Generator Market Overview
The Generator Market is expected to grow at a CAGR of 5.5% during the forecast period 2024-2031.
The market for generators is witnessing a growing demand owing to the increasing need for backup power solutions and the expansion of the construction industry. The Asia-Pacific region is expected to exhibit significant growth in the generator market. The generator is an electrical system that is used to convert mechanical energy into electrical energy.
Market Summary
| Metrics | Details |
| Market CAGR | 5.5% |
| Segments Covered | By Type, By Voltage Capacity, By Application, By End User, and By Region |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
| Fastest Growing Region | Asia Pacific |
| Largest Market Share | North America |
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Market Dynamics
The major factors driving the Global Generator Market are the increasing industrialization in different parts of the world and many new products and technologies being launched which is also driving the market growth for Generators.
The increasing industrialization in different parts of the world and expansion by major companies is driving the market growth for Generators
The market is driven by the rising demand for the generator in the end-user industry like commercial due to a surge in industrialization around the globe. Increasing the generator requirements to fulfill the energy demand of people around the world is also driving the generator market growth in the residential and industrial sectors. Many buildings and offices of companies are established in different parts of the world and many industrial projects are going on in different parts of the world which is driving the market growth for generators. There is also increasing demand for electricity in the world due to rapid industrialization and increasing per capita electric power consumption in different parts of the world, especially in the Asia-Pacific region. There are also frequent power cuts in many developing countries of the world Karachi, the financial capital of Pakistan faced recent load shedding for continuously 12 hours on 6 June 2021 which is also driving the market growth for Generators. Many companies are expanding their manufacturing facilities like Cummins and Chevron announced a collaboration regarding hydrogen and other renewable energy sources in July 2021. Blackham Resources acquired the Cummins Gas Generators in September 2019. Honda also expanded its manufacturing facilities to North Carolina in August 2019 which is also driving the market growth.
The growing rate of urbanization and the launch of new technologies are also driving the market growth
Many companies are launching new innovative technology generators with the help of alkaline fuel cells to fulfill the energy the global may create a huge opportunity for the generator market AFC Energy launched a hydrogen-powered mobile generator that utilizes alkaline fuel cell technology in February 2020. It has a capacity from 20 kW to 1MW designed as per power requirements. The company named Cummins launched Onan QG 2800i and 2500i generators in January 2021. Cummins launched the QSB7E generator in October 2020. The increasing urbanization in different parts of the world is also driving the market growth. There is also a shift in the consumer spending pattern towards integrated consumer electronic goods which resulted in frequent power grid failure and shortages in the supply of electricity for critical and emergency applications in hospitals, communication services, and emergency call centers it is also quite important to provide power backup and uninterrupted supply for uninterrupted operations. Diesel generators are used on a massive scale due to the long service life of the generators compared to other alternatives and it also has less noise.
The substitution for the alternatives like battery storage systems is hampering the market growth of the Generator Market
COVID-19 Impact on Market
The COVID-19 pandemic has affected many industries due to the disruption in the supply chain, as there were full or partial lockdowns in many countries of the world, and restrictions across borders and closure of airports hampered world trade. Every sector was also severely affected due to covid-19 as there was disruption of the supply chain and people preferred health over their jobs. Companies couldn’t operate with proper covid norms. It was also difficult for staff and workers to work with social distancing norms and the economy was also affected severely as many workers returned to their homes during covid-19 resulting in a massive loss for the industry. Since people are at home so they are using more electricity which is creating more demand for generators in the world. There are also frequent power cuts in many developing countries of the world Karachi, the financial capital of Pakistan faced recent load shedding for continuously 12 hours on 6 June 2021 which is also driving the market growth for Generators but according to the survey, the global electricity consumption declined during covid-19 by 1.1% in 2020 which is hampering the market growth. In some parts of Asia like China, electricity consumption increased driving the market growth for generators.
Market Segmentation Analysis
The Global Generator Market is segmented based on Type, Voltage Capacity, Application, End-User, and Region.
Based on the Type, the Global Generator Market is segmented into diesel, gas, and dual fuel.
The diesel segment within Global Generator Market was valued at US$ XX billion in 2023 and a growth in market size is predicted to lead to a market size worth US$ XX billion by 2031, growing at a CAGR of XX% during the forecast period (2024-2031). The diesel segment has the highest market share due to the increasing demand for electricity in the manufacturing sector in which diesel generators are used. There is also a shift in the consumer spending pattern towards integrated consumer electronic goods which resulted in frequent power grid failure and shortages in the supply of electricity for critical and emergency applications in hospitals, communication services, and emergency call centers it is also quite important to provide power backup and uninterrupted supply for uninterrupted operations. Diesel generators are used on a massive scale due to the long service life of the generators compared to other alternatives and it also has less noise. The gas and duel fuel segment is also having a significant market share due to the increasing government support and initiatives for the consumption of duel biofuel and gas usage in the generator market.
