The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic
The global generator sets market is expected to grow at a CAGR of more than 5.5% during the period of 2020-2025. Factors such as the ever-increasing demand for power, lack of reliable grid infrastructure, the need for emergency backup power solutions, and the demand for steady power supply are driving the generator sets market. Moreover, the growing energy demands from the burgeoning manufacturing industry are expected to provide greater market opportunities for generators. However, factors, such as high installation and operating costs and the consumer preference towards eco-friendly alternatives (solar, fuel cells, etc.), and overcapacity, are restraining the market’s growth.
- Below 75 kVA capacity generators are estimated to have the largest market share during the forecast period, supported by the increase in demand from telecom, retail, other commercial buildings and residential sectors.
- The commercial and industrial sectors of emerging economies, the residential sector of developed economies, and the increasing need for power in defense operations are expected to create significant opportunities for market participants in the near future.
- Asia-Pacific accounted for the largest share in the market in 2018, with majority of the demand coming from countries such as China and India.
Key Market Trends
Below 75 kVA Generator Sets to Dominate the Market
- Less than or equal to 75 kVA diesel generators are used in the telecom sector, commercial complexes, small restaurants, small-scale industries, petrol stations, among others, primarily as backup power in grid-connected areas and as the main power source in off-grid areas.
- Purchase of small generators is mostly based on price and requirement rather than efficiency, as they offer emergency backup power. The unreliable and limited power access, especially in rural areas has been the major reason for high demand for low capacity generators.
- The demand for small generators in range 0-75 kVA is increasing drastically, with the change in landscape of commercial sector, especially in the developing countries of Asia-Pacific and Africa.
- As of 2018, India has close to 450,000 telecom towers, which requires continuous power supply. Since, 0-75 kVA diesel generators are used in the telecom sector for backup power in grid-connected areas and also as a main power source in off-grid areas, generator sets market is expected to grow exponentially.
- The building & construction market is on the rise in India and China due to current government initiatives such as smart cities and green building initiatives, which are expected to create the demand for portable generators during the forecast period., and in turn drive the generator set market.
Asia-Pacific to Dominate the Market
- The generator sets market in the Asia-Pacific region was valued the highest in 2018 and is expected to dominate the market over the forecast period.
- China is the leading generator sets market in the Asia-Pacific region owing to increasing infrastructure projects, widening power demand-supply gap, expansion of manufacturing facilities across the nation, and rising commercial office spaces. The country benefits from the cost and effectiveness of diesel generators, with improved living standards increasing the demand for power back-up devices.
- In addition, the rapid growth in various end-use sectors, such as infrastructure, telecommunication, and information technology (IT) & IT-enabled services is expected to further spur the demand for generators sets in India.
- The increasing power blackouts have significantly hampered the manufacturing sectors in Indonesia, which has increased the adoption of generator sets in the country to ensure continuous and reliable power supply. South Sumatra and Jakarta are the key contributing areas for the growth of market in Indonesia owing to the frequent power blackouts in these areas.
The generator sets market is fragmented. Some of the key players in this market are Atlas Copco AB, Caterpillar Inc., Cummins Inc., Generac Holdings Inc. and Honda Power Equipment amongst others.
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