Generator Sales Market Report Statistics

• Global generator sales market revenue is estimated to reach USD 51.7 Billion by 2032 with a CAGR of 6.6% from 2023 to 2032
• Asia-Pacific generator sales market value occupied more than USD 12 billion in 2022
• Asia-Pacific generator sales market growth will register a CAGR of around 7% from 2023 to 2032
• Among type, the diesel generator sub-segment generated around 69% share in 2022
• Based on end-user, the residential sub-segment generated around US$ 15 billion revenue in 2022
• Increasing adoption of clean energy is a popular generator sales market trend that fuels the industry demand

The global demand for reliable and uninterrupted power supply has witnessed a significant increase in the coming years which in turn has resulted in an increase in the sales of generators. Both diesel and gasoline generators are becoming ubiquitous in modern society. Using generators, even the most efficient power grids can be affected wherein generators step in to provide power and electricity. Generators are thus considered the best robust mediums to provide power backup in data centers, industrial buildings, construction sites, hospitals, and remotely located cabins and buildings. Generators also provide power backup in emergency conditions. Among the several end-user industries, the industrial sector is anticipated to account for the fast-paced growth over the forecast period. Rising demand for an uninterrupted supply of power is expected to fuel the installation of generators across various industries.

Global Generator Sales Market Dynamics

Market Drivers

• Increasing demand for uninterrupted power supply
• Growing demand from the construction sector
• Emergence of renewable energy sources
• Increasing frequency of natural disasters

Market Restraints

• Stringent regulations on emissions
• High maintenance costs
• Competition from renewable energy sources

Market Opportunities

• Increasing demand for portable generators
• Growth of the construction and infrastructure sectors
• Advancements in battery technology

Generator Sales Market Report Coverage

Generator Sales Market Growth Factors

Power outages and voltage drops adversely affect the functioning and operations of industrial processes and also lead to malfunction of equipment due to which the industries demand generators providing discrete power ratings to support particular machines. Generators are considered the most efficient, reliable, and cost-effective source for power backup and emergencies. Power generators are relatively easy to operate and set up and can be used in almost all types of applications including oil & gas, residential, telecom, hospitals, and others. One of the leading technologies available for emergency power backups is solar panels. Solar panels deploy high installation costs and large spaces as compared to power generators, though have low operating costs. This technology is relatively more environmentally friendly as compared to power and gas generators and has a longer life span than diesel generators. Moreover, solar energy is continuously evolving and thus cannot replace power generators completely.

Authorities in the US have employed emission norms for diesel and gas generators which is a key factor anticipated to pose a positive effect on the global generator sales market. Generators manufactured with norms followed under the latest environmental standards ensure reductions in greenhouse gas emissions. These policies are anticipated to aid the global generator sales market to grow over the foreseeable years. Government authorities across the globe are planning to invest huge amounts of money in data centers, industrial facilities, power generation, real estate, and telecom. The demand for efficient power supply is expected to increase consequently over the forecast period. This aforementioned demand for efficient sources of power is anticipated to propel the global generator sales market during the forecast period. Apart from rising demand for generators from industries, the global generator sales market is expected to gain impetus owing to rapid industrialization especially in developing economies including India, Brazil, China, and Mexico.

Generator Sales Market Segmentation

The worldwide market for generator sales is categorized based on type, power rating, application, end-user, and geography.

Generator Sales Type Outlook

• Diesel Generator
• Gas Generator
• Others (LPG, Gas, Biofuel, Gasoline, etc.)

According to the generator sales industry analysis, the diesel generator segment has primarily been the dominant type in the generator sales market because of its high efficiency, reliability, and durability. Diesel generators are widely used in applications requiring a dependable backup power source, such as data centres, hospitals, and construction sites. Diesel generators are more durable than gas generators and are better suited for heavy-duty applications.

However, the gas generator segment is growing in popularity due to its lower emissions and pricing. Small businesses, residential properties, and telecommunication infrastructure all make extensive use of gas generators. Other generator types, such as propane and biofuel generators, have a smaller market share than diesel and gas generators.

Generator Sales Power Rating Outlook

• Below 100 kVA
• 100–350 kVA
• 350–1,000 kVA
• 1,000–2,500 kVA
• 2,500–5,000 kVA
• Above 5,000 kVA

Globally, the power rating of less than 100 kVA has traditionally been the dominant power rating in the generator sales market. Generators with power ratings less than 100 kVA are commonly used in homes, small businesses, and telecommunication infrastructure. These generators are popular among end-users who require a dependable backup power source because they are inexpensive, portable, and simple to install.

Because of its widespread use in applications such as data centres, hospitals, and industrial manufacturing, the 100-350 kVA segment is also gaining popularity. These generators are more powerful and reliable than generators under 100 kVA and can meet the power requirements of larger applications.

The 350-1,000 kVA range is commonly used in oil and gas, mining, and construction industries. These generators are designed for heavy-duty applications and can provide dependable power in remote areas.

The generator sales market segments of 1,000-2,500 kVA, 2,500-5,000 kVA, and above 5,000 kVA are less common and are typically used in large-scale industrial and commercial applications that provide a high degree of power supply reliability.

Generator Sales Application Outlook

• Continuous Power
• Standby
• Peak Shaving

In the generator sales market, the standby application has traditionally been the dominant application. In the event of a power outage, standby generators are commonly used as backup power sources. They are commonly used in applications such as hospitals, data centres, and commercial buildings where a continuous power supply is required. Standby generators are designed to start and provide power automatically in the event of a power outage.

Continuous power generators are used in applications that require a consistent and reliable power supply, such as industrial manufacturing, marine, and oil and gas. These generators are built to run continuously for extended periods of time and at full power output without interruption.

Generator Sales End-User Outlook

• Residential
• Commercial
• Industrial

According to the generator sales industry analysis, industrial end-users are expected to register fastest growth from 2023 to 2032. Businesses, hospitals, data centres, and other commercial buildings that require reliable backup power sources to ensure continuous operations are examples of commercial end-users. The commercial sector accounts for the majority of generator sales, owing to factors such as the need for business continuity, the increased use of electronic devices, and the increasing demand for reliable power supply.

Historically, residential end-users, such as homeowners and small businesses, accounted for a smaller share of the generator sales market. However, demand for residential generators is increasing as a result of factors such as an increase in the number of power outages caused by extreme weather events, the increased use of home automation systems, and the need for backup power for medical equipment.

Generator Sales Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)

Generator Sales Market Regional Analysis

North America is a mature market for generators, accounting for a sizable portion of the global market. Factors like the rising frequency of power outages caused by extreme weather events, the requirement of reliable backup power sources in data centers, and the growth of the construction industry are driving the market in this region. The United States is the region's largest market.

The Asia-Pacific region has the fastest-growing generator market, owing to factors such as rising power demand due to urbanization and industrialization, the need for reliable backup power sources in data centers and hospitals, and the expanding construction industry. The largest markets in this region are China, India, and Japan.

Generator Sales Market Players

Some of the generator sales companies include Aggreko, Atlas Copco, Briggs & Stratton, Caterpillar Inc., Cummins Inc., Generac Power Systems, Ingersoll Rand, Kirloskar Electric Co. Ltd., MTU Onsite Energy, Rolls-Royce, Wärtsilä, and Yanmar Co., Ltd.