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Generator Sets Market size worth over $80 Bn by 2032

  • Published Date: January 18, 2023

Generator Sets Market size is set to surpass USD 80 billion by 2032, according to a new research report by Global Market Insights Inc.

Rising demand for continuous power supply and ageing grid infrastructure are key drivers behind the industry growth. This ageing infrastructure is fueling heavy investments across many countries to replace the transmission lines and distribution grids, creating strong product adoption opportunities. In 2022, the U.S. Department of Energy (DOE) proposed the Building a Better Grid Program to expedite the construction of enhanced superior-capacity transmission lines and grid infrastructure. The initiative aims to kick-start the nation’s economy and get it out of the slump caused by COVID-19 and the Russia-Ukraine conflict while taking care of the pressing issue of outdated, crumbling infrastructure.

Global clean energy transition to augment fuel segment growth from hybrid gensets

In terms of fuel, the generator sets market size from hybrid segment is slated to witness over USD 8 billion by 2032, on account of the ongoing transition towards hybridization technology of generator sets. The global shift towards clean energy, in conjunction with the rapid advancements in renewable storage systems, is creating more demand for hybrid gensets. These generators help cut fuel expenses and are useful in places where fuel access is difficult. They are also relatively lightweight, compact, and can be transported easily, making them ideal for powering remote locations.

Resurging industrialization to foster industrial end-use segment expansion

Generator sets market from the industrial end-use segment is expected to grow at a rate of more than 7.5% by 2032, fueled by the revival of industrialization and infrastructure expansion across developing economies. Industrial generator sets are more typically used in coal, iron, gas, and metal mining operations across these regions. However, influx of novel infrastructure investments in developed nations is also likely to shape the segment scenario.

Browse key industry insights spread across 2058 pages with 2058 market data tables & 48 figures & charts from the report, “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”, in detail along with the table of contents:

Increasing frequency of natural disasters to impel standby application segment growth

In terms of application, the standby segment in the generator sets market is anticipated to observe nearly 7.5% growth rate through 2032, owing to the surging intensity and frequency of natural disasters. Standby units are used in the event of a temporary power outage or short-term interruption to prevent in-process information and system downtime. As per the U.S. Department of Energy’s Office of Cybersecurity, Energy Security, and Emergency Response data, in August 2021, Hurricane Ida led to power outages for nearly 1.2 million people across eight states in the U.S. These instances are becoming more common with climate change and creating more impetus for standby genset adoption.

Rising electricity demand across Latin America

Latin America generator sets market revenue is projected to reach approximately USD 3.5 billion by 2032, fostered by growing electricity demand in the region. Countries such as Mexico, Brazil, and Argentina, among others are reporting fast growth in their energy sector, generating more demand for gensets. In fact, as per the Brazilian Ministry of Mines and Energy, Brazil’s energy industry received approximately 500 billion reais (USD 85 billion) between 2019 and 2021 to consolidate the nation’s energy setup, including power transmission lines, electricity generation capacities, and new energy sources.

Partnerships to define the competitive scenario for generator sets market

Some leading generator sets suppliers include Briggs & Stratton, Generac Power Systems, Powerica, Caterpillar, Sterling & Wilson, Yamaha Motor Co., HIMOINSA, and Kohler Co., among others. Many of these firms are focusing on partnerships to keep ahead of their competition.

Authors: Ankit Gupta, Shubham Chaudhary