Generator Sets Market size is expected to surpass USD 82 billion by the end of 2035, growing at a CAGR of 8% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of generator sets was over USD 39 billion. The growth of the market can be attributed to growing urbanization which is further estimated to boost the demand for more electricity. However, the demand of electricity is also being increasing in rural area. In the year 2020, about 12% of the world's population lacked access to electricity. Moreover, it is a fact that most rural areas lack some of the amenities that their urban counterparts do. In the case of grid-supplied electricity, this is more apparent. There are still some village homes without access to the grid. Hence, the preference for generator sets is growing.
However, when compared to urban area the need for electricity is relatively less in rural area. In rural India, about 89% of electrified families use less than 100 units a month. Still, there are some households in this rural area which requires large amount of energy. Affluent people with big farmhouses could be found in rural locations, and these homes also require generators to power their lighting, appliances, and other gadgets including air conditioners, air coolers, freezers, and entertainment systems. Hence, there are several different generators in the generator sets market that are appropriate for homes with various power needs. For rural residences, the majority of generator manufacturers are providing low rating (up to 5 KVA) generators. Small home generators that run on fuels including diesel, kerosene, gasoline, and gas are also made available from them. Hence, this factor is estimated to boost the market growth over the forecast period.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~8% |
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Base Year Market Size (2022) |
~ USD 39 Billion |
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Forecast Year Market Size (2035) |
~ USD 82 Billion |
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Regional Scope |
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Fuel (Diesel, Gas, Hybrid)
The global generator sets market is segmented and analyzed for demand and supply by fuel into diesel, gas, and hybrid. Out of which, the diesel segment is anticipated to garner the highest revenue by the end of 2035. The growth of the segment can be attributed to growing production of diesel. For instance, the majority of the diesel fuel produced and used in the United States is processed from crude oil in petroleum refineries. Each 42-gallon (U.S.) barrel of crude oil processed by U.S. petroleum refineries yields 11 to 12 gallons of diesel fuel on average. Diesel generators are more user-friendly than natural gas generator sets since they are simple to install and run. In addition, the fuel utilized in these generator sets is portable, making it possible to use them anywhere. Moreover, diesel is more easily available than natural gas, and diesel genset have a lengthy operational life. Diesel fuel has a reputation for being stable (less flammable than gas), having a high energy density to volume ratio, and having efficient consumption rates. In general, diesel generators consume less than half the fuel of their natural gas-powered equivalents while producing the same amount of work. Additionally, these industrial-grade diesel generators could be deployed on-site or utilized as a portable unit to power off-grid operations, making them really a key source of power across a wide range of industries and applications. This enables diesel generators to supply electricity in the majority of locations that are not connected to the main power grid, but a primary power source is necessary to run essential tools and equipment.
End-user (Residential, Commercial, Industrial)
The global generator sets market is also segmented and analyzed for demand and supply by end-use into residential, commercial, and industrial. Amongst which, the commercial segment is anticipated to have a significant growth over the forecast period. During power disruptions, commercial generators keep businesses and organizations operating. When the main power source fails, these gadgets turn on and supply backup power. Instantaneous power restoration ensures that the machinery and operating systems continue to function without interruption. Moreover, commercial generators typically have stronger construction and unique parts compared to consumer generators. Stronger metals, larger engines, cooling components to dissipate more heat, and an electronics system that generates more power wattage outputs are a few of the attributes. Natural gas and diesel generators are the most often utilized commercial generator types. Hence, with the growth in production of natural gas and diesel, the segment is estimated to grow.
Our in-depth analysis of the global generator sets market includes the following segments:
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By Power Rating |
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By Fuel |
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By End-Use |
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By Application |
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APAC Market Statistics
The generator sets market in Asia Pacific is projected to have the highest growth by the end of 2035, backed by growth in demand for electrification in rural area, along with surge in power outage in urban area in the region. Also, there has been sure in extraction of oil in this region which is also estimated to boost the market growth. China produced about 3 million barrels of oil per day in 2021, making it the largest oil producer in the Asia-Pacific region. India produced approximately 740 thousand barrels per day of oil in the same year, which was the second-highest production rate. Moreover, the largest portion of energy is consumed by the industrial sector, which includes mining, manufacturing, agriculture, and construction. Thus, it is anticipated that demand for diesel generators would rise as a result of these industries' growing need for a consistent and stable power supply, particularly from manufacturing facilities, along with healthcare facilities, and the pharmaceutical industry.
North American Market Forecast
The North America generator sets market is estimated to be the second largest, to have the highest growth. The growth of the market in this region can be attributed to the necessity for emergency backup power solutions, along with the need for electricity. The accelerated industrialization and urbanization processes have increased the need for a steady supply of electricity, making power backups an essential component of development. Also, in North America, the supply of electricity is impacted by sudden grid issues, transmission and distribution line failures, weather issues, and other causes. To facilitate continuous operations, regulatory organizations are implementing efforts to shorten the length of power outages. The demand for dependable backup power sources has greatly expanded among consumers in the residential and commercial sectors, driving the North America market for generator sets. Hence, the need for generators has increased as a result of the growing popularity of generators along with technical improvements.
Europe Market Forecast
Additionally, the generator sets market in Europe region is also estimated to have a significant growth over the forecast period. The necessity for the deployment of generator sets in these sectors is developing in response to the increasing need for a stable and uninterrupted power supply from end-use industries such as construction, residential, commercial, and healthcare, and among others. Also, owing to the region's rapid industrialization and growing population, there is a greater need for electricity, which in turn necessitates the use of reliable power systems such as gensets. In addition, there is an increasing requirement for the deployment of Europe gensets owing to the power outages in a few European nations. These elements are predicted to propel the expansion of the European generator sets market.
For clients in North America, Cummins Inc. has added 175kW and 200kW natural gas standby generator sets that are now available for ordering. These two new generator sets are a part of Cummins' ongoing efforts to invest in cutting-edge, environmentally friendly technology as part of its Destination Zero plan, which aims to achieve zero emissions across all of its products.
Rolls-Royce plc was intended to offer long-term service support for all mtu generator sets that power the Royal Navy fleet in the United Kingdom. An agreement covering the preventative and corrective maintenance of more than 90 mtu engines for the following five years was signed by the Rolls-Royce business unit Power Systems and the UK Ministry of Defence's Defence Equipment & Support organization. A two-year extension option is part of the deal, which is a first for Power Systems.
Author Credits: Payel Roy, Dhruv Bhatia
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