The global standby generator market is thriving on the back of the increasing energy and constant power supply needs, raising the need for emergency power backup sources, such as standby generators. Moreover, increasing research and development projects that have resulted in the development of advanced standby generators, growing collaboration and partnerships of large manufacturing companies, and the rising number of product launches are anticipated to contribute towards the growth of the global standby generator market.
The global standby generator market reached a value of USD 17382.5 million in the year 2019. It is expected to garner a value of USD 19345 million by the end of 2025 by registering a CAGR of 4.9% across the globe over the forecast period 2021-2025. Although the market is anticipated to dip by USD 2136.3 million in the year 2020, yet the global standby generator market is expected to grow by 1.3x and gain an absolute $ opportunity of USD 3379.6 million during the forecast period.
Growth Highlights Based On Region
The global standby generator market is segmented by regions into North America, Latin America, Europe, Asia Pacific, Turkey & the Middle East, and Africa. Among these regions, the market in North America held the largest market share of 33.87% in the year 2019 and is expected to grow with a CAGR of 3.7% during the forecast period. The market in the region is further anticipated to gain an incremental $ opportunity of USD 209.4 million in the year 2025, and also grow by 1.15x and gain an absolute $ opportunity of USD 850.1 million during the forecast period. Increasing application of standby generators in different end-use applications, such as homes, corporate buildings, corporate sites, and others, coupled with the low price of standby generator installation in the region, are some of the major factors anticipated to drive the growth of the market in the region. CLICK TO DOWNLOAD SAMPLE REPORT
The study further incorporates Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa).
Market Segmentation Synopsis
By Power Capacity
The global 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 38.20% in 2019. Small homes and offices usually require 1kW to 10kW generators as they can power up small lights, fans, and other electrical appliances. Yet, heavy appliances, such as AC and geysers demand for standby generators of up to 50kW. These small generator sets are usually considered to be ideal for a home. The growing residential sector across several developed and developing nations worldwide is one of the major factors anticipated to drive the demand for standby generators of up to 50kW. The segment reached a value of USD 6639.9 million in the year 2019 and is further anticipated to grow by a CAGR of 4.8% during the forecast period. Additionally, the segment is also anticipated to attain an absolute $ opportunity of USD 1267.8 million during the forecast period by growing at 1.21x during the forecast period.
Market Drivers and Challenges
Growing Need for Energy and Uninterrupted Power Supply
The unreliable power grid infrastructure in developing countries is one of the major factors that is anticipated to drive the growth of the standby generator market over the forecast period. The grid infrastructure in developing countries is insufficient to meet the growing demand for electricity. Moreover, increasing business downtime all over the world owing to the rise in weather-related power outages is raising the demand for uninterrupted power supply. On the other hand, the rising natural calamities such as tsunamis, earthquakes, storms, hurricanes and volcanic eruptions among others are anticipated to drive the demand for standby generators as certain regions are highly prone to natural disasters that disrupt the national grid infrastructure causing inconsistent power supply.
Increasing Industrialization and Increasing Power Outages
Rapid industrialization along with growing commercial sector growth is estimated to drive the growth of global standby generator sets market. The presence of a robust service sector, growing urbanization and limited access to electricity create the demand for standby generators. The development of new business centers all over the world is fueling the installation of backup power systems which in turn is set to expand product adoption. Moreover, increasing investments aimed towards the expansion of telecom infrastructure along with frequent power failures will augment the global market growth. Additionally, the increasing power outages in the urban areas and the longer timeframe required to set up the transmission and distribution infrastructure are some of the additional driving factors for the standby generator market.
Increasing Awareness for Low Emission Products
Increasing awareness among the global population towards environmental sustainability, along with the introduction of stringent government regulations is anticipated to drive the growth of natural gas standby generators. Rapid expansion in the demand for unconventional natural gas resources and stringent emission regulations is also anticipated to significantly drive the adoption of emission-free or low emission energy generators. Moreover, natural gas-fueled generators are increasingly being accepted with the evolution of stringent environmental norms to control the emission of hazardous gasses from generators across North America, Europe, and in some countries of Asia-Pacific. Such factors are anticipated to drive the growth of the global standby generator market over the forecast period.
Stringent Government Regulations for Limiting Carbon Emissions
Environmental agencies such as the Environmental Protection Agency (EPA) in the US, Central Pollution Control Board in India, and the European Environmental Agency regulate the amount of carbon emitted into the atmosphere by the generators. As a result, every generator manufacturer, importer, and assembler are required to possess a Type A certificate for each generator. The stringent environmental regulations for limiting carbon emissions is therefore considered as one of the key factors hindering the growth of standby generator market growth. These generators are subject to federal, state, and local regulations regarding their emission performance. Moreover, the increasing concern for the huge investment required for the installation of standby generators as well as the rising maintenance cost of these products is some of the additional factors anticipated to impact negatively towards the growth of the global standby generator market.
Some of the affluent industry leaders in the global standby generator 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., Atlas Copco AG and Kohler Co.
Increasing ned for energy and 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 4.9% over the forecast period, i.e. 2021-2025.
North America is anticipated to hold the dominating share in the market.
The market in Asia Pacific is anticipated to display significant business opportunities in the future.
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., Atlas Copco AG and Kohl
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 up to 5o kW segment, which is a sub-segment of the power capacity segment, held the largest market share of 38.20% in the year 2019 and is anticipated to display significant growth opportunity.
Stringent government norms for limiting carbon emissions is one of the major factors anticipated to act as a barrier towards the growth of the global standby generator market.
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