Generator Sets Market 2020 and Forecast 2021-2027

  • TBI65939
  • November 05, 2020
  • Global
  • 135 pages
  • IFF Market Research

Report Overview: Generator Sets Market

The global generator sets market size was valued at USD 12.8 billion in 2020 and is projected to progress at a compound annual growth rate (CAGR) of 7.9% over the forecast period 2021-2027. Growing demand for reliable and uninterrupted power supply from end-use sectors such as power generation, telecom, manufacturing and construction, marine, oil and gas, residential, healthcare, and the chemical is expected to drive the market in the coming years. Rapid industrialization, infrastructure development, and continuous population growth are among the key factors pacing power demand globally. The rising penetration of electronic load requires generator sets to provide electricity supply during power outages and prevent the disruption of daily business activities. In U.S., the market is expected to witness significant growth on account of rising consumer awareness towards reliable emergency power backup and growing costs of power outages at data centers and other IT enable service firms. In addition, the industry is primarily driven by the increasing vulnerability of grid power infrastructure to weather caused disasters across the region. Even though diesel generator sets have low initial investment and low operating costs, the gas generator sets are expected to witness a higher penetration rate over the coming years. Stringent regulations regarding control of the high level of carbon emissions are projected to restrict the demand for diesel generator sets across all the end-use sectors. Industry solution providers in the market are generally responsible for the manufacturing, installation, and maintenance of the generator system. Residential areas, commercial places, and small companies using generator sets for emergency power backup establish maintenance contracts with electrical contractors or generator dealers. Large companies that own several generator units need an in house monitoring engineer to overlook and supervise their generator sets.

Fuel Type Insights: Generator Sets Market

The diesel segment occupied a dominant market share of 68.6% in 2019 owing to its better fuel efficiency and low operating costs. Longer engine lifespan, reliable performance, high flexibility, and enhanced scalability are among the key factors sustaining the competitiveness of diesel generator sets across the market. The gas segment is projected to witness substantial market growth with a CAGR of 7.8 % over the forecast period. The growth can be credited to stringent regulations regarding emission control along with increasing concerns over energy security and the consumption of fossil fuels. For instance, natural gas emits a lower amount of carbon dioxide, nitrogen, and sulfur emissions compared to oil or coal. Moreover, the growing availability of natural gas substantiated by the shale gas boom will propel market expansion.

Power Rating Insights: Generator Sets Market

The low power generator segment accounted for the largest market share of 43.7% in 2019 in terms of revenue and was valued at USD 10.4 billion in 2019. Low power generators find the majority of applications in residential and commercial sectors. Generator sets with not more than 80 kW capacity are used as a backup power solution in households to power devices such as AC units, geysers, water purifiers, and water pumps. Moreover, the low price of small generator sets is expected to increase the demand for generator sets over the coming years. The medium power generator segment occupied the second largest market revenue share of 43.7% in 2019 and is projected to grow at the fastest CAGR over the forecast period. Rising demand for medium power generator sets from developing economies such as Brazil, China, and India for clean fuel in emergency backup power systems in industrial and commercial applications is expected to propel segment growth in the next seven years. The dominant position of medium power generators is attributed to its use in small-scale industries, commercial complexes, petrol stations, and telecom sector, as a primary source of power in off grid areas and as an emergency power supply in grid connected areas. High power generators find the majority of applications in sectors where there is a requirement for continuous power supply such as manufacturing, marine, and power sector. As the direct power supply is not possible at several remote places, the high power generator sets are installed for the generation and distribution of power across the remote area.

Application Insights: Generator Sets Market

The commercial segment accounted for the largest revenue share of 44.7% in 2019 and is anticipated to register a significant growth rate over the forecast period. The dominant position can be credited to the wide segment scope including healthcare, telecom, aquaculture, agriculture, government centers, data centers, educational institutions, and hospitality. Generator sets are used across commercial establishments to handle the emergency power interruptions such as electrical outages or voltage fluctuations that add up to financial losses. Industrial application segment occupied the second largest revenue share in the generator sets market in 2019. It includes the oil and gas sector, transport and logistics, mining, electric utilities, manufacturing, and construction sector. Favorable government schemes for industrial development in emerging economies such as China, Brazil, and India is the key factor driving the demand for generator sets across the segment. The residential segment accounts for a relatively smaller market share as compared with other application segments. Increasing number of power failures, rising customer awareness, and growing load demand on the primary grid are among the key factors driving the demand for generator sets across the residential sector. Generator sets serve as a reliable secondary source of power in households in case of electrical outages or grid failure.

Regional Insights: Generator Sets Market

In the Asia Pacific, the market held the largest revenue share of 34.7% in 2019 and is expected to witness the highest growth rate over the forecast period. China is accounting for the largest revenue share across the region. Expansion of commercial office spaces, increasing electricity demand supply gap, and a growing number of infrastructure projects and manufacturing facilities in the country are expected to drive the market across the region. North America accounted for second largest market share of 22.4% in 2019 and is projected to grow at a significant CAGR during the forecast period, with U.S. being the major contributor to regional growth. The rising vulnerability of the electrical grid to weather-caused outages along with expanding infrastructure of data centers and other commercial sectors has led to strengthening demand for reliable power backup solutions, thereby driving the demand for generator sets across the region. Presence of major generator EPC and OEMs players, large shale gas reserves, favorable government policies on developing clean energy fuels, and robust infrastructure for natural gas transportation are expected to generate the demand for generator sets compared with diesel generator sets, across the U.S market.

Key Companies & Market Share Insights: Generator Sets Market

Major market players practice several inorganic and organic growth strategies in order to gain enhanced market share and expand their service portfolio. Some of the prominent players in the generator sets market include:

Key companies Profiled: Generator Sets Market Report

  • Atlas Copoco AB
  • Caterpillar Inc.
  • Cummins Inc.
  • Generac Holdings Inc.
  • General Electric
  • Briggs and Stratton Corporation
  • AKSA Power Generation
  • Cooper Corporation
  • Kohler Co.
  • MTU Onsite Energy
  • Mitsubishi Heavy Industries Ltd
  • Doosan Corporation Wartsila Corporation
  • Honda Siel Power Products Ltd.
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Trusted Business Insights has segmented the global generator sets market report on the basis of fuel type, power rating, application, and region:

Fuel Type Outlook (Revenue, USD Million, 2016 - 2027)

  • Diesel
  • Gas

Power Rating Outlook (Revenue, USD Million, 2016 - 2027)

  • Low Power Generator
  • Medium Power Generator
  • High Power Generator

Application Outlook (Revenue, USD Million, 2016 - 2027)

  • Industrial
  • Commercial
  • Residential

Table of Contents
Chapter 1. Methodology and Scope
   1.1. Research Methodology
   1.2. Research Scope & Assumption
   1.3. Information Procurement
        1.3.1. Purchased Database(Statista, FactSet, Bloomberg, SDC Platinum)
        1.3.2. IFF Internal Database
        1.3.3. Secondary Sources & Third-Party Perspectives
        1.3.4. Primary Research
   1.4. Information Analysis
        1.4.1. Data Analysis Models
   1.5. Mark
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