The Worldwide Generator Sales Industry is Expected to Reach $28.6 Billion by 2027 – ResearchAndMarkets.com

DUBLIN–(BUSINESS WIRE)–The “Generator Sales Market by Fuel Type (Diesel, Gas), Power Rating (Up to 50 kW, 51-280 kW, 281-500 kW, 501-2000 kW, 2001-3500 kW, Above 3500 kW), Application (Standby, Continuous), End User, Design, Sales Channel, Region – Global Forecast to 2027” report has been added to ResearchAndMarkets.com’s offering.

The generator sales market is expected to grow from an estimated USD 21.6 billion in 2022 to USD 28.6 billion in 2027, at a CAGR of 5.8% during the forecast period.

The industrial segment, by end user, is expected to be the largest market from 2022 to 2027

The end user segment is categorized as industrial, commercial, and residential. The industrial segment held the largest share of the generator sales market. The industrial end user segment is witnessing a high demand for diesel & gas generators, particularly in developing countries. The growth of this segment is attributed to the increase in demand from mining, marine, chemicals, military, and manufacturing industries. Industrial generators continuously supply power in the event of power failure from the grid system. The growth of the industrial segment is mainly driven by the increasing demand for distributed power generation in Asia Pacific and the oil and gas boom in North America.

Indirect Sales Channel are expected to emerge as the largest segment based on sales channel

Indirect sales channel such as OEMs, third-party service providers, procure generators and equipment from manufacturers and provide services to different end users. With most generators used for standby power, it is important that they are in working condition when needed, primarily during a power cut. Owing to which distribution/sales network and service play the most important role in the customer’s decision-making process. Companies are focusing on expanding their distribution and services network, which is driving the generator sales market. Better product reach and preference for procurement of generators through indirect sales channel also provide ample opportunities to boost market growth. Thus, indirect sales channel is expected to emerge as the largest growing market.

Asia Pacific: The largest generator sales market

Asia Pacific is expected to dominate the global generator sales market between 2022-2027, followed by North America and the Europe. The generator sales market in Asia Pacific is witnessing significant developments in the manufacturing sector due to industrialization, which has supported the demand for generators across countries of the region.

The increasing investments in LNG, chemicals, and mining along with the growth of the domestic manufacturing sector is fuelling the growth for gensets in countries such as China, India, South Korea, Bangladesh, and Vietnam. The rapidly expanding data centers industry in Asia Pacific will continue driving the demand for diesel generators in the region. Increased investments in data centers, especially in China, Australia, Japan, and Singapore, are expected to drive the demand for generators.

Market Dynamics

Drivers

• Rapidly Expanding Manufacturing Sector Fuelling Demand for Generators and Power Generation Systems
• Surging Demand for Uninterrupted & Reliable Power Supply to Drive Demand for Backup Power Generation

Restraints

• Growing Adoption of Renewable Energy Sources and Energy Storage Technologies
• Increasing Investments for Upgrading Aging T&D Infrastructure
• Increased Operating Expenditure of Diesel Generators Owing to High Fuel Prices

Opportunities

• Rising Adoption of Hybrid Generators, Bi-Fuel Generators, and Inverter Generators
• Electrification of Rural Areas in Developing Countries to Enable Energy Sufficiency
• Surging Use of Distributed Power Generation Systems and Integration with Renewable Energy Sources

Challenges

• Adherence to Stringent Government Regulations Associated with Generators
• Raw Material and Component Shortage and Increase in Lead Time for Manufacturing Generators

Companies Mentioned

• ABB
• Aksa Energy
• Atlas Copco
• Briggs & Stratton
• Caterpillar
• Cummins
• Denyo Co. Ltd.
• Doosan Group
• Generac
• Greaves Cotton Limited
• Honda Power Products
• Kirloskar Oil Engines Ltd. (Koel)
• Kohler Co.
• Mitsubishi Heavy Industries, Ltd.
• Rolls-Royce Holdings
• Siemens Energy
• Wacker Neuson
• Weichai Power Co. Ltd.
• Wartsila
• Yanmar

For more information about this report visit https://www.researchandmarkets.com/r/kfvdko

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