The analysis of the global gensets industry examines growth drivers, restraints, and opportunities for applications and end-user segments affecting its growth outlook. The growth forecast spans 2023 to 2034, with 2023 as the base year. The analysis covers revenue and unit shipments for natural gas and diesel generators. The scope of the study does not include mobile and portable gensets.
The analysis provides market metrics for 11 core regions: Africa, ANZ and Pacific, ASEAN, China, East Asia, Europe, India and South Asia, Latin America, the Middle East, North America, Russia and CIS, and other key countries within the region. More granularity on the data is available in the Gensets Growth Generator Data Platform. Please enquire about pricing for access or inclusion in your existing subscription. Regional information can help with future investment and growth strategies. Revenue and unit forecasts in key applications and end-user segments will help industry participants stay ahead of the competition.
Author: Lucrecia Gomez
Revenue forecast
The revenue estimate for the base year 2023 is $15,888.2 million, with a CAGR of 2.5% for the study period 2022–2034
The Impact of the Top 3 Strategic Imperatives on the Genset Industry
Transformative Megatrends
Why:
Electricity generation is the largest source of global greenhouse gas emissions, at 25%. The urgency to reduce emissions is shifting consumer and government preferences toward cleaner energy sources, with many countries targeting net-zero carbon emissions in the long term. Government-led pro-green policies, increased energy consumption, and advancements in hybrid—photovoltaic (PV) and battery storage—options will drive the growth of the gas generator set (genset) industry.
Frost Perspective:
Demand trends for gas gensets will likely drive gas businesses in 5 to 7 years. The leap to net-zero emissions, representing ubiquitous technology adoption, is forecast to happen in 2030 as diesel technologies reach maturity.
Competitive Intensity
Why:
Market fragmentation and cheap Asian-made products pose significant challenges for genset manufacturers. Technology advancements to achieve higher efficiency and lower emissions levels and the variability in customer needs make it harder to overcome price pressures.
Frost Perspective:
In 2 to 5 years, intense competition could put global manufacturers at a disadvantage, causing them to lose project opportunities to smaller companies.
Disruptive Technologies
Why:
Connectivity and 5G adoption are the main digitalization enablers of gensets. Predictive applications are in high demand in many segments. The technologies appear most promising in construction, data centers, oil and gas, utilities, healthcare, and the public sector. Predictive applications and advanced analytics can boost flexibility and planned outcomes. They can also increase operational and capital efficiency by improving equipment control and utilization.
Frost Perspective:
Research indicates that widespread use of the technologies will not occur for at least 2 to 5 years in emerging regions. Most global manufacturers already utilize predictive applications and advanced analytics in North America and Europe.
Scope of Analysis
The analysis covers the following regions:
- Africa *
- ANZ and Pacific *
- ASEAN
- China
- East Asia
- Europe
- India and South Asia
- Latin America
- Middle East
- North America
- Russia and CIS *
Scope
| Geographic Coverage | Global |
|---|---|
| Study Period | 2022–2034 |
| Base Year | 2023 |
| Forecast Period | 2024–2034 |
| Monetary Unit | US Dollars ($) |
| Power Range | <5,000 kW |
Countries and Subregions
| Countries and Subregions | Fuel | End Users | Applications |
|---|---|---|---|
| Africa, ANZ and Pacific, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, Rest of ASEAN, China, Japan, South Korea, Taiwan, Benelux, Eastern Europe, France, Germany, Italy, Nordics, Rest of Europe, Spain, Turkey, the United Kingdom, India, Rest of South Asia, Argentina, Brazil, Chile, Colombia, Mexico, Peru, Rest of Latin America, Egypt, Saudi Arabia, UAE, Rest of Middle East, Canada, United States, Russia, and CIS |
|
|
|
Growth Drivers
- Above-average hurricane forecasts and increased outage severity, notably exceeding the long-term baseline average, will drive genset sales.
- Power consumption in the data center, healthcare, and office building segments continues to be an important growth driver for the gensets industry.
