The global generator sets market was surpassed at USD 26.4 billion in 2021 and is expected to hit around USD 54.9 billion by 2030, growing at a CAGR of 8.48% from 2022 to 2030.
Report Highlights
Growing demand for reliable and continuous power supply from several end-use industries including manufacturing and construction, power generation, oil and gas, chemical, marine, healthcare, telecom, and chemical are likely to strengthen market growth over the forecast period.
Infrastructure development, rapid industrialization, and continuous population growth are among the key factors resulting in an all time high power demand. The growing penetration of electronic load across several medium scale facilities such as data centers has led to increased usage of gensets in order to provide uninterrupted electricity supply during chronic power outages and prevent disruption of daily business activities.
Natural gas-powered engine gensets are expected to witness higher growth compared to diesel gensets owing to fluctuating diesel prices and stringent regulations regarding usage of cleaner fuels. In addition, higher fuel efficiency powered engines gensets are expected to reduce the power generation cost and thereby increase the product penetration rate across various industries.
Genset manufacturers adhere to several codes and compliances regarding the design, installation, and safety of the systems. For instance, the genset should be manufactured in facilities certified to ISO 9001 or ISO 9002 and designed in facilities certified to ISO 9001. The prototype test program authenticates the performance reliability of the genset design. Certifications to leading organizations such as International Building Code, Underwriters Laboratories, CSA group, and US Environmental Protection Agency (EPA), increase the marketability of the product.
Scope of The Report
Report Coverage | Details |
Market Size in 2021 | USD 26.4 billion |
Revenue Forecast by 2030 | USD 54.9 billion |
Growth rate from 2022 to 2030 | CAGR of 8.48% |
Base Year | 2021 |
Forecast Period | 2022 to 2030 |
Segmentation | Fuel type, power rating, application, region |
Companies Covered |
Atlas Copoco AB; Caterpillar Inc.; Cummins Inc.; Generac Holdings Inc.; General Electric; Briggs and Stratton Corporation; AKSA Power Generation; Cooper Corporation; Kohler Co.; MTU Onsite Energy; Mitsubishi Heavy Industries Ltd; Doosan Corporation Wartsila Corporation; Honda Siel Power Products Ltd. |
Fuel Type Insights
The diesel segment occupied a dominant market share of 71.6% in 2021 owing to its better fuel efficiency and low operating costs. Longer engine lifespan, reliable performance, high flexibility, and enhanced scalability are among the key factors sustaining the competitiveness of diesel generator sets across the market.
The gas segment is projected to witness substantial market growth with a CAGR of 9.6 % over the forecast period. The growth can be credited to stringent regulations regarding emission control along with increasing concerns over energy security and the consumption of fossil fuels. For instance, natural gas emits a lower amount of carbon dioxide, nitrogen, and sulfur emissions compared to oil or coal. Moreover, the growing availability of natural gas substantiated by the shale gas boom will propel market expansion.
Power Rating Insights
The low power generator segment accounted for the largest market share of 44.9% in 2021 in terms of revenue and was valued at USD 12.12 billion in 2021. Low power generators find the majority of applications in residential and commercial sectors. Generator sets with not more than 80 kW capacity are used as a backup power solution in households to power devices such as AC units, geysers, water purifiers, and water pumps. Moreover, the low price of small generator sets is expected to boost the demand for generator sets over the coming years.
The medium power generator segment occupied the second largest market revenue share of 44.8% in 2021 and is projected to grow at the fastest CAGR over the forecast period. Rising demand for medium power generator sets from developing economies such as Brazil, China, and India for clean fuel in emergency backup power systems in industrial and commercial applications is expected to propel segment growth in the next seven years.
The dominant position of medium power generators is attributed to its use in small-scale industries, commercial complexes, petrol stations, and telecom sector, as a primary source of power in off grid areas and as an emergency power supply in grid connected areas. High power generators find the majority of applications in sectors where there is a requirement for continuous power supply such as manufacturing, marine, and power sector. As the direct power supply is not possible at several remote places, the high power generator sets are installed for the generation and distribution of power across the remote area.
Application Insights
The commercial segment accounted for the largest revenue share of 47.7% in 2021 and is anticipated to register a significant growth rate over the forecast period. The dominant position can be credited to the wide segment scope including healthcare, telecom, aquaculture, agriculture, government centers, data centers, educational institutions, and hospitality. Generator sets are used across commercial establishments to handle the emergency power interruptions such as electrical outages or voltage fluctuations that add up to financial losses.
Industrial application segment occupied the second largest revenue share in the generator sets market in 2021. It includes the oil and gas sector, transport and logistics, mining, electric utilities, manufacturing, and construction sector. Favorable government schemes for industrial development in emerging economies such as China, Brazil, and India is the key factor driving the demand for generator sets across the segment.
The residential segment accounts for a relatively smaller market share as compared with other application segments. Increasing number of power failures, rising customer awareness, and growing load demand on the primary grid are among the key factors driving the demand for generator sets across the residential sector. Generator sets serve as a reliable secondary source of power in households in case of electrical outages or grid failure.
