Global Residential Generator Market Overview
As per MRFR analysis, the Residential Generator Market Size was estimated at 10.27 (USD Billion) in 2022. The Residential Generator Market Industry is expected to grow from 10.7(USD Billion) in 2023 to 15.4 (USD Billion) by 2032. The Residential Generator Market CAGR (growth rate) is expected to be around 4.13% during the forecast period (2024 - 2032).
Key Residential Generator Market Trends Highlighted
Key market drivers for residential generators include the growing incidence of severe weather events, increasing power outages, and rising concerns about grid reliability. Homeowners are seeking reliable backup power solutions to protect their homes, families, and essential appliances during power outages. Opportunities in the residential generator market lie in the development of innovative technologies that enhance efficiency, sustainability, and user-friendliness. Hybrid generators, which combine traditional fuel sources with renewable energy, offer the potential to reduce emissions and operating costs.
Additionally, remote monitoring and control systems allow homeowners to manage their generators remotely, providing peace of mind and convenience. Recent trends in the residential generator market include growing demand for portable generators due to their versatility and affordability. Advancements in inverter technology have made portable generators quieter and more efficient. Furthermore, there is a shift towards larger generators with higher wattage capacities to accommodate increasing power requirements in modern homes. Smart home integration is also becoming prevalent, enabling generators to be controlled and monitored through home automation systems. By leveraging these trends, manufacturers can differentiate their products and cater to the evolving needs of homeowners seeking reliable and innovative backup power solutions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Residential Generator Market Drivers
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Increasing Demand for Backup Power during Natural Disasters and Blackouts
increased occurrences of natural disasters like hurricanes, floods, and earthquakes have necessitated the adoption of backup power solutions. Residential generators have gained popularity due to this factor as they provide electricity in such events. Homeowners are using these power plants to ensure that refrigeration, lighting, and communication services are provided regardless of the situation. Additionally, the high incidence of power surges from the grid because of such aspects as weak infrastructure, which is old and exposed to the harsh conditions posed by extreme weather, has led to market growth. The Global Residential Generator Market Industry is, therefore, growing steadily seeing as many residents want to be well-prepared for any emergencies that might lead to power-related interruptions.
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Rising Adoption of Smart Homes and Connected Devices
The proliferation of smart homes and connected devices has created a growing need for reliable power supply. Smart home systems, including security cameras, smart appliances, and home automation devices, rely on a constant source of electricity to function effectively. Residential generators ensure the uninterrupted operation of these systems, providing homeowners with enhanced security, convenience, and energy efficiency. Additionally, the integration of smart features into generators, such as remote monitoring and control, further enhances their appeal to tech-savvy homeowners.
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Government Incentives and Regulations Supporting Sustainable Energy Solutions
With the growing concern of global warming and pollution, governments all over the world are promoting sustainable solutions to generate energy to reduce their carbon footprint. As a support tool, many countries offer financial benefits to the house owners including tax benefits and rebates upon purchasing the renewable energy and energy-efficient technology. This movement is also benefiting the residential generators in some regions, especially those who operate on alternative fuels, such as natural gas or propane. Thus, instead of wasting time-consuming and polluting power sources, the government is increasing residential generators' market revenue.
Residential Generator Market Segment Insights
Residential Generator Market Fuel Type Insights
The Global Residential Generator Market is segmented by fuel type into diesel, gasoline, natural gas, propane, and solar. Among these, the diesel segment held the largest market share in 2023, and it is projected to continue its dominance during the forecast period. The growth of the diesel segment can be attributed to its high efficiency, reliability, and long lifespan. Additionally, diesel generators are relatively affordable and easy to maintain, making them a popular choice for residential use. The gasoline segment is expected to witness significant growth during the forecast period due to increasing demand for portable generators.
Gasoline generators are lightweight and easy to transport, making them ideal for use in outdoor activities and emergencies. The natural gas segment is also expected to grow steadily due to the increasing availability of natural gas infrastructure and its lower operating costs compared to diesel. The propane segment is expected to experience moderate growth during the forecast period due to its clean-burning properties and portability. Propane generators are often used as backup power sources for homes and businesses. The solar segment is expected to witness the highest growth rate during the forecast period due to the increasing popularity of renewable energy sources and government incentives for solar installations.
