As per MRFR analysis, the Commercial Standby Generator Set Market Size was estimated at 2.65 (USD Billion) in 2022. The Commercial Standby Generator Set Market Industry is expected to grow from 2.78 (USD Billion) in 2023 to 4.21 (USD Billion) by 2032. The Commercial Standby Generator Set Market CAGR (growth rate) is expected to be around 4.73% during the forecast period (2024 - 2032).
Key Commercial Standby Generator Set Market Trends Highlighted
There has been a significant rise in the commercial standby generator set market due to increased demand for power supply and equipment safety for commercial use. When electricity is cut off in a system, several different verticals, including healthcare, telecommunications, manufacturing, and other critical systems, require a backup in order to resume operation as fast as possible. In this context, where the rise of electronic devices and digital infrastructure is also quite discernable, the need for reliable power supply becomes even more urgent. This connotes how the commercial standby generator set market can be expected to grow on the back of emerging technologies and new markets. This concern about the generator market deals with the development of new generation and design of generator remote monitoring systems, and fuel efficiency.
Furthermore, rapid growth opportunities are evident in developing countries with a high incidence of inadequate infrastructure and the reliability of power grids. The recent development in the commercial standby generator set market is the inclination towards portable, compact & lightweight generators by a clientele base that is faced with limited space & specific power capabilities. Gensets are incorporating renewable energy sources for standby power systems; this includes integrating solar panel generators with generator systems, which provides an affordable and green energy source for emergency backup. Also, the growing use of cloud-based monitoring and control systems helps to increase maintenance performance and uptime by enabling the performance of predictive maintenance from any location.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Commercial Standby Generator Set Market Drivers
Increasing Demand for Reliable Power
The increasing demand for reliable power in commercial and industrial facilities is a major driver of the Commercial Standby Generator Set Market Industry. Businesses rely on a continuous supply of electricity to maintain operations, and standby generators provide a backup source of power in the event of a power outage. This is especially important for businesses that operate in areas prone to natural disasters or power disruptions. The demand for reliable power is also increasing in developing countries, where the infrastructure is often unreliable.As a result, the market for commercial standby generator sets is expected to grow in the coming years.
Rising Adoption of Renewable Energy Sources
The increasing acceptance of renewable energy sources, such as solar power, as well as wind power, is another notable driver of the Commercial Standby Generator Set Market Industry. Renewable sources of energy are not always available because they are resource-dependent. Hence, it implies that renewable sources of energy are intermittent. Nonetheless, a standby generator can always get the job done. Consequently, companies, as well as enterprises connected to the commercial industry striving to accept gas or any other renewable sources of energy may rely on a reliable source of power.Using renewable sources of energy will be adopted in the near future.
Government Regulations and Incentives
Government regulations and incentives are also driving the growth of the Commercial Standby Generator Set Market Industry. In many countries, there are regulations that require businesses to have a backup source of power. These regulations are in place to protect public safety and to ensure that businesses can continue to operate in the event of a power outage. In addition, many governments offer incentives to businesses that install standby generators.These incentives can include tax breaks and rebates. Government regulations and incentives are expected to continue to support the growth of the commercial standby generator set market in the coming years.