Regional Insights
In the Asia Pacific, the market held the largest revenue share of 38.7% in 2021 and is expected to witness the highest growth rate over the forecast period. China is accounting for the largest revenue share across the region. Expansion of commercial office spaces, increasing electricity demand supply gap, and a growing number of infrastructure projects and manufacturing facilities in the country are expected to drive the market across the region.
North America accounted for second largest market share of 24.4% in 2021 and is projected to grow at a significant CAGR during the forecast period, with U.S. being the major contributor to regional growth. The rising vulnerability of the electrical grid to weather-caused outages along with expanding infrastructure of data centers and other commercial sectors has led to strengthening demand for reliable power backup solutions, thereby driving the demand for generator sets across the region.
Presence of major generator EPC and OEMs players, large shale gas reserves, favorable government policies on developing clean energy fuels, and robust infrastructure for natural gas transportation are expected to drive the demand for generator sets compared with diesel generator sets, across the U.S. market.
Key Players
Market Segmentation
Chapter 1. Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
Chapter 2. Research Methodology
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Chapter 3. Executive Summary
3.1. Market Snapshot
Chapter 4. Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Channel Analysis
4.3.3. Downstream Buyer Analysis
Chapter 5. COVID 19 Impact on Generator Sets Market
5.1. COVID-19 Landscape: Generator Sets Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Global Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
Chapter 6. Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
Chapter 7. Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
Chapter 8. Global Generator Sets Market, By Fuel Type
8.1. Generator Sets Market, by Fuel Type, 2022-2030
8.1.1 Diesel
8.1.1.1. Market Revenue and Forecast (2017-2030)
8.1.2. Gas
8.1.2.1. Market Revenue and Forecast (2017-2030)
Chapter 9. Global Generator Sets Market, By Power Rating
9.1. Generator Sets Market, by Power Rating, 2022-2030
9.1.1. Low Power Generator
9.1.1.1. Market Revenue and Forecast (2017-2030)
9.1.2. Medium Power Generator
9.1.2.1. Market Revenue and Forecast (2017-2030)
9.1.3. High Power Generator
9.1.3.1. Market Revenue and Forecast (2017-2030)
Chapter 10. Global Generator Sets Market, By Application
10.1. Generator Sets Market, by Application, 2022-2030
10.1.1. Industrial
10.1.1.1. Market Revenue and Forecast (2017-2030)
10.1.2. Commercial
10.1.2.1. Market Revenue and Forecast (2017-2030)
10.1.3. Residential
10.1.3.1. Market Revenue and Forecast (2017-2030)
Chapter 11. Global Generator Sets Market, Regional Estimates and Trend Forecast
11.1. North America
11.1.1. Market Revenue and Forecast, by Fuel Type (2017-2030)
11.1.2. Market Revenue and Forecast, by Power Rating (2017-2030)
11.1.3. Market Revenue and Forecast, by Application (2017-2030)
11.1.4. U.S.
11.1.4.1. Market Revenue and Forecast, by Fuel Type (2017-2030)
11.1.4.2. Market Revenue and Forecast, by Power Rating (2017-2030)
11.1.4.3. Market Revenue and Forecast, by Application (2017-2030)
11.1.5. Rest of North America
11.1.5.1. Market Revenue and Forecast, by Fuel Type (2017-2030)
11.1.5.2. Market Revenue and Forecast, by Power Rating (2017-2030)
11.1.5.3. Market Revenue and Forecast, by Application (2017-2030)
11.2. Europe
11.2.1. Market Revenue and Forecast, by Fuel Type (2017-2030)
11.2.2. Market Revenue and Forecast, by Power Rating (2017-2030)
11.2.3. Market Revenue and Forecast, by Application (2017-2030)
11.2.4. UK
11.2.4.1. Market Revenue and Forecast, by Fuel Type (2017-2030)
11.2.4.2. Market Revenue and Forecast, by Power Rating (2017-2030)
11.2.4.3. Market Revenue and Forecast, by Application (2017-2030)
11.2.5. Germany
11.2.5.1. Market Revenue and Forecast, by Fuel Type (2017-2030)
11.2.5.2. Market Revenue and Forecast, by Power Rating (2017-2030)
11.2.5.3. Market Revenue and Forecast, by Application (2017-2030)
11.2.6. France
11.2.6.1. Market Revenue and Forecast, by Fuel Type (2017-2030)
11.2.6.2. Market Revenue and Forecast, by Power Rating (2017-2030)
11.2.6.3. Market Revenue and Forecast, by Application (2017-2030)
11.2.7. Rest of Europe
