Published: Jan, 2019

The global generator sales market was valued at around US$ 24 Bn in 2017 and is anticipated to expand at a CAGR of more than 5% from 2018 to 2026, according to a new report titled Generator Sales Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2018–2026’ published by Transparency Market Research (TMR) . 

Generators are commonly used for short periods of time, especially during interruptions in electricity supply from transmission and distribution networks. Diesel is a commonly used fuel in generators. Countries across the globe are adopting various emission reduction goals to curb pollution. Continuous use of diesel in generators can hamper the emission reduction targets of countries. Hence, countries are introducing stringent laws that require generator manufacturers to lower emissions from diesel generators. 

generator sales market

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Rise in Incidence of Power Outages Driving Market Growth

The global electrification rate has been improving over the last decade. However, the number of power outage days has also increased. Power outage primarily occurs due to natural calamities, transmission line failure, distribution line failure, and faults in equipment of power generation station or substation. Old power infrastructure, aging supply lines, and frequent incidences of natural calamities in North America are resulting in power failures in several states in the region. This is expected to drive the generator sales market in the region during the forecast period. Additionally, power fluctuations can cause considerable damage. For instance, they can damage electric equipment. The damage can also spread from equipment or machinery to humans operating those machines. Breakdown in any equipment in the entire infrastructure from power generation to transmission and distribution can cause short or long power outage days, depending on the severity of equipment failure. Furthermore, power outage reduces industrial output and leads to loss in revenues. It also causes discomfort, malfunctioning, and unproductivity in residential, commercial, government, and other facilities. Generator sets supply power to such facilities during power outages. Thus, increase in number of days of power outages is boosting the sales of generator sets. 

Natural Gas Expected to be Highly Lucrative Segment

Diesel is a commonly used fuel in generators. However, the market share of the diesel segment is expected to decline during the forecast period, as it causes pollution. Pollution has become a major concern across the globe. On the other hand, natural gas is estimated to be a highly lucrative segment of the generator sales market during the forecast period. Natural gas generators make lesser noise and emit lower amount of VOCs than other types of generators. However, natural gas is highly flammable. High operation and maintenance costs of natural gas generators are projected to hamper the natural gas segment in the near future. 

Major Norms and Regulations related to Generator Sales Market

  • In 2010, the U.S. Environmental Protection Agency (EPA) issued its final exhaust emission regulations for emergency standby diesel generator sets. These came into effect on January 1, 2011.
  • The U.S. EPA started to enforce limitations on exhaust emissions for off-highway diesel engines in 1996 and for stationary diesel generator sets in 2006. These progressive regulations (called ‘Tier levels’) became more stringent over the intervening years and have had a major impact in substantially lowering the levels of nitrogen oxide (NOx), carbon monoxide (CO), particulate matter (PM), and non-methane hydrocarbons (NMHCs).
  • EU Stage-V standards are scheduled to come into effect in 2019 and 2020. They pertain to emissions from diesel use, especially the emission of nitrogen oxide (NOx) and carbon dioxide (CO2). These are likely to adversely affect the demand for generators. 

Standby Segment Dominates Global Generator Sales Market

Generators are commonly used for short periods of time, especially during interruptions in electricity supply from transmission and distribution networks. Most countries across the globe are investing significantly in renewable energy. Increase in adoption of renewable energy is likely to cause interruption in power supply. Hence, standby is expected to remain a major application segment of the market during the forecast period. The prime and continuous segment is expected to expand at a rapid pace during the forecast period. 

Generator Sales Market in Middle East & Africa Anticipated to Expand at Substantial Pace

Asia Pacific dominated the global generator sales market in 2017. China and ASEAN are the major consumers of generators in Asia Pacific. On the other hand, the market in Middle East & Africa is estimated to expand at a substantial pace during the forecast period. Africa is the second-most populous region in the world, with 1.2 billion people living in the region. According to the World Bank’s ‘State of Electricity Access Report–2017,’ more than 62% (i.e. around 609 million) people in Sub-Saharan Africa did not have access to electricity. High costs of grid connections is a prominent barrier to electrification in the region. Hence, most of the people largely dependent on generators. 

Highly Competitive Market with Dominance of Top Players

The global generator sales market is highly fragmented. Large number of local and international players provide generator sales services. Key players operating in the global market include Cummins Inc., Caterpillar Inc., Generac Holdings Inc., Himoinsa S.L., AKSA Power Generation, KOEL Green, Atlas Copco AB, Aggreko PLC, Kohler Co., Briggs & Stratton Corporation, Yamaha Motor Corporation, Greaves Cotton Limited, AGCO Corporation, APR Energy, and Multiquip Inc.

The global generator sales market has been segmented as follows:

Global Generator Sales Market, by Fuel

  • Diesel
  • Natural Gas
  • Others (including Gasoline, Propane, and Biogas)

Global Generator Sales Market, by Power Rating

  • Below 100 kVA
  • 100 kVA - 500 kVA
  • 501 kVA - 1000 kVA
  • Above 1000 kVA

Global Generator Sales Market, by Application

  • Prime and Continuous
  • Standby
  • Peak Shaving

Global Generator Sales Market, by End-user

  • Residential
  • Commercial
  • Industrial 

Global Generator Sales Market, by Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • U.K.
    • France
    • Spain
    • Italy
    • Netherlands
    • Russia & CIS
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • ASEAN
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Ecuador
    • Argentina
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • South Africa
    • Turkey
    • Rest of Middle East & Africa

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