Variable Speed Generator Market Size

Global Variable Speed Generator Market Overview:

Variable Speed Generator Market Size was valued at USD 7.09 billion in 2023. The Variable Speed Generator market industry is projected to grow from USD 7.73 Billion in 2024 to USD 14.15 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.85% during the forecast period (2024 - 2032). Supportive government policies on alternative energy and rapid industrialization and urbanization are the key market drivers enhancing market growth.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Variable Speed Generator Market Trends

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  Rising energy requirements are driving the market growth

  
  

Rising energy requirements and a growing dependence on imported fossil fuels have prepared the path for innovation in the variable speed generator domain. The technology has enabled application forms where the power demand varies. Technology has created an advanced variable speed generator technology that enables applications where power demand differs widely to benefit from a new technology that maintains constant frequency and voltage while trying to adjust the generator stator speed to power demand.

The recently introduced variable speed generator now includes a lithium battery, and cutting-edge technology delivers operations and maintenance savings, performance, and reliability. Furthermore, the variable speed generator market CAGR is expected to grow due to a growing emphasis on alternative energy production, growing government mandates on energy efficiency, and rapid urbanization and industrialization. A reluctance to invest in distributed generation is restricting the market growth. A rising range of applicants in hybrid energy systems that can boost industrial energy savings can bode well for the industry.

Additionally, the growth in the market for variable speed generators is primarily due to the increase in emphasis on alternative energy production, increase in government mandates over energy efficiency, and developments in industrialization & urbanization. Using a variable speed generator in the internal combustion engine reduces the operation and maintenance costs. Fuel consumption decreases with the increase in engine efficiency. However, the high-cost investment and limited re-investment in the variable speed generator have been major constraints for the market. The decrease in greenfield investment has been a challenge for variable speed generators. Internal combustion engine-driven variable speed generators is anticipated to experience an increase in demand owing to the growth rate of an internal combustion engines. There is an increase in the demand for high power attributed to urbanization and industrialization, which will increase the usage of energy-efficient variable generators. The demand is expected to increase shortly. The growth in the renewable energy demand is anticipated to boost the Variable Speed Generator market revenue.

Variable Speed Generator Market Segment Insights:

Variable Speed Generator Type Insights

Based on generator type, the Variable Speed Generator market segmentation includes variable speed-self-excited induction generators, doubly fed induction generators, wound rotor induction generators, and permanent magnet synchronous generators. Doubly Fed Induction Generator has the highest growing segment of the variable speed generator market. The doubly-fed induction generator has a dominant position due to the low power rating devices used or the slightly reduced cost of the control system during the projected period.

Variable Speed Rating Type Insights

Based on rating type, the Variable Speed Generator market segmentation includes Up to 100 KVA, 100 KVA-1 MVA, 1 MVA-25MVA, and Above 25 MVA. The 1 MVA-25MVA has the highest-growing segment in the market. Increased capacity addition in offshore wind projects and the commercialization of maximum voltage-rated permanent magnet synchronous generators open new revenue streams for this segment over the projected period.

Variable Speed Technology Insights

Based on technology, the Variable Speed Generator market segmentation includes power electronics-based variable speed generators and mechanical variable speed generators. The technological advancements will propel the growth of the power electronics-based variable speed generators segment during the given forecast period.

Figure1: Variable Speed Generator Market, by Technology, 2024 & 2032 (USD billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Variable Speed Prime Mover Insights

Based on the prime mover, the Variable Speed Generator market segmentation includes internal combustion engines, hydro turbines, steam & gas turbines, and wind turbines. Internal Combustion Engines have the highest-growing segment of the Variable Speed Generator Market. The growing use of variable speed generators in aerospace and marine applications is anticipated to propel the market throughout the forecasted period.

Variable Speed End-User Insights

Based on end-user, the Variable Speed Generator market segmentation includes hydroelectric power generation, renewable power generation, oil & gas and mining, aerospace and telecommunications, marine and shipbuilding, and commercial and residential. Commercial & Residential has the largest growing segment of the Variable Speed Generator Market. This segment is mainly driven by the increasing development of more efficient speed control standby gensets for commercial and residential applications in Europe, Asia Pacific, and North America.

Variable Speed Generator Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The Asia-Pacific Variable Speed Hydro Generator Market area will dominate this market; enhanced power consumption, government rules on energy efficiency, the increasing influx of renewable sources in the energy mix, and renovation, renovation, and improvement of aging hydropower plants are growing the market in the Region. Moreover, China’s Variable Speed Generator market held the largest market share, and the Indian Variable Speed Generator market was the fastest-growing market in the Asia-Pacific region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure2: Variable Speed Generator Market Share By Region 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe's Variable Speed Generator market accounts for the second-largest market share due to the growing need for a steady power supply and industrialization. Further, the German Variable Speed Generator market held the largest market share, and the UK Variable Speed Generator market was the fastest-growing market in the European Region.

North America is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the increasing demand for power backup facilities in this Region.

