Portable Generator Market Analysis by Fuel Type (Gasoline, Diesel, Natural Gas, and Others); by Application (Emergency, and Prime/Continuous); by Power (Below 5 kW, 5–10 kW, and 10–20 kW); and by End User (Residential, Commercial, and Industrial) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 3236 | Published Date: Mar 06, 2023
The global portable generator market is estimated to garner a revenue of around USD 7 Billion by the end of 2035 by growing at a CAGR of ~6% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of nearly USD 5 Billion in the year 2022. The growth of the market can be attributed to the aging grid infrastructure. Transmission systems that are not upgraded or maintained properly cannot sustain an additional burden of power as they generally collapse, causing the power outage, which is anticipated to drive the market growth. Growing electricity demand positively affects the market as power grids are not able to take the load, leading to frequent power cuts. According to the IEA, in 2018 the global electricity demand grew by 4% to more than 23,000 TWh.
In addition to these, factors that are believed to fuel the market growth of portable generator include the growing investments in backup power solutions, along with growing consumer awareness for preparing for emergency, is expected to further favor market growth. Moreover, the rapid adoption of dual fuel and inverter portable generators, and extreme weather conditions are estimated to further boost the market growth. The market growth can also be attributed to factor such as rising concerns overpower stability for uninterrupted business operations during natural calamities.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~6% |
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Base Year Market Size (2022) |
~ USD 5 Billion |
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Forecast Year Market Size (2035) |
~ USD 7 Billion |
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Regional Scope |
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Growth Drivers
Shortage of Electricity Supply – Owing to extreme weather conditions, the pace of electricity supply has been unsynchronized for a long time. More than 4% of the world's population, or at least 350 million people, experienced catastrophic power outages in 2021 as a result of new power supply difficulties that have erupted on top of preexisting ones.
Rising Construction Activities – Many instruments of varying sizes, such as drives, drills, air hammers, and compressors, that are commonly used in the construction industry are powered by portable generators. France was the country with the highest number of home construction in the Europe in 2021 with over 471,000 construction followed by Germany where 310,000 residential construction took place.
Growing Urbanization and Industrialization – According to the statistics of the United Nations Population Fund, the rate of urbanization around the world is witnessing an all-time high rate. By 2030, there will be approximately 5 billion people living in towns and cities, which currently account for more than half of the world's population.
Rising Awareness of Global Warming – Many portable generators runs by bio-fuel which put less stress on the atmosphere’s natural temperatures. Electric generators can be support small households with high bioethanol as a biofuel production. The total land and ocean temperature have risen at an average rate of 0.14°F (0.08°C) every decade since 1880, according to NOAA's 2021 Annual Climate Report. However, the average growth rate since 1981 has been more than twice as fast: 0.32°F (0.18°C) per decade.
Ageing Infrastructure of Electricity Grid – Considering electricity networks are getting older and can no longer provide the world's energy needs, there will certainly be greater demand for generators. However, this issue has also been solved by integrating smart grid networks. Around 70% of transmission and distribution lines in the United States have already exceeded the first 50 years of their anticipated lifespans.
Challenges
The global portable generator market is segmented and analyzed for demand and supply by application into prime/continuous and emergency. Out of the two major application, the emergency segment is estimated to gain the largest market share over the projected time frame. The growth of the segment can be attributed to the rising prolonged power outages followed by the rising running capacity of portable generators. Emergency portable generators are basically used when natural calamities such as heatwaves, storms, and heavy rains, disrupt the distribution infrastructure and transmission. For instance, a mystery grid breakdown in 2022 resulted in a significant power outage in Bangladesh. In Bangladesh, 140 million people experienced the largest blackout in history. Moreover, a generator have a running limit of around 10-12 hours.
The global portable generator market is also segmented and analyzed for demand and supply by fuel type into gasoline, diesel, natural gas, and others. Amongst these four segments, the gasoline segment is expected to garner a significant share. the growth of the segment is expected on the account of easy availability of gasoline, higher running time, less noise production, and comparatively low emission of harmful carbon dioxide fumes.
Our in-depth analysis of the global portable generator market includes the following segments:
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By Fuel Type |
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By Application |
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By Power |
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By End User |
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The Asia Pacific portable generator market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035. The growth of the market can be attributed majorly to the rising urbanization and industrialization is also expected to boost the market growth. Moreover, various government initiatives for the growth residential sector in countries, such as, India and China, are estimated to boost the market growth. For instance, under the Pradhan Mantri Awaas Yojana in India, central government is planning to build 20 million affordable houses in urban areas across the country. Moreover, rising power cut off in the region is also expected to boost the growth of the market. Around 34% of Indian homes reported not experiencing any power interruptions in 2022. Nonetheless, nearly 2% of the families reported experiencing power outages for 12 to 24 hours each day, compared to about 28% who claimed they had outages lasting up to two hours daily on average. Additionally, almost 44% of industrial output in China has been impacted by power shortages.
The North American portable generator market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035. The market growth in the region is expected on the back of higher instances of power outage which in turn is to drive the demand for generators. A snowfall had put New Yorkers in 11 upstate counties in a state of emergency. Also, in 2021, many instances of extreme weather caused strain on U.S. electricity grid systems. Households went without power for around seven hours and 20 minutes on average, with more than five of those hours or nearly 72% being caused by severe weather conditions like hurricanes, wildfires, and snowstorms.
Cummins Inc. launched two new invertor-generator QG 2800i and 2500i that make 60% lesser noise. They work on gasoline and liquid propane, made primarily for Class B and truck campers.
Honda Motor Co., Inc. introduced Honda My Generator Bluetooth App which allow operators to start, stop, and monitor critical operations of Honda portable generators through a Bluetooth interface on a smartphone.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Payel Roy, Dhruv Bhatia
Ans: The rise in issues of power cut, increasing industrialization and urbanization and need to reduce the stress caused by global warming are the major factors driving the market growth.
Ans: The market is anticipated to attain a CAGR of ~6% over the forecast period, i.e., 2023 – 2035.
Ans: Limited running time and air and noise pollution caused by these generators are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Briggs & Stratton, LLC, Honda Motor Co., Ltd., Yamaha Motor Co., Ltd., Caterpillar, Eaton Corporation plc, Honeywell International, Inc., Siemens AG, and KUBOTA Corporation.
Ans: The company profiles are selected on the basis of 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.
Ans: The market is segmented by fuel type, application, by power, end user, and region.
Ans: The emergency segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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