Residential Gas Generator Market size is set to grow by USD 599.9 million from 2024-2028, Growing popularity of gas generators boost the market, Technavio

NEW YORK, Aug. 6, 2024 /PRNewswire/ -- The global residential gas generator market size is estimated to grow by USD 599.9 million from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 7.08% during the forecast period. Growing popularity of gas generators is driving market growth, with a trend towards emerging alternative backup power packs. However, availability of alternatives poses a challenge. Key market players include Aggreko Plc, Atlas Copco AB, Briggs and Stratton LLC, Caterpillar Inc., Champion Power Equipment Inc., Cummins Inc., DuroMax Power Equipment, Generac Holdings Inc., Honda Motor Co. Ltd., Kohler Co., PR INDUSTRIAL Srl, Pulsar Products Inc., Rolls Royce Holdings Plc, WEN Products, and Yanmar Holdings Co. Ltd..

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Market Driver

The residential gas generator market is facing significant competition from alternative backup power solutions, particularly those utilizing battery power packs and inverter technology. Traditional generators have been the go-to backup power equipment, but their high fuel and equipment costs, maintenance requirements, and emission regulations have driven demand for more cost-effective and eco-friendly alternatives. Power packs, which consist of large batteries coupled with inbuilt inverters, offer user-friendly features such as AC wall plug-styled outlets and USB ports. These compact units are easy to design, build, and operate, making them ideal for residential uses. With advancements in battery technology, power packs can now generate enough AC voltage for apartments and commercial spaces. Leading manufacturers like Luminous, Amaron, and Microtek have responded by designing more powerful and efficient power packs, offering end-users a convenient plug-and-switch solution. As a result, power packs are expected to give gas generators a run for their money in the residential backup power market. This shift in consumer preference will pose a challenging situation for the gas generator market during the forecast period. 

The Residential Gas Generator market is experiencing significant growth due to increasing severe weather events, such as floods and storms, leading to unstable power supplies. Residential consumers seek backup power sources for constant electricity, making gas generators a popular choice. Gas generators, including electrical gensets and mechanical engines, provide a cost-effective solution for households. However, environmental friendliness is a growing concern, leading to the development of gas generators using natural gases like CO2, nitrogen, and sulphur, which emit fewer pollutants than traditional fossil fuels. The telecom, oil & gas, hospitals, and residential sectors are major consumers of these generators. Inverters, power rating, and battery storage power packs are key components. Despite concerns over noise and smell, the market continues to expand due to the demand for backup energy sources and smart city initiatives. Natural gas prices and the construction market also impact the market's growth. 

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Market Challenges

• The residential gas generator market has faced increasing competition from alternative backup power solutions, particularly power packs, in recent years. Consumers seek cost-effective and environmentally-friendly options, leading to the popularity of power packs in the global backup power market. These power packs consist of a large battery and an inbuilt inverter, providing AC wall-plug-styled outlets and USB ports for user convenience. Advanced battery technology enables the use of small, sealed DC batteries with onboard inverters to generate sufficient AC voltage for entire apartments or commercial spaces. Brands like Luminous, Amaron Batteries, and MICROTEK have engineered compact units with plug-and-play capabilities, making power packs an attractive alternative to residential gas generators. With their ease of design, secure operation, and DC-to-AC conversion capabilities, power packs are poised to challenge the residential gas generator market.
• The Residential Gas Generator market faces unique challenges in catering to various sectors such as Homes, Businesses, and Industries. In the Residential category, the demand for low-power gensets is high for backup power applications during power outages caused by bad weather, natural disasters, or even power surges. However, the competition intensifies when it comes to fuels like diesel and natural gas or renewable gases for gas generators. Industrial sectors like IT, Telecom, and Retail have different requirements for stationary generators, making it essential to cater to diverse needs. Appliances like geysers, water pumps, air conditioners, water purifiers, and electrical equipment add to the complexity. Therefore, understanding the specific requirements of each sector and providing customized solutions is crucial for success in the Residential Gas Generator market.

