The North America generator sets market is expected to rise at a CAGR more than 2.5% during the forecast period of 2020-2025. Factors such as increasing energy demand for several operations in remote areas such as construction and healthcare. Moreover, factors such as lack of reliable grid infrastructure and the need for emergency backup power solutions are likely going to drive the North America generator sets market. However, increasing the installation of renewable energy sources to provide power is expected to restrain the North America generator sets market.

  • Diesel based generator sets due to their fuel efficiency and low cost of maintenance than gas-based generator sets are expected to be the largest segment and are likely to dominate the North America generator sets market during the forecast period.
  • The emerging commercial and industrial sector of Mexico and development in the residential area of Canada is likely to going to create several opportunities for the North America generator sets market in the future.
  • Unites States, due to its largest population and increasing industrialization in the region is expected to dominate the North America generator sets market. As of 2019, more than 50% of the people in North America come from the United States, thus requiring more power supply for day to day energy consumption.



Key Market Trends

Diesel Segment Expected to Dominate the Market

  • Generator set, also known as genset is a piece of portable equipment, consisting of an engine and a generator, used to provide energy. Gensets are often used in developing, under-construction areas and other areas that are not connected to the power grid or places where power outages are frequent, and where an outage can cause especially significant or dangerous problems, such as in mines or hospitals. They can serve as the primary source of energy or as a supplementary power source, perhaps during peak usage hours
  • Diesel based gensets use diesel as a fuel for converting chemical energy to mechanical energy and then to electrical energy. Factors such as high-efficiency work output and top fuel energy density make it more cost-effective than the other fuel-based generator sets.
  • Moreover, diesel generator sets used now days are much-improved versions of the earlier model. They produce much less noise and needed less cost of maintenance than other gensets, thus driving the market during the forecast period.
  • In 2019, Rolls-Royce supplied one diesel generator set for the power plant of a new pork processing facility in Mexico. It is operated by one of the country’s largest and most technologically advanced producers. The site is not connected to the grid; therefore, the power solution is entirely independent. A single 16-cylinder Series 4000 diesel generator system with an electrical output of 2 megawatts (MW) is tasked with absorbing higher load blocks and offering long-term stability to the power plant.
  • In 2018, Grupel S.A installed an emergency diesel genset in a combined cycle power plant in Mexico to feed the essential load that is required for protecting sensitive equipment of the plant in case of a mains failure.
  • Hence, owing to the above points, the diesel-based generator sets are likely going to dominate the North America generator sets market during the forecast period.



United States Expected to Dominate the Market

  • The United States, due to the constant increase in the energy demand and an increasing number of commercial and industrial operations, the country is likely to be the largest market for the generator sets in North America. The continually growing demand for uninterrupted power supply in the country is expected to drive the generator sets market in the country.
  • Several states in the United States get struck by weather-related disasters, after which there is a significant requirement of energy in the county or state. For this purpose, the United States relies on generator sets as backup power systems in the country to deal with these kinds of situations.
  • Moreover, in 2020, several numbers of people got affected by COVID-19. Due to such a sharp rise in the number of people that require intensive care, the government of the country set camps/shelters at several open grounds or areas for the treatment of the affected ones. These camps were using generators as a primary energy source or as a backup power source for 24 hours of energy supply.
  • In 2018, Hipower Systems, a group company of Yanmar subsidiary, Himoinsa, has opened a new manufacturing center in Olathe, Kansas, United States. Production has begun at its new factory in a 515000 square feet facility that has the most advanced technology for the manufacturing of gensets for the North American market.
  • In 2018, Cummins Inc. was awarded a contract to provide diesel-powered generator sets for the United States Department of Defense (DOD). The DOD is expected to receive the Cummins advanced medium mobile power sources (AMMPS) generator sets by the end of 2023.
  • Hence, owing to the above points, the United States is expected to dominate the North America generator sets market during the forecast period.



Competitive Landscape

The North America generator sets market is fragmented. Some of the key players in this market include Kohler Co., Caterpillar Inc., Cummins Inc., Atlas Copco AB, and Generac Holdings Inc.

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