enhancing efficiency and reliability. This integration of smart technologies aligns with the broader trends of digitalization and connectivity, making it a compelling area for development in the standby power generators market.
The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics are included in the report.
Attributes |
Details |
Report Title |
Residential and Commercial Standby Power Generators Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast |
Base Year |
2023 |
Historic Data |
2017 -2022 |
Forecast Period |
2024–2032 |
Segmentation |
Fuel Type (Diesel, Natural Gas, Propane, and Others), Power Rating (Below 100 kW, 100-500 kW, and Above 500 kW), Application (Residential and Commercial), End-use Industry (Healthcare, Telecommunications, Data Centers, Industrial, Commercial Buildings, and Residential) |
Regional Scope |
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa |
Report Coverage |
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast |
Key Players Covered in the Report |
Cummins Inc.; Generac Holdings Inc.; Caterpillar Inc.; Kohler Co.; Briggs & Stratton Corporation; Honda Motor Co., Ltd.; Atlas Copco AB; MTU Onsite Energy; Wartsila Corporation; MITSUBISHI HEAVY INDUSTRIES, LTD.; Yamaha Motor Co., Ltd.; Himoinsa S.L.; Kirloskar Oil Engines Ltd.; FG Wilson (Engineering) Ltd.; Pramac S.p.A.; Perkins Engines Company Limited; Doosan Portable Power; Westinghouse Electric Corporation; John Deere; and Wacker Neuson SE. |
Diesel segment dominates the residential and commercial standby power generators market, due to their reliability, durability, and energy density. Diesel engines are known for their ability to start quickly and handle large loads, making them ideal for immediate backup power during outages. The demand for diesel-powered generators is substantial as these units can be scaled to provide a wide range of power outputs, accommodating the needs of small homes as well as large commercial facilities or industrial operations.
Natural gas segment is projected to grow at a significant growth rate during the forecast period, due to its cleaner-burning properties compared to diesel. They emit significantly fewer pollutants such as nitrogen oxides (NOx), particulate matter, and carbon dioxide. This environmental advantage, coupled with the generally lower cost of natural gas compared to diesel fuel, particularly in regions with abundant natural gas supplies such as the US, drives the market for natural gas generators.
Moreover, natural gases are also favored for their quieter operation compared to diesel generators, making them more suitable for environments sensitive to noise. Additionally, advancements in shale gas extraction have increased the availability and reduced the cost of natural gas, further boosting the growth of the segment.
The below 100 kW segment holds a major share of the market as it primarily caters to residential users and small businesses that require backup power for basic operations and household needs. This segment is driven by the increasing demand for reliable power supply in residential areas, especially in regions prone to frequent power outages due to natural disasters or inadequate grid infrastructure.
The affordability of these generators, coupled with their sufficient capacity to power critical home appliances like refrigerators, heating systems, and lighting, makes them a popular choice among homeowners. Additionally, the rise in remote working trends has further amplified the need for dependable power solutions in home environments, thereby boosting the growth of the segment.
The 100-500 kW segment is anticipated to expand at a robust growth rate during the projection period, as it is predominantly utilized in commercial settings, including medium-sized businesses, healthcare facilities, and data centers that require a more robust power backup solution.
This segment benefits from the growing need for uninterrupted power to support critical operations in businesses and industries where even a short duration of power loss can result in substantial financial losses or disrupt critical services.
The growth of the segment is also supported by the increasing investment in infrastructure development across various sectors, which necessitates reliable backup power solutions to handle emergency situations effectively.
The residential segment holds a major share of the residential and commercial standby power generator market is primarily driven by the increasing need for reliable backup power solutions in private homes. This demand is particularly pronounced in areas susceptible to frequent power outages due to weather-related events such as hurricanes, storms, or heavy snowfall.
The growing severity and frequency of these weather events have heightened awareness and preparedness among homeowners, leading to greater adoption of standby generators. Additionally, the modern home's increasing reliance on electronic devices and smart home systems has further underscored the need for continuous power supply, making standby generators an essential component of residential infrastructure. The growth of the segment is also supported by the rising trend of home renovations and new home constructions incorporating advanced technologies, including backup power systems.
