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Generator Sets Market Size By Power Rating (≤ 50 kVA, > 50 kVA - 125 kVA, > 125 kVA - 200 kVA, > 200 kVA - 330 kVA, > 330 kVA - 750 kVA, > 750 kVA), By Fuel (Diesel, Gas, Hybrid), By End-Use (Residential, Commercial {Telecom, Healthcare, Data Centers, Educational Institutions, Government Centers, Hospitality, Retail Sales, Real Estate, Commercial Complex, Infrastructure), Industrial {Oil & Gas, Manufacturing, Construction, Electric Utilities, Mining, Transport & Logistics), By Application (Standby, Peak Shaving, Prime/Continuous), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2023 – 2032

  • Report ID: GMI2381
  • Published Date: Jan 2023
  • Report Format: PDF

Industry Statistics

Generator Sets Market size exceeded USD 38.5 billion in 2022 and is projected to expand at more than 7.5% CAGR from 2023 to 2032. Rapid industrialization and increasing infrastructure investments will spur the industry expansion.
 

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Rapid industrialization is driving a strong demand for reliable power supply across the globe. To keep up with the growing industrialization, world governments are increasingly rolling out infrastructure development initiatives such as smart city projects, creating further demand for generator sets. In August 2022, USA’s Biden-Harris administration announced a USD 10.5 billion investment to strengthen the nation’s electric grid. Meanwhile, public and private real estate ventures birthed by smart city initiatives are presenting more growth opportunities to the market. For instance, in April 2022, the UK government unveiled £30 million (~USD 36.5 million) funding for cutting-edge highway decarbonization projects across the country.
 

High generator sets installation and maintenance costs may impede industry growth

Despite a widening scope for product adoption, the generator sets market is likely to be hindered due to the high capital, maintenance, and installation costs associates with generator sets. Many genset variants that are relatively eco-friendly, such as the ones powered by natural gas, have a shorter lifespan and need frequent maintenance to keep running, which makes it an expensive investment. Meanwhile the ones powered by fossil fuels, including diesel generators, are being rapidly phased out as they produce nitrogen oxide, carbon dioxide, particulate matter, and other harmful exhausts that release into the atmosphere.
 

Low upfront costs of ≤ 50 kVA generators to foster power rating segment growth

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Based on the power rating, the ≤ 50 kVA generator sets market is slated to observe nearly 7.5% growth rate between 2023 and 2032. A major chunk of the segment revenues are likely to be driven by the low up-front costs associated with these gensets, which makes them more affordable. Owing to their small size and their ability to deliver power round the clock, these systems are primarily employed across telecom, residential, and small-scale commercial and industrial units. Many ≤ 50 kVA diesel generator sets also consume less fuel, which lowers the operation costs notable, further stimulating product demand.
 

Rising electricity demand in remote areas to boost prime/continuous application segment growth

Generator Sets Market, By Application, 2022, (USD Billion)

Application

Market Size, 2022

Standby

19.8

Peak Shaving

7.1

Prime/Continuous

12

Total

38.9

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In terms of application, the generator sets market size from prime/continuous segment is poised to surpass over USD 24 billion by 2032. This growth is credited to the growing demand for electricity in remote areas and government initiatives for improving electrification rates. In fact, countries such as the ones Sub-Saharan Africa, where power failures occur for longer, are likely to create strong demand for the products. In November 2022, the World Bank Group, the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and other development agencies unveiled a new initiative to accelerate the pace of electrification in rural Africa.
 

Growing investments in the manufacturing sector across Asia Pacific

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Asia Pacific generator sets market is expected to witness around 7.5% gains through 2032 owing to the proliferation of commercial and residential properties in the region. As per a recent IBEF report published in April 2022, office space leasing in India grew 97% year-over-year to approximately 11.4 sq. ft. in the first quarter of 2022. In addition, the predicted growth is also attributed to rising investments across the region’s manufacturing sector. In September 2021, the Indian government unveiled a USD 3.37 billion PLI scheme for auto components and automobiles to improve indigenous manufacturing capacity. The ongoing electrification initiatives in the region are also favoring revenue growth.
 

