Genset Enclosure Market size is poised to reach USD 79 Billion by the end of 2036, growing at a CAGR of 6% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of genset enclosure was USD 49 Billion. The reason behind the growth is due to the increasing need for power across the globe. For companies whose operations depend on generators, generator enclosures are essential equipment to ensure that the generator operates safely and continues to supply electricity to the business. According to estimates, over the past 50 years, global power consumption reached over 25,000 terawatt-hours in 2022.
The growing introduction of advanced generators is believed to fuel the market growth. For instance, in February 2023 Caterpillar introduced Cat XQ330 mobile diesel generator set powered by the Cat C9.3B diesel engine equipped with numerous rental-ready features and the EMCP 4.4 digital control panel to enable remote tracking and management of the generator by combining all generator set controls and system indications into a single interface while adhering to strict emissions regulations.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~6% |
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Base Year Market Size (2023) |
~ USD 49 Billion |
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Forecast Year Market Size (2036) |
~ USD 79 Billion |
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Regional Scope |
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Material Type (Metallic, Non-Metallic)
Genset enclosure market from the non-metallic segment is estimated to gain a robust revenue share of 55% in the coming years owing to the high demand for power in hospitals. Compared to other commercial facilities, hospitals use a lot more energy as they are open around the clock. Moreover, the amount of energy used in hospitals is continuously rising since the most fundamental amenities in healthcare facilities, such as clean water supply and lighting and communication, Air conditioning systems, lighting, electromedical devices, safety systems, information and communications technology (ICT) systems, depend on electricity for operation. These factors have increased the need for backup generators in hospitals as abrupt loss of electricity has the potential to be disastrous, endangering the lives of patients. As a result, the demand for non-metallic genset enclosures may rise as they offer better corrosion and ensure the reliable operation of medical equipment. For instance, the average yearly energy intensity of US hospitals is more than 735 kWh/m2.
Industry Vertical (Power Generation & Distribution, Oil & Gas, Mining, Medical, Pulp & Paper, Food & Beverages, Transportation)
The power generation & and distribution segment in the genset enclosure market is set to garner a notable share shortly on account of frequent power outages in remote areas. In rural locations power outages occur more frequently which may have a major negative social and economic impact on communities. Moreover, long low-tension lines that cross wide fields in rural areas are a common cause of power outages in these areas.
Therefore, it is imperative to have backup power generators in rural places that can start during power outages to carry the load in isolated locations disconnected from the national grid. This necessitates the use of genset enclosures as it offers the generator set full protection, including weatherproof, noise, and fireproof qualities.
Enclosure Type (Wall-Mounted, Floor-Mounted, Underground)
The wall-mounted segment is projected to gain a strong market share during the forecast timeframe. Genset enclosures are usually placed four walls above generators, to secure various electrical switches and to protect components from moisture, dust, and filth.
Our in-depth analysis of the global market includes the following segments:
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Material Type |
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Enclosure Type |
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Industry Vertical |
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North American Market Forecast
Genset enclosure market in North America is predicted to account for the largest share of 45% by 2036 impelled by the presence of a huge number of data centers. The largest single region in the world for connectivity and cloud computing today is the United States, with data centers throughout North and South America offering the most secure platform for hybrid data. These data centers typically consume a lot of electricity which is roughly ten times what an average American home uses for electricity. For instance, in 2020, the data centers in the United States used over 72 billion kWh. As a result, there is a heightened need for backup generators to maintain the continuous supply of power for data centers in the event of a power outage. According to estimates, with more than 5,370 data centers as of 2023, the United States leads all other countries in the globe.
APAC Market Statistics
The APAC genset enclosure market is estimated to be the second largest, during the forecast timeframe led by the presence of government initiatives to maintain workplace safety. The Indian government is dedicated to putting the national policy on workplace safety, and health, to give the workers a secure place to work. For instance, the Factories Act, of 1948, primarily addresses the health, safety, and welfare of workers inside factories by establishing rules and precautions for operating machines and adhering to them strictly.
Author Credits: Payel Roy, Dhruv Bhatia
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