The commercial segment is projected to experience significant growth in the market, driven by the critical need for uninterrupted power to ensure operational continuity, safety, data integrity, and compliance with regulatory requirements. The segment growth is further propelled by increasing investments in infrastructure resilience, where businesses are proactively installing robust power backup solutions to mitigate the risks associated with power disruptions.
Moreover, standby generators for commercial use are typically larger and more powerful than residential models, and they often feature advanced control systems for seamless operation and integration with existing power management systems.
The healthcare segment holds a major share of the market, driven by the absolute necessity for continuous power to ensure patient safety and the smooth operation of medical facilities.
Hospitals and other healthcare facilities require uninterrupted electricity to operate life-saving equipment such as ventilators, incubators, and other critical medical devices. Additionally, power is essential for maintaining the functionality of surgical rooms, intensive care units, and emergency services.
The data centers segment is projected to grow at a significant growth rate during the forecast period, driven by the exponential growth of data consumption, digital services, and cloud computing.
Data centers are critical facilities that store, process, and disseminate large volumes of data, and any interruption in power supply can lead to significant data loss, service disruption, and financial penalties for businesses. The increasing move toward digital transformation across industries has led to a surge in the construction of new data centers, particularly in regions with high tech industry presence.
The Asia Pacific region dominates the residential and commercial standby power generators market, driven by rapid industrialization, urbanization, and the increasing frequency of power outages. Countries such as China, India, and Japan are key contributors to the market growth in the region. China and India, with their vast populations and rapid economic growth, have seen a surge in demand for reliable power solutions due to frequent power disruptions and the growing need for energy security. This demand is further bolstered by the expansion of industrial sectors and infrastructure development, which require uninterrupted power supply.
The growth of the market in the region is influenced by increasing disposable incomes and a higher standard of living, leading to greater adoption of home backup power systems. The region's focus on smart cities and digital economies is pushing for more robust infrastructure, including reliable power systems. Moreover, governments across the region are implementing stricter regulations regarding emissions and noise levels, which are influencing the market by pushing for advancements in generator technology, such as the adoption of gas-powered and hybrid generators.
The market in North America is projected to grow rapidly during the forecast period, with the US and Canada being the primary markets. The demand in the region is primarily driven by the need for backup power solutions in commercial sectors such as healthcare, data centers, and telecommunications, which require reliable power to maintain critical operations.
The market in the region is robust, particularly in areas prone to natural disasters such as hurricanes, tornadoes, and ice storms, which can cause extended power outages. In the US, stringent regulations by government bodies such as the Environmental Protection Agency (EPA) regarding emissions from diesel engines have led to technological innovations in generator manufacturing.
These include the development of cleaner and more efficient diesel engines and increased use of natural gas and hybrid systems. The market is also experiencing a trend toward smart generators equipped with IoT technologies for better management and efficiency. The presence of major global players and technological leaders in the generator market within the region supports advanced product offerings and high competition.
The Residential and Commercial Standby Power Generators Market has been segmented on the basis of
Key players in the residential and commercial standby power generators market are Cummins Inc.; Generac Holdings Inc.; Caterpillar Inc.; Kohler Co.; Briggs & Stratton Corporation; Honda Motor Co., Ltd.; Atlas Copco AB; MTU Onsite Energy; Wartsila Corporation; MITSUBISHI HEAVY INDUSTRIES, LTD.; Yamaha Motor Co., Ltd.; Himoinsa S.L.; Kirloskar Oil Engines Ltd.; FG Wilson (Engineering) Ltd.; Pramac S.p.A.; Perkins Engines Company Limited; Doosan Portable Power; Westinghouse Electric Corporation; John Deere; and Wacker Neuson SE.
To maintain and enhance their market positions, leading players in the standby power generators market adopt various strategic initiatives. Innovation and technological advancement are at the forefront of these strategies. Companies invest heavily in research and development to improve generator efficiency, reduce emissions, and integrate advanced features like remote monitoring and control systems. For instance,
In May 2022, MHIET launched MGS-R Series, a new standby generator set, which is developed for large commercial facilities such as data centers.