Generator Sets Market Introduction 

A generator set, also known as a genset, is a combination of an engine and an alternator used to generate electricity. These sets are widely used in various industries and applications such as healthcare, commercial and residential sectors, manufacturing, oil and gas, telecommunications, construction, and others. They are essential for providing backup power during power outages and ensuring the smooth operation of critical equipment.Generator sets come in various sizes and power ratings, ranging from small portable units used for camping or residential backup power to large stationary units used for industrial and commercial applications. The global generator sets market is driven by factors such as increasing demand for reliable and uninterrupted power supply, growing industrialization and urbanization, and rising investments in infrastructure development projects.

Generator Sets Market Size

The global generator sets market size was valued at USD 19.2 billion in 2020 and is expected to reach USD 26.9 billion by 2027, growing at a CAGR of 4.9% during the forecast period. The market is driven by the increasing demand for reliable and uninterrupted power supply, growing urbanization and industrialization, and rising investments in infrastructure development projects. In addition, the need for backup power sources in remote locations and the growth of the construction industry are also driving the market growth. However, factors such as high initial investment costs and environmental concerns associated with the use of generator sets are expected to hamper market growth.

Generator Sets Market Share

The global generator sets market is dominated by a few key players, including Cummins Inc., Caterpillar Inc., Generac Power Systems, Wartsila Corporation, and Kohler Co., among others. These players collectively held a significant share of the market in 2020. In terms of market share by fuel type, diesel generator sets held the largest share in 2020 due to their high reliability, durability, and cost-effectiveness. The industrial end-use segment accounted for the largest share of the market in 2020, owing to the high demand for continuous and reliable power supply in industries such as manufacturing, oil & gas, and telecom. The Asia Pacific region is expected to witness significant growth in the generator sets market share during the forecast period, owing to the rapid industrialization and infrastructure development activities in countries such as China and India.

Generator Sets Market Trends

The generator sets market is witnessing various trends, including:

Increasing adoption of hybrid generator sets: Hybrid generator sets, which combine renewable energy sources like solar and wind with conventional fossil fuels, are gaining popularity. These generators can reduce fuel consumption and emissions, making them an attractive option for environmentally conscious industries.

Growing demand for rental generator sets: The rental generator sets market is growing rapidly, driven by increasing demand from events, construction sites, and other temporary power needs. Renting generators allows companies to avoid the high upfront costs of purchasing and maintaining their own equipment.

Integration of IoT technology: Internet of Things (IoT) technology is being integrated into generator sets, enabling real-time monitoring and data analytics. This allows for proactive maintenance and improved operational efficiency.

Emergence of portable generator sets: Portable generator sets are becoming increasingly popular for residential and small business use. These generators are more affordable and easier to maintain than larger industrial models, and they can be used during power outages or other emergencies.

Shift towards cleaner and more efficient generator sets: With increasing focus on sustainability, there is a growing demand for cleaner and more efficient generator sets. This has led to the development of new technologies like fuel cells, microturbines, and hybrid generators that offer improved fuel efficiency and reduced emissions.

Growth in data center and telecom industries: With the growth of the data center and telecom industries, there is a high demand for reliable backup power solutions. This is driving the adoption of generator sets in these industries.

Adoption of natural gas generator sets: Natural gas generator sets are gaining popularity due to their lower emissions, lower fuel costs, and abundant supply of natural gas in many regions.

Generator Sets Market Driving factors

The following are some of the driving factors in the generator sets market:

Increasing demand for uninterrupted and reliable power supply: With the rising need for continuous and reliable power supply in various sectors such as healthcare, data centers, telecommunications, and manufacturing, there is a growing demand for generator sets.

Growing demand from the construction sector: The construction industry relies heavily on power generators for on-site power supply. The increasing construction activities and infrastructure development projects worldwide are expected to drive the demand for generator sets.

Growing demand from the oil and gas industry: The oil and gas industry requires a reliable and uninterrupted power supply for its operations. With the increasing exploration and production activities, the demand for generator sets in the oil and gas industry is expected to grow.

Increasing demand from the residential sector: Generator sets are also becoming popular in the residential sector, especially in regions prone to power outages due to natural disasters or other reasons.

Government initiatives and regulations: Governments across the world are taking initiatives to improve power infrastructure and reduce power outages. The implementation of strict regulations to ensure continuous power supply is expected to boost the demand for generator sets.

Advancements in technology: The introduction of advanced technologies such as hybrid generators, smart generators, and mobile generators with improved fuel efficiency and reduced emissions is expected to drive the demand for generator sets.

Growing demand from the mining industry: The mining industry requires a reliable power supply for its operations in remote locations where grid power is not available. With the increasing mining activities, the demand for generator sets in the mining industry is expected to grow.

Overall, the generator sets market is expected to witness significant growth in the coming years due to the increasing demand from various sectors and advancements in technology. 

Generator Sets Market Regional Analysis

The generator sets market can be analyzed based on different regions, including North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.North America is one of the largest markets for generator sets, owing to the increasing adoption of emergency power backup systems in various industries and the growing demand for clean and uninterrupted power supply. In addition, government initiatives to modernize the existing power infrastructure and the increasing demand for generator sets in the oil & gas industry are expected to drive the growth of the market in this region.Europe is also a significant market for generator sets, owing to the increasing demand for backup power systems in data centers and healthcare facilities. The growing use of renewable energy sources and the need for reliable backup power in the event of power failures are also expected to drive the market growth in this region.The Asia Pacific region is expected to witness significant growth in the generator sets market, owing to the rapid industrialization and urbanization in countries such as China and India. In addition, the growing demand for reliable and uninterrupted power supply in the residential, commercial, and industrial sectors is expected to drive the market growth in this region.The Middle East & Africa and Latin America regions are also expected to witness significant growth in the generator sets market, owing to the increasing investments in the construction of new power plants and the expansion of existing ones to meet the growing energy demand in these regions.

Generator Sets Market Forecasts 2030 

the global generator sets market size was valued at USD 16.62 billion in 2020 and is expected to reach USD 22.17 billion by 2026, growing at a CAGR of 4.9% during the forecast period of 2021-2026.The Asia-Pacific region is expected to have the largest market share during the forecast period, owing to the increasing demand for power, growth in industrialization and urbanization, and increasing investments in infrastructure development.North America and Europe are also expected to have significant growth due to the increasing adoption of generator sets for backup power solutions and the growing need for reliable power supply in commercial and industrial sectors.The diesel generator sets segment is expected to have the largest market share due to its high efficiency, long lifespan, and low maintenance costs. However, the gas generator sets segment is expected to witness significant growth during the forecast period due to the increasing adoption of natural gas as a fuel for power generation.The industrial sector is expected to have the largest market share due to the increasing demand for uninterrupted power supply in manufacturing and industrial processes. However, the commercial sector is expected to witness significant growth due to the increasing demand for reliable power supply in hospitals, data centers, and other critical infrastructure.Key players in the generator sets market include Caterpillar Inc., Cummins Inc., Generac Power Systems, Inc., Kohler Co., Mitsubishi Heavy Industries Ltd., Wärtsilä Corporation, MTU Onsite Energy, Briggs & Stratton Corporation, Yanmar Co., Ltd., and Atlas Copco AB.

Generator Sets Market Key Industry Players

Some of the key players in the global generator sets market include:

Caterpillar Inc.

Cummins Inc.

Kohler Co.

Mitsubishi Heavy Industries, Ltd.

Generac Power Systems

Wärtsilä Corporation

MTU Onsite Energy

Rolls-Royce Power Systems AG

Briggs & Stratton Corporation

Yanmar Co., Ltd.