`Industrial Gensets Market

Industrial Gensets Market Overview

The global industrial gensets market size was valued at USD 25.28 billion in 2023. It is estimated to reach USD 35.99 billion by 2032, growing at a CAGR of 6% during the forecast period (2024–2032).

In recent times, there has been a significant increase in the global population, leading to a surge in energy demand worldwide. This rise in energy requirements has resulted in a higher demand for gensets, which serve as a reliable power source, consequently driving the growth of the global industrial gensets market. Additionally, major industry players have introduced innovative and advanced gensets, creating new opportunities for market expansion. 

A genset, also known as a generator set, is a compact unit comprising an engine and an electric generator designed to supply electricity in situations where regular power sources are unavailable or unreliable. The engine, typically powered by diesel, gasoline, natural gas, or propane, operates the generator to generate electrical power. Gensets are widely utilized in various settings, including residential properties, commercial establishments, construction sites, and remote areas lacking access to grid power. These generator sets play a critical role in ensuring a continuous power supply during emergencies like blackouts, natural disasters, or in regions with inadequate power grid infrastructure. Gensets are available in different sizes and power capacities to meet diverse energy needs. They offer a dependable and independent electricity source, providing assurance and enabling uninterrupted operations during crucial times. Regular maintenance is essential to ensure the longevity and optimal performance of gensets.

Industrial Gensets Market Definition

Industrial generator sets, also known as gensets, play a critical role in various industries by providing reliable backup power for essential operations. These robust power generation units are designed to ensure uninterrupted electricity supply during unexpected or planned power failures, ensuring the seamless operation of hospitals, data centers, office buildings, manufacturing plants, and other critical services. The versatility of industrial gensets makes them indispensable for maintaining continuity, safety, and efficiency in the event of power disruptions.

`Industrial Gensets Market

Size, by Product, - (USD Billion)

Diesel

Gas

Others

Other Products

The Market will Grow

At the CAGR of:

6%

The Forecast Market

Size for in USD:

$35.99 billion

Market Dynamics

Global Industrial Gensets Market Drivers

Increasing Energy Demand

According to forecasts, the global population is expected to reach over 8.5 billion in 2030 and 9.7 billion by 2050. With the current rapid growth in the global population, it is estimated that the world will require double the amount of energy currently being produced. Furthermore, the rise in regional manufacturing activities and improved living standards will lead to an increase in energy consumption. The International Energy Agency (IEA) predicts that the global electric-power generation capacity will grow between 50% to 100% by 2050. This surge in energy demand, especially in developing countries, puts strain on existing power infrastructure, resulting in frequent power outages and load shedding.

Gensets have emerged as a crucial solution to bridge this gap, providing reliable backup power. Industries, businesses, and households are turning to gensets to ensure uninterrupted operations amidst the growing energy consumption. This trend is driving the genset market forward, meeting the rising demand for continuous power supply in regions facing escalating energy needs and overburdened grid systems.

Global Industrial Gensets Market Restraints

The industrial gensets market faces several restraints, including high initial investment and ongoing operational costs, which can be prohibitive for some businesses. Environmental concerns and stringent regulations against pollution and noise also pose significant challenges, as does the volatility of fuel prices and supply. Advancements in alternative energy sources, such as solar and wind power, and improvements in grid stability reduce the demand for gensets. Additionally, rapid technological advancements risk making existing models obsolete, and a shortage of skilled workforce can hinder their efficient operation and maintenance. Supply chain disruptions further complicate the market landscape, affecting the availability and cost of components.

Global Industrial Gensets Market Challenges

There is a growing need for bi-fuel, inverter, and hybrid generators

There are various applications for diesel generators in residential, commercial, and industrial settings. The combustion of diesel fuel results in the release of nitrous oxides, carbon dioxide, and particulate matter. These emissions are immediately discharged into the atmosphere, causing harm to both the environment and the inhabitants of the area. Across the globe, regulations have been implemented to reduce the noise and air pollution generated by these units. With the rise of environmental concerns, each country has established its own regulations and policies to minimize air pollution. Manufacturers of marine propulsion technology have focused on meeting the diverse environmental standards set by authorities worldwide. This presents a significant challenge for local and emerging businesses involved in the sale of generators.

