PUBLISHER: The Business Research Company | PRODUCT CODE: 1931822
PUBLISHER: The Business Research Company | PRODUCT CODE: 1931822
Air-cooled generators are generators where internal components such as the engine and alternator are cooled by air rather than liquid coolant. Air is used to dissipate the heat produced during operation, ensuring efficient performance and preventing overheating. These generators are primarily used to provide electrical power when the main power supply is unavailable or insufficient, and they are commonly used as backup or portable power sources. They come in various sizes and capacities depending on the specific application.
The main types of air-cooled generators include portable and stationary models. Portable air-cooled generators are designed for easy transport, often featuring wheels or handles, and are typically used for temporary power needs such as outdoor activities, construction sites, or emergency situations. These systems are categorized into enclosed systems and open-ventilated systems, serving end-users in residential, industrial, and other settings.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
Tariffs have increased costs of engines, alternators, and electronic components used in air cooled generators. Asia pacific and north america markets are most affected. Stationary generators face higher cost impact. However, tariffs are supporting local generator manufacturing and component sourcing.
The air cooled generator market research report is one of a series of new reports from the business research company that provides air cooled generator market statistics, including air cooled generator industry global market size, regional shares, competitors with an air cooled generator market share, detailed air cooled generator market segments, market trends and opportunities, and any further data you may need to thrive in the air cooled generator industry. This air cooled generator market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The air cooled generators market size has grown strongly in recent years. It will grow from $4.34 billion in 2025 to $4.63 billion in 2026 at a compound annual growth rate (CAGR) of 6.8%. The growth in the historic period can be attributed to power supply instability, growth of residential construction, demand for emergency power backup, expansion of small scale industries, rise in outdoor power usage.
The air cooled generators market size is expected to see strong growth in the next few years. It will grow to $5.96 billion in 2030 at a compound annual growth rate (CAGR) of 6.5%. The growth in the forecast period can be attributed to increase in extreme weather events, growth of distributed power systems, rising residential power backup adoption, demand for portable generators, expansion of industrial backup power needs. Major trends in the forecast period include rising demand for reliable backup power solutions, growing adoption of portable power generators, expansion of residential standby power systems, increasing preference for low maintenance generators, use in remote and off grid power applications.
The rising demand for electricity is expected to drive the growth of the air-cooled generator market in the coming years. The increasing adoption of electric vehicles, digital devices, and smart home technologies is fueling higher electricity consumption. Additionally, expanding industrial activities and population growth contribute to elevated energy requirements across multiple sectors. Air-cooled generators play a critical role in meeting electricity demand by providing reliable backup power, supporting remote locations, reducing peak loads, and offering temporary power solutions for construction sites and events. For example, in July 2024, the International Energy Agency (IEA), a France-based autonomous intergovernmental organization, reported that global electricity demand is projected to rise by approximately 4% in 2024, compared to a 2.5% growth forecast for 2023. Consequently, the increasing electricity demand is propelling the growth of the air-cooled generator market.
Key companies in the air-cooled generator market are focusing on advanced cooling technologies with enhanced airflow designs, such as two-stage air coolers, to improve cooling efficiency and prevent overheating under high-demand conditions. A two-stage air cooler is a generator cooling system designed to optimize the performance of the engine or other critical components by improving the efficiency of heat dissipation. For instance, in August 2023, Mitsubishi Heavy Industries Engine & Turbocharger Ltd., a Japan-based engine and turbocharger manufacturer, launched the MGS3100R generator, a 3,000 kVA generator set for commercial and mission-critical applications. This model features the newly developed S16R2-PTAWT-CR engine with a two-stage air cooler and a space-efficient design, optimizing performance and installation. It meets stringent emergency power supply standards and aims to enhance disaster resilience and business continuity across various industries.
In May 2024, DEUTZ AG, a Germany-based manufacturing company, acquired Blue Star Power Systems for an undisclosed sum. Through this acquisition, DEUTZ AG aims to expand its portfolio in decentralized energy solutions by integrating Blue Star Power Systems' modular power systems, enabling more flexible, sustainable, and efficient electricity generation for industrial, commercial, and off-grid applications. Blue Star Power Systems Inc. is a US-based company specializing in decentralized and modular power generation technologies.
Major companies operating in the air cooled generators market are Generac Holdings Inc., Kohler Co., Cummins Inc., Honda Power Equipment, Yamaha Motor Co. Ltd., Briggs & Stratton Corporation, Kubota Corporation, Yanmar Co. Ltd., Pramac S.p.A., Himoinsa S.L., Atlas Copco AB, Caterpillar Inc., Mitsubishi Heavy Industries Ltd., Makita Corporation, Multiquip Inc., Taylor Power Systems Inc., Hipower Systems, Deutz AG, Doosan Corporation, Aksa Energy
Asia-Pacific was the largest region in the air cooled generators market in 2025 and is expected to be the fastest-growing region in the forecast period. The regions covered in the air cooled generators market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the air cooled generators market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The air cooled generator market consists of sales of 2-pole air-cooled generators, 4-pole air-cooled generators, and generator accessories. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Air Cooled Generators Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses air cooled generators market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for air cooled generators ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The air cooled generators market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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