Global Generator Sets Market

Global Generator Sets Market

The global generator sets market has been expanding rapidly, driven by a growing reliance on portable power in various sectors. Businesses and homes alike need a continuous, reliable, and steady source of power, making the demand for safe and uninterrupted power supply in residential, commercial, and industrial settings increasingly important. This trend is reflected in the generator sets industry, which has been boosted by environmental and regulatory authorities such as the U.S. Department of Energy (DoE), International Energy Agency (IEA), and the European Union (EU), who are constantly implementing measures to integrate a standby source of power to ensure nonstop supply of energy.

According to Global Market Insights, the global generator sets market size was valued at USD 31 billion in 2020 and is estimated to reach USD 64 billion in annual revenue by 2030. Notable manufacturers of gensets worldwide include Cummins, Generac Power Systems, Siemens AG, Kohler Co., Caterpillar, Trane Technologies, Atlas Copco, Honda Motors, Mitsubishi Heavy Industries, and Yamaha Motors.

Generator sets are used to keep critical systems running in homes, businesses, industrial sites, medical facilities, and other areas in the event of a power or grid failure. These systems add an extra layer of security in the event of blackouts or brownouts. Gensets can either serve as the primary source of electricity or as a secondary source, perhaps during peak hours of usage. Common and critical purposes of generators include ensuring continuous power for critical environments such as hospitals, providing essential power for remote and off-grid construction sites, delivering uninterrupted power for marine applications, supplying extra power during times of excessive demand, supplying electricity in places without an electric grid, serving as a supplementary power source for data centers and internet hosting providers, and providing essential power in disaster-hit areas after storms.

There are three main types of generators: portable, inverter, and standby generators. Portable generators are the most popular types of generators, providing temporary, easily transportable electric power. Inverter generators operate by electronically throttling the engine up and down to meet the power demand instead of running all the time, resulting in improved efficiency, lower emissions, and quieter operation. Standby generators are generally stationary and need a concrete pad as a foundation, usually located outside the facility, providing robust solutions that can supply electric power for several days during extended blackouts.

The industry is constantly witnessing the launch of technologically advanced generator technologies. For example, Generac Power Systems had upgraded its Guardian line of household standby generators with the launch of a new, more powerful model. Manufacturers need to stay up to date with the latest regulatory standards while designing their products. In February 2021, the American National Standards Institute (ANSI) and the Portable Generator Manufacturers’ Association (PGMA) had updated the ANSI/PGMA G300-2018 Safety and Performance of Portable Generators Standard (G300) to require portable generators to include carbon monoxide (CO) shutoff technology.

The COVID-19 pandemic had a significant impact on the power sector, with commercial and industrial demand for electricity plunging due to inactivity. Global restrictions on people's movement played a significant role in slowing down energy demand, reducing power usage by around 15% during lockdown periods in countries such as the U.S., France, Spain, Italy, India, the U.K., and others, as reported by the IEA. These factors could affect the generator sets industry forecast to some extent, but the overall market is expected to recover well in the next few years.

What is the future of the generator sets market?

The future of the generator sets market appears to be bright, as the demand for reliable and uninterrupted power supply is expected to grow in the coming years. One of the key factors driving the market growth is the increasing number of natural disasters, such as hurricanes, floods, and earthquakes, which can cause power outages for extended periods. In addition, the rising demand for power in emerging economies, rapid urbanization, and the growth of the construction industry are expected to fuel the demand for generator sets.

Moreover, the COVID-19 pandemic has highlighted the importance of reliable power supply for medical facilities and other critical infrastructure. The pandemic has also led to an increase in remote working and learning, which has further amplified the need for dependable power supply.

In conclusion, the generator sets market is expected to experience strong growth in the coming years, driven by the increasing demand for uninterrupted power supply across various sectors. The market will continue to evolve as manufacturers introduce new and innovative products to meet the changing needs of customers. As such, the future of the generator sets market is bright, and it is likely to remain a critical component of the global power infrastructure.

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