Stationary Generator Market Size, Share & Industry Analysis, By Fuel Type (Diesel, Gas, and Others), By Power Rating (Below 75kVA, 75-375kVA, 375-750kVA, and Above 750kVA), By Application (Continuous Load, Peak Load, and Standby Load), By End-User (Mining, Oil & Gas, Construction, Residential, Marine, Manufacturing, Pharmaceuticals, Commercial, Telecom, Electric Utility, Data Centers, and Others), and Regional Forecast, 2024-2032

The global stationary generator market size was valued at USD 24.61 billion in 2023 and is projected to be worth USD 26.25 billion in 2024 and reach USD 41.30 billion by 2032, exhibiting a CAGR of 5.8% during the forecast period. The Stationary Generators market in the U.S. is projected to grow significantly, reaching an estimated value of USD 7.03 billion by 2032, driven by the need for reliable power back up solutions during the extreme weather events or grid instability.

The remarkable development in the industrial sector worldwide has led to the growth of energy requirements for long hours and remote locations. Revolution in various fields, such as oil & gas, mining, automobile, pharmaceutical, telecommunication, and manufacturing, has led to rapid industrialization and urbanization, making the stationary and portable generator industry crucial for development.

The global COVID-19 pandemic was unprecedented and staggering, with stationary generators experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Accordingly, the outbreak of the virus altered the demand for stationary generators. As the market is majorly dependent on industries, the biggest downfall faced by the global industrial landscape in a long time also impacted investment. The stoppage of all industries significantly affected the demand for their constant power supply, leading to a crash in the market. According to a report by the United Nations Conference on Trade & Development, the pandemic is responsible for the death of over 1 million people and the contraction of the global economy by over 4.3%.

Stationary Generator Market Trends

Exponential Infrastructure Development to Provide Stimulus to Stationary Genset Market

In road, rail, and airport infrastructure, tremendous investments by emerging and developed countries are set to boost the demand for stationary generator sets. According to India Brand Equity Foundation, in 2021, India constructed over 13,298 km of highway. This portrayed a whopping 17% growth rate from 2016 to 2021. Moreover, growing trade among countries allows investors to invest in expanding the business, which is likely to increase its demand from the construction sector. Consequently, the exponential construction activities for building commercial spaces will likely bode well for the market. According to an article published in October 2021 by Financial Express, mall developers are anticipated to develop over 4.5 million square feet of mall space in India. Furthermore, massive population growth and growth in urbanization are augmenting the development of the market.

Rising Exploration Activities to Meet Growing Demand for Fossil Fuels is a Vital Trend

Conventional fuel is vital in varied industry verticals such as transportation, manufacturing, chemicals, power generation, and others. In addition to population growth, sizeable growth in industries is set to offer lucrative market opportunities. Further, colossal mining activities worldwide to meet the growing requisition for minerals and metals required in pharmaceuticals, automotive, space and aviation, chemicals, and others are projected to leverage the demand for stationary generators. In July 2021, it was reported that India planned on investing around USD 2-3 billion in Russian offshore upstream assets. In 2020, Russia announced plans to enhance its offshore oil and gas exploration and production in the Arctic Circle.

Stationary Generator Market Growth Factors

Inadequate Power Infrastructure Set to Boost Stationary Genset Market

Electricity is an integral part of daily life; however, millions of people worldwide live in the dark due to inadequate grid infrastructure. Consistent population growth and expansion of urban areas are straining the available grid infrastructure.

According to the International Energy Agency (IEA), the International Renewable Energy Agency (IRENA), the United Nations Statistics Division (UNSD), and the World Bank data released in 2023, records that the world is not on track to achieve its Sustainable Development Goal 7 for energy by 2030. It shows that in 2021, over 567 million people in sub-Saharan Africa did not have access to electricity, which accounts for more than 80% of the sub-Saharan African population without access, and the access deficit remained almost the same as in 2010. Current projections estimate that 660 million will be without electricity access in 2030 if further action is not taken.

In 2022, Ghana Grid Company Limited announced its aim to acquire over USD 1 billion in investments for the upgradation of grid infrastructure in the country. The current infrastructure is obsolete and is a major cause of power outages. Subsequently, stationary gensets are increasingly used to access an uninterrupted power supply and avoid frequent power outages. Following this trend, the stationary genset market is expected to see progressive growth in the forthcoming years.

Inflation of Electricity Demand to Bolster Stationary Genset Market Growth

Due to technological advancements, the global economy has been witnessing sizeable growth in the last couple of decades. Innovative technologies are providing ample opportunities in different industry verticals. Revolutionary technologies such as the internet and information & communication technology have rejuvenated business models worldwide. Hence, the rising exchange of consumer goods and businesses has led to significant growth in infrastructure, transportation, commercial, and industrial sectors. These factors are increasing the electricity demand. The inadequate and unreliable electricity supply from power grids in many parts of the world will generate demand for stationary generators for reliable power supply.

According to the U.S. Energy Information Administration (EIA), the global electric power generation capacity is projected to increase by 50% to 100%, and the electricity generation to increase by 30% to 76%. In electricity generation, coal and natural gas are expected to make up 27% and 38% of total power generation capacity by 2050, respectively.

RESTRAINING FACTORS

Growing Investment in the Utility Sector and Rising Adoption of Clean Energy Technology to Restrain the Stationary Genset Market

Increasing investments in the utility sector to provide reliable and uninterrupted power supply is anticipated to impede the market size. International and local governments are working to enhance the grid infrastructure and satisfy the growing demand for electricity. In January 2022, the U.S. Department of Energy announced the launch of the ‘Building a Better Grid’ initiative to enhance and modernize the grid infrastructure in the country. Moreover, growing concerns over rising greenhouse gas emissions (GHGs) provide impetus to renewable energy technology. This factor will limit the market scope for the expansion of stationary gensets.

