Synchronous Generator Market size is poised to cross USD 12 Billion by the end of 2036, growing at a CAGR of 5% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of synchronous generator was USD 7 Billion. The reason behind the growth is due to the growing consumption of natural gas across the globe as in comparison to other fossil fuels, it is a cleaner source of energy. For instance, global natural gas consumption was estimated to be around 3 trillion cubic meters in 2022. Through 2050, it is anticipated that natural gas output will increase by over 25% while consumption will increase by more than 30% global.
The growing energy demand is believed to fuel the market growth. Mechanical energy is transformed into electrical energy by synchronous generators which can consume or produce reactive based on the excitation. For instance, global energy consumption is expected to reach over 720 million terajoules by 2040, and it is expected that the world's energy demand is expected to reach 650 quadrillion Btu in 2050, driven by population growth and increased affluence.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~5% |
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Base Year Market Size (2023) |
~ USD 7 Billion |
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Forecast Year Market Size (2036) |
~ USD 12 Billion |
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Regional Scope |
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Power Rating (10 to 20 MVA, 2 to 5 MVA, 20 to 30 MVA, 30 to 50 MVA, 5 to 10 MVA)
The 5 to 10 MVA segment in the synchronous generator market is estimated to gain a robust revenue share of about 27% in the coming years. Those in the 5 to 10 MVA range are ideal for powering medium- to large-scale industrial processes, and for medium-sized grid applications where stability maintenance is crucial. Facilities such as hospitals, key infrastructure facilities, and data centers are guaranteed to have enough power reserves to continue operating during emergencies or grid disruptions owing to the use of synchronous generators with a capacity range of 5 to 10 MVA that serve as reliable backup power systems. Moreover, manufacturers' constant innovation efforts to enhance generator performance, and synchronous generators of 5 to 10 MVA are becoming more and more popular to provide a scalable answer to the rising energy demand in developing nations.
Prime Mover (Gas Turbine, Steam Turbine)
The gas turbine segment in the synchronous generator market is set to garner a notable share shortly. Custom-built synchronous generators are used in gas turbines which can start up quickly compared to other generators and are known to be more efficient. Synchronous generators deliver dependable, superior electricity as they have great efficiency in turning gas into electricity which also makes them suitable for operation with reciprocating engines, steam engines, and gas turbines that have higher thermodynamic efficiency when operating at high temperatures.
Our in-depth analysis of the global market includes the following segments:
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Prime Mover |
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Power Rating |
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End-User |
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APAC Market Forecast
The synchronous generator market in the Asia Pacific is predicted to account for the largest share of 45% by 2036 impelled by growing urbanization. India's towns and cities have grown quickly as a result of people migrating there owing to the country's natural population expansion, migration from rural to urban areas caused by rural poverty, and unemployment. For instance, in India, more than 460 million people live in urban areas, and this figure is increasing annually by over 2%. The process of urbanization depends heavily on infrastructure development including roads, public transportation, and sewage systems. Moreover, over the next five to ten years, India plans to invest more than USD1 trillion in roads, trains, and other infrastructure.
North American Market Statistics
The North America synchronous generator market is estimated to be the second largest, during the forecast period, led by the growing power outages. Owing to an aging grid, and increasingly extreme weather, such as the snowstorm in New York, which is a result of climate change, Americans experience power outages twice a year on average. For instance, the average length of a power outage in the United States increased from over 3 hours to over seven hours between 2013 and 2021. Particularly, in the last ten years, in the US, the number of power outages has surged by more than 60%.
Author Credits: Payel Roy, Dhruv Bhatia
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