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Industrial Generator Market size was valued at USD 19.9 billion in 2023 and is estimated to register 7.3% CAGR between 2024 and 2032.
An industrial generator, also known as an industrial backup generator or industrial standby generator, is a piece of equipment designed to provide electrical power during periods of electrical grid failure or when a reliable source of electricity is needed in industrial settings. These generators are typically larger and more robust than residential or portable generators, as they are intended to supply power to commercial and industrial facilities, such as factories, hospitals, data centers, and large-scale construction sites.
Report Attribute | Details |
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Base Year: | 2023 |
Industrial Generator Market Size in 2023: | USD 19.9 Billion |
Forecast Period: | 2024 to 2032 |
Forecast Period 2024 to 2032 CAGR: | 7.3% |
2032 Value Projection: | USD 37.6 Billion |
Historical Data for: | 2019 to 2023 |
No. of Pages: | 450 |
Tables, Charts & Figures: | 1,390 |
Segments covered: | Power Rating, Fuel, End Use, Application |
Growth Drivers: |
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Pitfalls & Challenges: |
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The world has faced a severe and unforeseen outbreak of COVID-19, which has had significant impact on industrial generator market. This ongoing crisis has led to a substantial reduction in capital spending for the expansion of construction and power generation endeavors, consequently impacting the growth of these industries. However, the market's outlook is poised to improve with the nationwide immunization efforts underway, following the successful development of vaccines.
The industrial generator sets market is estimated lucrative growth prospect over 2023 to 2032, owing to strict environmental regulations promoting energy efficiency and a heightened emphasis on cleaner energy sources. The industry is set to benefit from increasing demand for consistent and dependable power supply across various sectors such as manufacturing facilities, oil & gas, mining, and construction sites. Additionally, stringent government regulations and a shift away from frequent power outages are likely to drive industrial generator market expansion in this sector.
Based on power rating the > 750 kVA rated generator market will witness growth rate of around 6.9% through 2032. The growing demand within the mining sector, combined with the rise in infrastructure projects, will significantly enhance the prospects for this industry. These generators serve as a suitable solution for powering heavy-duty machinery such as cranes, excavators, and conveyor belts. Moreover, their increased deployment in remote off-grid locations to provide power for advanced drilling equipment will further bolster the expansion of this sector.
The manufacturing sector held approximately 25% share of the industrial generator market of in 2022. The facilities are incorporating renewable energy sources, such as solar panels and wind turbines, in combination with traditional generators to reduce operating costs and environmental impact, driving the business potential.
The diesel generator industry is set to surpass USD 20 billion by 2032. These generators offer several advantages, such as scalability, flexibility, and the ability to operate regardless of weather conditions, which are contributing to the expansion of the business. Furthermore, their low initial costs and the availability of continuous power around the clock are significant factors propelling the industry forward. The ongoing industrial revolution is expected to result in a substantial increase in power demands for industrial operations, which in turn will foster the industrial generator market growth.
The standby application is set to gain momentum due to strong infrastructure development and a resurgence in industrialization. The widespread adoption of these generators in power utilities, mining operations, and construction sites will invigorate the business environment. These units are primarily deployed in situations where there are restrictions on the amount of electricity that can be sourced from the power grid.
The China industrial generator market size crossed USD 5 billion in 2022, owing to the electrical grids' inability to support increased demand, coupled with the rapid proliferation of industrial facilities. The extensive expansion of the manufacturing sector, coupled with frequent power outages, will drive the industry's prospects. Additionally, the rising production losses and financial setbacks resulting from these outages, along with the growing importance of dependable backup power solutions, will further enhance the industry's outlook.
The key participants operating across the industrial generator market include:
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By Power Rating
By Fuel
By End Use
By Application
The above information has been provided for the following regions and country: