Generator Market Forecast | Yamaha Motor Corporation, SDMO, Mitsubishi Heavy Industries Ltd., Kubota Corporation, Kirloskar Oil Engines Limited, General Electric Corporation, Doosan Corporation, Cooper Corporation, and AKSA Power Generation
Globally, generators are benefitting with escalating concerns regarding energy security, which in turn has led prospective generator end-users seek ways for operating more efficiently and safely. In emerging nations worldwide, regular power outages have hindered smooth business operations, and implementation of generators has become the key for these entities for functioning throughout a power outage. This has further enabled businesses to save on operating costs and energy. Additionally, surging voltage fluctuations & power cuts have been adversely affecting operations of industries, which in turn has prompted adoption of the reliable power backup equipment.
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For boosting their sales and acquire a competitive edge, manufacturers of generators are leveraging this requirement of industries for reducing their operations downtime because of power outage. One of the most significant challenges hindering the market expansion is mounting regulations on use of diesel generators. With growing emphasis on green technologies and reduction of GHG emissions, diesel-powered generators may witness a decline in demand. Focus on using renewable energy resources such as wind and solar energy will further create barriers to adoption of generators in the near future.
7 Key Takeaways from Fact.MR’s Report on Generator Market for Forecast Period 2017-2026 (In Terms of Value)
Asia-Pacific excluding Japan (APEJ) is expected to remain the fastest expanding market for generator. Rapid industrial expansion in countries of APEJ, such as China and India, in light of low cost manufacturing facilities underpinned by favorable regulatory policies has influences several OEMs to setup their manufacturing bases in these fast emerging nations. As stability of power supply remains uncertain in these countries, need for effective power source has gained an uptick over the past few years. Generators therefore are witnessing huge demand in APEJ.
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Europe and APEJ will account for nearly equal revenue shares of the market by 2026-end. Although revenues from the market in Europe remained significantly higher in 2017, demand is likely to witness a decline over the forecast period. Meanwhile demand for generators will gain a considerable surge in APEJ during 2017 to 2026.
On the basis of fuel type, generators run on diesel will witness substantial demand worldwide, accounting for the largest market revenue share during the forecast period. A steady expansion has been projected for sales of generators run on diesel through 2026. Sales of generators run on gas will witness an average expansion, to account for nearly one-third market revenue share by 2026-end.
Based on end use, revenues from generator sales will remain the largest in the industrial segment. Commercial and residential end use of generators will account for roughly equal revenue share of the market by 2026-end. Sales of generators in the residential segment will reflect the fastest growth through 2026.
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In terms of application, revenues from stationary generators will remain slightly larger than those from their portable counterparts. However, sales of portable generators will ride on a relatively higher CAGR than that of stationary generators through 2026.
Generators having above 1000 kVA capacity are anticipated to remain dominant in the market, in terms of revenues, trailed by 350-1000 kVA. Revenues from these two capacity segments will account for approximately three-fourth market share by 2026-end. Sales of generators having 100-350 kVA capacity will register the highest CAGR through 2026.
Key active players underpinning expansion of the global generator market, as identified by Fact.MR’s report, include AKSA Power Generation, Caterpillar Inc., Cummins Inc., Generac Power Systems, Honda Power Equipment, Kohler Co., Mahindra Powerol, MTU Onsite Energy, and Wärtsilä Corporation.
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