Large Generator Market Forecast, Trends, and Growth 2031

Coverage: Large Generator Market covers analysis By Fuel (Diesel, Gas, and Others); Power Rating (75 kVA – 375 kVA and Above 375 kVA); Application (Standby, Continuous, and Peak Shaving); and Geography

  • Report Code : TIPRE00029841
  • Category : Energy and Power
  • No. of Pages : 150
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The large generator market size is projected to reach US$ 17.9 billion by 2031 from US$ 28.9 billion in 2023. The market is expected to register a CAGR of 6.2% in 2023–2031. Increasing power consumption, technological advancement of large generators, and rapid growth of energy transition are among the key factors driving the large generator market.

 Large Generator Market Analysis

The large generator market is expected to experience considerable growth during the analyzed timeframe owing to the rising number of power generation projects as well as the rise in demand for portable power generators, particularly in remote locations. Additionally, the rise in investment toward the replacement or upgradation of power infrastructure across the globe is projected to propel the demand for large generators. Moreover, the rapid industrialization across the developing regions is further projected to boost the large generator market growth in the coming years.

Large Generator Market Overview

With the mounting population and industrialization, the demand for energy is also rising at the global level. The rise in energy consumption also boosted the need for power generator infrastructure in developing and developed economies. This has resulted in driving the demand for large generators across the globe. In addition, the Large population, high per capita income, and rapid industrialization are driving the construction, manufacturing, and telecom industries in the Asia Pacific. Further, highly industrialized countries in the Asia Pacific, such as China, India, South Korea, and Japan, are reporting increasing overall energy consumption. These countries are increasing their focus on boosting electricity production through various sources such as oil & gas, geothermal, nuclear, and others, which in turn is supporting the large generator market growth in Asia Pacific. 

Strategic Insights

Large Generator Market Drivers and Opportunities

Rise in demand for Power Generation Across the Developing Region

Declining electricity consumption in advanced economies slowed the growth of global electricity demand in 2023. Global electricity demand grew by 2.2% in 2023, as compared to 2.4% growth registered in 2022. While developing countries, including China, India, and other countries in Southeast Asia, experienced significant growth in electricity demand in 2023, advanced economies experienced significant declines due to a weak macroeconomic environment and high inflation, which led to a decline in manufacturing and industrial output. Global electricity demand is expected to increase faster over the next three years, growing by an average of 3.4% per year through 2026. The increases will be driven by an improving economic outlook, which will contribute to faster growth in electricity demand in both developed and emerging markets. Hence, the rise in demand for power generation in the developing region is projected to fuel market growth in the coming years.

Adoption of Diesel Generators in Backup Power and Peak Shaving Applications

Connecting rural communities to national power grids in developing countries is not economically viable. Network infrastructure in developing countries could be improved at best. Diesel generators offer an ideal solution. They can be used individually or as part of a combined power system in conjunction with wind and solar energy. For instance, agriculture generally makes up large parts of developing countries. India's rural irrigation network is estimated to be powered by around 4 million small diesel generators. Diesel generators are low-tech, long-lasting, portable energy sources and provide important energy solutions in developing countries. As developing countries struggle with increasing infrastructure demands, demand for electricity continues to outstrip supply. This leads to peak power deficits, blackouts, and brownouts.

Diesel generators can ensure the security of the power supply in the case of a grid failure. Compared to alternatives such as solar and wind energy, diesel generators represent the most cost-effective solution in terms of initial investment costs for developing countries. Due to the limited budgets of developing countries, diesel generators remain the best solution for primary and emergency power generation. As developing countries continue to industrialize and populations continue to grow, energy demand will increase. Diesel generators represent an important source of energy in developing countries. This trend is expected to continue for the foreseeable future. Hence, the adoption of diesel generators in backup power and peak shaving applications is projected to boost the market growth from 2023 to 2031.

Large Generator Market Report Segmentation Analysis

Key segments that contributed to the derivation of the large generator market analysis are fuel, power rating, and application.

  • Based on fuel, the large generator market has been divided into diesel, gas, and others. The diesel segment held a larger market share in 2023.
  • Based on the power rating, the large generator market has been divided into 75 kVA – 375 kVA and Above 375 kVA. The above 375 kVA segment held a larger market share in 2023.
  • On the basis of application, the market has been segmented into standby, continuous, and peak shaving. The continuous segment dominated the market in 2023.

 Large Generator Market Share Analysis by Geography

The geographic scope of the large generator market report is mainly divided into five regions: North America, Europe, Asia Pacific, Middle East and Africa, and South America.

