Global Generator Set Market Overview:
As per MRFR analysis, the Generator Set Market Size was estimated at 13.35 (USD Billion) in 2022. The Generator Set Market Industry is expected to grow from 13.79 (USD Billion) in 2023 to 18.5 (USD Billion) by 2032. The Generator Set Market CAGR (growth rate) is expected to be around 3.32% during the forecast period (2024 - 2032).
Key Generator Set Market Trends Highlighted
In the Generator Set Market, there is an increasing demand as uninterrupted power supply is required in numerous industries such as healthcare, telecom, construction, and manufacturing. The risk of deterioration of power structures has explained the need for crucial third and power backup power systems. Put on the table are the off grid electricity generation projects in which the generator sets remain central to ensuring that the places and regions that are buried in the remote expanse are supplied constant power. New technologies and innovations are providing new prospects for the growth of the generator set market. There has been a growing demand for cleaner and more efficient solutions, which has led to the development of fuel-burning generator sets that comply with emissions standards. Other trends include new changes in the Generator Set Market regarding the integration of smart technologies and automation systems in the operation of the generator sets that improve the efficiency of use of the generator sets with a lower cost of their service each time. In addition to this, the increasing trend for portable and miniature generator sets satisfies the increasing need for mobile power in remote areas or emergency situations. The market is also undergoing changes in the direction of rental services that are cheaper compared to long-term ownership.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Generator Set Market Drivers
Increasing Demand for Backup Power Solutions
Trends in the frequency and scale of power outages, as well as the use of more and more electronic devices and vital infrastructure, fuel the continued growth of the backup power market. Generator sets provide an effective and stable supply of power at times of emergency, including blackouts and failures in the grid. Therefore, the decision to continue using generator sets both in private and industrial fashion should boost this market’s growth. In conjunction with that, the growth of on-the-go events, both public and private, as well as construction and various other activities in isolated locations, should increase the demand for mobile generator sets.
Growing Infrastructure Investments
Governments and businesses all over the world invest in infrastructure development heavily. Power grids get expanded, and new data centers and telecommunication networks are constructed. Growing infrastructure spending prompts strong demand for reliable and efficient power generation solutions, and generator sets are among them. This type of equipment plays a vital role in providing backup power to critical infrastructure, helping to maintain normal operation and avoid downtime caused by power outages.
Environmental Regulations and Sustainability Initiatives
The implementation of strict environmental regulations, as well as a number of sustainability initiatives, have prompted a growing number of businesses and governments to adopt a cleaner and more efficient mode of power generation. Renewable energy sources such as solar and wind power are being increasingly used to power generator sets due to their minimal environmental impact. At the same time, the overall tendency towards reducing carbon emissions and increasing the adoption of sustainable practices by both businesses and governments remains strong, further augmenting the demand for generator sets that would meet these requirements.
Generator Set Market Segment Insights:
Generator Set Market Power Rating Insights
The power rating segment plays a crucial role in shaping the Generator Set Market landscape. In 2023, the market size for 'Up to 10 kW' power rating was valued at USD 2.5 billion, capturing a significant share of the overall market. This segment is primarily driven by the rising demand for small-scale generators for residential and commercial applications. The '10 kW to 100 kW' power rating segment is projected to experience a robust growth rate of 4.0% CAGR during the forecast period, owing to its increasing adoption in industrial and construction sectors.The '100 kW to 1,000 kW' power rating segment is expected to account for a sizable portion of the Generator Set Market revenue, driven by its wide-ranging applications in data centers, healthcare facilities, and manufacturing plants. The demand for larger generators with power ratings ranging from '1,000 kW to 10,000 kW' is anticipated to grow at a steady pace, stimulated by the increasing need for backup power in critical infrastructure and industrial settings. Furthermore, the 'Above 10,000 kW' power rating segment is expected to witness moderate growth, primarily driven by specialized applications such as power plants and large-scale industrial facilities.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Generator Set Market Application Insights
Based on the application, the market is segmented into residential, commercial, industrial, medical, telecommunications, and transportation applications. The industrial sector is the main revenue generation segment of the Generator Set Market that is expected to grow with a CAGR of 3.6% from 2023 to 2032. The main factor behind this growth is the surge in the industrial sector, especially in the developing countries. In this sector, the use of automation and digitalization of all operations is on the rise. So, there is a need for increased backup power supply.The residential sector is expected to show significant growth with a CAGR of 3.4% from 2023 to 2032. The major factor is the surge in urbanization. The demand for emergency backup power has increased in the enhanced use of home appliances. Also, the rising disposable income in emerging countries is another factor driving the demand for residential generators. The commercial sector is expected to grow with a CAGR of 3.2% from 2023 to 2032. An increase in the need for reliable backup power in various businesses such as offices, retail shops, and hospitals is expected to drive the growth of the commercial sector.The medical, telecommunication, and transportation sectors are also expected to contribute to the growth of the market. However, they are expected to grow at a lower rate. One of the main reasons for the growth in these segments is the rise in demand for continuous power supply from critical infrastructure-related sectors such as hospitals.
