Generator market to grow by USD 21.4 billion from 2024-2028, driven by rapid industrialization and construction equipment, AI-powered report by Technavio

NEW YORK, Sept. 26, 2024 /PRNewswire/ -- Report on how AI is driving market transformation- The global generator market size is estimated to grow by USD 21.4 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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Market Driver

The global generator market is poised for growth due to the increasing energy demand in various regions. Developed countries like the US, UK, and Japan, as well as emerging economies such as China, and developing regions including Southeast Asia and the Arab States of the GCC, are experiencing power production and consumption gaps. Industrialization in rural areas has further escalated power requirements for industrial purposes, leading to a significant increase in demand for uninterrupted power supplies. These factors are expected to provide substantial opportunities for the generator market during the forecast period. 

The Generator Market is experiencing significant trends in various sectors, including agriculture and construction. Agricultural generators are gaining popularity as alternative fuel sources like bi-fuel generators and battery storage systems reduce reliance on diesel. In construction, continuous load requirements for critical infrastructure and communication systems necessitate the use of reliable generators. Developing regions are also embracing generator technology for electrification. Cummins and Generac lead the generator market ecosystem, providing customer service and innovative generator technology. Emission norms and environmental regulations are driving the shift towards hybrid generators and cleaner fuel sources. Factories, hospitals, data centers, and other industries rely on generators for backup power and energy storage. Downtime due to fuel prices and availability can result in substantial financial losses, making generator efficiency and reliability crucial. Electromagnetic induction plays a vital role in generator technology, ensuring electrical energy generation. Emergency response centers and critical infrastructure require immediate power response. Indirect sales channels expand generator market reach, making generator technology accessible to a broader customer base. Overall, the generator market is evolving to meet diverse power needs while addressing environmental concerns and improving efficiency. 

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Market Challenges

• The generation and consumption of power in manufacturing facilities contribute substantially to carbon emissions. Coal-powered electricity, in particular, results in higher carbon output compared to renewable energy sources. With the expansion of businesses through new constructions, the installation of energy-efficient systems with monitoring capabilities is crucial for reducing power consumption and carbon emissions. In the US, manufacturing facilities account for a substantial carbon footprint annually, surpassing many other countries. The increasing awareness of harmful carbon emissions and favorable government initiatives for renewable energy adoption may hinder the growth of the generator market during the forecast period.
• In the Generator Market, businesses face various challenges. Noise pollution from traditional power sources like diesel generators can disrupt operations in oil & gas projects and urban areas. In oilfield projects and remote locations, ensuring a reliable power supply for output terminals and production lines is crucial for productivity. Power reliability is a major concern for industries, especially in sectors like pharmaceuticals and telecom, where power outages can lead to significant losses. Power sources and power supply strategies must consider power sources like renewable energy systems, such as solar panels and wind turbines, to mitigate the risks of power outages. Regulations for emissions and noise pollution add complexity to strategy planning for utility companies and third-party service providers. Renewable energy sources and systems are becoming increasingly important for power generation capacity in rural areas and public buildings. Prime movers like rotors and stators in generators require regular maintenance to ensure optimal performance. Transportation and logistics of heavy equipment like generators and renewable energy systems can also pose challenges. In conclusion, businesses in the generator market must address challenges related to power reliability, power sources, regulations, and logistics to ensure productivity and profitability.

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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, particularly those in the low-capacity range, are essential for small facilities with minimal energy requirements and short operating durations. These generators are affordably priced and require less space compared to high-power rating generators. Diesel is the preferred fuel type for large standby generators due to their cost-effectiveness and extended equipment lifetime. Backup generators are crucial for industrial buildings to maintain operations during power outages, ensuring the functionality of critical equipment and safety systems. APAC is a significant market for stationary generators due to low electrification rates and increasing electricity demand in countries like China and Southeast Asia. Many people in the region lack access to electricity, and outdated power infrastructure hampers renovation efforts. Consequently, frequent power outages necessitate the use of auxiliary power supplies, such as stationary generators, contributing to market growth. Myanmar, for instance, experiences a high demand for generators due to its energy deficiency. In summary, stationary generators cater to various industries and regions, providing uninterrupted power and reliability.

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Research Analysis

The Generator Market has witnessed significant growth in recent years, driven by industrialization and urbanization, which have increased the demand for reliable power sources in various sectors. Generators play a crucial role in providing electrical energy to remote locations, rural areas, construction sites, mining operations, manufacturing plants, and various other applications. The market encompasses a wide range of generators, including gensets, diesel generators, and oilfield projects, catering to residential, commercial, agricultural, and industrial needs. The industry dynamics of the generator market are influenced by several factors, including energy demand, mechanical sources, electromagnetic induction, prime mover, rotor, and stator. Prime movers like diesel engines, natural gas engines, and steam turbines are commonly used to power generators. The market is expected to continue its growth trajectory, driven by the increasing need for power generation capacity in various sectors. Strategy planning for key players in the market involves staying abreast of industry trends, technological advancements, and regulatory requirements to maintain a competitive edge.

Market Research Overview

The Generator Market encompasses a diverse ecosystem of electrical power generation solutions catering to various industries and applications. Agriculture and construction sectors rely on generators for continuous load requirements, while critical infrastructure such as data centers and hospitals demand uninterrupted power supply. Generators come in various types, including diesel, gas, and bi-fuel, with advancements in technology leading to alternatives like inverter and hybrid generators. Environmental regulations aim to reduce emissions and noise pollution, driving the adoption of renewable energy sources and battery storage. Industry dynamics include factors like fuel prices, downtime, and financial losses due to power outages. Prime movers like internal combustion engines and electromagnetic induction power the generators, with mechanical sources also contributing. Remote locations and developing regions continue to present significant growth opportunities. Manufacturing sectors, oil & gas, mining, and marine industries are key consumers, with machinery and production lines relying on these power sources for productivity. Communication and emergency response centers also utilize generators for critical operations. The market is characterized by a complex ecosystem of manufacturers, distributors, and indirect sales channels, with key players like Cummins, Generac, and others offering comprehensive generator solutions.

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