The global generator sets market is poised for substantial growth, driven by rapid industrialisation, residential and commercial expansion, and the increasing demand for reliable power supply.

According to Straits Research, the market is projected to reach a size of $57.28 billion by 2030, with a remarkable compound annual growth rate (CAGR) of 8.23 per cent.

MARKET OVERVIEW

Generator sets, powered by gas or fuel, play a crucial role in generating electricity through mechanisms such as steam turbines, gas turbines, and internal combustion. They find applications in various sectors, including industrial, agricultural, defense, and daily life.

AC and DC generators are commonly used, and their output can be adjusted based on demand. Generator sets are particularly prevalent in areas with unreliable power supply, ensuring a consistent flow of electricity.

According to Straits Research, the market's growth is fueled by factors such as rapid industrialisation, infrastructure improvements, and the increasing digitisation of industries.

IMPACT OF IT IMPROVEMENTS AND DIGITISATION

Technological advancements in IT and the growth of data centers are expected to drive the generator sets market forward. The digitalisation of industries and the increasing awareness of power interruptions among end-users are contributing to the industry's prospects. Generator sets are especially suitable for mining operations due to their endurance, capacity, and low volatility. The demand for reliable power supply in key sectors like automotive and pharmaceuticals further supports the market's growth, stated Straits Research.

OIL AND GAS INDUSTRY ADVANCEMENTS

The mining and oil and gas exploration sectors, often operating in remote areas, require sufficient lighting and power. Investments in the oil and mining industries, particularly in the US, Australia, and African countries, are on the rise. China, Australia, and other Asian countries are also expected to open new mines, increasing the demand for power-renting options. The expansion of the oil and gas industry, including hydraulic fracturing in the US, is driving the need for rental generator sets, revealed the report.

INNOVATION AND NEW GROWTH OPPORTUNITIES

Intense competition within the generator sets market has led businesses to incorporate cutting-edge ideas to enhance their brand prominence. For instance, Inmesol recently introduced silent generators with a working sound pressure level of 50 dB(A). Such product advancements are expected to boost the generator business in the coming years, creating new growth opportunities.

REGIONAL OVERVIEW

The global generator sets market consists of North America, Europe, Asia-Pacific (APAC), Latin America, and the Middle East & Africa regions. Asia Pacific accounted for approximately 37 per cent of the market's revenue in 2021 and is expected to witness the highest growth. The region's fast-growing economies, with China leading in terms of revenue, are driving market expansion. North America, with a market share of 25 per cent in 2021, is expected to develop rapidly, primarily driven by the United States. The increasing vulnerability of the electric grid to weather-related outages has amplified the demand for energy backup options in the region.

SEGMENTATION ANALYSIS

The market is segmented based on fuel type, power rating, application, and region”

• By Fuel Type: The diesel segment commanded the majority share of the market in 2021, accounting for over 70 per cent of the total market. Diesel generators are preferred due to their superior fuel economy and lower operating costs.

• By Power Rating: The low-power generator category held a revenue share of over 45 per cent in 2021. This segment is expected to dominate the market during the forecast period.

• By Application: The commercial sector accounted for approximately 45 per cent of the total revenue in 2021, and it is projected to grow at a high rate. The demand for generator sets in commercial establishments, such as offices and retail spaces, is increasing.

• By Region: Asia Pacific is projected to hold the largest revenue share of over 37 per cent in 2021 and is expected to experience the highest growth rate. The region's booming economies and infrastructure development are driving the market.

KEY PLAYERS

The global generator sets market is highly competitive, with several key players operating worldwide. Some of the prominent companies in the market include Atlas Copoco, Mitsubishi Heavy Industries, Doosan Corporation, Caterpillar, General Electric, Briggs and Stratton Corporation, Cummins, Generac Holdings, AKSA Power Generation, Cooper Corporation, Honda Siel Power Products, Kohler, MTU Onsite Energy, and Wartsila Corporation.

RECENT DEVELOPMENTS

• In July 2022, Taiwan-Power-Company (TPC) awarded Mitsubishi-Power a series of contracts for a large-scale refurbishment project at the Datan-Power-Plant in Taiwan, demonstrating the brand's growing influence.

• In June 2022, Doosan Enerbility and Siemens-Gamesa-Renewable-Energy (SGRE) signed an MoU to develop Korea's offshore wind power sector, indicating thegrowing focus on renewable energy sources and the potential impact on the generator sets market.

The global generator sets market is expected to witness significant growth in the coming years, driven by factors such as rapid industrialisation, infrastructure development, and the need for reliable power supply in various sectors. Straits Research stated as the world increasingly relies on consistent power supply, the generator sets market is poised to provide essential solutions and opportunities for growth.