Residential Generators Market

Power Disruptions in New York Fuel Demand for Generators during Coronavirus

The COVID-19 (coronavirus) crisis is continuously evolving in states of the U.S. Analysts at the Transparency Market Research opine that New York is expected to suffer power disruptions during the ongoing winter season. This situation is anticipated to exacerbate due to the high prevalence of COVID-19 cases. Such situations are creating incremental opportunities for companies in the U.S. residential generators market. However, issues in workforce management at production facilities and transportation hurdles are hampering market growth.

Companies in the U.S. residential generators market are adopting contingency plans to tide over uncertainties with volatile supply and demand. Since stakeholders in utilities and discoms are isolating important workers to ensure their safety, power disruptions are estimated to fuel demand for generators.

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Natural Gas Generators versus Diesel Generators: Which is Better?

The growing consumer acceptance toward natural gas generators is bolstering the U.S. residential generators market, which is predicted to clock a modest CAGR of 4.5% during the forecast period. Cost efficiency and reduced emissions are driving sales for natural gas generators. However, people do not prefer natural gas, since it is extremely explosive in nature and can lead to a fire hazard. Moreover, in many cases, consumers face lack of fuel as natural gas requires direct pipeline connection.

On the other hand, diesel generators ensure a steady power supply. Companies in the U.S. residential generators market are incorporating improved versions of diesel engines in systems. However, the high cost of diesel generators is inhibiting market growth. As such, its low maintenance cost makes up for the initial investment. In conclusion, manufacturers are strategically targeting generators toward customers according to their unique requirements.

Multipurpose Use of Portable Generators Grabs Attention of Manufacturers and Customers

Portable generators are growing in popularity in the U.S. residential generators market. As such, the market is predicted to surpass the revenue of US$ 1.5 Bn by the end of 2030. Extreme weather events call for the demand for portable generators. Multipurpose use of portable generators such as for camping and barbeques is grabbing the attention of customers and companies alike.

Companies in the U.S. residential generators market are increasing the availability of cost efficient portable systems to gain a competitive edge. Online reviews on generators are building company credibility.

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Regulations Governing Exhaust Management Helps Manufacturers Avoid Compliance Issues

Standby and portable generators are some of the most preferred systems in urban areas of the U.S. Individuals willing to install generators outside of their homes are opting for standby systems, as they are capable of withstanding adverse weather conditions. Manufacturers are increasing their production capabilities to incorporate petrol, diesel, and CNG (Compressed Natural Gas)/LPG (Liquefied Petroleum Gas) fuel in standby systems.

Manufacturers in the U.S. residential generators market are increasing their R&D in exhaust management. This helps to ensure the safety of individuals living in the house as well as the environment. Thus, manufacturers are understanding different regulations governing exhaust management to avoid compliance issues.

Custom Gensets Being Used with Energy Monitoring Systems for Bill Tracking

Companies in the U.S. residential generators market are offering genset sizing calculation services to offer tailored solutions to customers. For instance, Generac Holdings— a Fortune 1000 American manufacturer of backup power generation products, is providing custom home backup gensets in order to increase product uptake. Automated features in gensets are fueling the growth of the U.S. residential generators market. Companies are increasing efforts to offer home energy monitoring systems, along with gensets to help individuals track their electrical wastage.

Deep insights about real-time usage help individuals to cut down on electric utility bills. Companies in the U.S. residential generators market are increasing their focus in mobile apps, which deliver deep insights about electricity usage and eliminate electricity wastage. Historical energy screens and live monitoring of gensets via mobile apps ensure cost savings for consumers.

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Analysts’ Viewpoint

Governments are delaying and decreasing late payment surcharges for discoms during the coronavirus pandemic to reduce financial burden. Gensets are being leveraged with real-time mobile tracking of home energy monitoring systems. Liquid-cooled gensets are growing in popularity to prevent issues of overheating during heavy load and hot climate. However, natural gas generators are expensive to run and emit more carbon dioxide compared to diesel generators. Hence, companies in the U.S. residential generators market are promoting advantages of gas generators such as availability in urban cities and elimination of pungent odor. This helps to balance the sales of both diesel and natural gas generators.

U.S. Residential Generators Market: Overview

• According to Transparency Market Research’s latest research report on the U.S. residential generators market for the forecast period 2020 to 2030, demand for residential generators is rising in the U.S. due to increase in frequency of power outage as a result of aging electrical infrastructure. Growth in installation of renewable energy sources and harsh weather conditions is estimated to boost the U.S. residential generators market during the forecast period.
• In terms of revenue, the U.S. residential generators market is anticipated to cross US$ 1.5 Bn by 2030. The U.S. residential generators market is estimated to expand at a CAGR of 4.5% during the forecast period.

