Global Generator Sales Market Overview, 2023-28

The generator sales market is primarily driven by the need for reliable backup power supply solutions in various industries, commercial establishments, residential properties, and events. Generators are devices that convert mechanical energy into electrical energy, providing a secondary power source in the event of utility power failures or in off-grid locations. Demand for generators and a power generation system is being fueled by the rapidly increasing manufacturing sector. The manufacturing industry has been crucial to the expansion of the economies of various Asia-Pacific nations. The demand for products and services is rising as a result of expanding urbanisation, which is fueling the expansion of the manufacturing industry. Additionally, in order to establish themselves as centres for global manufacturing, the governments of some Asian nations have inked extra regional trade agreements. The Regional Comprehensive Economic Partnership (RCEP), if executed properly, would be a step towards a more comprehensive Free Trade Area of the Asia Pacific (FTAAP), according to the ASEAN Economic Community (AEC). It has the potential to complement the growth of the manufacturing sector in the region and act as an appropriate intergovernmental forum for free trade. The region's demand for generators and power generation systems is being driven by the expansion of the manufacturing sector. In China, India, and Thailand, brand-new power generation projects and oil refineries are being built.

According to the research report, "Global Generator Sales Market Overview, 2023–28," published by Bonafide Research, the market is anticipated to cross USD 39.66 Billion, increasing from USD 28.41 Billion in 2022. The market is expected to grow at a CAGR of 5.82% by 2023–2028; the industrial sector represents a significant portion of the generator sales market. Industries such as manufacturing, construction, oil and gas, and mining require generators to ensure uninterrupted operations and prevent financial losses caused by power disruptions. Nowadays, the generator industry has witnessed advancements in technology, such as the development of more fuel-efficient and environmentally friendly generators as well as the integration of smart features for remote monitoring and control. These innovations contribute to the market's growth by offering enhanced performance and convenience to users. Integration of smart technologies enables remote monitoring, control, and diagnostics of generators. Smart features include real-time performance monitoring, predictive maintenance, automatic load management, and remote access through mobile applications or cloud platforms. These advancements improve operational efficiency, reduce downtime, and enhance user convenience. Integration of energy storage systems, such as batteries, with generators enables better utilisation of excess power and load balancing. Energy storage integration allows generators to operate in parallel with renewable energy sources, store surplus power, and provide instant power during peak demand periods; these are all trends for generators at the global level. By fuel types, the diesel segment is expected to be the largest contributor to the generator sales market. The report segments the generator sales market by fuel types into diesel, gas, and others. The diesel segment is also expected to hold the largest market share by 2028 because of its wide use in manufacturing, healthcare, oil and gas, marine, and IT and telecom sectors.

There are several opportunities and challenges for generator sales at the global level. Some of the challenges that have to be faced are the Increasing environmental concerns and regulations pose a challenge for generator sales. Stricter emission standards and noise regulations may require manufacturers to invest in cleaner and quieter generator technologies to comply with the regulations, which can increase production costs. The generator market is highly competitive, with numerous manufacturers and suppliers vying for market share. Market saturation, especially in mature markets, can lead to intense competition and price pressures, making it challenging for new entrants or smaller players to establish themselves. The focus on energy efficiency and the growing adoption of renewable energy alternatives may reduce the demand for traditional fuel-based generators. Increasingly, businesses and consumers are exploring renewable energy options and energy storage systems, which could impact generator sales. As well, disruptions in the global supply chain, as seen during the COVID-19 pandemic, can impact the availability and cost of components and raw materials for generator manufacturing. Fluctuations in raw material prices, such as metals and fuels, can also affect production costs and profitability. Furthermore, many opportunities are present at the global level for the manufacturer to grab them, like the increasing need for uninterrupted power supply across various sectors, including industrial, commercial, and residential, which presents a significant opportunity for generator sales. Power outages, natural disasters, and infrastructure limitations drive the demand for backup power solutions. Emerging economies undergoing rapid industrialization and infrastructure development, particularly in regions such as Asia, Africa, and Latin America, offer substantial opportunities for generator sales. Industries in these regions require reliable power sources to support their growth and operational needs.

Based on the report, the end-user segment includes industrial, commercial, and residential. The industrial segment is the largest contributor to the generator market. It holds the highest market share. Industrial operations often involve critical processes and machinery that cannot afford interruptions due to power outages. Generators serve as reliable backup power sources, ensuring continuous operation and minimising production downtime, which can lead to significant financial losses. Many industrial facilities, such as manufacturing plants, refineries, and data centres, require 24/7 operation. Generators provide a reliable and independent power supply, allowing these facilities to maintain continuous operations even during utility power failures or scheduled maintenance of the electrical grid. Based on the power rating segment, there are power ratings below 100 kVA, 100–350 kVA, 350–1000 kVA, 1000–2500 kVA, 250–5000 kVA, and 5000 above. The power rating below 100 kVA is leading the global generator market. In the future, the power rating from 100 to 350 kVA will grow at the highest CAGR rate. Generators in the 100–350 power rating range offer a balance between power output and portability, making them versatile and suitable for a wide range of applications. They can power various equipment, machinery, and facilities, including small to medium-sized businesses, construction sites, residential complexes, and events. The flexibility offered by this power range caters to the diverse needs of different industries and market segments.

The stationary segment holds the highest market share. The design types segment consists of two segments: one is stationary and the other is portable. One of the primary reasons for the dominance of the stationary segment is its role in providing backup power supplies during utility power outages. Industries, commercial establishments, and critical infrastructure facilities such as hospitals, data centres, and telecommunications networks require a reliable and continuous power source to avoid disruptions and financial losses. Stationary generators are designed to provide backup power for extended periods, ensuring uninterrupted operations and protecting vital equipment and systems. The sales channel includes the indirect sales channel and the direct sales channel. The indirect sales channel has the highest market share at the global level. Due to Indirect sales channels have an extensive network of distributors and dealers that span across multiple regions and markets. This wide market reach allows them to access a larger customer base and target a diverse range of industries and applications. Distributors and dealers often have established relationships with customers and understand their specific needs, enabling them to effectively promote and sell generators.

?
Considered in this report

• Geography: Global
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report

• Global Generator Sales market with its value and forecast along with its segments
• Region-wise Generator sales market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Regions & Countries covered in the report:

• North America (United States, Canada, Mexico)
• Europe (Germany, United Kingdom, France, Spain, Italy, Russia)
• Asia-Pacific (China, Japan, India, Australia, South Korea)
• South America (Brazil, Argentina, Colombia)
• Middle-East & Africa (UAE, Saudi Arabia, South Africa)

By Fuel Type

• Diesel
• Gas
• Others (LPG, biofuel, coal gas, producer gas, gasoline, and propane gas)

By Application

• Standby
• Prime & Continuous
• Peak Shaving

By End User

• Industrial
• Commercial
• Residential

By Power Ratings

• Below 100 kVA
• 100–350 kVA
• 350–1,000 kVA
• 1,000–2,500 kVA
• 2,500–5,000 kVA
• Above 5,000 kVA

By Sales Channels

• Indirect
• Direct

By Design

• Stationary
• Portable

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Smart Lighting industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

Make this report your own

Have queries/questions regarding a report?

Take advantage of intelligence tailored to your business objective

Ask an Expert

Manmayi Raval

Research Consultant

Don’t pay for what you don’t need. Save 30%

Customise your report by selecting specific countries or regions

Specify Scope Now