Electric Generators Market Report 2025

The electric generators market size has grown strongly in recent years. It will grow from $29.75 billion in 2024 to $31.3 billion in 2025 at a compound annual growth rate (CAGR) of 5.2%. The growth in the historic period can be attributed to industrial revolution, electrification of urban areas, world wars and military use, rural electrification programs, growing commercial and residential demand.

The electric generators market size is expected to see steady growth in the next few years. It will grow to $37.17 billion in 2029 at a compound annual growth rate (CAGR) of 4.4%. The growth in the forecast period can be attributed to adoption in emerging markets, resilience planning and disaster preparedness, electric vehicle charging infrastructure, government energy policies, decentralization of energy. Major trends in the forecast period include digital integration for user experience, hybrid power solutions, remote monitoring and predictive maintenance, demand for clean energy, grid stability and resilience.

The rising demand from various sectors, including mining, oil and gas, and pharmaceuticals, is expected to fuel growth in the electric generators market during the forecast period. Generators serve as essential backup power sources for numerous industrial operations, and in areas where grid infrastructure is lacking, they often become the sole source of power. For instance, many mining sites are situated in remote areas, necessitating generators for their daily energy needs. In May 2024, the Australian Bureau of Statistics (ABS), a government agency in Australia, reported that the mining industry experienced significant growth in 2022-23, with Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increasing by 23.4% (AUD 52 billion) and Industry Value Added (IVA) rising by 23.2% (AUD 66.4 billion), following substantial growth of 34.7% and 31.2% in the previous year, respectively. The economic expansion in emerging markets is driving increased industrial activity, which will further contribute to the growth of the electric generators market during the forecast period.

The electric generators market is set to experience growth fueled by the increasing demand for residential projects. Residential projects encompass a broad spectrum of construction initiatives focused on creating living spaces. Electric generators play a vital role in residential settings, providing a reliable power source during sudden outages. For example, in February 2023, according to Fit Small Business, a US-based digital resource for small businesses, the total number of new housing units initiated in December 2022 was recorded at a seasonally adjusted annual rate of 1,382,000. This figure represented a 21.8% decline compared to the December 2021 rate of 1,768,000 and a slight decrease of 1.4% from the revised November 2022 estimate of 1,401,000. Specifically, single-family housing starts in December 2022 reached a rate of 909,000, indicating an 11.3% increase from the November 2022 total of 817,000. Throughout 2022, approximately 1,553,300 housing units were initiated, reflecting a 3% reduction compared to the 2021 total of 1,601,000. The escalating demand for residential projects is poised to propel the growth of the electric generator market.

Major companies in the electric generators market are prioritizing government initiatives that promote the establishment and maintenance of a robust energy infrastructure. These initiatives often include demonstration facilities aimed at enhancing research and development efforts, validating new technologies, and showcasing the viability of renewable energy solutions. Demonstration facilities are specialized sites designed to exhibit and evaluate innovative technologies or systems, particularly within the energy, manufacturing, and sustainability sectors. For instance, in April 2024, Panasonic Corporation, a multinational electronics company based in Japan, announced the forthcoming launch of its 10 kW Pure Hydrogen Fuel Cell Generator in Europe, Australia, and China, scheduled for October 2024. This cogeneration system is designed to provide up to 10 kW of DC power and approximately 8.2 kW of heat for water heating. Notable features include the capability to connect up to 250 modular units, adjustable power output in 1 kW increments, and ease of installation in various environments. With an electrical efficiency of 57% and heat recovery efficiency of 47%, the PH3 aims to lower operational costs and offers a projected lifespan of 15 years, thus contributing to reduced life cycle expenses.

Prominent companies within the electric generators market are driving innovation by introducing new products such as the C1000D6RE, aiming to enhance their market profitability. The C1000D6RE boasts a 1000 kW rating per ISO 8528 and is equipped with two Cummins QSX15 Tier 4 Final engines. Cummins Inc., a US-based company specializing in the design, manufacturing, and distribution of engines, filtration, and power generation products, exemplifies this trend. In June 2022, Cummins Inc. launched the C1000D6RE, a 1MW twin-pack rental generator. Notably, this generator is designed for parallel use with other rental power solutions and features masterless operation capabilities. The C1000D6RE presents a compelling rental power solution suitable for diverse applications across various industries that demand mobile power. Additionally, the generator's container is engineered to endure harsh weather conditions and incorporates a comprehensive sound attenuation system.

In June 2024, Deutz AG, a Germany-based company known for manufacturing diesel and gas engines, acquired Blue Star Power Systems, Inc. for an undisclosed amount. This acquisition is intended to bolster Deutz's position in the electric generators market by broadening its product range and leveraging Blue Star's expertise in power generation solutions tailored for industrial, commercial, and institutional applications. Blue Star Power Systems, Inc. is a US-based manufacturer specializing in rotary and solid-state power frequency converters, while Athlon Generator, also based in the US, produces custom diesel and natural gas-powered electric generators suitable for various applications, including industrial, commercial, and institutional sectors.

Major companies operating in the electric generators market include Kirloskar Electric Co. Ltd., Honda Motor Co. Ltd., Caterpillar Inc., Toshiba Corporation, Cummins Inc., General Electric Company, YAMAHA Motor Pvt. Ltd., Rolls-Royce Holdings plc, Atlas Copco, Doosan Group, Mahindra Powerol Ltd., Yanmar Co. Ltd., Westinghouse Electric Corporation, Mitsubishi Heavy Industries Ltd., Kohler Co., Hyundai Heavy Industries Co. Ltd., Wärtsilä Corporation, Ingersoll Rand, Sterling Generators Pvt. Ltd., Generac Holdings Inc., Cooper Corp., AKSA Power Generation, Wacker Neuson SE, Briggs & Stratton Corporation, Escorts Group, MQ Energy Inc., Powerica Ltd., Inmesol S.L, Firman Power Equipment, Champion Power Equipment Inc., Albion Jvco Limited.

Asia-Pacific was the largest region in the electric generators market in 2024. Western Europe was the second-largest region in the global electric generators market share. The regions covered in the electric generators market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the electric generators market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

An electric generator is a device that converts mechanical energy into electrical energy, utilizing sources such as steam, gas, or water to ensure a consistent power supply for external circuits.

Key categories in electric generator manufacturing include gas, diesel, and CKD generators. Gas generators burn gas to produce electricity, available in varying sizes from small ones found in hardware stores to larger versions offered by specialized companies or electricians providing installation, maintenance, and repair services. Custom gas generators can also be built for specific needs, such as powering server farms during blackouts. Generators come in different capacities such as below 75 kVA, 75-375 kVA, 375-750 kVA, and above 750 kVA, serving purposes such as standby, peak shaving, and continuous operation. They find applications across various industries including mining, oil and gas, construction, residential, marine, manufacturing, pharmaceuticals, commercial, and others.

The electric generators market research report is one of a series of new reports that provides electric generators market statistics, including electric generators industry global market size, regional shares, competitors with an electric generators market share, detailed electric generators manufacturing market segments, market trends and opportunities, and any further data you may need to thrive in the electric generators industry. This electric generators market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The electric generators market consists of sales of gas generators, diesel generators, and other electric generators. This market excludes turbine generators. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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