Global Industrial Gensets Market Opportunities

Bi-fuel, Inverters, and hybrid generators are becoming more and more necessary

New and cutting-edge fuel sources were consistently being created to discover energy alternatives to traditional fossil fuels. Essentially, hybrid generators offered by various OEMs consist of internal combustion engines linked to batteries. These hybrid generators immediately activate the engine during high loads; when the demand is low, the battery cells power the engine. They possess numerous benefits over standard gensets and are projected to surpass portable generation units, commonly utilized in isolated industries such as mining and construction.

`Industrial Gensets Market

Share, by end user, (USD Billion)

25.28 billion%

Standby

Peak Shaving

Prime/Continuous

Other End-Users

35.99 billion

Total Market Size

USD (Billion),

6%

CAGR

-

Industrial Gensets Market Competitive Landscape

Prominent participants in the industrial gensets market encompass a wide range of competitors who are actively striving to establish their market presence. These players are employing various strategic initiatives such as collaborations, mergers, acquisitions, and political backing to strengthen their position. Moreover, these organizations are dedicated to enhancing their product offerings in order to cater to the diverse needs of the extensive population across different regions.

Some of the prominent players operating in the industrial gensets market include:

• Atlas Copoco AB
• Caterpillar, Inc.
• Cummins, Inc.
• Generac Holdings, Inc.
• General Electric
• Briggs and Stratton Corporation
• AKSA Power Generation
• Cooper Corporation
• Kohler Co.
• MTU Onsite Energy
• Mitsubishi Heavy Industries Ltd
• Doosan Corporation
• Wartsila Corporation
• Honda Siel Power Products Ltd.

Global Industrial Gensets Segments

• By Power Rating

1. ≤ 75 kVA
2. 75 kVA - 375 kVA
3. 375 KVA - 750 kVA
4. 750 kVA

• By End-Use

1. Oil & Gas
2. Manufacturing
3. Construction
4. Electric Utilities
5. Mining
6. Diesel
7. Transport & Logistics
8. Others

• By Application

1. Standby
2. Peak Shaving
3. Prime/Continuous

• By Fuel Type

1. Diesel
2. Gas
3. Others

• By Geography

1. North America
2. Europe
3. Asia-Pacific
4. Latin America
5. Middle East & Africa (MEA)

Industrial Gensets Market Recent Development

March 2024- Recon Technologies Pvt Ltd, the authorized manufacturer of original equipment for Mahindra Powerol Genset, announced the release of a new line of diesel generators compatible with CPCBIV+ emission standards. The authorized distributor of Mahindra Powerol in Telangana and Andhra Pradesh is prepared to provide the complete range of gensets up to 625 KVA that adhere to Hyderabad's newest CPCBIV+ emission standards

September 2023- Kirloskar Oil Engines (KOEL), a renowned player in the power generation sector, introduced its newest collection of gensets that comply with the stringent CPCB IV+ regulations. These state-of-the-art gensets exemplify KOEL's steadfast commitment to providing high-performance, fuel-efficient, and environmentally conscious solutions that comply with the strict emission standards imposed by the Central Pollution Control Board (CPCB).

In May 2023, The Marine Diesel Cummins Turbo (MDCT) genset has been introduced by Cummins Inc. It can be equipped with the low- or high-kW Cummins B4.5 auxiliary engines, providing genset ratings of 40 kWe – 80 kWe and 80 kWe – 110 kWe, respectively.

`Industrial Gensets Market

Size, by Product, - (USD Billion)

The Market will Grow

At the CAGR of:

6%

The Forecast Market

Size for in USD:

$35.99 billion

FAQs

• What is the estimated growth rate (CAGR) of the Genset Market?

The genset market is expected to grow at a CAGR of 6% during the forecast period of 2023-2031.

• How big was the Genset Market?

Ans: The global gensets market size was valued at USD 25.28 billion in 2023 and is estimated to reach USD 35.99 billion by 2032.

• Who are the leading players in the Market?

Ans: Atlas Copoco AB, Caterpillar, Inc., Cummins, Inc., Generac Holdings, Inc., General Electric, Briggs and Stratton Corporation, AKSA Power Generation, Cooper Corporation, Kohler Co., MTU Onsite Energy, Mitsubishi Heavy Industries Ltd, Doosan Corporation, Wartsila Corporation, Honda Siel Power Products Ltd.

• Which region has the largest share of the Market?

Ans: Asia Pacific has the largest share of the Market.

• What are the factors driving the growth of the global market?

Ans: There is a growing need for bi-fuel, inverter, and hybrid generators.

`Industrial Gensets Market TO (USD BN)

CAGR OF

6%

`Industrial Gensets Market

35.99 billion%