Generator Set Market Fuel Type Insights
The Generator Set Market segmentation by Fuel Type includes Diesel, Gasoline, Natural Gas, Biodiesel, Solar, and Wind. Diesel generators are projected to hold the largest market share in 2023 due to their reliability, fuel efficiency, and wide availability. In 2023, the Diesel generator segment is expected to be valued at USD 7.89 billion, and it is projected to reach USD 10.23 billion by 2032, exhibiting a CAGR of 3.5% during the forecast period. Gasoline generators are anticipated to witness a steady growth rate over the forecast period, owing to their affordability and portability.Natural Gas generators are gaining popularity due to their environmental friendliness and cost-effectiveness. Biodiesel generators are expected to experience a moderate growth rate due to their sustainability and government initiatives promoting renewable energy sources. Solar and Wind generators are expected to witness significant growth in the coming years due to the increasing adoption of renewable energy sources and government incentives.
Generator Set Market Portability Insights
The portability segment of the Generator Set Market is categorized into portable, stationary, and vehicle-mounted types. The portable segment held the largest market share in 2023, accounting for approximately 45% of the Generator Set Market revenue. The growth of the portable segment is attributed to the increasing demand for backup power solutions in remote areas, construction sites, and recreational activities. Portable generators offer flexibility ease of transportation, and can be deployed quickly during power outages or emergencies.The stationary segment is expected to witness steady growth due to the rising demand for reliable power supply in industries, data centers, and commercial buildings. Vehicle-mounted generators are gaining popularity in the automotive and transportation sectors, providing auxiliary power for vehicles such as ambulances, RVs, and military equipment. The increasing demand for uninterrupted power in these applications is driving the growth of the vehicle-mounted segment.
Generator Set Market Cooling System Insights
The Generator Set Market is segmented by cooling system into Air-Cooled, Water-Cooled, and Oil-Cooled. The Air-Cooled segment accounted for the largest share of the Generator Set Market in 2023 and is projected to continue to dominate the market through 2032. The Water-Cooled segment is expected to experience the highest growth over the forecast period due to the increasing demand for efficient and reliable power generation systems. The Oil-Cooled segment is expected to account for a small share of the Generator Set Market but is expected to grow at a steady pace over the forecast period.
Generator Set Market Regional Insights
The Generator Set Market is segmented into North America, Europe, APAC, South America, and MEA. Among these regions, APAC is expected to hold the largest market share in the coming years. The growth in this region can be attributed to the increasing demand for electricity from emerging economies such as China and India. Additionally, government initiatives to promote the use of renewable energy sources are also contributing to the growth of the generator set market in APAC. Europe is another important region for the generator set market. The region has a well-established infrastructure and a large number of industrial and commercial establishments.The demand for generator sets in Europe is expected to remain strong in the coming years, driven by the need for backup power in the event of power outages or grid failures. North America is also a significant region for the generator set market. The region has a large number of commercial and industrial establishments, which require backup power to ensure uninterrupted operations. The demand for generator sets in North America is expected to grow steadily in the coming years, driven by the increasing demand for electricity and the need for reliable backup power.South America and MEA are also expected to witness growth in the generator set market in the coming years. The growth in these regions can be attributed to the increasing demand for electricity from emerging economies and the need for backup power in the event of power outages or grid failures.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Generator Set Market Key Players And Competitive Insights:
Major players in the Generator Set Market industry are constantly striving to gain a competitive edge by introducing innovative products and technologies. Leading Generator Set Market players are focusing on research and development to improve the efficiency and performance of their products. The Generator Set Market development is being driven by the increasing demand for reliable and portable power sources in various industries. The competitive landscape of the Generator Set Market is expected to remain fragmented, with a number of key players competing for market share.Cummins, a leading player in the Generator Set Market, offers a wide range of diesel and natural gas generators for various applications. The company has a strong global presence and is known for its reliable and efficient products. Cummins is also investing in new technologies, such as hybrid and battery-powered generators, to meet the evolving needs of customers.Caterpillar, a major competitor in the Generator Set Market, provides a comprehensive line of diesel and gas generators for industrial, commercial, and residential use. The company is known for its durable and long-lasting products. Caterpillar is also expanding its product portfolio to include renewable energy solutions, such as solar and wind generators.
