At 5.79% CAGR, Generator Sales Market to hit USD 31.78 Bn by 2027, says Brandessence Market Research - Seite 2

Generator Sales Market Trends

According to the World Bank, the typical outages in firms around the world averaged to 6.19 per month. Moreover, in 2020, over 53% firms experienced power outages per month, according to the World Bank data. This number is significantly high for firms who are looking to compete and gain a competitive advantage over global rivals. This is partially the reason why firms in India, and China register a strong demand for portable diesel generators. The growing demand for power generation to tackle intermittent supply issues has driven firms to experiment with different generator sets, with increased focus on renewable energy. 

The increased access to electricity is also likely to be a major driver of growth for players in the generator sales market. In 2012, the percentage of global population with electricity access remained at 84.73%. On the other hand, it increased to 90.08% in 2019. The growing access to electricity is likely to lead to increased demand for power generation, resulting in more pressure on already constrained supply in developing countries. Furthermore, the increased shift towards renewables is also expected to put more pressure on power generation, as consistency of supply will likely be an issue in the near future.

The demand for renewable generator remains strong in the generator sales US market. It is estimated that the demand for power backups in key states like California remain at an all-time high, with nearly 90% of new sales registering as diesel generators. In Areas like Bay Area, and South Coast, the number of generators have jumped by 34% and 22% over the 2018-2021 period. Furthermore, the generators remain key to pumping power for major companies in the area, and this remains the most promising prospect for growth for players in the generator sales market around the world.

Diesel fuel generator use remains important even in developed countries, with remote places in states like Alaska relying solely on diesel generators to produce electricity. Furthermore, many industrial facilities, hospitals, institutional facilities, and large buildings rely on diesel generators to produce electricity. The application of these for emergency power, and backup remain strong driver of growth in the generator sales market. However, despite their major implication renewable energy sources are replacing diesel generators in various sectors like agriculture, industrial, and others, due to their low-cost electricity generation, and hybrid application. In 2020, the US generated 4,009 billion kilowatthours of electricity from utility-scale generators. Moreover, additional 41.7 billion kWh was produced using small photovoltaic systems. Furthermore, while 60% of total electricity generation came from fossil fuels, nearly 20% was generated using renewable energy sources. Similar trends are being witnessed globally, as countries chase the horizons of sustainable energy future around the world.