Generator: Global Market Scenario, Trends, Opportunity, Growth and Forecast, 2020-2030

Market Definition

A generator is a machine that transforms motive force, or power derived from fuel, into electricity for use in an external circuit.

Market Insights

From 2023 to 2030, the market for generators will expand at a 4.8% CAGR, reaching $21.5 billion. An ageing and under-invested grid and rising energy consumption are the primary drivers of market expansion. For small manufacturers, cost will always be a significant competitive element. Although more government initiatives may aid in spurring some short-term growth, the market is mature, and throughout the projected period, little will change significantly.

To decarbonize, the North American energy sector experienced a number of changes. However, during the following ten years, its share of diesel will not vary significantly. During the projected period, the region’s generator market will grow and unit upgrades will be driven by current and impending strict environmental requirements as well as the transition to a decentralized grid. In terms of emissions regulation and the future course of the American generator market, the new government is at the forefront. 

The rise of gas generators, which started in the 2010s, will continue in the 2020s. New regulations will encourage the deployment of cleaner power sources in the area as energy demand rises. As petrol and hybrid (PV and storage) sources become more affordable, the continuous move away from diesel will become more popular. Future market growth will also be hampered by rising investments in transmission and distribution lines, digital grid solution ideas, and energy storage.

The European generators market is established and fiercely competitive. A key point of difference is product innovation. During the projected period, the convergence of increased digitalization, computing needs, and new business models will lead to creative ways to affect the top-line growth and bottom-line efficiency of top generator manufacturers.

Market Dynamics: Drivers

Increasing Energy Demand and Frequent Power Outages Worldwide

Since energy consumption is increasing as a result of expanding urbanization, a booming population, and changing sectors, power outages have become a serious concern worldwide, especially in developing countries. According to the IEA’s energy Market Report 2023, the growth in the world’s energy consumption will pick up to an average of 3% over the following three years.

The necessity for air conditioning has also been brought on by the frequently changing weather patterns that bring on heat waves and droughts and create substantial power outages. For instance, last year’s severe heat waves caused India’s peak in power demand to be higher than ever. In a similar line, dryness and heatwaves in China’s central and eastern regions raised the need for air conditioning while lowering hydropower output in Sichuan province. Rising electricity usage and frequent power outages have increased the need for adaptable and reliable power systems. This shows that the market may expand as a result of increased use of diesel generators.

Market Dynamics: Challenges

A Rapid Switch to Sustainable Energy to Reduce Carbon Footprints

The global market for diesel generators is confined by rising environmental concerns and the need for low-emission sources to meet climate commitments. Governments around the world are developing strategies to reduce carbon emissions and promote renewable energy sources, which poses a challenge to the market. The increased emphasis on moving to greener, more sustainable options threatens the demand for DGs. As nations try to provide dependable electricity supplies while battling climate change, the worldwide market for diesel generators confronts constraints.

Market Segmentation

• Based on Type, the Global Generator market is segmented into
  • Gas
  • Diesel
• Based on End Use, the Global Generator market is segmented into
  • Residential
  • Data Center
  • Healthcare
  • Oil & Gas
  • Office Building
  • Public
  • Utilities
  • Other Commercial
  • Other Industrial
• Based on Application, the Global Generator market is segmented into
  • Prime and Continuous
  • Standby
  • Peak shaving
• Based on Power Rating, the Global Generator market is segmented into
  • Below 100 kVA
  • 100-500 kVA
  • 501-1000 kVA
  • Above 1000 kVA
• Based on Geography, the Global Generator market is segmented into
  • Asia-Pacific
  • North America
  • Europe
  • Latin America
  • Middle East & Africa
• All market revenue has been given in US Dollar, while the market volumes are given in units.

Historical Year: 2020-2021
Base Year: 2022
Estimated: 2023
Forecast- 2024-2030

 Key Questions this Study will Answer

• What are the key overall market statistics or market estimates (Market Overview, Market Size- By Value, Market Size-By Volume, Forecast Numbers, Market Segmentation, Market Shares) of Global Generator Market?
• What is the region wise industry size, growth drivers and challenges key market trends?
• What are the key innovations, opportunities, current and future trends and regulations in the Global Generator Market?
• Who are the key competitors, what are their key strength and weakness and how they perform in Global Generator Market based on competitive benchmarking matrix?
• What are the key results derived from the market surveys conducted during Global Generator Market study?