Dual Fuel Generator Market Size, Share & Industry Analysis By Power (Less than 350 KVA, 350 to 1000 KVA, and Above 1000 KVA), By Application (Continuous Load, Peak Load, and Standby Load), By End-User (Residential, Commercial, and Industrial), and Regional Forecast till 2032

The global dual fuel generator market is expanding with an increase in the demand for backup power solutions considering the escalating power outage incidents. A dual fuel generator is a type of generator that can be operated using gasoline and propane. It enables users to choose the fuel option that is easily available or convenient as per requirement. Propane is more clean burning and cost-effective, whereas gasoline offers higher energy density, providing longer run-time.

Dual Fuel Generator Market Driver

Growing Demand for Backup Power Solutions to Support Market Growth

The rising incidents of power outages due to natural disasters, grid failures, and uncertain weather conditions primarily support the market growth. Consumers and businesses are demanding reliable backup power solutions to prevent operational disturbances and maintain continuity of operations. In this scenario, dual fuel generators offer flexibility during fuel shortages and power breaks. Further, the rise in remote work or work-from-home scenarios has elevated the demand for reliable backup power. The ability to store fuel-source propane for more extended periods without degradation enhances the utilization of dual-fuel generators, supporting market growth.

Dual Fuel Generator Market Restraint

High Initial Cost to act as a Market Challenge

Dual fuel generators are relatively costlier than their single-fuel counterpart, which limits their sales amongst cost-sensitive customers in low or middle-income regions. The added complexity of maintaining dual fuel systems also increases maintenance costs and can deter potential buyers. Moreover, propane usually requires additional infrastructure, such as tanks or cylinders for storage, which adds to initial purchase costs. The cost factor can limit the adoption of dual fuel generators owing to the emergence of alternative power sources such as solar or wind energy and their increasing affordability.

Dual Fuel Generator Market Opportunity

Shift toward the Adoption of Clean Energy Solutions to Open Doors to New Opportunities

The global shift toward adopting clean and reliable energy solutions is anticipated to present an opportunity for dual fuel generators. Propane is a cleaner fuel source that produces fewer greenhouse gas emissions than gasoline or diesel, making it an environmentally friendly option. Further, governments and regulatory authorities are promoting cleaner fuels, which is anticipated to boost the demand for dual fuel generators. Further, industries and businesses adopting sustainable technologies can employ these generators to meet environmental goals and maintain reliable power backup.

Segmentation

By Power	By Application	By End-User	By Geography
Less than 350 KVA 350 to 1000 KVA Above 1000 KVA	Continuous Load Peak Load Standby Load	Residential Commercial Industrial	North America (U.S. and Canada) Europe (U.K., Germany, France, Spain, Italy, and the Rest of Europe) Asia Pacific (Japan, China, India, Southeast Asia, and the Rest of Asia Pacific) Latin America (Brazil, Mexico, and the Rest of Latin America) Middle East & Africa (South Africa, GCC, and Rest of the Middle East & Africa)

Key Insights

The report covers the following key insights:

• Recent Advancements in Dual Fuel Generator


• Key Industry Trends


• Regulatory Landscape for Dual Fuel Generator


• Key Industry Developments (Mergers, Acquisitions, and Partnerships)


• Impact of COVID-19 on the Market

Analysis By Power

Based on power, the market covers less than 350 KVA, 350 to 1000 KVA, and above 1000 KVA.

Dual fuel generators with less than 350 KVA capabilities are typically used for small-scale applications, majorly residential applications. Their portability and compact size make them ideal for mobile and backup power.

350 to 100 KVA dual fuel generators are used in medium-sized commercial and industrial applications. They provide significantly more power output, making them suitable for continuous and standby power.

Analysis By Application

By application, the market is segmented into continous load, peak load, and standby load.

The continuous load segment is anticipated to grow owing to the growing demand for generators in remote operations in off-grid locations such as mining, oil & gas operations, and others. Further, the extended storage viability of propane enables users to store an adequate amount of fuel that can support remote and continuous operation needs.

Dual fuel storage generators are primarily employed as standby backup power sources for various end-use purposes. Uncertain power outages, extended power needs, and others, can all be fulfilled using a standby generator.

Analysis By End-User

Based on end-user, the market is divided into residential, commercial, and industrial.

Dual fuel generators offer flexibility, reliability, and cost efficiency across residential, commercial, and industrial use. The generators are used in residential settings as backup power sources during blackouts, natural disasters, or grid failures. Operating on dual sources allows consumers to use readily available fuel sources, eliminating the need for dependency on a single source.

In industrial end-use, dual fuel generators are essential for powering machinery and equipment on job sites, mainly in remote locations with limited access to power.

For instance, in August 2024, Chinese majors, such as COSCO Shipping Container Lines and COSCO Shipping Heavy Industry, signed a contract to manufacture twelve 14,000 twenty-foot equivalent unit containerships with dual-fuel methanol propulsion. The dual-fueled main engine and generator are power-driven by methanol to diminish greenhouse gas emissions.

Regional Analysis

On the basis of region, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America is anticipated to record a prominent share in the global dual fuel market owing to the growing prevalence of outages due to extreme weather conditions such as hurricanes, wildfires, and others. Additionally, the rising adoption of sustainable and low-carbon emitting generators supports the demand for dual fuel generators as they can run on propane. The flexibility of fuel options makes these generators an ideal choice in residential and industrial settings.

In Europe, the region’s strict environmental regulations to limit carbon emissions drive the dual fuel generator market. Countries in the region are highly focusing on alternate fuel sources that could reduce reliance on fossil-based fuels. Propane-based dual generators could provide a sustainable alternative for backup power sources.

In the Asia Pacific region, rapid urbanization and industrialization support the market growth. Rising energy demand and frequent inconsistency in power supply make dual fuel generators a viable option. Further, the growing adoption of sustainable solutions is increasing the adoption of dual fuel generators that offer reduced emissions compared to single-fuel diesel generators.

In Latin America, the market for dual fuel generators is growing owing to the rising need for reliable power supply in rural and remote regions where the grid is unreliable. The flexibility and reliability offered by  these generators make them an optimal solution. In the Middle East and Africa markets, the demand for dual fuel generators is increasing due to the need for off-grid power solutions.

Key Players Covered

The global market is fragmented. Various market initiatives, R&D activities, and others are anticipated to drive market growth. For instance, in May 2024, Briggs & Stratton introduced the upgraded version of the 26kW PowerProtect Home Standby Generator with 65.6kVA of motor starting capability. The generator is designed to operate on both natural gas (NG) and liquid propane (LP) fuels.

The report includes the profiles of the following key players:

• Generac Power Systems, Inc. (U.S.)


• Cummins Inc. (U.S.)


• Aggreko (U.S.)


• Briggs & Stratton (U.S.)


• Champion Power Equipment (U.S.)


• All-Power America (U.S.)


• YANMAR HOLDINGS CO., LTD. (Japan)


• Pulsar Products, Inc. (U.S.)


• Tillotson (Ireland)


• Kohler Co. (U.S.)

Key Industry Developments

• In July 2023, Kohler Co. launched a 26 kW (26RCA) air-cooled home standby generator. The generator operates automatically and can utilize both natural gas and propane as a fuel source.


• In May 2023, Generac introduced a new GP7500E Dual Fuel portable generator. The generator offers the flexibility of operating with gasoline or LP gas and provides consumers with simple and convenient power solutions.