Genset Market Size was valued at USD 22,433.1 Million in 2022. The Genset Market industry is projected to grow from USD 24,567.9 Million in 2024 to USD 34,357.3 Million by 2030, exhibiting a compound annual growth rate (CAGR) of 5.5% during the forecast period (2024 - 2030). A generator set or “genset” is a piece of portable equipment, consisting of an engine and an alternator/electric generator, used to provide energy. Gensets are often used in developing areas and other areas not connected to the power grid; places where power outages are frequent; and/or where an outage can cause especially significant or dangerous problems, such as deep in a mine. They can serve as the main source of energy or as a supplementary power source, perhaps during peak usage hours.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Increased efforts to combat power outages will promote the growth of the genset market. Following the winter storm and cold wave in Texas in February 2021, a blackout affected more than four million people. Most of the population's residential and professional tasks were perilous because the power outage persisted for more than a week. Due to these situations, consumers are more conscious of needing a dependable backup power supply. Natural weather events, including lightning, rain, snow, ice, wind, and dust, frequently result in power outages. While protecting customer electrical systems from the impacts of water and dust is more challenging, it only takes a little to protect them from large power outages caused by natural disasters like floods and strong storms. Water can cause power outages and short circuits. It makes sense to make sure customers are effectively secured against water entering electrical circuits because the damage it may do can be very costly. Keeping electrical switchboards, wires, and circuits out of water is important. Additionally, excessive moisture and dampness can cause significant harm. Sealed circuit boxes can also preserve y customer expensive electrical equipment and help customer avoid unanticipated power outages. This is growing the need of market.
Individual quality of life is improved, community services like health and education are made easier (consumption use), and commercial entities can conduct professional activities (productive use) for rural communities thanks to rural electrification using renewable energies or hybrid systems. These advantages are attainable without unintendedly harming regional ecosystems or the earth's climate. People lives are not possible without electrical power. For example, transportation, agriculture, industry, and communication all require power. More people with increased income increase production and thus more energy consumption, which is the fundamental link between energy and economics. Along with the population, the need for electricity is rising daily in all industries. The two most important global drivers of electrical power demand are population and income growth. Power engineers always concentrate on increasing the use of new and renewable energy to address the situation. Only two energy sources—wind genset and solar photovoltaics—have shown promise and mobility in using the energy they provide. Due to technical limits, the wind genset or solar PV size is more than that of the electric generating power. So rising in rural electrification is acting as opportunity for genset market.
The Genset Market segmentation, based on portability, includes stationary and portable. The stationary segment held the majority share in 2022 contributing to around ~77-81% with respect to the Genset Market revenue. The constant standby genset meets the strict and immediate power needs of enterprises. In the event of a power loss, this device can be manually or even automatically started because it is hardwired into the main distribution panel. An automatic transfer switch isolates the electrical wiring from the utility grid in the event of a power outage and activates the genset. The genset starts supplying the lines with electricity. When the electricity comes back on, the process is reversed, the genset is put into standby mode, and the incoming feed is obtained through utility lines.
The Genset Market data has been bifurcated by fuel largely into diesel, gas and others. The diesel segment dominated the market in 2022. Diesel genset can be used as a backup in a power outage or to supply electricity to locations not connected to the power grid. Ships also use diesel genset for propulsion and as a source of energy. Diesel genset are very popular as auxiliary power sources for emergency power supply. Diesel genset can be utilized in both single-phase and three-phase, making them suitable for usage in homes, small workplaces, and large organizations. Numerous benefits of diesel genset include their dependable operation, high efficiency, decreased maintenance costs, ability to operate under heavy loads, and other aspects. Additionally, the manufacturing, healthcare, oil and gas, maritime, and IT/telecom industries also use diesel genset extensively.
The Genset Market data has been bifurcated by end user largely into industrial, commercial and residential. The commercial segment dominated the market in 2022. Due to the service sector's rapid growth, which is anticipated to continue during the projection period, the commercial segment will be the largest market. During business hours, genset are mostly employed in the commercial sector to ensure a continuous power supply. Hospitals, lodging, dining, telecommuting hubs, and banking and insurance companies are part of the service industry.