Product innovations to outline the competitive landscape for generator sets market

Top companies operating in the global industry are Kohler Co., Briggs & Stratton, Generac Power Systems, Kirloskar, Yamaha Motor Co., Powerica, Sterling & Wilson, Cummins, HIMOINSA, Supernova Genset, J C Bamford Excavators, among others. Many of these firms are focusing on new product innovations to extend their market leadership. For instance, in August 2022, Caterpillar Inc., a U.S.-based construction machinery and equipment company, launched three new standby diesel generator sets with power capacities ranging from 20 kW to 30 kW. The gensets are designed for small industrial, telecommunications, and commercial users in North America.
 

Impact of COVID-19 on the industry trends

The COVID-19 pandemic impacted the generator sets market negatively on account of delayed operations across key end-use sectors. The industry was particularly affected by the slump in the automobile sector. Gensets are commonly used to ensure an uninterrupted power supply for automotive production facilities and the dropping vehicle sales caused by the pandemic contracted production operations majorly. However, moving ahead the industry is likely to recover due to the resumption of business operations and government-supported programs. Recently, in April 2022, the UK government launched a £375 million (~USD 458 million) package to support innovative energy technologies that will power British homes.
 

The generator sets market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Million” from 2019 to 2032, for the following segments:

Market Insights, By Power Rating

  • ≤ 50 kVA
  • > 50 kVA - 125 kVA
  • > 125 kVA - 200 kVA
  • > 200 kVA - 330 kVA
  • > 330 kVA - 750 kVA
  • > 750 kVA

Market Insights, By Fuel

  • Diesel
  • Gas
  • Hybrid

Market Insights, By End Use

  • Residential
  • Commercial
    • Telecom
    • Healthcare
    • Data Centers
    • Educational Institutions
    • Government Centers
    • Hospitality
    • Retail Sales
    • Real Estate
    • Commercial Complex
    • Infrastructure
    • Others
  • Industrial
    • Oil & Gas
    • Manufacturing
    • Construction
    • Electric Utilities
    • Mining
    • Transportation & Logistics
    • Others

Market Insights, By Application

  • Standby
  • Peak Shaving
  • Prime/Continuous

The above information has been provided for the following regions and country:

  • North America
    • U.S.
    • Canada
  • Europe
    • Russia
    • UK
    • Germany
    • France
    • Spain
    • Austria
    • Italy
  • Asia Pacific
    • China
    • Australia
    • India
    • Japan
    • South Korea
    • Indonesia
    • Malaysia
    • Thailand
    • Vietnam
    • Philippines
    • Myanmar
    • Bangladesh
  • Middle East
    • Saudi Arabia
    • UAE
    • Qatar
    • Turkey
    • Iran
    • Oman
  • Africa
    • Egypt
    • Nigeria
    • Algeria
    • South Africa
    • Angola
    • Kenya
    • Mozambique
  • Latin America
    • Brazil
    • Mexico
    • Argentina
    • Chile

 

Authors: Ankit Gupta, Shubham Chaudhary

Frequently Asked Questions (FAQ) :

The market size of generator sets crossed USD 38.5 billion in 2022 and is anticipated to grow at over 7.5% gains between 2023 and 2032 due to rapid industrialization and infrastructure investments across the globe.
The prime/continuous application segment is expected to surpass USD 24 billion by 2032, fueled by the growing demand for electricity in remote areas, and increasing government programs for rural electrification.
The Asia Pacific market is likely to grow at over 7.5% CAGR from 2023 to 2032, on account of growing investments across the manufacturing industry and the proliferation of residential and commercial spaces in the region.
Some top generator sets industry players include Mahindra Powerol, Deere & Company, Rolls-Royce, Ashok Leyland, Mitsubishi Heavy Industries, Greaves Cotton, Wärtsilä, among others.

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 28
  • Tables & Figures: 2106
  • Countries covered: 38
  • Pages: 2058
  • Upcoming Report: Details can be customized to meet your information and data needs. Feel free to share your detailed research requirements via this form.

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