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Segment Overview 

This residential gas generator market report extensively covers market segmentation by

1. Type 
• 1.1 Stationary
• 1.2 Portable
2. Geography 
• 2.1 North America
• 2.2 Europe
• 2.3 APAC
• 2.4 Middle East and Africa
• 2.5 South America

1.1 Stationary- The Residential Gas Generator Market has experienced significant growth due to increasing power outages and the need for backup power solutions. These generators provide a reliable source of electricity for homes during power disruptions, ensuring uninterrupted power supply. Key players in the market include Caterpillar, Generac, and Cummins. They offer various models with different power capacities to cater to diverse residential needs. The market is expected to continue growing due to the rising demand for uninterrupted power and advancements in generator technology.

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The global Gas Engine Market is experiencing significant growth, driven by increasing demand for efficient and cleaner power generation solutions. The global Portable Generator Market is also expanding rapidly due to the rising need for backup power during outages and emergencies. Additionally, the global Microgrid Market is seeing substantial advancements as decentralized energy systems become more crucial for grid resilience and renewable integration. Key players in these markets are focusing on technological innovations and strategic partnerships to enhance their market presence and meet evolving consumer demands.

Research Analysis

The Residential Gas Generator market refers to the use of gas-powered generators for producing electrical energy in residential areas during power outages caused by bad weather or severe weather events such as storms. Gas generators, which include stationary natural gas generators and portable generators that run on fuels like natural gas, propane, and fuel gas, provide a cost-effective solution for homeowners seeking uninterrupted power supply. Mechanical energy from the generator is converted into electrical energy for powering appliances and devices. Natural gas generators are increasingly popular due to their environmental benefits compared to conventional fossil-fuel generators like diesel gensets. Natural gas is a cleaner-burning fuel, producing fewer greenhouse gas emissions than diesel. However, the availability of natural gas deposits and extra-regional trade agreements can impact the market's growth. Renewable gases like biogas and hydrogen are also gaining attention as alternatives to fossil fuels for generating power in residential areas. Battery storage and power packs are increasingly being integrated with gas generators to provide a more efficient and sustainable energy solution. Despite the benefits, concerns over carbon emissions and the need for fuel supply remain challenges for the market's growth.

Market Research Overview

The Residential Gas Generator Market refers to the production, sales, and installation of gas-powered generators for backup power in residential areas. These generators, which include stationary gas generators, run on various fuels such as natural gas and renewable gas. They serve as a constant power source during power outages caused by bad weather, natural disasters, or unstable power supply. Gas generators are environmentally friendlier than conventional fossil-fuel generators, emitting less CO2, nitrogen, and sulphur. However, they still produce some emissions and can be noisy and smelly. The market for residential gas generators is driven by the demand for electricity and the need for backup energy sources in households. Natural gas prices, construction market, smart city initiatives, and green building initiatives are some factors influencing the market's growth. Gas generators are a cost-effective solution for residential consumers, providing power during power supply shortages or severe weather events such as storms, floods, and ice. The market includes various players, from small generator manufacturers to large oil & gas companies, producing electrical gensets with different power ratings. The market also includes telecom companies, hospitals, and inverters, among others, that require backup power. The use of battery storage and power packs is increasing to store excess energy generated by renewable sources and provide a more sustainable solution. The market faces challenges from carbon emissions and greenhouse gas emissions, and there is a growing focus on sustainable development and reducing the use of fossil fuels in power generation systems. Coal-fired power facilities and conventional fossil-fuel generators are being phased out in favor of renewable energy sources and natural gas generators. Extra-regional trade agreements and investments in tourism and agriculture are also driving the market's growth.

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
• Geography
• North America
• Europe
• APAC
• Middle East And Africa
• South America

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

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SOURCE Technavio