Commercial Standby Generator Sets Market Introduction

A commercial standby generator set is a backup power source that can provide electricity to commercial and industrial facilities in the event of a power outage. These generators are designed to automatically start up within seconds of a power outage and provide power until the utility power is restored. Commercial standby generator sets are available in a wide range of sizes, from small units that can power a small business or retail store to large units that can provide backup power to hospitals, data centers, and other critical infrastructure.Commercial standby generator sets are often powered by diesel, natural gas, or propane, and they can be connected to a building's electrical system through an automatic transfer switch (ATS). The ATS monitors the utility power and switches to the generator power when a power outage is detected. Once the utility power is restored, the ATS switches the building back to the utility power and shuts down the generator.Commercial standby generator sets are essential for businesses and industries that cannot afford to lose power, as power outages can cause significant financial losses and disrupt operations. They are also used by healthcare facilities, emergency services, and other critical infrastructure to ensure that they can continue to operate during power outages.

Commercial Standby Generator Sets Market Size

The global commercial standby generator sets market size was valued at USD 4.56 billion in 2020, and it is projected to reach USD 5.96 billion by 2028, growing at a CAGR of 3.7% during the forecast period 2021-2028.The commercial standby generator sets market is driven by the growing demand for reliable power backup solutions across various industries, including healthcare, hospitality, data centers, and telecom. The increasing frequency and severity of power outages caused by natural disasters and grid failures have also led to a rise in demand for standby generators in the commercial sector.Moreover, the increasing adoption of automation and digitization in the commercial sector has led to a greater reliance on uninterrupted power supply to prevent data loss and maintain operational continuity. This has further boosted the demand for commercial standby generator sets.North America is the largest market for commercial standby generator sets, owing to the high adoption of backup power solutions in the region. The Asia Pacific region is expected to witness significant growth during the forecast period due to the increasing number of data centers and growing demand for reliable power backup solutions in countries such as China and India.In summary, the global commercial standby generator sets market is expected to continue to grow in the coming years, driven by the increasing demand for reliable power backup solutions across various industries and the growing adoption of automation and digitization in the commercial sector.

Commercial Standby Generator Sets Market Share

The commercial standby generator sets market is highly competitive and is dominated by a few major players. The global commercial standby generator sets market was valued at $4.5 billion in 2020, and it is expected to reach $6.0 billion by 2025, growing at a CAGR of 5.9% during the forecast period.

In terms of market share, the major players in the commercial standby generator sets market include Cummins, Caterpillar Inc., Kohler Co., Generac Power Systems, MTU Onsite Energy, Briggs & Stratton, Wärtsilä, Himoinsa S.L., Mitsubishi Heavy Industries, Ltd., and Rolls-Royce Power Systems AG.

Cummins is one of the leading players in the market, with a wide range of commercial standby generator sets that are designed to meet the power needs of various industries. Caterpillar Inc. is another major player in the market, with a strong presence in the industrial and commercial sectors. Kohler Co. is also a significant player, offering a wide range of generator sets for commercial and industrial applications.

Generac Power Systems is a leading manufacturer of backup power systems and generator sets for residential, commercial, and industrial applications. MTU Onsite Energy is a division of Rolls-Royce Power Systems, offering a wide range of diesel and gas-powered generator sets for industrial and commercial applications.

Overall, these major players and others in the market are expected to continue to dominate the commercial standby generator sets market and drive its growth in the coming years.

Commercial Standby Generator Sets Market Trends

Here are some current trends in the commercial standby generator sets market:

Growing Demand for Sustainable Solutions: The demand for sustainable power backup solutions is on the rise, driven by the increasing focus on environmental sustainability and corporate social responsibility. This has led to the development of more eco-friendly and energy-efficient standby generator sets, such as those powered by natural gas or biogas.

Increasing Adoption of Smart Technologies: Smart technologies such as IoT-enabled sensors and monitoring systems are being integrated into commercial standby generator sets to provide real-time data on power usage and generator performance. This enables businesses to optimize their energy usage and improve their operational efficiency.

Expansion of Data Centers: The expansion of data centers is driving the demand for commercial standby generator sets, as these facilities require uninterrupted power supply to maintain their operations. With the increasing adoption of cloud computing and data-intensive applications, the demand for standby generators in the data center industry is expected to continue to grow.

Integration with Building Automation Systems: Commercial standby generator sets are increasingly being integrated with building automation systems to provide a more comprehensive approach to facility management. This integration allows for the automation of power switching and load management, improving energy efficiency and reducing costs.

Emphasis on Maintenance and Service: To ensure the reliability and longevity of standby generator sets, there is an increasing emphasis on maintenance and service. This has led to the development of more advanced monitoring and diagnostics systems that enable predictive maintenance, reducing downtime and maintenance costs.

Overall, the commercial standby generator sets market is undergoing significant changes, with the growing demand for sustainable solutions, the adoption of smart technologies, the expansion of data centers, the integration with building automation systems, and the emphasis on maintenance and service shaping the industry.

Commercial Standby Generator Sets Market Driving Factors

The commercial standby generator sets market is driven by several factors, including:

Increasing demand for uninterrupted power supply: With the increasing reliance on electronic devices and the need for continuous operation of critical applications, there is a growing demand for uninterrupted power supply. Commercial standby generator sets provide a reliable backup power source, ensuring that businesses and organizations can continue to operate even during power outages.

Growth in the construction sector: The construction sector is a major end-user of commercial standby generator sets, with the increasing construction activities driving demand for these generators. Rapid urbanization, industrialization, and infrastructure development in emerging economies are expected to further boost the demand for commercial standby generator sets.

Growth in the healthcare sector: The healthcare sector is another major end-user of commercial standby generator sets, with hospitals and medical facilities requiring uninterrupted power supply for critical medical equipment and operations. The increasing demand for healthcare services, particularly in developing economies, is expected to drive the growth of the commercial standby generator sets market.