The Genset Market data has been bifurcated by power rating largely into up to 100KVA, 100-350 KVA, 350-1000KVA, and above 1000KVA. The 350-1000KVA segment dominated the market in 2022. Due to escalating demand from the commercial, telecom & IT, and real estate markets, the segment is growing. Houses and businesses typically do not have significant power-consuming machinery like industries do. As a result, the demand for genset with a power rating of 350–1000 kVA is anticipated to be larger than that of genset with other power ratings. Additionally, the demand for these gensets in the Indian diesel Genset market is anticipated to be supported by elements like investments in the telecom sector and an increase in the installation of tower towers for connectivity in remote locations, combined with improvements in current network capabilities.
The Genset Market data has been bifurcated by end user largely into peak shaving, standby, and continuous. The continuous segment dominated the market in 2022.
By Region, the Genset Market industry study segments the market into North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America. Asia-Pacific Genset Market accounted for USD 9,848.1 million in 2022 and is expected to exhibit a 6.5% CAGR during the study period. This is attributed to the presence of growing population and emerging market in the region.
The North America region’s increasing need for a consistent and dependable power supply and the increased number of power outages boost the market growth. Additionally, the rapid construction of hotels, corporate buildings, and residential buildings increases the need for power backup solutions, increasing the need for genset. The market has expanded due to the impressive technological developments in genset technologies. The main drivers of the expansion of the genset market in North America are the country's fast industrialization and the expanding need for an uninterrupted power supply.
The market for genset in Europe is anticipated to be driven by elements such as a consistent and dependable power supply, backup power during power outages, and the extended time needed to build up the transmission and distribution infrastructure. However, it is anticipated that the market will be constrained by the greater price of electricity generated by genset compared to the utility grid. Due to the use of multiple resources, decreased cost, and less reliance on a single fuel, the industry may benefit from the expanding popularity of hybrid genset and the rising reliability of the hybrid system.
The market for genset in Asia-Pacific is being driven by elements such as the rising demand for electricity, the unreliable grid infrastructure, the desire for solutions for emergency backup power, and the necessity for a consistent power supply. However, the market's expansion is constrained by high installation and maintenance costs and consumer preference for environmentally friendly alternatives (solar, fuel cells, etc.).
Major market players’ growth depends on market conditions, government support, and industry development. Thus, the vendors should focus on expanding geographically and improving services. Many global, regional, and local vendors characterize the Genset market. The market is highly competitive, with all the players competing to gain market share. Intense competition, rapid advances in technology, frequent changes in government policies, and environmental regulations are key factors that confront market growth. The vendors compete based on cost, product quality, reliability, and government regulations. Vendors must provide cost-efficient, high-quality products to survive and succeed in an intensely competitive market.
Cummins Inc (Cummins) is a firm that specializes in power technologies. It develops, manufactures, and sells diesel and natural gas engines and power train components. The company's products include air handling systems, after-treatment, fuel systems, control systems, turbochargers, filtration, electric power generating systems, transmissions, batteries, and electrified power systems. Cummins sells to original equipment manufacturers, dealers, distributors, and other businesses. Its services consumers in various industries across North America, Europe, Asia Pacific, and South Pacific. Worldwide, the corporation has distribution, manufacturing, and other facilities. Cummins is based in Columbus, Indiana, in the United States.
Caterpillar Inc (Caterpillar) is a construction, transportation, and energy equipment producer. Construction and mining equipment, industrial gas turbines, forestry equipment, diesel-electric locomotives, and diesel and natural gas engines are all designed, manufactured, marketed, and sold by the company. The company offers asphalt pavers, backhoe loaders, compactors, draglines, integrated systems, reciprocating engines, and other products. Customers and dealers can now get retail and wholesale financing for Caterpillar goods from Caterpillar. Through its subsidiaries and dealers, the company markets and distributes its products across North and South America, Asia-Pacific, Africa, the Middle East, and Europe.
May 2022: Generac Power Systems, Inc. has introduced two new dual-fuel capable Powermate portable generators: the Powermate 4500-Watt Dual Fuel Portable Generator and the Powermate 7500-Watt Dual Fuel Portable Generator. Both variants are intended to run on either gasoline or compressed natural gas.
Recon Technologies Pvt Ltd, an authorized OEM for Mahindra Powerol Gensets, announced in March 2024 the release of a new range of diesel generators that are compatible with CPCB IV+. The authorized distributor in Telangana and Andhra Pradesh is prepared to supply the full range of gensets up to 625 KVA, complying with Hyderabad’s latest CPCBIV+ emission standards.
