In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022.
Request InsightsPurchasing power in the couPurchasing power in the country is expected to fell nearly by 2.5%. On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively. Request Insights
IN THE NEWSIncreasing incidences of natural calamities in the form of hurricanes that hampers power supply, followed by the increasing unreliable power supply from power grids and the need for uninterrupted power supply are some of the factors raising the demand for standby generators in North America. Additionally, increasing product development and R&D investment by the major manufacturers for the development of standby generators is also anticipated to promote the growth of the North America standby generator market.
Standby generator is a source of electrical power that helps to provide power during an outage. These products are known to help its users for their uninterrupted workflow. Standby generators are usually fuelled by diesel, gasoline or natural gas and are available in different power capacities based on the power demand.
The North America standby generator market reached a value of USD 5886.6 million in the year 2019 and it is anticipated to attain a CAGR of 3.7% during the forecast period, i.e. 2021-2025. During the year 2020, the market is anticipated to dip by 9.63% from the previous year, primarily due to the impact of the coronavirus pandemic. Additionally, the North America standby generator market is expected to grow by 1.55x and attain an absolute $ opportunity of USD 850.1 million during the forecast period to reach USD 6339.0 million by the end of 2025.
The North America standby generator market has been segmented by power capacity into up to 50 kW, 50-150 kW, 151-250 kW, 251-350 kW, 351-450 kW, 451-750 kW, 751-1000 kW and above 1000 kW. Among these segments, the up to 5o kW segment registered the largest market share of 34.61% in 2019 and is anticipated to reach USD 2174.9 million by the end of 2025 by growing at a CAGR of 3.3% during the forecast period. Additionally, the segment is also anticipated to gain an incremental $ opportunity of USD 64.2 million in the year 2025 as compared to the previous year and further attain an absolute $ opportunity of USD 264.3 million during the forecast period. The growth of the up to 5o kW segment in the North America standby generator market can be primarily attributed to the increasing residential sector in the region, which is raising the demand for standby generators for up to 50kW. CLICK TO DOWNLOAD SAMPLE REPORT
The North America standby generator market is also segmented by cooling system into air cooled and liquid cooled. The liquid cooled cooling system registered the largest market share and is expected to grow at the highest CAGR of 4.2% during the forecast period to reach USD 4118.6 million by the end of 2025. The liquid cooled generators, unlike the air-cooled generators, require an oil or a coolant to maintain the temperature of the internal parts of the generator. These generator sets have a radiator and a water pump. Water is distributed through the cooling pipes of the radiator by the water pump to cool the engine of the generator. The liquid-cooling segment is further anticipated to attain an absolute $ opportunity of USD 621.0 million during the forecast period.
The demand for electricity from several end users, such as residential, commercial and industries among others have grown significantly over the years. As a result, the need for uninterrupted and reliable power sources has also grown significantly, thereby raising the demand for standby generators. Standby generators act as a power backup source whenever there is a power outage. Rapid industrialization, increasing population and the rising infrastructure developments in the nations of North America, such as the US and Canada, are additionally driving the demand for the deployment of standby generators. Moreover, growing natural calamities in North America, which severely impacts the flow of electricity is also one the major factors anticipated to raise the demand for the deployment of standby generators in the region.
Increasing awareness towards environmental sustainability caused by the growing concern for the environment and the environmental impacts generated by generators fuelled by different fuel sources other than natural gas, has led to the development of stringent government regulations. As a result, there has been a surge in the demand for generators fuelled by natural gas. Natural gas generator sets, in comparison to other fuel type generator sets, contribute to lesser environmental pollution. Moreover, these gas-fuelled generators have also been widely accepted in electric power applications including load management and combined heat and power (CHP). Such factors are anticipated to drive the growth of the North America standby generator market.
The installation cost of standby generators are often very high. Moreover, these generators also require continuous timely maintenance. As a result, the overall cost for the generators increase dramatically, which in turn impacts the growth of the market. Additionally, growing stringent government regulations for lowering carbon emissions is also one of the major factors anticipated to hamper the growth of the North America standby generator market.
Some of the affluent industry leaders in the North America standby generator market are Cummins Inc., Briggs & Stratton Corporation, Taylor Power Systems, Inc., Generac Power Systems, Inc., Caterpillar, Inc., Rolls-Royce Power Systems AG, Gillette Generators, Inc., Mitsubishi Heavy Industries, Ltd., AKSA Power Generation and HIMOINSA S.L.
FREQUENTLY ASKED QUESTIONS
Increasing demand for uninterrupted power supply are some of the major factors that are driving the growth of the market.
The market is anticipated to attain a CAGR of 3.7% over the forecast period, i.e. 2021-2025.
The major players in the market are Cummins Inc., Briggs & Stratton Corporation, AKSA Power Generation, Caterpillar, Inc., Generac Power Systems, Inc., Rolls-Royce Power Systems AG, Mitsubishi Heavy Industries, Ltd., HIMOINSA S.L., Taylor Power Systems, Inc., and Gillette Generators, Inc.
The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
The market is majorly segmented by power capacity, fuel, cooling system, distribution channel, by application and by region.
The up to 5o kW segment, which is a sub-segment of the power capacity segment, held the largest market share of 34.61% in the year 2019 and is anticipated to display significant growth opportunity.
High maintenance and installation cost of standby generators is one of the major factors anticipated to act as a barrier towards the growth of the North America standby generator market.
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