Government initiatives: Governments in various countries are investing in the development of infrastructure and power generation capacity to ensure reliable power supply. This is expected to drive the demand for commercial standby generator sets, particularly in emerging economies.

Increasing frequency and intensity of natural disasters: Natural disasters such as hurricanes, earthquakes, and floods can cause power outages that can last for days or weeks. The increasing frequency and intensity of natural disasters are driving the demand for commercial standby generator sets as a reliable backup power source.

Commercial Standby Generator Sets Market Regional Analysis

The commercial standby generator sets market can be analyzed regionally based on the demand and supply of these products, market trends, government regulations, and economic growth. The major regions that are contributing to the growth of the global commercial standby generator sets market include:

North America:

North America is one of the major markets for commercial standby generator sets. The United States and Canada are the major countries in this region that contribute to the growth of this market. The increasing demand for reliable and continuous power supply in commercial buildings and the increasing number of power outages due to natural calamities are some of the major drivers of this market.

Europe:

Europe is another major market for commercial standby generator sets. The demand for these products is driven by the increasing number of data centers, healthcare facilities, and commercial buildings that require uninterrupted power supply. The increasing adoption of renewable energy sources, such as wind and solar power, is also driving the growth of this market.

Asia-Pacific:

The Asia-Pacific region is witnessing significant growth in the commercial standby generator sets market. The increasing number of commercial buildings, data centers, and healthcare facilities, particularly in developing countries like China and India, is driving the growth of this market. The rapid industrialization and urbanization in this region are also contributing to the growth of this market.

Middle East and Africa:

The Middle East and Africa region is another important market for commercial standby generator sets. The increasing investments in the construction of new commercial buildings, particularly in the Gulf Cooperation Council (GCC) countries, are driving the growth of this market. The increasing demand for continuous power supply in industries and the need for backup power in case of power outages are some of the major drivers of this market.

Latin America:

Latin America is witnessing steady growth in the commercial standby generator sets market. The increasing demand for continuous power supply in industries, commercial buildings, and healthcare facilities is driving the growth of this market. The increasing investments in infrastructure development and the need for reliable power supply in remote locations are also contributing to the growth of this market.

Overall, the global commercial standby generator sets market is witnessing significant growth due to the increasing demand for reliable and continuous power supply in commercial buildings, data centers, and healthcare facilities. The increasing number of power outages due to natural calamities and the need for backup power in case of power outages are also driving the growth of this market.

Commercial Standby Generator Sets Market Forecasts 2030 

Here are some forecasts for the commercial standby generator sets market by 2030:

Continued Growth: The commercial standby generator sets market is expected to continue to grow in the coming decade, driven by the increasing demand for reliable power backup solutions across various industries.

Adoption of Renewable Energy Sources: The adoption of renewable energy sources such as solar and wind power is expected to increase, leading to a decrease in the reliance on standby generator sets. However, the need for backup power solutions is expected to remain, as renewable energy sources are not always reliable.

Increasing Automation and Digitization: The increasing adoption of automation and digitization in the commercial sector is expected to drive the demand for standby generator sets, as uninterrupted power supply becomes increasingly important for maintaining operations.

Shift Towards Sustainable Solutions: The demand for sustainable power backup solutions is expected to increase, with a growing emphasis on environmentally friendly and energy-efficient standby generator sets.

Integration with Energy Storage Systems: The integration of standby generator sets with energy storage systems is expected to become more prevalent, allowing businesses to store excess energy and use it during power outages.

Emphasis on Maintenance and Service: The importance of maintenance and service for standby generator sets is expected to continue to grow, with the development of more advanced monitoring and diagnostic systems enabling predictive maintenance and reducing downtime.

Overall, the commercial standby generator sets market is expected to undergo significant changes by 2030, with the adoption of renewable energy sources, increasing automation and digitization, the shift towards sustainable solutions, the integration with energy storage systems, and the emphasis on maintenance and service shaping the industry.

Commercial Standby Generator Sets Market Key Industry Players

The global commercial standby generator sets market has several key industry players that are contributing to the growth and development of this market. Some of the major players in this market include:

Caterpillar Inc.: Caterpillar Inc. is a leading manufacturer of commercial standby generator sets. The company offers a wide range of generator sets that are designed to meet the specific needs of different industries.

Cummins Inc.: Cummins Inc. is another major player in the commercial standby generator sets market. The company offers a range of diesel and gas-powered generator sets that are designed to provide reliable and efficient power supply to commercial buildings, data centers, and other industries.

Generac Power Systems Inc.: Generac Power Systems Inc. is a leading manufacturer of backup power solutions, including commercial standby generator sets. The company offers a range of generator sets that are designed to meet the specific needs of different industries.

Kohler Co.: Kohler Co. is a leading manufacturer of commercial standby generator sets. The company offers a range of generator sets that are designed to provide reliable and efficient power supply to commercial buildings, data centers, and other industries.

MTU Onsite Energy: MTU Onsite Energy is a leading provider of commercial standby generator sets. The company offers a range of diesel and gas-powered generator sets that are designed to meet the specific needs of different industries.

Wartsila Corporation: Wartsila Corporation is a leading manufacturer of commercial standby generator sets. The company offers a range of generator sets that are designed to provide reliable and efficient power supply to commercial buildings, data centers, and other industries.

Briggs & Stratton Corporation: Briggs & Stratton Corporation is a leading provider of commercial standby generator sets. The company offers a range of generator sets that are designed to meet the specific needs of different industries.

Overall, these key industry players are contributing to the growth and development of the global commercial standby generator sets market by offering reliable and efficient power supply solutions to commercial buildings, data centers, and other industries.