The Global Air-Cooled Generators Market size is expected to reach $5.6 billion by 2030, rising at a market growth of 5.5% CAGR during the forecast period. In the year 2022, the market attained a volume of 2,250.89 thousand units, experiencing a growth of 5.0% (2019-2022).
Asia Pacific region hosts various commercial and industrial sectors, including manufacturing, healthcare, hospitality, telecommunications, and IT services. Therefore, the Asia Pacific region captured $1,756.62 million revenue in the market in 2022. Also, the China market utilized 548.36 thousand units Air-Cooled Generators in 2022. These sectors rely on these for backup and standby power to maintain operations, ensure business continuity, and safeguard critical equipment and facilities from power outages and disruptions.
The major strategies followed by the market participants are Product Launches and Product Expansions as the key developmental strategy to keep pace with the changing demands of end users. For instance, In July, 2023, Kohler Co. launched the 26 kW (26RCA) air-cooled home standby generator, designed to provide effortless, automatic operation by utilizing the home's fuel sources. The new product helps homeowners enjoy uninterrupted power supply during outages without any manual intervention. Additionally, In June, 2023, Cummins Inc. revealed the Onan C-Power QSB7E generator for the commercial marine industry. The new product is accessible as either an open or enclosed unit, available in both 50 and 60 Hz variants, boasting an output capability of up to 195 kWe.
Energy security is essential for maintaining business continuity and operational resilience, especially in industries that rely heavily on uninterrupted power supply for critical operations. Enterprises operating in industries like medical care, banking, telecommunications, information technology, manufacturing, and retail are highly vulnerable to extended downtime or disruptions in their business operations. Hence, growing awareness of energy security is propelling the market's growth.
The market competition in the Air-Cooled Generators sector is marked by a mix of established manufacturers, emerging players, and technological innovators vying for market share in a dynamic landscape. Established companies leverage their extensive experience, brand reputation, and global presence to maintain their competitive edge. These industry incumbents often invest heavily in research and development to enhance product performance, reliability, and efficiency while also focusing on expanding their distribution networks and aftermarket services to cater to diverse customer needs.
Asia Pacific region hosts various commercial and industrial sectors, including manufacturing, healthcare, hospitality, telecommunications, and IT services. Therefore, the Asia Pacific region captured $1,756.62 million revenue in the market in 2022. Also, the China market utilized 548.36 thousand units Air-Cooled Generators in 2022. These sectors rely on these for backup and standby power to maintain operations, ensure business continuity, and safeguard critical equipment and facilities from power outages and disruptions.
The major strategies followed by the market participants are Product Launches and Product Expansions as the key developmental strategy to keep pace with the changing demands of end users. For instance, In July, 2023, Kohler Co. launched the 26 kW (26RCA) air-cooled home standby generator, designed to provide effortless, automatic operation by utilizing the home's fuel sources. The new product helps homeowners enjoy uninterrupted power supply during outages without any manual intervention. Additionally, In June, 2023, Cummins Inc. revealed the Onan C-Power QSB7E generator for the commercial marine industry. The new product is accessible as either an open or enclosed unit, available in both 50 and 60 Hz variants, boasting an output capability of up to 195 kWe.
Cardinal Matrix - Market Competition Analysis
Based on the Analysis presented in the Cardinal matrix; Siemens AG is the forerunner in the market. In June, 2022, Siemens AG introduced Siemens Xcelerator, an open digital platform, aimed at speeding up digital transformation and value generation for customers in various sectors such as industry, buildings, grids, and mobility. Siemens Xcelerator offers a selected range of IoT-enabled hardware, software, and digital services from both Siemens and certified third-party providers. Companies such as Honda Motor Co. Ltd., Baker Hughes Company, Mitsubishi Heavy Industries Ltd. are some of the key innovators in the market.
Market Growth Factors
Ensuring an uninterrupted power supply, as is reliance on electricity for critical operations in various industries and sectors, is paramount. These offer a reliable backup power solution that seamlessly kicks in during grid outages or disruptions, minimizing downtime and preventing costly interruptions to business operations. Therefore, increasing demand for backup power is driving the market's growth.Energy security is essential for maintaining business continuity and operational resilience, especially in industries that rely heavily on uninterrupted power supply for critical operations. Enterprises operating in industries like medical care, banking, telecommunications, information technology, manufacturing, and retail are highly vulnerable to extended downtime or disruptions in their business operations. Hence, growing awareness of energy security is propelling the market's growth.