11.2.7.1. Market Revenue and Forecast, by Fuel Type (2017-2030)
11.2.7.2. Market Revenue and Forecast, by Power Rating (2017-2030)
11.2.7.3. Market Revenue and Forecast, by Application (2017-2030)
11.3. APAC
11.3.1. Market Revenue and Forecast, by Fuel Type (2017-2030)
11.3.2. Market Revenue and Forecast, by Power Rating (2017-2030)
11.3.3. Market Revenue and Forecast, by Application (2017-2030)
11.3.4. India
11.3.4.1. Market Revenue and Forecast, by Fuel Type (2017-2030)
11.3.4.2. Market Revenue and Forecast, by Power Rating (2017-2030)
11.3.4.3. Market Revenue and Forecast, by Application (2017-2030)
11.3.5. China
11.3.5.1. Market Revenue and Forecast, by Fuel Type (2017-2030)
11.3.5.2. Market Revenue and Forecast, by Power Rating (2017-2030)
11.3.5.3. Market Revenue and Forecast, by Application (2017-2030)
11.3.6. Japan
11.3.6.1. Market Revenue and Forecast, by Fuel Type (2017-2030)
11.3.6.2. Market Revenue and Forecast, by Power Rating (2017-2030)
11.3.6.3. Market Revenue and Forecast, by Application (2017-2030)
11.3.7. Rest of APAC
11.3.7.1. Market Revenue and Forecast, by Fuel Type (2017-2030)
11.3.7.2. Market Revenue and Forecast, by Power Rating (2017-2030)
11.3.7.3. Market Revenue and Forecast, by Application (2017-2030)
11.4. MEA
11.4.1. Market Revenue and Forecast, by Fuel Type (2017-2030)
11.4.2. Market Revenue and Forecast, by Power Rating (2017-2030)
11.4.3. Market Revenue and Forecast, by Application (2017-2030)
11.4.4. GCC
11.4.4.1. Market Revenue and Forecast, by Fuel Type (2017-2030)
11.4.4.2. Market Revenue and Forecast, by Power Rating (2017-2030)
11.4.4.3. Market Revenue and Forecast, by Application (2017-2030)
11.4.5. North Africa
11.4.5.1. Market Revenue and Forecast, by Fuel Type (2017-2030)
11.4.5.2. Market Revenue and Forecast, by Power Rating (2017-2030)
11.4.5.3. Market Revenue and Forecast, by Application (2017-2030)
11.4.6. South Africa
11.4.6.1. Market Revenue and Forecast, by Fuel Type (2017-2030)
11.4.6.2. Market Revenue and Forecast, by Power Rating (2017-2030)
11.4.6.3. Market Revenue and Forecast, by Application (2017-2030)
11.4.7. Rest of MEA
11.4.7.1. Market Revenue and Forecast, by Fuel Type (2017-2030)
11.4.7.2. Market Revenue and Forecast, by Power Rating (2017-2030)
11.4.7.3. Market Revenue and Forecast, by Application (2017-2030)
11.5. Latin America
11.5.1. Market Revenue and Forecast, by Fuel Type (2017-2030)
11.5.2. Market Revenue and Forecast, by Power Rating (2017-2030)
11.5.3. Market Revenue and Forecast, by Application (2017-2030)
11.5.4. Brazil
11.5.4.1. Market Revenue and Forecast, by Fuel Type (2017-2030)
11.5.4.2. Market Revenue and Forecast, by Power Rating (2017-2030)
11.5.4.3. Market Revenue and Forecast, by Application (2017-2030)
11.5.5. Rest of LATAM
11.5.5.1. Market Revenue and Forecast, by Fuel Type (2017-2030)
11.5.5.2. Market Revenue and Forecast, by Power Rating (2017-2030)
11.5.5.3. Market Revenue and Forecast, by Application (2017-2030)
Chapter 12. Company Profiles
12.1. Atlas Copoco AB
12.1.1. Company Overview
12.1.2. Product Offerings
12.1.3. Financial Performance
12.1.4. Recent Initiatives
12.2. Caterpillar Inc.
12.2.1. Company Overview
12.2.2. Product Offerings
12.2.3. Financial Performance
12.2.4. Recent Initiatives
12.3. Cummins Inc.
12.3.1. Company Overview
12.3.2. Product Offerings
12.3.3. Financial Performance
12.3.4. Recent Initiatives
12.4. Generac Holdings Inc.
12.4.1. Company Overview
12.4.2. Product Offerings
12.4.3. Financial Performance
12.4.4. Recent Initiatives
12.5. General Electric
12.5.1. Company Overview
12.5.2. Product Offerings
12.5.3. Financial Performance
12.5.4. Recent Initiatives
12.6. Briggs and Stratton Corporation
12.6.1. Company Overview
12.6.2. Product Offerings
12.6.3. Financial Performance
12.6.4. Recent Initiatives
12.7. AKSA Power Generation
12.7.1. Company Overview
12.7.2. Product Offerings
12.7.3. Financial Performance
12.7.4. Recent Initiatives
12.8. Cooper Corporation
12.8.1. Company Overview
12.8.2. Product Offerings
12.8.3. Financial Performance
12.8.4. Recent Initiatives
12.9. Kohler Co.
12.9.1. Company Overview
12.9.2. Product Offerings
12.9.3. Financial Performance
12.9.4. Recent Initiatives
12.10. MTU Onsite Energy
12.10.1. Company Overview
12.10.2. Product Offerings
12.10.3. Financial Performance
12.10.4. Recent Initiatives
Chapter 13. Research Methodology
13.1. Primary Research
13.2. Secondary Research
13.3. Assumptions
Chapter 14. Appendix
14.1. About Us
14.2. Glossary of Terms