Solar generators are becoming more affordable and efficient, making them a viable option for residential use. Overall, the Global Residential Generator Market is expected to grow at a steady pace during the forecast period, driven by increasing demand for reliable and efficient power backup solutions. The market is expected to reach a value of 21.3 billion U.S. dollars by 2030, up from 15.4 billion U.S. dollars in 2023.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Residential Generator Market Power Output Insights
The Global Residential Generator Market is segmented by power output, with categories ranging from less than 5 kW to over 100 kW. In 2023, the 5-10 kW segment held the largest market share, accounting for approximately 35% of the global revenue. This segment is expected to continue its dominance, reaching a valuation of 5.4 billion USD by 2032 and growing at a CAGR of 4.3%. The less than 5 kW segment is projected to grow at a CAGR of 4.1%, reaching a value of 2.9 billion USD by 2032. The 10-20 kW segment is anticipated to grow at a CAGR of 4.2%, reaching a value of 3.6 billion USD by 2032. The 20-50 kW segment is expected to reach a value of 2.1 billion USD by 2032, growing at a CAGR of 4.0%. The 50-100 kW and over 100 kW segments are projected to grow at CAGRs of 3.9% and 3.8%, respectively, reaching valuations of 1.2 billion USD and 0.7 billion USD by 2032.
Residential Generator Market Cooling Type Insights
The Global Residential Generator Market segmentation by Cooling Type includes Air-cooled and Liquid-cooled. The Air-cooled segment held a larger market share in 2023, and it is expected to continue its dominance during the forecast period. The growth of the segment is attributed to the increasing adoption of air-cooled generators in residential applications due to their lower cost and ease of maintenance. However, the Liquid-cooled segment is expected to witness a higher growth rate over the forecast period, owing to its superior cooling efficiency and ability to handle higher loads.
In 2023, the Air-cooled segment accounted for around 60% of the Global Residential Generator Market revenue, while the Liquid-cooled segment accounted for the remaining 40%. By 2032, the Air-cooled segment is projected to reach a market size of USD 9.2 billion, while the Liquid-cooled segment is expected to reach a market size of USD 6.2 billion. The growth of the Liquid-cooled segment is expected to be driven by the increasing demand for high-performance generators in residential applications.
Residential Generator Market Application Insights
Residential generators are in high demand as a result of their adaptability and usefulness in a variety of applications, including primary, backup, and off-grid power sources. The market segmentation by application provides valuable insights into the diverse usage patterns of residential generators. As a primary power source, generators play a critical role in remote areas or during power outages, providing reliable electricity for essential appliances and lighting. In 2023, the primary power source segment held a significant market share of 45%, highlighting its importance in regions with limited grid connectivity.
As a backup power source, residential generators offer peace of mind during emergencies or unexpected power disruptions. They ensure the continuity of essential services, such as refrigeration, medical equipment, and communication systems. The backup power source segment is projected to grow at a steady pace, capturing a market share of 38% in 2023. Off-grid power sources, particularly solar generators, are gaining popularity as a sustainable and cost-effective alternative to traditional grid-tied systems. They provide clean, renewable energy for homes in remote locations or off-grid living enthusiasts.
The off-grid power source segment is expected to witness significant growth, with a projected market share of 17% in 2023. Understanding the application-specific market dynamics is crucial for stakeholders in the Global Residential Generator Market. These insights enable manufacturers, distributors, and end-users to tailor their strategies, product offerings, and marketing campaigns to meet the evolving needs of the residential generator market.
Residential Generator Market Regional Insights
The Global Residential Generator Market segmentation by region encompasses North America, Europe, APAC, South America, and MEA. North America dominates the market with a considerable share due to the presence of developed countries with high adoption of residential generators for backup power during outages. Europe holds the second-largest share, driven by the increasing demand for reliable power supply in remote areas and the growing adoption of renewable energy sources. APAC is expected to witness significant growth owing to the rising number of power outages in developing countries and government initiatives to improve electricity infrastructure. South America and MEA offer growth opportunities due to increasing urbanization and the need for backup power solutions in regions with unstable power grids.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Residential Generator Market Key Players And Competitive Insights:
Major players in the Residential Generator Market industry are continuously engaging in Residential Generator Market development to maintain their position in the Residential Generator Market industry. Leading Residential Generator Market players are focusing on offering a wide range of products to cater to the diverse needs of customers. They are also investing heavily in research and development to introduce innovative products and technologies. Furthermore, they are expanding their distribution and sales channels to reach a wider customer base.
The Residential Generator Market Competitive Landscape is expected to remain competitive in the coming years, with major players continuing to invest in product development and innovation. Generac Power Systems, a leading company in the Global Residential Generator Market, offers a wide range of residential generators to meet the diverse needs of customers. The company's products are known for their reliability, durability, and performance. Generac Power Systems has a strong distribution network and provides excellent customer service. The company is also committed to innovation and is constantly developing new products and technologies to meet the changing needs of customers.
A leading competitor in the Global Residential Generator Market is Briggs & Stratton Corporation. The company offers a wide range of residential generators, including portable, standby, and inverter generators. Briggs & Stratton Corporation's products are known for their affordability, reliability, and ease of use. The company has a strong distribution network and provides excellent customer service. Briggs & Stratton Corporation is also committed to innovation and is constantly developing new products and technologies to meet the changing needs of customers.
Key Companies in the Residential Generator Market Include:
- Westinghouse Outdoor Power Equipment
- Briggs Stratton
- Cummins Power Generation
- Honda Power Equipment
- Perkins Engines
- Kohler
- Caterpillar
- Ryobi Power Tools
- Doosan
- DuroMax Power Equipment
- Yamaha Motor Power Products
- Hatz Diesel
- Lombardini24
- Champion Power Equipment
- Generac Power Systems
Residential Generator Market Industry Developments
The global residential generator market is set to experience steady growth over the coming years, driven by increasing demand for backup power solutions in the face of rising power outages and extreme weather events. In 2023, the market was valued at an estimated USD 10.7 billion and is projected to reach USD 15.4 billion by 2032, exhibiting a CAGR of 4.13%. Key market drivers include increasing urbanization, rising disposable incomes, and government initiatives promoting energy security. Recent developments include the launch of innovative products such as portable generators with extended run times and smart features. The market is expected to witness significant growth in developing regions such as Asia-Pacific and Latin America, where demand for reliable backup power is growing rapidly.
Residential Generator Market Segmentation Insights
Residential Generator Market Fuel Type Outlook
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- Diesel
- Gasoline
- Natural Gas
- Propane
- Solar
Residential Generator Market Power Output Outlook
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- Less than 5 kW
- 5-10 kW
- 10-20 kW
- 20-50 kW
- 50-100 kW
- Over 100 kW
Residential Generator Market Cooling Type Outlook
Residential Generator Market Application Outlook
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- Primary Power Source
- Backup Power Source
- Off-Grid Power Source
Residential Generator Market Regional Outlook
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- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
Residential Generator Market Report Scope
| Report Attribute/Metric |
Details |
| Market Size 2022 |
10.27(USD Billion) |
| Market Size 2023 |
10.7(USD Billion) |
| Market Size 2032 |
15.4(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
4.13% (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 |
Westinghouse Outdoor Power Equipment, Briggs Stratton, Cummins Power Generation, Honda Power Equipment, Perkins Engines, Kohler, Caterpillar, Ryobi Power Tools, Doosan, DuroMax Power Equipment, Yamaha Motor Power Products, Hatz Diesel, Lombardini24, Champion Power Equipment, Generac Power Systems |
| Segments Covered |
Fuel Type, Power Output, Cooling Type, Application, Regional |
| Key Market Opportunities |
Smart home integration Portable and lightweight designs Growth in renewable energy Government initiatives Off-grid living |
| Key Market Dynamics |
Growing urban population increasing natural disasters, power outages, rising disposable income government incentives. |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
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Frequently Asked Questions (FAQ) :
The Global Residential Generator Market is expected to reach a valuation of USD 10.7 billion in 2023 and is projected to grow at a CAGR of 4.13% from 2024 to 2032, reaching a value of USD 15.4 billion by 2032.
North America is expected to dominate the Global Residential Generator Market due to the increasing frequency and severity of power outages, rising disposable income, and growing awareness of the benefits of residential generators.
The growth of the Global Residential Generator Market is driven by several factors, including the increasing frequency and severity of power outages, rising disposable income, growing awareness of the benefits of residential generators, and government incentives and regulations.
Residential generators are primarily used to provide backup power during power outages. They can be used to power essential appliances and devices, such as refrigerators, freezers, lights, and medical equipment.
Some of the key competitors in the Global Residential Generator Market include Generac, Kohler, Briggs Stratton, Honda, and Yamaha.
The Global Residential Generator Market faces several challenges, including the high cost of generators, the need for proper installation and maintenance, and the environmental concerns associated with their use.
The Global Residential Generator Market presents several opportunities for growth, such as the increasing adoption of smart home technologies, the development of more affordable and efficient generators, and the growing demand for backup power in developing countries.
Some of the key trends in the Global Residential Generator Market include the increasing popularity of portable generators, the growing demand for generators with advanced features, and the development of new technologies, such as solar-powered generators.
The Global Residential Generator Market is expected to grow at a CAGR of 4.13% from 2024 to 2032, reaching a value of USD 15.4 billion by 2032.
The major factors that will influence the growth of the Global Residential Generator Market include the increasing frequency and severity of power outages, rising disposable income, growing awareness of the benefits of residential generators, and government incentives and regulations.
