Generator Sets Market size will exceed USD 34 Billion by 2024, as reported in the latest study by Global Market Insights, Inc.
Inadequate power supply, unreliable grid infrastructure coupled with escalating demand for invariable power will stimulate the market. The industry is extensively driven by the rapidly expanding global population and urbanization worldwide. Strengthening need for self-generating power to combat chronic power shortages will further boost the product penetration.
The U.S. market is set to witness a growth of over 4% by 2024. Rapid recurrences of natural adversities resulting in prolonged power outages have entailed an extensive installation of gensets. In September 2017, Hurricane Maria, a Category 4 storm vandalized nearly 80 percent of Puerto Rico power transmission lines. The storm led to the longest outage in the U.S. history leaving more than 1.57 million electricity customers without power.
Sizeable government investments in backup power generation to mitigate the risks of blackouts and support load shedding during peak times will augment the market. In 2017, the Government of Australia announced an energy plan worth USD 550 million to bring online temporary back-up power generators to reinforce the country’s power reliability.
Gas generator sets market is predicted to expand over 9 % by 2024. Natural gas is being increasingly used as an alternative energy source to replace conventional fossil fuels including diesel and gasoline. The growing inclination toward natural gas as a fuel source is attributed to stringent government regulations restricting the use of other counterparts.
Growing dependency on digitization along with a steady upsurge in data center outages cost will significantly boost the gensets adoption. According to Ponemon Institute, an average data center outage cost has dramatically increased by over 38 percent from USD 505 thousand in 2010 to USD 740 thousand in 2015. The burgeoning expansion of the data centers sector is invariably accompanied by significant growth in the global market.
The ongoing deployment of gensets across the industrial sector as a source of prime power generation will fuel the industry growth. These units are being increasingly installed in multiple industries including mining, oil & gas, and construction where grid access is limited. Rapid industrialization along with increasing investments toward infrastructural development will propel the global market.
Polyphase gensets will witness an appreciable growth owing to their operational suitability in wide ranging applications. The product is predominantly deployed across commercial and industrial sectors on account of their high flexibility, material efficiency and ability to support high power requirements.
High electricity costs, poor transmission & distribution networks along with rapid population growth across developing economies will positively impact the market growth. Increasing energy consumption coupled with inadequate installed capacity will further complement the business outlook.
Key participants in the market include, Generac, Kirloskar, Cummins, Briggs & Stratton, Kohler, Caterpillar, Yanmar, Sterling, John Deere, Mahindra Powerol, Mitsubishi, America Honda Motor.
Source: Energy Mix Report