Based on the Voltage Capacity, the Global Generator Market is segmented into 100 kVA, 100-350 kVA, and 351-1000kVA.
Based on the Application, the Global Generator Market is segmented into Peak Shaving Power, Continuous Power, and backup power channel.
Based on the End-User, the Global Generator Market is segmented into commercial, industrial, and residential.
Market Geographical Share
Based on the Region, Global Generator Market is segmented as - North America, Europe, Asia-Pacific, The Middle East, Africa, and South America.
The Asia-Pacific region had a market share of XX% in 2023 and is expected to hold XX% by 2031. The Asia-Pacific region has the highest market share among all the regions due to the increasing growth in technological and rising manufacturing facilities, especially in South Asia and Pacific regions in countries such as China, India, and Japan. According to the report by the United Nations Industrial Development Organization(UNIDO) in 2017, the developing regions in the Asia Pacific accounted for manufacturing value-added per capita income valued around USD 502 which was raised twelve times as comparing 2010. Several companies are shifting their manufacturing facilities of generators to the region due to which the market is growing in this region. Since people are at home so they are using more electricity which is creating more demand for generators in the world. There are also frequent power cuts in many developing countries of the world Karachi, the financial capital of Pakistan faced recent load shedding for continuously 12 hours on 6 June 2021 which is also driving the market growth for Generators. According to the survey, electricity consumption increased in China by 3.1% in 2020 while in India and some other countries it declined.
Companies and Competitive Landscape
The Global Generator Market is fragmented with key global players in the market and there are many large companies in the market. Some of the major companies contributing to the market's growth are - Cummins, Honda, Caterpillar, Wärtsilä, Mitsubishi, Rolls-Royce, and many others.
Mergers and Acquisitions, agreements, expansions, joint ventures, etc increase competition in the market Cummins and Chevron announced a collaboration regarding hydrogen and other renewable energy sources in July 2021. Blackham Resources acquired the Cummins Gas Generators in September 2019. Honda also expanded its manufacturing facilities to North Carolina in August 2019.
New Innovations, New products, and services launched also increase competition between companies The company named Cummins launched Onan QG 2800i and 2500i generators in January 2021. Cummins launched the QSB7E generator in October 2020.
Partnerships and Collaborations between companies are also making the market more competitive. Divestments and investments by the company and split of companies are also making the market quite competitive.
Cummins
Overview:
Cummins is an American company dealing with the manufacturing and distribution of engines and other power generation products. The headquarters of the company is located in Columbus, Indiana, USA. Cummins operates in around 190 countries of the world with the help of 600 distributors and 6000 dealers. The company has the following in its product portfolio- Engines, turbochargers, commercial vehicles, power generation systems, etc. The company was also ranked 150th on the fortune 500 companies list and the market value of the company as of 31st March 2021 is USD 37.9 billion. The company was founded by J Irwin Miller in Columbus, Indiana on 3rd February 1919. The company works under the following segments - Engine, Distribution, Components, Power Systems, and New Power. The company was also ranked 412 in the global 2000 Forbes list of 2021. The current CEO of the company is Tom Linebarger.
Product Portfolio:
- RV Generators
- Commercial vehicles
- Turbochargers
- Diesel Engines
- Hybrid Engines
- QSK 95 Diesel Generators
- QSB7E Generator
Key Development
- Cummins and Chevron announced a collaboration regarding hydrogen and other renewable energy sources in July 2021.
- The company launched Onan QG 2800i and 2500i generators in January 2021.
- Cummins launched the QSB7E generator in October 2020.
- Blackham Resources acquired the Cummins Gas Generators in September 2019.
Financial Overview
The company was also ranked 150th on the fortune 500 companies list and the market value of the company as of 31st March 2021 is USD 37.9 billion. The company was also ranked 412 in the global 2000 Forbes list of 2021. The major shareholders of the company are The Vanguard Group, Inc., BlackRock Fund Advisors, SSgA Funds Management, Inc., Geode Capital Management LLC, and LSV Asset Management with market shares of 8.47%, 5.94%, 4.74%, 1.8%, 1.51% respectively.
Why Purchase the Report?
- Visualize the composition of the Global Generator Market products in terms of Type, Voltage Capacity, and Applications, highlighting the critical commercial assets and players.
- Identify commercial opportunities in the Global Generator Market by analyzing trends and co-development deals.
- Excel data sheet with thousands of data points of Global Generator Market-level 4/5 segmentation.
- PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
- Product mapping in excel for the key product of all major market players
The Global Generator Market report will provide access to approximately 57 market data tables, 50 figures, and 180 pages
Target Audience 2024
- Equipment suppliers/ Buyers
- Providers/ Buyers
- Industry Investors/Investment Bankers
- Education & Research Institutes
- Emerging Companies
- Research professionals
- Distributors
- Manufacturers
