Construction Generator Sets Market size is expected to reach USD 17 Billion by the end of 2036, growing at a CAGR of 10% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of the construction generator sets was USD 7 Billion. Growth in investments made in the real estate sector is fueling the market growth. As per the latest report, domestic investors' shares increased to an estimated value of 35% in 2023 from 14% in 2022. The total amount of commercial real estate shares was 1.4 trillion USD in 2022.
The main advantage of construction generator sets is their reliability and flexibility, which have a significant positive impact on the market growth. These systems can work on different ranges of fuels such as diesel, natural gas, and propane, which makes them fit for a wide range of industries and scenarios. It’s also used as a backup power, majorly for remote construction sites.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~10% |
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Base Year Market Size (2023) |
~ USD 7 Billion |
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Forecast Year Market Size (2036) |
~ USD 17 Billion |
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Regional Scope |
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Power Rating (≤ 50 kVA, > 50 kVA - 125 kVA, > 125 kVA - 200 kVA, > 200 kVA - 330 kVA, > 330 kVA - 750 kVA, > 750 kVA)
The > 330 kVA - 750 kVA segment is predicted to account for 22% share of the global construction generator sets market by 2036. The segment growth can be attributed to the growing need for dependable power solutions, incorporated with an increasing number of construction sites and projects on infrastructural development. As per the recent report, heavy-duty generators are usually operated in construction activities which provides power output in the range from 200KW TO 2500 KW.
Fuel (Diesel, Gas)
The gas generated segment is predicted to account for 55% share of the global construction generator sets market by 2036. The segment growth can be attributed to the growing focus on energy efficiency and pocket-friendly is shifting consumers towards a clean energy solution. Moreover, decentralized power generation is getting popular mainly in remote locations is a key factor fueling the construction generator set market. The natural gas-operated generators offer a range from 995 KWe to 2000 KWe.
Our in-depth analysis of the global market includes the following segments:
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Power Rating |
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Fuel |
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Application |
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North America Market Forecast
The market in North America is anticipated to hold the largest with a share of about 34% by the end of 2036. The market growth in the region is also expected on account of increasing demand for power backup solutions in the construction sector and harsh environments, which can be operated in extreme weather conditions such as hurricanes and winter storms. These generator sets are set to create an environment that has positive impacts on the business. Moreover, technological advancements will contribute to the market growth as the rising adoption of cleaner and more efficient power sets is growing. According to a recent report published in 2022, the construction sector has remained fairly steady at 4.1% in the US and 7.4% in Canada. The healthcare sector is witnessing rapid growth in the adoption of these generator sets focusing on lower emissions, cost-effectiveness and continuous availability of sets is propelling the deployment of construction generator set units.
APAC Market Analysis
The Asia Pacific market is estimated to be the second largest, registering a share of about 25% by the end of 2036. The market’s expansion can be attributed majorly to the rapid growth in infrastructural development. China is the leading producer of generator sets market in the Asia-Pacific region. As per the recent report published in January 2019, road-related construction projects in Asia-Pacific are growing with a total value of USD 2 trillion. Out of this amount, around USD 800 billion is in the execution stage and USD 300 billion is in the planning stage. China accounts for the highest value with USD 632 billion, followed by India with projects valuing USD 218 billion. As the infrastructural projects are growing with expansion in power demand-supply gap across the country resulting in demand for construction generator sets. Moreover, generators operated by using diesel as a fuel are benefitting the country as they are cost-effective and the living standard is improving leading to the demand for power backup devices.
Author Credits: Payel Roy, Dhruv Bhatia
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