Generator Sales Market Forecasts to 2030 - Global Analysis By Fuel Type (Diesel, Gasoline, Propane, Natural Gas and Hydrogen), By Portability (Portable and Stationary), Mode of Operation, Power Rating, Distribution Channel, End User and By Geography

According to Stratistics MRC, the Global Generator Sales Market is accounted for $30.7 billion in 2023 and is expected to reach $48.7 billion by 2030 growing at a CAGR of 6.8% during the forecast period. Generator sales describe the process of selling generators, which are devices that convert mechanical energy into electrical energy. Generators are commonly used as backup power sources in case of electricity outages or as primary power sources in off-grid locations. Generator sales involve marketing, selling, and distributing various types of generators to residential, commercial, industrial, and institutional customers.

According to the BP Statistical Review of World Energy 2022, global primary energy consumption in 2021 reached 595.15 exajoules, up from 564.01 exajoules in 2020, representing a 5.8% increase year over year.

Market Dynamics:

Driver:

Increasing demand for continuous power supply

Various industries, including healthcare, data centers, telecommunications, and manufacturing, require uninterrupted electricity to maintain operations. Additionally, growing reliance on digital technologies, automation, and connectivity necessitates reliable power sources to prevent downtime and productivity losses. As a result, organizations invest in backup power solutions such as generators to ensure continuous operations, thereby driving the demand and growth of the generator sales market.

Restraint:

Fluctuations in fuel prices

Changes in fuel costs, particularly for diesel and natural gas, directly impact the operating expenses of generators over their lifespan. High fuel prices increase the total cost of ownership for generator users, making alternative power sources more appealing. Additionally, volatile fuel prices can lead to uncertainty in budgeting and planning for generator installations, affecting purchasing decisions and overall market demand for generators.

Opportunity:

Development of hybrid power systems

Hybrid power systems combine multiple energy sources, such as diesel generators, renewable energy sources like solar or wind, and energy storage solutions. These systems offer improved energy efficiency, reduced fuel consumption, and lower emissions compared to traditional generators alone. Additionally, they provide greater flexibility and resilience by leveraging multiple power sources, catering to the growing demand for sustainable and reliable energy solutions in various applications.

Threat:

Advancements in grid infrastructure and reliability

Improved grid systems, including smart grids and renewable energy integration, reduce the frequency and duration of power outages, diminishing the need for backup generators. Additionally, grid modernization efforts enhance energy efficiency and reliability, reducing dependence on standalone power sources. As a result, generator sales may face challenges in regions with robust grid infrastructure, leading to decreased demand and potential market saturation.

Covid-19 Impact:

The COVID-19 pandemic has impacted the generator sales market by increasing demand for backup power solutions, particularly in healthcare facilities, data centers, and essential industries to ensure uninterrupted operations. However, supply chain disruptions, economic uncertainties, and project delays have affected generator sales in other sectors, such as construction and manufacturing. Nonetheless, the overall market has shown resilience due to the essential nature of generators in maintaining critical infrastructure and services during the pandemic.

The diesel segment is expected to be the largest during the forecast period

The diesel segment is anticipated to be the largest in the generator sales market during the forecast period due to their high power output, robustness, and fuel efficiency, making them suitable for a wide range of applications in residential, commercial, and industrial sectors. Additionally, diesel generators are preferred for their reliability, long operational life, and availability of fuel. These factors, coupled with widespread usage in emergency backup power systems, contribute to the dominance of this segment in the market.

The e-commerce segment is expected to have the highest CAGR during the forecast period

The e-commerce segment is anticipated to experience the highest growth in the generator sales market during the forecast period due to several factors. Increasing consumer preference for online shopping, coupled with the convenience of purchasing generators and related accessories online, drives the demand for e-commerce platforms. Moreover, e-commerce offers a wide range of options, competitive pricing, and doorstep delivery, appealing to both residential and commercial customers seeking efficient and hassle-free solutions for their backup power needs.

Region with largest share:

The North American region is estimated to capture the largest market share in the generator sales market due to its strong demand for generators in both residential and commercial sectors, particularly in areas prone to natural disasters or unreliable grid infrastructure. Additionally, stringent regulations and safety standards drive the adoption of backup power solutions. Furthermore, the presence of key generator manufacturers and established distribution networks further solidifies North America's dominance in the market.

Region with highest CAGR:

Asia Pacific is estimated to register the highest growth rate in the generator sales market due to rapid industrialization, urbanization, and infrastructure development projects across countries like China, India, and Southeast Asian nations, which drive the demand for backup power solutions. Moreover, frequent power outages, especially in remote and rural areas, increase the reliance on generators. Additionally, rising disposable incomes and growing awareness about the importance of reliable power sources further contribute to the market's growth in the region.

Key players in the market

Some of the key players in Generator Sales Market include Aggreko plc, Atlas Copco AB, Briggs & Stratton Corporation, Caterpillar Inc., Cummins Inc., Doosan Corporation, FG Wilson, Generac Holdings Inc., Himoinsa S.L., Honda Motor Co., Ltd., Ingersoll Rand Inc., JCB Power Products Ltd., Kirloskar Electric Company Limited, Kohler Co., Mitsubishi Heavy Industries, Ltd., MTU Onsite Energy GmbH, Wacker Neuson SE, Wartsila Corporation and Yanmar Co., Ltd.

Key Developments:

In July 2023, Himoinsa presents its customers with a novel diagnostic system, enabling them to easily and intuitively conduct advanced diagnostic and maintenance procedures on HIMOINSA generator sets. Known as the HIMOINSA Diagnostic, this tool assists users in recognizing error codes, pinpointing specific parts and their placements, and executing tasks that entail parameter adjustments across various ECUs. These tasks encompass activities, such as sensor calibration, operational parameter configuration, and the replacement and regeneration of the DPF, among several others.

In May 2023, Caterpillar has introduced two fresh collections of mobile generators within its XQP series of mobile diesel generator sets, meeting the requirements of EU stage 5 regulations. These new generator sets represent the highest and lowest capacities within the XQP spectrum. This development implies that Caterpillar currently provides a total of five sets, spanning from 20 to 550 kVA prime power, all following the prevailing European emissions criteria.

In April 2023, Atlas Copco has launched the NGP 130+ as the latest addition to the PSA nitrogen generator series. Simultaneously, the company has unveiled advanced control and automation technology for its smaller units. This expansion has resulted in a comprehensive premium range encompassing various sizes and features, ensuring optimal cost of ownership, dependability, and customer adaptability.

Fuel Types Covered:

• Diesel
• Gasoline
• Propane
• Natural Gas
• Hydrogen

Portability's Covered:

• Portable
• Stationary

Mode of Operations Covered:

• Continuous Duty
• Standby
• Peak Shaving

Power Ratings Covered:

• Below 10 kVA
• 10 kVA
• 15 kVA
• 20 kVA
• 25 kVA
• 30 kVA
• 40 kVA
• 50 kVA
• 60 kVA
• 75 kVA
• 100 kVA
• 125 kVA
• 150 kVA
• 200 kVA
• 250 kVA
• 300 kVA
• 350 kVA
• 400 kVA
• 500 kVA
• Above 500 kVA

Distribution Channels Covered:

• Direct Sales
• E-commerce
• OEM Sales
• Rental Companies
• Retail stores
• Wholesale Distribution
• Other Distribution Channels

End User Covered:

• Industrial
• Commercial
• Residential

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
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