Rise in Incidence of Power Outages: Key Driver of U.S. Residential Generators Market

• Demand for electricity has been rising significantly in the U.S. since the last decade; however, the number of power outages has also increased over the past few years
• Power outage is primarily caused by natural calamities, transmission line failure, distribution line failure, faults in equipment of power generation station or substation, and repair work (planed power outage). Power and voltage fluctuations can cause considerable damage to electrical equipment and machines.
• Breakdown in any equipment in the entire infrastructure, from power generation to transmission and distribution, can result in short or long power outages that can last from a few hours to several days, depending on the severity of equipment failure. Every year, outages cost an average of about US$ 18 Bn to US$ 33 Bn in the U.S.
• The American Society of Civil Engineers reported more than 3,500 total outages in 2015, lasting on an average of 49 minutes. In 2016, the U.S. Energy Administration reported that the average utility customer had 1.3 power interruptions, and the total blackout time averaged four hours.
• Power outage also lowers industrial output and leads to loss in revenue. Furthermore, it causes discomfort, malfunctioning, and unproductivity in residential, commercial, government, and other facilities. Generator sets supply power to such facilities during power outages. Increase in power outages in the country is boosting the demand for standby residential generators. This is driving the residential generators market in the U.S.
• Thus, growth in number of power outages across the U.S. is projected to boost the demand for residential generators, thereby augmenting the residential generators market in the country during the forecast period

Increase in Adoption of Renewable Energy to Boost U.S. Residential Generators Market

• Renewable energy is rapidly gaining traction in power generation mix across the globe. The U.S. is one of the leading countries in the world in terms of adoption of renewable energy. The U.S. has managed to substantially shift from fossil fuels toward environment-friendly and clean power-generation methods. These methods include nuclear, wind, solar, geothermal, biomass, and hydro energy.
• According to the International Renewable Energy Agency, the renewable energy share in the U.S. stood at 7.5% in 2010. This included 2.5% renewable power, 1.6% liquid biofuels, and the remaining, 3.4% solid biomass used for heating. The share of renewable energy is expected to reach 27% by 2030. Furthermore, rise in renewable energy share would help the U.S. economy save between US$ 30 Bn and US$ 140 Bn per year by 2030.
• Renewable energy sources cannot provide consistent power, as they depend on several natural factors. For instance, solar energy can be produced only during daytime, while wind energy can be produced only when the wind blows with a certain force. Hence, there is a need to have backup power sources for these resources. Residential generators is one of these sources.
• Thus, adoption of renewable energy sources is projected to boost the demand for residential generators in the U.S.

U.S. Residential Generators Market: Competition Landscape

• Detailed profiles of providers of residential generators market have been included in the report to evaluate their financials, key product offerings, recent developments, and strategies
• Major players operating in the U.S. residential generators market are
  • Generac Holdings Inc.
  • Cummins Inc.
  • Caterpillar Inc.
  • HIMOINSA
  • Kirloskar Oil Engines Limited
  • Kohler Co.
  • Atlas Copco
  • Siemens AG
  • Honeywell International Inc
  • Yamaha Generators
  • Honda Motor Co., Ltd
  • Briggs & Stratton, LLC

U.S. Residential Generators Market: Major Developments

• Key service providers operating in the residential generators market, such as Generac Holdings Inc., Cummins Inc., Caterpillar Inc., HIMOINSA, Kirloskar Oil Engines Limited, Kohler Co., Atlas Copco, and Siemens AG, are focusing on expansion of portfolio of residential generators. Other prominent developments in the U.S. residential generators market are highlighted below:
• In 2017, Atlas Copco launched powerful and innovative generators, portable compressors, and light towers. The company provided Booth C31486, a new QAS generator range that is designed specifically to cater to the needs of the U.S. market. The range has been completely overhauled, and incorporates eight models, covering power ratings from 25kVA to 330 kVA.
• In November 2018, Kohler Co. introduced a comprehensive line of high-performance batteries specifically designed for use in industrial, commercial, and residential generators. These new KOHLER Genuine Batteries are engineered to deliver optimal performance in generator applications, thereby helping end users minimize the unplanned maintenance cost associated with battery underperformance and frequent replacement.
• In the U.S. residential generators market report, we have discussed individual strategies, followed by company profiles of providers of residential generators. The ‘Competition Landscape’ section has been included in the report to provide readers with a dashboard view and company market share analysis of key players operating in the U.S. residential generators market.

U.S. Residential Generators Market – Segmentation

TMR’s research study assesses the residential generators market in the U.S. based on type, fuel, power rating, application, and country. The report presents extensive market dynamics and progressive trends associated with different segments and how they are influencing growth prospects of the residential generators market in the U.S.