Commercial Standby Generator Set Market Segment Insights:
Commercial Standby Generator Set Market Power Output Insights
The Commercial Standby Generator Set Market is segmented by power output into Less than 50 kW, 51-100 kW, 101-250 kW, 251-500 kW, and More than 500 kW. The power output segment is a crucial factor in determining the market dynamics of commercial standby generator sets. The segment with the largest revenue share is expected to be More than 500 kW, with a significant portion of the market in 2023. This segment is projected to maintain its dominance throughout the forecast period, owing to the increasing demand for high-power backup solutions in large commercial and industrial facilities.The 101-250 kW segment is also expected to witness significant growth, driven by the rising adoption of standby generators in mid-sized commercial buildings, healthcare facilities, and data centers. These generators provide reliable backup power during emergencies, ensuring business continuity and protecting critical infrastructure. The 51-100 kW segment is anticipated to hold a substantial share of the market, catering to the needs of small and medium-sized businesses, retail stores, and offices. These generators offer a cost-effective solution for providing backup power in the event of grid outages or power disruptions.The Less than 50 kW segment is projected to experience steady growth, driven by the increasing demand for portable and residential backup generators. These generators are commonly used in homes, RVs, and camping applications, providing a reliable power source during outdoor activities or emergency situations. As the commercial standby generator set market continues to expand, the power output segment will remain a key driver of growth. With the increasing adoption of standby generators in various industries and applications, the demand for different power output ranges is expected to shape the market dynamics in the coming years.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Commercial Standby Generator Set Market Fuel Type Insights
The Commercial Standby Generator Set Market is segmented by fuel type into Diesel, Natural Gas, Gasoline, and Other. Diesel generators dominate the market and are expected to continue to do so over the forecast period. The increasing demand for reliable and efficient power backup solutions in commercial establishments, such as hospitals, data centers, and manufacturing facilities, is driving the growth of the diesel generator market. Diesel generators offer several advantages over other fuel types, including high fuel efficiency, reliability, and durability.Natural gas generators are also gaining popularity due to their lower operating costs and environmental benefits. However, the availability of natural gas infrastructure limits the growth of the natural gas generator market in some regions. Gasoline generators are typically used as portable backup power sources for smaller applications, such as homes and small businesses. Other fuel types, such as solar and wind, are emerging as alternative power sources for standby generators, but their market share is still relatively small.
Commercial Standby Generator Set Market End-User Industry Insights
The end-user industry segment is a critical factor in the Commercial Standby Generator Set Market, influencing market growth and demand. In 2023, the healthcare industry held a significant market share, driven by the increasing need for reliable power backup in hospitals and healthcare facilities. The telecommunications sector is also a major consumer, with the demand for uninterrupted connectivity driving the adoption of standby generators. Data centers, industrial facilities, and commercial buildings are other key end-user industries, emphasizing the importance of power continuity for critical operations.Residential applications are also expected to contribute to market growth, with homeowners seeking backup power solutions amid increasing power outages and extreme weather events.
Commercial Standby Generator Set Market Regional Insights
The regional segmentation of the Commercial Standby Generator Set Market offers valuable insights into the market dynamics and growth potential across different regions. North America is expected to dominate the market, accounting for a significant share of the revenue in 2023 and continuing to hold a leading position during the forecast period. The region's robust infrastructure, stringent regulations, and high demand for reliable backup power solutions in various sectors are key drivers of growth in North America. Europe is another prominent region in the market, with a strong presence of key players and a growing focus on renewable energy integration.The increasing adoption of microgrids and distributed energy systems in the region is expected to drive market growth in Europe. APAC is the fastest-growing region in the Commercial Standby Generator Set Market, driven by rapid industrialization, infrastructure development, and rising demand for uninterrupted power supply in emerging economies like China, India, and Southeast Asia. South America and MEA also present significant growth opportunities due to growing urbanization, increasing investments in infrastructure, and the need for backup power solutions in remote areas and developing economies.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Commercial Standby Generator Set Market Key Players And Competitive Insights:
Major players in the Commercial Standby Generator Set Market industry are continually focusing on developing innovative products and solutions to meet the evolving needs of customers. Leading Commercial Standby Generator Set Market players are investing heavily in research and development to enhance the efficiency, reliability, and cost-effectiveness of their products. The Commercial Standby Generator Set Market is characterized by intense competition, with numerous established and emerging players vying for market share. Partnerships, acquisitions, and collaborations are common strategies adopted by companies to expand their presence and gain a competitive edge.Cummins is a leading player in the Commercial Standby Generator Set Market, recognized for its extensive product portfolio, presence, and strong brand reputation. The company offers a wide range of diesel and natural gas-powered standby generators tailored to meet the diverse needs of commercial applications. Cummins has a well-established distribution network and provides comprehensive after-sales support, contributing to its strong customer base.Another key competitor in the Commercial Standby Generator Set Market is Generac Holdings Inc. The company focuses on manufacturing and distributing portable and stationary generators for residential, commercial, and industrial applications. Generac has a strong presence in the North American market and is expanding its reach globally. The company's product portfolio includes a variety of standby generators designed to provide reliable backup power during outages. Generac places emphasis on product innovation and customer service, which has helped it gain a significant market share.
