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 Application (Standby, Peak Shaving, Prime/Continuous), Fuel, End-Use, & Forecast, 2024 - 2032

Generator Sets Market Size

Generator Sets Market size exceeded USD 41.6 billion in 2023 and is projected to expand at more than 7.7% CAGR from 2024 to 2032. Rapid industrialization and increasing infrastructure investments will spur the industry expansion.
 

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. The diesel gensets market is set to hit USD 60 billion by 2032 owing to rising demand from construction sector. Moreover, the gas generator sets segment will witness 8.9% growth rate till 2032.
 

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. Standby generator sets industry is likely to cross USD 44.3 Million by 2032.
 

Generator Sets Market Analysis

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. The market for commercial gensets is likely to cross USD billion by 2032.
 

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. The home standby gensets industry is likely to surpass USD 14 billion by 2032 on account of increasing government projects for housing sector.
 

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. The market for North America portable generators is anticipated to exceed USD billion revenue by 2032.
 

Generator Sets Market Share

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

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 the COVID-19 pandemic

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:

Click here to Buy Section of this Report

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