Generator Market to Grow by USD 21.39 Billion (2024-2028), Boosted by Industrialization and Growing Construction Equipment, AI-Powered Report Highlights Trends - Technavio

NEW YORK, Nov. 12, 2024 /PRNewswire/ -- Report on how AI is redefining market landscape - The global generator market size is estimated to grow by USD 21.39 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 8.09% during the forecast period. Rapid industrialization and growing construction equipment is driving market growth, with a trend towards growing rural electrification programs. However, rising adoption of green energy technologies poses a challenge. Key market players include ABB Ltd., AKSA Power Generation, Atlas Copco AB, Briggs and Stratton LLC, Caterpillar Inc., Cooper Corp., Cummins Inc., Doosan Corp., Eaton Corp. Plc, Generac Holdings Inc., General Electric Co., Honda Motor Co. Ltd., Kirloskar Oil Engines Ltd., Kohler Co., Kubota Corp., Mitsubishi Heavy Industries Ltd., Multiquip Inc., PR INDUSTRIAL Srl, Siemens AG, and Yamaha Motor Co. Ltd..

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Key Market Trends Fueling Growth

The Generator Market is witnessing significant growth due to increasing demand for electrical energy in various sectors. Agriculture and construction industries are major consumers, with continuous load requirements for irrigation pumps and communication towers. Industrial facilities, hospitals, and critical infrastructure also rely heavily on generators for power reliability during grid outages or emergency situations. Diesel generators remain popular, but emission norms and environmental regulations are driving the shift towards alternative fuel sources like gas and renewable energy systems. Hybrid generators and power systems are gaining traction, offering cost savings through the use of batteries for energy storage. Cummins, Generac, and other key players dominate the market, providing generator technology for diverse applications. Developing regions and remote locations continue to present growth opportunities, as industrialization and urbanization expand. Manufacturing sectors, oil & gas, mining, and telecom industries also depend on generators for productivity and power supply. Fuel prices and availability impact the choice of fuel type, with diesel remaining a common choice for its reliability and availability. Noise and emission pollution are concerns, leading to the development of quieter and cleaner generator technology. The generator market ecosystem includes manufacturers, third-party service providers, and indirect sales channels. Prime movers, such as internal combustion engines and electromagnetic induction, drive generator technology, while advancements in microgrids and renewable energy sources offer promising solutions for sustainable power generation. 

The global generator market is poised for growth due to the increasing energy demand in both developed and developing countries. Power shortages are a pressing issue in regions such as the US, UK, Japan, China, Southeast Asia, and the Arab States of the GCC. Industrialization in rural areas has further increased power requirements for industrial purposes, leading to a significant gap between power production and consumption. This trend is expected to continue, creating a substantial opportunity for the generator market during the forecast period. 

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Market Challenges

• The Generator Market encompasses various industries and applications, including agriculture, construction, and critical infrastructure. Challenges in this ecosystem include emission norms, environmental regulations, and fuel prices. Agriculture faces challenges with diesel generators for irrigation and bi-fuel generators for alternative fuel sources. Construction projects require continuous power for machinery and communication, leading to a need for reliable generator technology. Critical infrastructure, such as data centers and hospitals, demand uninterrupted power supply. Renewable energy sources, like solar panels and wind turbines, offer solutions but face challenges with power reliability and storage through batteries and battery storage. Industrial facilities, including factories and manufacturing plants, require generators for standby load and prime mover applications. The manufacturing sectors face productivity losses due to power outages. Developing regions and remote locations require generators for power supply, often relying on diesel generators and inverter generators. Mining operations and oilfield projects have unique requirements, such as noise pollution and harsh environments. Third-party service providers play a crucial role in the generator market, offering maintenance, repair, and emergency response services. Telecommunications and transportation sectors also rely on generators for critical infrastructure. In summary, the generator market faces challenges related to various fuel sources, power reliability, environmental regulations, and customer service requirements. Strategic planning and innovation in generator technology will be essential to meet these challenges and drive growth in the market. Companies like Cummins, Generac, and others are investing in hybrid generators, microgrids, and renewable energy systems to address these challenges and meet the evolving needs of diverse industries.
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Segment Overview