Key Companies in the Commercial Standby Generator Set Market Include:
Commercial Standby Generator Set Market Industry Developments
The commercial standby generator set market is projected to grow from an estimated USD 2.89 billion in 2023 to USD 4.21 billion by 2032, at a CAGR of 4.73%. This growth is attributed to the increasing demand for reliable backup power supply in commercial establishments, such as hospitals, data centers, and office buildings. The market is also being driven by the growing adoption of renewable energy sources, which require backup power systems to ensure uninterrupted power supply. Furthermore, government regulations mandating the use of standby generators in critical infrastructure are also contributing to the market growth. Recent news developments include the launch of new and innovative standby generator sets by major manufacturers, such as Cummins, Kohler, and Generac, and the growing adoption of smart standby generators that offer remote monitoring and control capabilities.
Commercial Standby Generator Set Market Segmentation Insights
| Report Attribute/Metric | Details |
| Market Size 2022 | 2.65 (USD Billion) |
| Market Size 2023 | 2.78 (USD Billion) |
| Market Size 2032 | 4.21 (USD Billion) |
| Compound Annual Growth Rate (CAGR) | 4.73% (2024 - 2032) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year | 2023 |
| Market Forecast Period | 2024 - 2032 |
| Historical Data | 2019 - 2023 |
| Market Forecast Units | USD Billion |
| Key Companies Profiled | Yanmar, Generac Power Systems, Pramac, Atlas Copco, Himoinsa, FG Wilson, Caterpillar, KOHLER Power Systems, Doosan Portable Power, Isuzu Motors, Toshiba Corporation, MTU Onsite Energy, Cummins, GE Power, Waukesha Engine Technologies |
| Segments Covered | Power Output, Fuel Type, End-User Industry, Regional |
| Key Market Opportunities | Growing construction increasing power outages, rising demand for backup power, technological advancements expanding data centers |
| Key Market Dynamics | Increased power outages Aging infrastructure Growing demand for reliable power Government regulations Technological advancements |
| Countries Covered | North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The commercial standby generator set market size was valued at USD 2.78 billion in 2023 and is projected to grow at a CAGR of 4.73% to reach USD 4.21 billion by 2032.
Asia Pacific is expected to dominate the commercial standby generator set market throughout the forecast period due to the increasing demand for reliable power backup solutions in emerging economies such as China, India, and Indonesia.
The growing demand for uninterrupted power supply in commercial establishments, government buildings, and healthcare facilities, coupled with the increasing frequency of power outages and grid failures, is driving the growth of the commercial standby generator set market.
Some of the key players in the commercial standby generator set market include Caterpillar, Cummins, Generac, Kohler, and Yamaha Motor.
Commercial standby generator sets are used in a wide range of applications, including healthcare facilities, telecommunication networks, data centers, commercial buildings, and industrial facilities.
The commercial standby generator set market faces challenges such as stringent environmental regulations, rising raw material costs, and intense competition from alternative power backup solutions such as solar photovoltaic systems and energy storage systems.
The commercial standby generator set market is projected to grow at a CAGR of 4.73% from 2024 to 2032.
Key trends in the commercial standby generator set market include the adoption of advanced technologies such as remote monitoring and control systems, the increasing demand for fuel-efficient and environmentally friendly generators, and the growing popularity of rental and leasing options.
The COVID-19 pandemic had a significant impact on the commercial standby generator set market, leading to a decline in demand due to the slowdown in economic activities and project postponements. However, the market is expected to recover post-pandemic as businesses and governments prioritize reliable power backup solutions.
Opportunities for growth in the commercial standby generator set market include the increasing demand for reliable power backup solutions in emerging economies, the adoption of smart grid technologies, and the development of innovative and sustainable generator technologies.
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Senior Research Analyst With an experience of over five years in market research industry (chemicals & materials domain), i gather and analyze market data from diverse sources to produce results, which are then presented back to a client. also, provide recommendations based on the findings. as a senior research analyst, i perform quality checks (qc) for market estimations, qc for reports, and handle queries and work extensively on client customizations. also, handle the responsibilities of client proposals, report planning, report finalization, and execution
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