Key Companies in the Generator Set Market Include:
- Yanmar
- Kohler
- Generac Power Systems
- Pramac
- Atlas Copco
- Himoinsa
- FG Wilson
- SDMO
- Caterpillar
- Wacker Neuson
- Doosan Portable Power
- JCB Power Products
- MTU Onsite Energy
- Mitsubishi Heavy Industries
- Cummins
Generator Set Market Industry Developments Growing adoption of renewable energy sources, such as solar and wind power, is driving demand for backup power solutions, including generator sets. Increasing demand for reliable power supply in emerging markets is fueling the growth of the generator set market. Technological advancements, such as the development of more efficient and environmentally friendly generator sets, are creating new opportunities for market growth. Strategic partnerships between key players in the generator set industry are expected to drive market consolidation and innovation.Current affairs in the Generator Set Market include: The ongoing COVID-19 pandemic has disrupted supply chains and impacted demand for generator sets in some regions. Government regulations and policies aimed at reducing carbon emissions are driving the adoption of low-emission generator sets. The rising popularity of electric vehicles is creating new opportunities for the development of mobile generator sets.
Generator Set Market Segmentation Insights
Generator Set Market Power Rating Outlook
- Up to 10 kW
- 10 kW to 100 kW
- 100 kW to 1,000 kW
- 1,000 kW to 10,000 kW
- Above 10,000 kW
Generator Set Market Application Outlook
- Residential
- Commercial
- Industrial
- Medical
- Telecommunications
- Transportation
Generator Set Market Fuel Type Outlook
- Diesel
- Gasoline
- Natural Gas
- Biodiesel
- Solar
- Wind
Generator Set Market Portability Outlook
- Portable
- Stationary
- Vehicle-Mounted
Generator Set Market Cooling System Outlook
- Air-Cooled
- Water-Cooled
- Oil-Cooled
Generator Set Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
13.35 (USD Billion) |
| Market Size 2023 |
13.79 (USD Billion) |
| Market Size 2032 |
18.5 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
3.32% (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, Kohler, Generac Power Systems, Pramac, Atlas Copco, Himoinsa, FG Wilson, SDMO, Caterpillar, Wacker Neuson, Doosan Portable Power, JCB Power Products, MTU Onsite Energy, Mitsubishi Heavy Industries, Cummins |
| Segments Covered |
Power Rating, Application, Fuel Type, Portability, Cooling System, Regional |
| Key Market Opportunities |
1 Increasing demand for backup power solutions2 Growing adoption of renewable energy sources3 Expanding industrial and manufacturing sectors in emerging economies4 Government initiatives promoting off-grid power generation |
| Key Market Dynamics |
Growing demand for reliable power, increasing industrialization, rising adoption of healthcare government initiatives and technological advancements |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Generator Set Market is expected to reach USD 22.45 billion in 2023 and is projected to grow at a CAGR of 4.1% from 2024 to 2032.
The Asia-Pacific region is expected to dominate the Generator Set Market due to increasing demand from developing countries such as China, India, and Southeast Asian countries.
The key growth drivers of the Generator Set Market include increasing demand for backup power in commercial and industrial sectors, growing deployment of renewable energy sources, and rising demand for portable power generators in remote areas.
The key competitors in the Generator Set Market include Caterpillar, Generac Power Systems, Cummins, Kohler, and Atlas Copco.
The emerging trends in the Generator Set Market include the adoption of digital technologies, the integration of renewable energy sources, and the development of more efficient and environmentally friendly generator sets.
The COVID-19 pandemic had a significant impact on the Generator Set Market, leading to a decline in demand due to disruptions in supply chains and economic slowdown. However, the market is expected to recover in the coming years as economic activities resume.
Generator sets are used in a wide range of applications, including backup power for commercial and industrial facilities, prime power for remote communities and off-grid locations, and portable power for construction sites and outdoor events.
Generator sets are available in various types, including diesel generators, gasoline generators, natural gas generators, and solar generators. Each type has its own advantages and disadvantages, depending on the specific application.
When choosing a generator set, key factors to consider include the power output required, the fuel type, the portability, the noise level, and the maintenance requirements.
The Generator Set Market is expected to continue to grow in the coming years, driven by increasing demand for backup power, the growth of renewable energy, and the rising popularity of portable power generators.