Market Restraining Factors
Air-cooled generators rely on air for cooling, which becomes less effective at dissipating heat as ambient temperatures rise. In high-temperature environments, air's cooling capacity is limited, leading to reduced efficiency in heat dissipation from the generator components. High operating temperatures can cause performance degradation in generator components such as engines, alternators, and electrical systems. Hence, reduced efficiency at high temperatures is hampering the market's growth.By Type Analysis
Based on type, the market is bifurcated into portable and stationary. In 2022, the portable segment garnered 66.9% revenue share in the market. The benefit of mobility with portable air-cooled generators is that users can move them to other places as needed. This versatility makes them ideal for construction sites, outdoor events, camping trips, and other temporary or remote settings where access to grid power may be limited or unavailable.By System Analysis
On the basis of system, the market is segmented into enclosed system and open ventilated system. In 2022, the open ventilated system segment attained 24.5% revenue share in the market. Open ventilated systems allow greater airflow around the generator components, facilitating more efficient engine cooling and other critical parts.
By End-use Analysis
By end user, the market is divided into industrial, residential, and others. In 2022, the residential segment registered 59.0% revenue share in the market. Residential users prioritize uninterrupted power supply to maintain essential appliances and comfort systems during grid outages caused by severe weather, utility failures, or other emergencies.By Regional Analysis
Region-wise, the market is analysed across North America, Europe, Asia Pacific, and LAMEA. In 2022, the North America region generated 21.6% revenue share in the market. North America encompasses vast rural and remote areas where access to reliable grid power may be limited or non-existent.Market Competition and Attributes
The market competition in the Air-Cooled Generators sector is marked by a mix of established manufacturers, emerging players, and technological innovators vying for market share in a dynamic landscape. Established companies leverage their extensive experience, brand reputation, and global presence to maintain their competitive edge. These industry incumbents often invest heavily in research and development to enhance product performance, reliability, and efficiency while also focusing on expanding their distribution networks and aftermarket services to cater to diverse customer needs.
Recent Strategies Deployed in the Market
- Oct-2023: Siemens AG came into a partnership with Microsoft Corporation, an American multinational technology corporation. Under this partnership, the Siemens Industrial Copilot, an AI-powered assistant used for improving collaboration between humans and machines, was introduced. Additionally, the partnership assisted in the combination of Siemens Teamcenter software and Microsoft Teams to develop the way for enabling the industrial metaverse.
- Aug-2023: Mitsubishi Heavy Industries Engine & Turbocharger, Ltd., a subsidiary of Mitsubishi Heavy Industries Ltd., introduced the MGS3100R to enhance its MGS-R series. The new product provides a freshly developed S16R2-PTAWT-CR engine, incorporating an electronically controlled common rail fuel injection system. Additionally, the new product delivers an output of 3,025 kVA for standby/critical power applications and 2,750 kVA for prime/data centre continuous power operations at a frequency of 50Hz.
- Jul-2023: Kohler Co. launched the 26 kW (26RCA) air-cooled home standby generator, designed to provide effortless, automatic operation by utilizing the home's fuel sources. The new product helps homeowners enjoy uninterrupted power supply during outages without any manual intervention. The new product combines with the existing fuel system of the houses to enhance their sense of security and peace of mind throughout the duration of any outage.
- Jun-2023: Cummins Inc. revealed the Onan C-Power QSB7E generator for the commercial marine industry. The new product is accessible as either an open or enclosed unit, available in both 50 and 60 Hz variants, boasting an output capability of up to 195 kWe.
- Aug-2022: Baker Hughes Company completed the acquisition of Quest Integrity Group, LLC, a global leader in the development asset integrity and reliability management services. Through this acquisition, the company offered comprehensive industrial asset management services, further enhancing its distinct capability to cater to the diverse needs of its customers.
List of Key Companies Profiled
- Briggs & Stratton, LLC (KPS Capital Partners)
- Generac Holdings, Inc.
- Honda Motor Co. Ltd.
- Kohler Co.
- Yamaha Corporation
- Siemens AG
- Mitsubishi Heavy Industries Ltd.
- Toshiba Corporation
- Cummins, Inc.
- Baker Hughes Company
Market Report Segmentation
By Type (Volume, Thousand Units, USD Billion, 2019-2030)- Portable
- Stationary
- Enclosed System
- Open Ventilated System
- Residential
- Industrial
- Others
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Competition Analysis - Global
Chapter 5. Global Air-Cooled Generators Market by Type
Chapter 6. Global Air-Cooled Generators Market by System
Chapter 7. Global Air-Cooled Generators Market by End User
Chapter 8. Global Air-Cooled Generators Market by Region
Chapter 9. Company Profiles
Companies Mentioned
- Briggs & Stratton, LLC (KPS Capital Partners)
- Generac Holdings, Inc.
- Honda Motor Co. Ltd.
- Kohler Co.
- Yamaha Corporation
- Siemens AG
- Mitsubishi Heavy Industries Ltd.
- Toshiba Corporation
- Cummins, Inc.
- Baker Hughes Company
Methodology
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