- Increased power consumption in the commercial and industrial segments will ensure sustained demand for gensets with more than 300 kW capacity.
- Greater customer awareness about the benefits of backup power will cultivate the need for residential and light commercial gensets.
- The advent of 5G and edge computing and increased demand for data storage, security, and speed are expected to drive overall data center investments, boosting market opportunities for gensets.
- Innovation in genset features and capabilities, including advanced predictive technologies, remote monitoring, and connectivity improvements, enhances the appeal of oil and gas gensets.
Growth Restraints
| Restraint |
|---|
| Limited economic activity because of geopolitical chaos, high costs, tight budgets, and challenging macroeconomic conditions will curb demand. |
| Inventory shortages that align with economic contractions affect genset sales. |
| The intense competition from rental and mobile gensets limits the overall market opportunity for medium-large gensets. |
| The emergence of other technologies, such as PV solar, lithium batteries, and hydrogen fuel cells, inhibits market growth. |
| The shift in customer preference toward low-cost portable genset brands limits sales among cost-conscious customers. |
Competitive Environment
| Number of Competitors | More than 50 with revenue greater than $10.0 million |
| Competitive Factors | Reliability, cost, efficiency, brand image, and aftersales support |
| Key End-user Industry Verticals | Data Centers, Healthcare, Office Building, Oil and Gas, Other Commercial, Other Industrial, Public and Infrastructure, Residential, Telecoms and Utilities |
| Leading Competitors | Caterpillar, Cummins, Generac Power Systems, and Kohler |
| Distribution Structure | Component/Engine Suppliers, Genset OEM/Packagers, Distributor/Dealers, and End Customers |
Key Competitors
- Aksa Power Generation
- Atlas Copco
- Blue Star
- Briggs And Stratton
- Caterpillar
- Cummins
- Fg Wilson
- Generac
- Himoinsa
- Hipower Systems
- Igsa
- Katolight
- Kirloskar
- Kohler
- Man Turbomachinery
- Mtu Onsite Energy
- Weifang Haitai Power Machinery
- Cnpc Jichai Power Equipment
- Dagartech
- Cetec
- Multiquip
- TRITON DIESEL Gensets
- Winco
Why is it Increasingly Difficult to Grow?
The Strategic Imperative 8™
The Impact of the Top 3 Strategic Imperatives on the Genset Industry
Scope of Analysis
Definitions
Competitive Environment
Key Competitors
Growth Metrics
Growth Drivers
Growth Restraints
Forecast Considerations
Revenue and Unit Shipment Forecast
Revenue Forecast by Region
Percent Revenue by Application
Revenue and Unit Forecast Analysis
Revenue and Unit Shipment Forecast
Forecast Analysis
Forecast Analysis (continued)
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Revenue Forecast by Country
Forecast Analysis
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Revenue Forecast by Country
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Forecast Analysis (continued)
Growth Opportunity 1: IoT as a Service
Growth Opportunity 1: IoT as a Service (continued)
Growth Opportunity 2: Partnerships and Collaborations Between Strategic Competitors
Growth Opportunity 2: Partnerships and Collaborations Between Strategic Competitors (continued)
Growth Opportunity 3: New Product Development
Growth Opportunity 3: New Product Development (continued)
Best Practices Recognition
Frost Radar
Benefits and Impacts of Growth Opportunities
Next Steps
Take the Next Step
List of Exhibits
List of Exhibits (continued)
List of Exhibits (continued)
List of Exhibits (continued)
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| Deliverable Type | Market Research |
|---|---|
| Author | Lucrecia Gomez |
| Industries | Energy |
| No Index | No |
| Is Prebook | No |
| Keyword 1 | Genset Industry |
| Keyword 2 | Diesel Generator Market |
| Keyword 3 | Genset Market |
| Podcast | No |
| Predecessor | K834-01-00-00-00 |
| WIP Number | KA9C-01-00-00-00 |
Growth Opportunities in the Global Genset Industry, 2024 2034
Innovation Culture Spurring Investments in Digital Products and Hybrid Systems
10-Jul-2024
Global
Market Research