This generator market report extensively covers market segmentation by

1. Type 
• 1.1 Stationary
• 1.2 Portable
2. End-user 
• 2.1 Industrial
• 2.2 Commercial
• 2.3 Residential
3. Geography 
• 3.1 APAC
• 3.2 Europe
• 3.3 Middle East and Africa
• 3.4 North America
• 3.5 South America

1.1 Stationary- Stationary generators in the low-capacity range are ideal for small facilities with minimal energy requirements and short operating durations. These generators are cost-effective, take up less space compared to high-power stationary generators, and meet most energy demands. For large standby power needs, diesel-fueled generators are popular due to their low operating costs and extended equipment lifetime. Backup generators are essential for industrial buildings to maintain operations during power outages, enabling the use of critical equipment such as communication systems, lifeline equipment, operation theaters, automated monitoring systems, safety systems, and fire suppression systems. The Asia Pacific (APAC) region is a significant market for stationary generators due to low electrification rates in developing countries like China and Southeast Asia, and the increasing electricity demand. In Southeast Asia, many people lack access to electricity, and the region's geographical challenges hinder the connection of T and D infrastructure. Old power infrastructure in the region requires renovation but is hampered by a lack of investment and financial resources, leading to frequent power outages. Myanmar, in particular, faces a significant power deficit and has a high demand for generators. These situations necessitate the use of auxiliary power supplies, such as stationary generators, contributing to the market's growth during the forecast period.

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Research Analysis

The Generator Market has witnessed significant growth in recent years, driven by industrialization and urbanization. Power generation capacity is a critical requirement in remote locations, rural areas, construction sites, mining operations, manufacturing plants, and various other sectors. Generators, also known as gensets, have become essential for providing electrical energy in the absence of a reliable power grid. Mechanical sources like diesel engines and oilfield projects serve as prime movers for generators. The rotor and stator are the key components of a generator, responsible for converting mechanical energy into electrical energy through the process of electromagnetic induction. The residential, commercial, agricultural, and industrial sectors all rely on generators for their energy needs. Strategy planning and industry dynamics continue to shape the market, with a focus on efficiency, reliability, and cost-effectiveness. Energy generation is a crucial aspect of various sectors, including construction, manufacturing, and mining. Generators play a vital role in ensuring uninterrupted power supply, enabling progress and productivity in these areas. The market for generators is diverse, with applications ranging from powering public buildings to providing energy for oilfield projects. The future of the generator market looks promising, with advancements in technology and a growing demand for reliable power sources.

Market Research Overview

The Generator Market ecosystem encompasses various sectors and applications, including agriculture, construction, industrial facilities, critical infrastructure, and developing regions. Generators are essential for continuous power supply in various industries, such as manufacturing, hospitals, telecom, and data centers. The market includes different types of generators, such as diesel, gas, and hybrid generators, each with unique advantages. Generator technology includes internal combustion engines, electromagnetic induction, and inverter generators. Renewable energy sources, like solar panels and wind turbines, are increasingly being integrated into hybrid power systems. Construction sites, remote locations, and emergency response centers rely on generators for power during outages or in the absence of a reliable power grid. The market is influenced by various factors, including fuel prices, emission norms, and environmental regulations. Noise and air pollution are concerns in urban areas, leading to a shift towards quieter and cleaner generator technologies. The market also includes third-party service providers for maintenance and repair. The generator market caters to various industries, including oil & gas, mining, and pharmaceuticals, and is essential for powering production lines, machinery, and critical infrastructure. The market is dynamic, with ongoing industry developments and strategy planning for optimal power supply and productivity.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type
• Stationary
• Portable
• End-user
• Industrial
• Commercial
• Residential
• Geography
• APAC
• Europe
• Middle East And Africa
• North America
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio