Global Standby Generator Set Market Overview:
As per MRFR analysis, the Standby Generator Set Market Size was estimated at 20.27 (USD Billion) in 2022. The Standby Generator Set Market Industry is expected to grow from 21.4 (USD Billion) in 2023 to 35.0 (USD Billion) by 2032. The Standby Generator Set Market CAGR (growth rate) is expected to be around 5.62% during the forecast period (2024 - 2032).
Key Standby Generator Set Market Trends Highlighted
Key market drivers for standby generator sets include increasing demand for reliable power backup in critical infrastructure such as hospitals, data centers, and telecommunications facilities. Growing urbanization and industrialization, coupled with the rising frequency of power outages, are further fueling the need for standby power systems.Opportunities in the standby generator set market lie in the expansion of renewable energy sources. As intermittent energy sources like solar and wind gain prominence, the demand for backup power to mitigate fluctuations in grid supply increases. Additionally, advancements in technology, such as smart generators and remote monitoring systems, are creating new growth opportunities in the market.
Recent trends in the standby generator set market include the adoption of advanced technologies to enhance efficiency, reliability, and safety. Integration with renewable energy systems, such as solar and battery storage, is becoming increasingly common. Additionally, the shift towards modular and portable generator sets allows for greater flexibility and scalability in meeting customer needs.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Standby Generator Set Market Drivers
Increasing Demand for Reliable Power Supply
The rising frequency and severity of power outages, coupled with the growing reliance on electricity for critical infrastructure and businesses, have significantly increased the demand for standby generator sets. These generators provide a reliable backup power source, ensuring continuity of operations and minimizing disruptions during power outages. The demand for standby generator sets is expected to remain strong as organizations and individuals seek to mitigate the risks associated with power disruptions.
Growing Adoption in Emerging Markets
Emerging markets, particularly in Asia-Pacific and Latin America, offer significant growth opportunities for the standby generator set market. Rapid urbanization, industrialization, and infrastructure development in these regions are driving the demand for reliable power supply. Additionally, government initiatives and incentives to promote energy security and disaster preparedness are further fueling the adoption of standby generator sets in emerging markets.
Technological Advancements and Innovation
Advancements in technology are continuously improving the efficiency, reliability, and cost-effectiveness of standby generator sets. Manufacturers are incorporating innovative features such as remote monitoring, automated load management, and advanced control systems to enhance the performance and user experience of these generators. Technological advancements are also leading to the development of new types of standby generator sets, such as hybrid systems that combine traditional diesel generators with renewable energy sources.
Standby Generator Set Market Segment Insights:
Standby Generator Set Market Power Rating Insights
Power Rating, a crucial segmentation in the Standby Generator Set Market, encompasses a range of power capacities designed to cater to diverse end-user needs. The market is segmented into five sub-categories based on power rating: Less than 10 kW, 10-100 kW, 100-500 kW, 500-1,000 kW, and Over 1,000 kW. The 'Less than 10 kW' segment caters to small-scale applications such as residential homes, small businesses, and remote locations. Its compact size and lower power output make it a suitable choice for backup power during power outages. The '10-100 kW' segment finds application in medium-sized businesses, commercial establishments, and industrial facilities.This segment offers a higher power output, enabling it to support critical equipment and operations. Moving up the power scale, the '100-500 kW' segment is designed for larger commercial and industrial applications, such as data centers, hospitals, and manufacturing plants. These generators provide substantial power output to maintain business continuity during emergencies. The '500-1,000 kW' segment serves highly demanding applications, including large industrial facilities, hospitals, and critical infrastructure. These generators deliver high power output to ensure uninterrupted operations, especially in sectors where downtime can have severe consequences.At the highest end of the power spectrum lies the 'Over 1,000 kW' segment, tailored for large-scale applications, such as power plants, airports, and data centers. These generators are capable of providing megawatts of power, ensuring reliable backup in the event of grid failures or natural disasters. The Standby Generator Set Market is projected to witness significant growth, driven by increasing demand for reliable backup power solutions across various industries. Factors such as rising power outages, extreme weather events, and stringent regulations are contributing to the market's expansion.The market is expected to reach a valuation of 27.4 billion USD by 2027, growing at a CAGR of 5.8% from 2023 to 2027.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Standby Generator Set Market Fuel Type Insights
The Standby Generator Set Market is segmented by fuel type into diesel, gasoline, natural gas, and renewable fuel (e.g., solar, wind). Among these, diesel generators account for the largest revenue share due to their reliability, durability, and availability of fuel. The diesel segment is expected to maintain its dominance over the forecast period, with a market value of $13.4 billion in 2024. Gasoline generators are also widely used due to their affordability and portability, and their market is projected to reach $5.9 billion by 2024. Natural gas generators offer lower operating costs compared to diesel and gasoline generators, and their market is expected to grow significantly, reaching $4.6 billion by 2024.Renewable fuel generators are gaining popularity due to their environmental benefits and government incentives, and their market is expected to reach $1.1 billion by 2024.
Standby Generator Set Market Application Insights
The Standby Generator Set Market is segmented based on application into residential, commercial, industrial, telecommunications, healthcare, and data centers. Among these, the industrial segment held the largest market share in 2023 and is expected to continue its dominance throughout the forecast period. The growth of this segment can be attributed to the increasing demand for reliable power supply in industrial facilities to ensure uninterrupted operations and prevent production losses. The commercial segment is anticipated to witness significant growth due to the rising number of commercial establishments, such as offices, retail stores, and hospitality businesses, which require backup power to maintain essential operations during power outages.The residential segment is projected to grow steadily as homeowners become more aware of the importance of having a standby generator to protect their homes and families from power disruptions.
Standby Generator Set Market Cooling System Insights
The Standby Generator Set Market is segmented by cooling system into air-cooled, water-cooled, and oil-cooled. Among these, the air-cooled segment accounted for the largest share of the market in 2023, and it is projected to continue to dominate the market during the forecast period. The growth of the air-cooled segment can be attributed to the increasing demand for smaller and portable standby generators, which are typically air-cooled. The water-cooled segment is expected to witness the fastest growth during the forecast period, owing to the rising demand for larger and more powerful standby generators, which are typically water-cooled.
Standby Generator Set Market Control System Insights
The Standby Generator Set Market is segmented by Control System into Manual, Automatic, Remote, and Smart. The Automatic segment held the largest market share of 45.6% in 2023 and is expected to continue its dominance throughout the forecast period. The growth of this segment can be attributed to the increasing adoption of automatic standby generators in commercial and industrial applications. The Remote segment is expected to witness the fastest growth during the forecast period, owing to the rising demand for remote monitoring and control of standby generators.The market for Standby Generator Sets with Manual Control Systems is expected to decline over the forecast period, as they require manual intervention to start and stop the generator, which can be inconvenient and time-consuming. Smart Standby Generator Sets, on the other hand, are expected to gain popularity due to their advanced features, such as automatic start/stop, remote monitoring, and self-diagnostics.
Standby Generator Set Market Regional Insights
The Standby Generator Set Market is segmented into North America, Europe, APAC, South America, and MEA. Among these regions, North America is expected to hold the largest market share in 2023, accounting for 35% of the Standby Generator Set Market revenue. This is due to the increasing demand for backup power solutions in the region, owing to the rising frequency of power outages and natural disasters. Europe is expected to follow North America, with a market share of 28% in 2023. The growing adoption of standby generators in commercial and industrial applications is driving the growth of the European market.APAC is expected to be the fastest-growing region, with a market share of 22% in 2023. The increasing demand for reliable power supply in emerging economies, such as China and India, is fueling the growth of the APAC market. South America is expected to hold a market share of 10% in 2023, while MEA is expected to account for 5% of the Standby Generator Set Market revenue.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Standby Generator Set Market Key Players And Competitive Insights:
Major players in the Standby Generator Set Market industry are constantly striving to develop innovative products and solutions to meet the evolving needs of customers. Leading Standby Generator Set Market players are investing heavily in research and development to enhance the efficiency, reliability, and sustainability of their products. To gain a competitive edge, companies are adopting various strategies such as mergers and acquisitions, partnerships, and collaborations. The Standby Generator Set Market Competitive Landscape is characterized by intense competition among established players and the entry of new entrants. Key players are focusing on expanding their global presence by establishing new manufacturing facilities and distribution channels. The market is expected to witness further consolidation in the coming years as companies seek to strengthen their market position and gain economies of scale.Cummins is a leading player in the Standby Generator Set Market industry, offering a wide range of products and services to meet the diverse needs of customers. The company has a strong global presence with manufacturing facilities and distribution channels spread across the world. Cummins is committed to providing reliable and efficient power solutions, and its products are known for their high quality and durability. The company has a team of experienced engineers and technicians who provide technical support and maintenance services to customers. Cummins is also actively involved in research and development to enhance the performance and efficiency of its products.Generac Power Systems is another major player in the Standby Generator Set Market. The company offers a comprehensive range of products, including portable generators, home generators, and commercial generators. Generac Power Systems has a strong brand reputation and is known for its innovative products and excellent customer service. The company has a wide distribution network, ensuring that its products are easily accessible to customers. Generac Power Systems is committed to providing reliable and affordable power solutions, and its products are designed to meet the specific needs of different customers. The company has a team of dedicated employees who are focused on providing exceptional customer support.
Key Companies in the Standby Generator Set Market Include:
- Kubota
- Johnson Controls
- Yamaha Motor
- Eaton
- Ingersoll Rand
- Doosan
- Terex
- Atlas Copco
- Generac Power Systems
- Cummins
- Wacker Neuson
- GE Grid Solutions
- Briggs Stratton
- Kohler
- Caterpillar
Standby Generator Set Market Industry Developments
The Standby Generator Set Market is projected to grow from USD 21.4 billion in 2023 to USD 35.0 billion by 2032, exhibiting a CAGR of 5.62% during the forecast period. Ongoing modernization, expanding industrial sector, increasing demand for reliable power supply, and growing adoption of renewable energy sources are key factors driving market growth. Asia-Pacific is anticipated to hold the largest market share due to rapid urbanization, rising infrastructure development, and increasing energy demand. North America and Europe are also significant markets, with a growing emphasis on grid resilience and emergency preparedness. Key industry participants are focusing on product innovation, such as the integration of advanced technologies like IoT and AI, to cater to evolving customer needs. Strategic partnerships, mergers, and acquisitions are shaping the competitive landscape, with companies seeking to expand their market presence and enhance their product offerings.
Standby Generator Set Market Segmentation Insights
Standby Generator Set Market Power Rating Outlook
- Less than 10 kW
- 10-100 kW
- 100-500 kW
- 500-1,000 kW
- Over 1,000 kW
Standby Generator Set Market Fuel Type Outlook
- Diesel
- Gasoline
- Natural Gas
- Renewable Fuel (e.g., Solar, Wind)
Standby Generator Set Market Application Outlook
- Residential
- Commercial
- Industrial
- Telecommunications
- Healthcare
- Data Centers
Standby Generator Set Market Cooling System Outlook
- Air-Cooled
- Water-Cooled
- Oil-Cooled
Standby Generator Set Market Control System Outlook
- Manual
- Automatic
- Remote
- Smart
Standby Generator Set Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
20.27 (USD Billion) |
| Market Size 2023 |
21.4 (USD Billion) |
| Market Size 2032 |
35.0 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
5.62% (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 |
Kubota, Johnson Controls, Yamaha Motor, Eaton, Ingersoll Rand, Doosan, Terex, Atlas Copco, Generac Power Systems, Cummins, Wacker Neuson, GE Grid Solutions, Briggs Stratton, Kohler, Caterpillar |
| Segments Covered |
Power Rating, Fuel Type, Application, Cooling System, Control System, Regional |
| Key Market Opportunities |
Growing demand in developing regionsAdvancements in technologyIncreasing awareness of power outagesRising demand for backup power in critical facilitiesExpanding the range of applications in various industries |
| Key Market Dynamics |
Growing electricity demand Increasing adoption of smart grids Government initiatives for energy security Technological advancements Rising concerns over power outages. |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Standby Generator Set Market was valued at 21.4 billion U.S. dollars in 2023.
The Standby Generator Set Market is expected to reach 35.0 billion U.S. dollars by 2032.
The CAGR of the Standby Generator Set Market is projected to be 5.62% from 2024 to 2032.
North America is the largest market for Standby Generator Sets, accounting for over 35% of the global market in 2023.
Key applications for Standby Generator Sets include healthcare facilities, data centers, telecommunication networks, and industrial facilities.
Key competitors in the Standby Generator Set Market include Generac, Cummins, Caterpillar, Kohler, and Briggs Stratton.
Key trends driving the growth of the Standby Generator Set Market include increasing demand for reliable backup power, growing awareness of the importance of business continuity, and government regulations requiring standby power systems.
Challenges facing the Standby Generator Set Market include rising raw material costs, supply chain disruptions, and competition from alternative backup power solutions.
The future outlook for the Standby Generator Set Market is positive, with increasing demand for reliable backup power expected to drive growth.
Key opportunities for growth in the Standby Generator Set Market include expanding into emerging markets, developing new technologies, and offering value-added services.
