Generator Sales to Remain Strong as Demand for Energy Snowballs
The insatiable demand for electricity has been fueled by the increasing population and industrialization globally. However, there is still a supply gap as electricity generation by utilities is not sufficient to meet the global demand for power. This has created a favorable space for generator sets to fill in the gap between power generation and consumption. Generator sets have thus been seen as ideal solutions to provide electricity in individual homes and other facilities. Their advantages in peak shaving power and prime continuous power have manifested in the form of key drivers for the market.
In terms of revenue, the global generator market was valued at US$16.61 bn in 2015. The market is expected to reach US$24.76 bn by 2024, expanding at a CAGR of 4.58% from 2016 to 2024, says TMR.
The demand for medium power rating generator sets is currently the highest in the residential, commercial, small industrial, and other small-scale facilities. Moreover, the integration of generators with renewable energy systems opens up a window of opportunity for companies in the global generator market.
Adoption of Off-grid Power Systems in Developed Countries Lays Firm Ground for Generator Sales Growth
On the basis of geography, the generator market has been segmented into five regions: North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. In 2015, North America held the largest market share (32.70%), followed by Middle East & Africa (22.22%). The market in North America is expected to expand at a CAGR of 3.58% from 2016 to 2024 to account for US$7.43 bn in revenues by 2024.
Developed countries such as the U.S., U.K., and Germany, have started adopting off-grid power systems to reduce dependence on utility-scale electricity. This has boosted the sales of generators sets in these regions. At a CAGR of 6.39%, the generator market in Asia Pacific is expected to expand at the fastest rate during the forecast period.
The Middle East & Africa generator market is currently witnessing strong generator sales in countries such as Saudi Arabia, the UAE, South Africa, Kenya, Iran, Nigeria, and Qatar. Remote areas that still remain cut off from regular power supply carry a high economic potential for companies in the generator market.
Asia Pacific held the third-largest market share of the global generator market, accounting for 22.2% in 2015. The market in Asia Pacific is expected to expand at a CAGR of 6.39% from 2016 to 2024 to account for US$6.19 bn in revenues in 2024. Countries such as China, India, Malaysia, Thailand, and Australia are showing a swift increase in energy consumption. However, emerging countries in APAC are still plagued by an underdeveloped electricity transmission and distribution infrastructure and frequent power outages, creating a lucrative target market for sales of generator. Europe and Latin America collectively accounted for 23.7% of the global generator market in 2015.
Spotlight will Remain on Use of Generators for Prime Continuous Power
By application, the global generator market can be segmented into standby backup power, prime continuous power, and peak shaving power. Of these, prime continuous power held the largest market share (48.91%) in 2015. Enterprises are primarily investing in generators to ensure prime continuous power – this trend will continue to drive generator sales, leading the prime continuous power segment to expand at a CAGR of 4.39% from 2016 to 2024. By end-user, the market has been segmented into residential and commercial and industrial. Of these, commercial and industrial held the largest market share (58.50%) in 2015; the segment is expected to expand at a CAGR of 5.22% from 2016 to 2024.
Key players in the generator market include Briggs & Stratton Corporation, Caterpillar Inc., Cummins Inc., Generac Holdings, Inc., Kirloskar Electric Company Ltd., Kohler Co., Mitsubishi Heavy Industries, Ltd., Multiquip Inc., Wärtsilä Corporation, and Yanmar Co., Ltd.
Generator sets are ideal solutions to provide electricity in individual homes and other facilities. Generator sets not only aid in providing backup power but also in peak shaving power and prime continuous power. Numerous households, communities, industrial, and commercial facilities have installed generator sets for providing power. Demand for electricity has been increasing constantly across the globe in the last decade owing to increasing population and industrialization. However, electricity generation by utilities is not sufficient to meet the global demand for power. This has created a favorable space for generator sets to fill in the gap between power generation and consumption. North America dominates the global market for generator sets. This report by Transparency Market Research analyzes, estimates, and forecasts demand for generator sets on the global and regional level for an eight-year period from 2016 to 2024 in terms of revenue. The study also provides information on restraints, drivers, and opportunities along with their impact on the overall market during the forecast period. The report segments the market based on power rating, fuel type, application, end-user, and region and provides estimates and forecast of the generator market for each segment.
The study analyzes the product value chain, beginning with components up to end-users. Additionally, it evaluates the market based on Porter’s Five Forces model, which analyzes the degree of competition in the market by considering factors such as bargaining power of buyers and suppliers, threat from substitute products and new entrants. The report includes a detailed competitive landscape of the generator market including company market share analysis and profiles of key market participants.
The report provides a decisive view of the generator market by segmenting the market based on power rating, fuel type, application, and end-user. Power rating segments analyzed in the report include below 100 kVA, 100–350 kVA, 350–1000 kVA, and above 1000 kVA generator sets. Based on fuel type, generator sets are segmented into diesel generators, natural gas generators, and other fuel generators. End-user segments analyzed in the report include residential generator sets and commercial & industrial generator sets. Based on application, generator sets are segmented into prime continuous power, standby backup power, and peak shaving power. All the segments have been analyzed based on present and future trends, and the market has been estimated from 2016 to 2024. Diesel generator sets are the most widely used fuel type generators across the globe. However, demand for natural gas generator sets is also increasing rapidly. Commercial & industrial end-users of generator sets accounted for the major share of the generator market. Generator sets are mostly used for standby backup power and prime continuous power.
The generator market has been segmented based on geography into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. Demand for each type of generator sets in terms of revenue for each of these regions has been forecast in the report for the period from 2016 to 2024.
Leading manufacturers profiled in the report include Briggs & Stratton Corporation, Caterpillar Inc., Cummins Inc., Generac Holdings, Inc., Kirloskar Electric Company Ltd., Kohler Co., Mitsubishi Heavy Industries, Ltd., Multiquip Inc., Wärtsilä Corporation, and Yanmar Co., Ltd. These companies have been profiled in detail with features such as company overview, financial overview, business strategies, employee strength, and recent developments.
Generator Market – Fuel Type Segment Analysis
- Diesel Generator Sets
- Natural Gas Generator Sets
- Other Fuels Generator Sets
Generator Market – Power Rating Segment Analysis
- Below 100 kVA
- 100–350 kVA
- 350–1000 kVA
- Above 1000 kVA
Generator Market – Application Segment Analysis
- Standby Backup Power
- Prime Continuous Power
- Peak Shaving Power
Generator Market – End User Segment Analysis
- Commercial & Industrial
Generator Market – Regional Analysis
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Middle East & Africa
- Saudi Arabia
- Rest of Middle East & Africa
- Latin America
- Rest of Latin America