Additionally, Jakson Group demonstrated its deep commitment to sustainable and advanced power backup solutions by opening a state-of-the-art manufacturing plant at Phaltan in Maharashtra in December 2023. It is estimated that this factory will produce around 2500 gensets per year. The company makes gensets from 250KVA up to 3500KVA, inclusive of those meeting the new CPCB IV+ regulations. This means that the CPCB IV+ genset can serve different power requirements while being fuel efficient through lower emissions. This is consistent with our commitment to providing sustainable energy solutions. This facility almost triples Jakson’s current manufacturing capacity, taking it up to approximately 15,000 gensets per annum ultimately.
September 2023- Kirloskar Oil Engines (KOEL), a well-known player in the power generation sector, introduced its latest collection of gensets, which are compliant with stringent CPCB IV+ norms. These MGS sets represent KOEL’s firm resolve towards offering high-performance, fuel-efficient as well as environment-friendly products that conforming to Central Pollution Control Board (CPCB) emission limits.
For instance, Mitsubishi Heavy Industries Engine & Turbocharger, Ltd. (MHIET) recently unveiled the family’s newest member, MGS3100R, in August 2023. It was designed specifically for emergency geneset applications where additional electricity is required during outage periods.MGS’ worldwide operations, including manufacturing plants located in Vietnam and Singapore, target Asia-Pacific region customers.
Also, Tata Motors launched a new series of generator sets in India in July 2023. This gensets are in compliance with CPCB IV+ regulations and come at 25kVA to 125kVA. The new series of gensets allegedly feature higher fuel efficiency and stronger block loading capacity, thus reducing running expenses. These engines have been meticulously designed, developed, and tested at the company’s research and development facility. The number of applications for which they are suitable is vast.
In June 2020, Cummins Inc. made a major breakthrough with the announcement that it had launched its next-generation gensets featuring an advanced digital control platform.
On January 25, 2021, Caterpillar Inc. brought a considerable change into the genset market by introducing a new range of generators based on a sustainable design philosophy.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 22433.1 Million |
| Market Size 2023 | USD 23442.6 Million |
| Market Size 2030 | USD 34357.3 Million |
| Compound Annual Growth Rate (CAGR) | 5.5% (2024-2030) |
| Base Year | 2023 |
| Forecast Period | 2024-2030 |
| Historical Data | 2019 – 2021 |
| Forecast Units | Value (USD Million) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Portability, Fuel, End User, Power Rating and Application |
| Geographies Covered | North America, Europe, Asia Pacific, Middle East & Africa, and Latin America |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and, Saudi Arabia, UAE, Brazil, Argentina, and others |
| Key Companies Profiled | Cummins Inc., Atlas Copco Holdings Ltd., John Deere, Wartsila, Caterpillar Inc., Aggreko Ltd., Generac Holdings Inc., Kohler Co., Kirloskar Electric Company, Yanmar Co. Ltd., Greaves Cotton Limited |
| Key Market Opportunities | Increasing number of power outages |
| Key Market Dynamics | Rising need for uninterrupted & reliable power supply |
Genset Market Highlights:
Frequently Asked Questions (FAQ) :
As of 2022, Genset is worth USD 22433.1million.
The Genset Market is growing at a CAGR of 5.5 %.
The Asia-Pacific region holds the largest market share in the Genset market.
Cummins Inc., Atlas Copco Holdings Ltd., John Deere, Wartsila, Caterpillar Inc., Aggreko Ltd., Generac Holdings Inc., Kohler Co., Kirloskar Electric Company, Yanmar Co. Ltd., Greaves Cotton Limited are some of the prominent players in the market.
The diesel segment in the Genset Market is leading commercial market growth.
The commercial segment has the largest market share.
Team Lead - Research Anshula mandaokar holds an academic degree in chemical engineering and has been contributing to the field for more than 5 years. she has expertise in market research and business consulting and serves as a team lead for a reputed market research firm under the chemicals and materials domain spectrum. she has worked on multiple projects, generating explicit results in a quick turnaround time. her understanding of data interpretation justifies her role as a leader.
Get in Touch
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
