Global Generator Sales Market Size to Reach $28.6 Billion By 2027
MarketsandMarkets Research Pvt. Ltd.
6 min read
MarketsandMarkets Research Pvt. Ltd.
Chicago, Sept. 01, 2022 (GLOBE NEWSWIRE) -- Generator Sales Market size is projected to grow from USD 21.6 billion in 2022 to USD 28.6 billion by 2027, at a CAGR of 5.8% according to a new report by MarketsandMarkets™. Generator plays a major role in bridging the gap between the power demand and supply. Frequent power outages and increasing demand for uninterrupted & reliable power supply for various residential, commercial and industrial applications are expected to drive the demand for-backup power generation. The rapidly expanding manufacturing sector, especially in Asia Pacific, has fueled the demand for generators and power generation systems. However, the growing adoption of energy storage technologies and high investments for the upgrades of existing transmission & distribution (T&D) infrastructure are expected to hinder the growth of the Generator Sales Market. Also, COVID-19 has adversely affected the growth of the power industry, which has a cascading effect on the manufacturing sector, thereby negatively affecting the demand for generators. Stringent government regulations in countries pertaining to diesel generators are one of the major challenges for the players, especially emerging players, operating in the Generator Sales Market.
The Diesel generator segment, by fuel type, is expected to be the most significant Generator Sales Market during the forecast period
The diesel segment accounted for the largest share of the Generator Sales Market, by fuel type, in 2021. Diesel generators are preferred for emergency power supply in case of power cuts or in places where there is no connection with the power grid. Diesel generators have a long running life and diesel is more readily available compared with natural gas. Thus, diesel generator sets are ideal for long-term (prime) operations with a load range of 70–80% and applications that need extended runtimes (72 or 96 hours). Diesel gensets are typically three to four times more expensive for the energy gained (USD/BTU), have greater initial costs of installing addition fuel tanks, and high ongoing maintenance costs. Operators can use smaller tanks minimize fuel maintenance; however, this could lead to a greater risk of running out of fuel. Incidents such as the power shortages in Japan and China and the large-scale outages in Pakistan and Chinese Taipei in the first half of 2021 have created the need for backup power in the Asia Pacific region. China and India were both subject to electricity supply shortages in September and October of 2021, which mainly affected industrial consumers.
The 281-500 kW segment, by power rating, is expected to be the fastest growing Generator Sales Market during the forecast period
The 281-500 kW segment is expected to have the fastest growing market share during the forecast period. Generators with a power rating of 281–500 kW are mostly used to supply power during power outages and to locations where grid connections are unavailable. Industries such as oil & gas, mining, marine, data centers, and healthcare usually opt for generators with this power rating. Regions such as North America and Middle East & Africa have large oilfields that require a rapid, flexible, and reliable energy response. These generators provide key power sources for the oil & gas industry, particularly to assist with drilling and digging. These generators, widely used for emergency power, also have a secondary function of feeding power to utility grids either during peak periods or during power shortages.
The commercial segment, by end user, is expected to be the fastest growing Generator Sales Market during the forecast period
The industrial segment is expected to have the largest market share during the forecast period. Blackouts in commercial premises can lead to huge financial losses and safety issues. Also, it is challenging for IT and other commercial end users to conduct smooth operations during peak hours and in remote locations using power grids. Generators indirectly protect business interests and revenues by keeping operations running smoothly and avoiding losses. Countries such as China and India have made it mandatory for commercial establishments to keep a backup power source in emergencies. The growth of healthcare, IT & telecom, and other sectors is expected to drive the growth of the Generator Sales Market during the forecast period.
Asia Pacific is expected to dominate the global Generator Sales Market during the forecast period
In this report, the Generator Sales Market has been analyzed for 5 regions, namely Asia Pacific, North America, Europe, Middle East & Africa, South America. Asia Pacific is expected to lead the market during the forecast period.
The poor transmission & distribution network in the developing nations of the region, along with the boom in the manufacturing sector are creating a demand for power in the region, consequently resulting in a demand for generators. The industrial sector in China contributes more than 50% of its GDP, and the growth of this sector has tremendously increased power production and consumption in the country. These factors have made China one of the most lucrative markets for the power industry. The increasing middle-class population and growing per capita income are creating growth opportunities for the healthcare sector, while the growing population and rising per capita income are the key drivers behind the growing demand for energy in the Asia Pacific region.
To enable an in-depth understanding of the competitive landscape, the report includes the profiles of some of the top players in the Generator Sales Market. These include Cummins (US), Caterpillar (US), Rolls Royce (UK), Generac (US), Mitsubishi Heavy Industries, Ltd. (Japan), and Yanmar (Japan). The leading players are trying to establish themselves in the markets of developed countries and are adopting various strategies to increase their respective market shares.
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