Global generators market is projected to witness a CAGR of 5.49% during the forecast period 2024-2031, growing from USD 35.89 billion in 2023 to USD 55.04 billion in 2031. The several factors that boost demand for generators in the market are high demand for power grid instability and growing energy demand from industry and commercial sectors. Moreover, generators are a kind of solution which can supply steady energy to residential, commercial, and industrial sectors for different applications. As the world faces continuous issues in energy reliability and climate-related disruptions, the demand for generators will rise in the forecasted period.
Furthermore, the generator plays an essential role in the development of the economy. Sectors such as manufacturing, construction, and mining require continuous power for critical operations. Hence, generators are vital for preventing costly downtime and ensuring business continuity which drive the generator market size in coming years. Generators are used in different industries for backups which driving the demand for the industrial generators market trend in coming years.
Industrial and Commercial Growth to Boost Market Growth
In the development countries, government and private sector are investing in different sectors such as manufacturing and construction. Large industries are heavily dependent on power to keep equipment, and systems operational without fail. Power outages may lead to production downtime leads to significant financial losses. For the continuous operations in industries and to lower the financial losses during power interruptions, generators are the best options for maintaining backup.
Developing countries are highly investing in the development for efficient power backup solutions for industrial applications. Large generators are frequently used to supply reliable power to commercial buildings, factories, and other infrastructure projects, which ensures continuous operations and development. Moreover, several commercial businesses, such as restaurants, retail outlets, and hotels, may result in significant revenue loss due to small power outages. Large power generators ensure business for continuing production operations during blackouts, which fosters the generator’s market size.
For instance, in August 2023, Mitsubishi Heavy Industries Engine & Turbocharger, Ltd. decided to launch a new generator named MGS3100R with a capacity of 3,000 kVA class generator set for commercial and mission-critical facilities. This development helped the company to increase revenue and product portfolio.
Rise in Demand for Reliable Power Sources in Healthcare
Healthcare facilities, including hospitals, medical labs, and clinics, require continuous power to ensure efficient operations. Life-saving equipment such as ventilators, dialysis machines, heart monitors, and surgical equipment are fully dependent on electricity, which creates a high demand for generators in multispecialty hospitals. Generators are the best solution for providing a power backup facility to ensure the devices continue functioning during grid failures.
Frequent power fluctuations cause damage to sensitive medical equipment, vaccines, blood products, and other medicines which leads to high-cost repairs and replacements of affected equipment or products. Generators assist in preventing such issues by providing stable backup power and protecting the equipment and products during downtime. Furthermore, in several regions, power infrastructure is lacking, such as healthcare facilities that depend on generators to ensure continuous care. The need for generators in big facility areas is significant in maintaining reliable access to healthcare services.
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In developing countries, the demand for healthcare services is on the rise, which leads to the need for reliable power backup. This results in a high demand for generators in healthcare applications.
For instance, in November 2023, Hitachi Energy launched a new emission-free generator for remote sites and hospital applications. The development will help the company to increase its revenue in the coming years.
Technological Advancements in Generator Design to Pave Market Demand
The upcoming innovations in manufacturing generators improve efficiency, sustainability, and convenience, so the demand for generators is rising among consumers and industries. Innovative technologies are creating generators that lower fuel consumption and increase productivity. Fuel-efficient generators are valuable for sectors such as construction and manufacturing, which have high energy demands.
The latest generator designs focus on portability and ease of use, allowing products to be more compact and lightweight without compromising power output. Increasing noise reduction technology has led to quieter generators, making products more acceptable for home use, outdoor events, hospitals, and businesses. The advancement in generator features opens opportunities for expanding generator adoption in various sectors.
Recent developments related to hybrid generators that can operate on traditional fuel-based renewable energy sources, such as solar or wind power, are becoming more popular in the market. The rise of hybrid systems creates opportunities for the generator market, particularly in regions adopting renewable energy solutions.
Thus, technological advancements in generator design are creating numerous opportunities for growth in the generator market over the forecast years. For instance, in February 2023, Caterpillar Inc. company announced the launch of a new Cat XQ330 mobile diesel generator set. The solution is for standby and prime power applications which meet U.S. EPA Tier 4 Final emission standards.
Standby Generators to Dominate the Global Market Share
Presently, standby generators have a high adoption rate, which makes the segment dominate the global market share. Standby generators ensure essential services, such as lighting, refrigeration, and IT systems, aiding in continuing functioning during blackouts. For some businesses, the power factor is very critical to maintaining operations, working to prevent revenue loss, and avoiding damage to equipment. Moreover, the newly developed standby generators are being designed according to new laws to meet stricter environmental regulations, including lower emissions and better fuel efficiency, driving the growth of the generators market.
In most countries, policy support facilitates standby generators, thereby making the product economically feasible for homeowners and businesses. Thus, several beneficial aspects of standby generators sustain their dominance in the generators market.
Asia-Pacific to Lead the Generators Market Share
Asia-Pacific dominated the share of the global generators market, owing to countries that are largely investing in reliable energy sectors, driving the market in the region. Several countries in the region face power supply issues due to aging infrastructure and inadequate energy production. India, China, Japan, and Thailand are focusing on the manufacturing sector and electrification, which fosters the demand for generators in the region. Additionally, the rise in investments related to infrastructure is expected to be a major factor for market growth during the forecast period. Governments across the region are investing heavily in infrastructure development, including smart cities, industrial parks, and energy projects, which require reliable power sources.
Future Market Scenario (2024 – 2031F)
1. Advanced generators are expected to be required for commercial applications, helping to shape the future of the generators market.
2. As environmental concerns push for more sustainable generator technological solutions, energy-efficient generators are expected to gain significance.
3. The hybrid systems generators is becoming more popular in the residential and commercial sectors which drive the market share for hybrid systems generators in coming years.
4. As industries and homeowners continue to seek cleaner, efficient, and reliable power solutions which drive the demand for generators in the forecast period.
Report Scope
“Generators Market Assessment, Opportunities and Forecast, 2017-2031F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of global generators market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2024 and 2031. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.
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