Variable speed Generator Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the Variable Speed Generator market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The variable speed generator industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Variable Speed Generator industry to benefit clients and increase the market sector. The Variable Speed Generator industry has offered some of the most significant medical advantages in recent years. Major players in the Variable Speed Generator market, including Cummins Inc. (U.S.), Siemens AG (Germany), Ausonia srl (Italy), GENERAL ELECTRIC (U.S.), ABB (Switzerland), YANMAR CO., LTD. (Japan), Innovus Power Inc. (U.S.), Generac Power Systems, Inc. (U.S.), HIMOINSA (Spain), Fischer Panda GmbH (Germany), WhisperPower B.V. (The Netherlands) and others, are attempting to increase market demand by investing in research and development operations.

A diversified company, Doosan brings its expertise to build power plants and industrial facilities, machine tools and automation systems, engines, bridges, and construction equipment. Doosan Portable Power introduced G400 Mobile Generator. The new product launched is designed with the CoolBoxPlus, which features a variable-speed cooling fan to ensure precision package cooling. This allows enhanced performance in extreme conditions, improved fuel economy, and low noise levels.

Atlas Copco is a Swedish multinational industrial company that was founded in 1873. It manufactures industrial tools and equipment. The Atlas Copco Group is a industrial group of companies headquartered in Nacka, Sweden. Atlas Copco launched the fifth generation of its QAS generator range. The first five models of the range are QAS80, 100, 120,150, and 200. All the models are equipped with high-capacity fuel tanks and integrated variable-speed drivers. This will help users reduce fuel consumption by 5% compared to the industry average of other models.

Key Companies in the variable speed generator market include

• Cummins Inc. (U.S.)


• Siemens AG (Germany)


• Ausonia srl (Italy)


• GENERAL ELECTRIC (U.S.)


• ABB (Switzerland)


• YANMAR CO. LTD. (Japan)


• Innovus Power Inc. (U.S.)


• Generac Power Systems Inc. (U.S.)


• HIMOINSA (Spain)


• Fischer Panda GmbH (Germany)


• WhisperPower B.V. (The Netherlands)

Variable speed generator Industry Developments

For instance, recently in August 2023, Mitsubishi Heavy Industries Engine & Turbocharger, Ltd. (MHIET) introduced the MGS3100R as a new member of the MGS-R family. The increased power requirements of emergency gensets that supply electricity in case of power outages are the reasons why MGS3100R was designed. All MGS are manufactured and distributed to customers worldwide by MHIET’s plants located in Singapore and Vietnam, with a particular focus on Asia-Pacific region.

Moreover, Tata Motors launched an innovative set of gensets for India in July 2023. These gensets comply with CPCB IV+ regulations and can be configured from 25kVA to 125kVA. With respect to this, a new series of gensets claims improved fuel efficiency and robust block loading capacity, which leads to reduced running costs. The engines driving these gensets were carefully designed, developed and tested at the company's R&D department. These units are very versatile, making them ideal for many applications. Opportunities for market expansion are projected based on such factors.

In May 2023, ABB declared completion of the acquisition of the NEMA motor business from Siemens, a Swedish multinational company known all over the globe.

Volvo Penta introduced its new marine variable speed generators in September 2022; it is a renowned supplier of marine and industrial engines across Sweden. In addition, as more ships adopt electric propulsion systems, there is likely to be an increase in demand for these newly launched variable-speed generators.

Rolls-Royce Holdings PLC signed a contract with Damen Naval to supply variable speed gen sets for the German Navy in September 2022; Rolls Royce Engines also have wide use among military vessels. F126 frigates under construction by Germany will utilize these gen sets exclusively

Volvo Penta unveiled a new range of variable-speed generator sets for marine vessels in September 2022. Accordingly, Volvo Penta, a well-known supplier of marine and industrial engines, introduced its new variable speed generators for the marine industry in September 2022.

Fischer Panda introduced a new range of variable-speed hybrid DC generators designed for battery charging in January 2020. Fischer-Panda is widely recognized for its lineup of variable-speed diesel generators.

Variable Speed Generator Market Segmentation

Variable Speed Generator Type Outlook

• Variable Speed-Self Excited Induction Generator


• Doubly Fed Induction Generator


• Wound Rotor Induction Generator


• Permanent Magnet Synchronous Generator

Variable Speed Generator Rating Type Outlook

• Up to 100 KVA


• 100 KVA-1 MVA


• 1 MVA-25MVA


• Above 25 MVA

Variable Speed Generator Technology Outlook

• Power Electronics-based Variable Speed Generators


• Mechanical Variable Speed Generators

Variable Speed Generator Prime Mover Outlook

• Internal Combustion Engines


• Hydro Turbines


• Steam & Gas Turbines


• Wind Turbines

Variable Speed Generator End-User Outlook

• Hydroelectric Power Generation


• Renewable Power Generation


• Oil & Gas And Mining


• Aerospace And Telecommunications


• Marine And Shipbuilding


• Commercial And Residential

Variable Speed Generator Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America