Stationary Generator Market Segmentation Analysis

By Fuel Type Analysis

Diesel to Dominate the Fuel Segment

On the basis of fuel type, the market is divided into gas, diesel, and others. Diesel segment accounts for a substantial share in this market due to high fuel economy, lower taxes & government subsidies, suitability for different engines, and highly reliable performance. The increasing use of natural gas and other fuels, such as gasoline, biofuels, and others, is propelling the segment growth over the forecast period.

By Power Rating Analysis

High Industrial Growth to Bode Well for Above 750kVA Power Rating

On the basis of power rating, the market is categorized into above 750kVA, 375-750kVA, 75-375kVA, and below 75kVA. Industrial equipment and machinery require high power to carry out heavy operations such as excavation, drilling, transportation of material, and others. Expanding industries globally due to massive economic growth is set to increase high power rating generators’ demand. Further, increasing demand for consumer goods is likely to leverage production, ultimately increasing electricity demand. These factors are set to boost the above 750kVA segment.

By Application Analysis

Demand for Uninterrupted Power Supply to Drive Continuous Load Segment

On the basis of application, the market is trifurcated into standby load, peak load, and continuous load. Reliable and continuous power supply requirements are essential for mining, exploration, and construction activities. The immense demand for fossil fuel, minerals, and metals in varied industries is likely to stretch opportunities for the continuous load segment. Moreover, stationary gensets are deployed for power generation to meet the increasing electricity demand. This factor is projected to drive the growth of the market. The standby load segment is growing rapidly due to the growing backup power requirement in power outages.

By End-User Analysis

Rising Investments across Residential Segment to Bolster the End User Segment

The market is classified into pharmaceuticals, manufacturing, construction, oil & gas, mining, marine, commercial, residential, telecom, electric utility, data centers, and others based on end-user. The residential segment holds a leading position due to the growing requirement for uninterrupted power backup. The increasing remote working trend and massive urbanization are set to positively impact the market. The residential segment mainly uses low-power-rating standby type gensets.

The oil & gas segment requires a consistent power supply for exploration, drilling, production, and refining activities. Due to the high power requirement, large power rating continuous load stationary gensets are generally used in the oil & gas sector. The oil & gas segment is the most dominant end-user segment among the industrial landscape. The industrial segment is anticipated to bolster the stationary gensets market progress due to rapid industrialization in various regions.

Rising manufacturing development, especially in Asia Pacific, to provide finished goods for various consumers is likely to favor the growth of the construction segment. The growing consumerism is anticipated to accelerate the development of the manufacturing segment. The high requirement of different metals, stones, and minerals to fabricate raw materials and end-use products for various industries, especially manufacturing and construction, favors the mining segment.

REGIONAL INSIGHTS

This market is analyzed across five key regions, Asia Pacific, Europe, North America, Latin America, and the Middle East & Africa. Asia Pacific is projected to dominate the stationary generator market share due to high investment by emerging economies in infrastructure development. India and China play a crucial role in shaping the global economy as both countries account for almost 36% of the world’s population. Consequently, the available grid infrastructure is insufficient to satisfy the high power demand and will likely boost the stationary genset market development.

The Middle East & Africa offers profitable opportunities, owing to the constant exploration of oil and gas. In addition, most African countries do not possess grid infrastructure, which is likely to expand the industry's growth. According to the United States Agency for International Development, as of December 2021, every 2 in 3 people in sub-Saharan Africa do not have grid-connected power.

Growing information and communication technology and rising data centers in North America are likely to leverage the demand for an uninterrupted power supply. The U.S. houses some of the top technology companies that require a reliable power supply. This prevalence will enhance the market position in North America.

Latin America is exhibiting steady growth due to mining and exploration activities in Brazil, Argentina, Mexico, and others. Although Europe focuses on clean energy systems, many countries still use generators for power generation. Furthermore, the presence of several top manufacturing and automotive companies is set to boost the market's growth.

List of Key Companies in Stationary Generator Market

Dominant Market Share is Likely to be Enjoyed by Leading Companies

The competitive landscape of the market is highly fragmented. Key players are projected to lead the market due to massive investments in innovation and technology. The companies are looking for expansion by leveraging the performance characteristics of these generators. Growth in the number of stationary generator manufacturers is likely to create healthy competition among the existing companies. Companies are competing based on the cost, efficiency, power rating, durability, and power output of these generators.

List of Key Companies Profiled:

• Caterpillar Inc. (U.S.)


• Himoinsa (Spain)


• Cummins Inc. (U.S.)


• Atlas Copco (Sweden)


• FG Wilson (U.K.)


• Briggs & Stratton (U.S.)


• Generac Power Systems (U.S.)


• Aggreko (U.K.)


• Ingersoll Rand (Ireland)


• PRAMAC (Italy)


• John Deere (U.S.)


• Kirloskar Electric Co. Ltd (India)


• Kohler-SDMO (France)


• American Honda Motor Company, Inc. (U.S.)


• Yamaha Motor Corporation, USA (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• June 2021 – Caterpillar launched 12 new models for the CAT GC diesel standby stationary generators product line. Six of these models have the rating of 450 - 715 kVA for 50 Hz applications, and the remaining six belong to the 350 to 600 kW for the 60 Hz application category.


• August 2021 – Cummins introduced its new generator, the ‘Made in India’ - QSK60 G23: 2500-2750 kVA Diesel Generator (DG). This new stationary genset is designed for peak, continuous, and standby load applications.

REPORT COVERAGE

The global stationary generator market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

Report Scope & Segmentation