Asia Pacific dominated the large generator market in 2023. The Asia Pacific region includes Australia, China, Japan, India, South Korea, & the Rest of Asia Pacific. Rapid industrialization and a rise in investment toward the expansion of oil and gas, chemicals, power generation, water treatment, and other industries are expected to drive the growth of the market in this region. In addition, the rise in chemical production across the emerging markets in Asia, including China, India, and others, is anticipated to fuel the demand for large generators, which in turn is expected to drive the market growth from 2023 to 2031.

Large Generator Market Report Scope

Large Generator Market News and Recent Developments

The large generator market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for large generators market and strategies:

  • In August 2023, Mitsubishi Heavy Industries Engine & Turbocharger, Ltd. launched MGS3100R, A New 3,000 kVA Class generator set. This new product launch strengthened the product portfolio of the company.
  • In February 2023, EODev announced the commercialization of high-capacity hydrogen power generators with capacity ranging from 10 kVA to 1,750 kVA for commercial and industrial applications.

Large Generator Market Report Coverage and Deliverables

The “Large Generator Market Size and Forecast (2021–2031)” report provides a detailed market analysis of the covering below areas:

  • Market size and forecast at global, regional, & country levels for all the key market segments covered under the scope
  • Market dynamics such as drivers, restraints, and key opportunities
  • Key future trends
  • Detailed Porter’s Five Forces analysis
  • Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
  • Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
  • Detailed company profiles with SWOT analysis
REGIONAL FRAMEWORK

Large Generator Market Report Analysis

Large Generator Market

  • CAGR (2023 - 2031)
    6.2%
  • Market Size 2023
    US$ 28.9 billion
  • Market Size 2031
    US$ 17.9 billion

Report Coverage

  • Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
  • Key future trends
  • Detailed PEST/Porter’s Five Forces and SWOT analysis
  • Industry landscape and competition analysis & recent developments
  • Detailed company profiles
  • Global and regional market analysis covering key market trends, major players, regulations, and recent market developments

Key Players

  • Caterpillar Inc
  • Cummins Inc
  • Weichai Holding Group Ltd
  • Kohler Co
  • Mitsubishi Heavy Industries
  • Ltd.
  • Atlas Copco
  • ABB Ltd
  • Generac
  • Rolls Royce Power Systems AG

Regional Overview

  • North America
  • Europe
  • Asia-Pacific
  • South and Central America
  • Middle East and Africa

Market Segmentation

By Fuel
  • Diesel
  • Gas
  • Others
By Power Rating
  • 75 kVA 375 kVA and Above 375 kVA
By Application
  • Standby
  • Continuous
  • Peak Shaving
  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
MARKET PLAYERS

Large Generator Market Report Scope

Report Attribute Details
Market size in 2023 US$ 28.9 billion
Market Size by 2031 US$ 17.9 billion
Global CAGR (2023 - 2031) 6.2%
Historical Data 2021-2022
Forecast period 2024-2031
Segments Covered By Fuel
  • Diesel
  • Gas
  • Others
By Power Rating
  • 75 kVA – 375 kVA and Above 375 kVA
By Application
  • Standby
  • Continuous
  • Peak Shaving
Regions and Countries Covered North America
  • US
  • Canada
  • Mexico
Europe
  • UK
  • Germany
  • France
  • Russia
  • Italy
  • Rest of Europe
Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
South and Central America
  • Brazil
  • Argentina
  • Rest of South and Central America
Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of Middle East and Africa
Market leaders and key company profiles
  • Caterpillar Inc
  • Cummins Inc
  • Weichai Holding Group Ltd
  • Kohler Co
  • Mitsubishi Heavy Industries
  • Ltd.
  • Atlas Copco
  • ABB Ltd
  • Generac
  • Rolls Royce Power Systems AG
    • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
    Report Coverage
    Report Coverage

    Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

    Segment Covered
    Segment Covered

    Fuel Type, and Industry

    Regional Scope
    Regional Scope

    North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

    Country Scope
    Country Scope

    Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States

    The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

    1. Data Collection and Secondary Research:

    As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

    Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

    1. Primary Research:

    The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

    For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

    A typical research interview fulfils the following functions:

    • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
    • Validates and strengthens in-house secondary research findings
    • Develops the analysis team’s expertise and market understanding

    Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

    • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
    • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

    Below is the breakup of our primary respondents by company, designation, and region:

    Research Methodology

    Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

    1. Data Analysis:

    Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

    • 3.1 Macro-Economic Factor Analysis:

    We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

    • 3.2 Country Level Data:

    Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

    • 3.3 Company Profile:

    The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

    • 3.4 Developing Base Number:

    Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

    1. Data Triangulation and Final Review:

    The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

    We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

    We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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