Generator Market size is poised to reach USD 25 Billion by the end of 2036, growing at a CAGR of 5.6% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of generator was USD 13 Billion, and the growth of the market is due to the increasing cases of several natural disasters, as well as weather-related events. According to the National Centers for Environmental Information, the U.S. has experienced an average of about 18 billion USD in climate disasters each year, with about 18 climate disasters in 2022 causing a total of more than ​​175.2 billion USD in damage and resulting in 474 fatalities.
Furthermore, there is a rapid increase in industrialization due to the increase in factories, and manufacturing plants to operate the equipment and production lines. The US economic growth has been mainly concentrated in a few places, such as 6% of the US accounts for about two-thirds of the GDP output, they have greatly increased the generator market in the forecasted years.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~5.6% |
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Base Year Market Size (2023) |
~ USD 13 Billion |
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Forecast Year Market Size (2036) |
~ USD 25 Billion |
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Regional Scope |
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Fuel (Diesel, Gas, Hybrid, LPG, Bio-fuels)
The diesel segment in the generator market is estimated to gain a robust revenue share of 42% in the coming years owing to its high energy density, making it a good choice for generating power, it also has an efficient combustion, which reduces emissions and improves the environmental profile of the generators. According to a report, in the combustion of a diesel engine using ultra-low sulfur diesel biodiesel at 10%, 20%, 50%, and 100% under partial load conditions, the maximum pressure in the cylinder is decreased by using biodiesel at all loads, along with B100 compared to diesel fuel, mainly to lower the achieved heat release.
Application (Continuous, Peak, Stand by Load)
The stand load segment in the generator market is set to garner a notable share shortly and is likely to remain the second largest segment in the application of the market as the demand for off-grid systems, which provide power independently of the grid, has also grown, due to the need for improved energy security and safety. Stand-by load systems are a vital component of such systems, and their growing demand has driven the overall US market.
Moreover, the stand-by Load is a crucial component of emergency power systems, and the growing awareness and preparedness for disasters and emergencies have led to a growing demand for stand-by load systems.
End-users (Commercial, Residential, Mining, Oil & gas, Construction, Manufacturing, Marine, Pharmaceuticals)
The commercial segment in the generator market is estimated to hold a noteworthy share due to the increasing aim of reducing the environmental footprint and becoming more sustainable in our practices. The usage of generators which produces lower emissions along with the usage of less energy helps to fulfill such objectives. Furthermore, generators that use renewable and alternative fuels can also fulfill the goal of being more environmentally conscious. This has also contributed to the growth of the US market.
Moreover, the increasing investment and expansion of existing facilities, such as warehouses, factories, and offices, has also driven the demand for generators, as the existing power infrastructure may not be sufficient to accommodate the new requirements.
Our in-depth analysis of the global market includes the following segments:
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Fuel |
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Application |
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End-users |
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North American Market Forecast
The generator market in North America is estimated to have the largest share of 40% in 2023, impelled by increasing demand for renewable energy resources. The U.S. government has been promoting the usage of generators because of the lack of electrical service or power failures. According to the U.S. Energy Information Administration, in 2022, annual U.S. renewable energy generation surpassed coal for the first time in history. According to a report by the Department of Energy, by 2025, domestic solar energy generation is expected to increase by approximately 75%, and wind by 11%.
APAC Market Statistics
The Asia Pacific generator market is estimated to be the second largest, during the forecast timeframe led by the expansion of several facilities across the countries such as China. Furthermore, there has been a growth in the data centers in the Asia-Pacific which is boosting the demand for data center generators mainly to ensure a sufficient power supply for the IT operations, this contributes as the growth driver of the market.
Author Credits: Payel Roy, Dhruv Bhatia
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