According to the new research report on "Large Generator Market Forecast to 2028 – COVID-19 Impact and Global Analysis," published by The Insight Partners, the market is expected to reach US$ 10,440.97 million by 2028 and register a CAGR of 9.1% from 2022 to 2028.
North America is the world's most industrially developed region. The growing IT & telecom and power & utility industries and rapid urbanization are expected to support the growth of the large generator market during the forecast period. Communication is key for communities and businesses worldwide. With more than 250 million mobile users and growing, the North America telecommunications market is in a rapid growth phase. The industry has also experienced major investment activity in fiber deployments, HFC technology upgrades, and mobile broadband networks to respond to the increasing expectations of subscribers. The North America IT and telecom sector has found itself at the epicenter of growth, innovation, and disruption in most areas of industry and consumer activity. For instance, according to the Information Technology & Innovation Foundation, the US IT sector accounted for 28% of establishments and 22.4% of jobs in 2022. Thus, such a significant rise in the North America IT and Telecom industry has increased the need for large generators to keep cell tower sites powered and in service and to keep messages and vital data getting through phone lines.
Large generators are widely used in the manufacturing sector to avoid losses due to power outages. The manufacturing industry significantly impacts overall economy of the US. The US is one of the world-leading manufacturing economies, accounting for about US$ 2.3 trillion in GDP. According to Power Curious, the US ranks first as the highest importer of generators. Furthermore, the US homes several major generator companies such as Caterpillar, Kohler, Cummins, and Atlas Copco. The demand for generators in the US is rising due to huge demand from mining, manufacturing, telecommunications, and commercial sectors. All such factors enhance the growth of the large generator market in the US.
Furthermore, to identify alternative energy sources to conventional fossil fuels, other fuel sources are used to provide power for the required business. Hybrid generators are internal combustion engines coupled with batteries offered by many OEMs. When the load is high, these hybrid generators directly power the engine; when the load is low, the battery powers the engine. They lessen the noise generated by generators and consume less fuel. They have several advantages over traditional generators and are predicted to gain ground on mobile generators, which are usually employed in mining, construction sites, and remote applications, further fueling the growth of the large generator market.
By combining the benefits of gas and diesel generators, bi-fuel generators increase the dependability of standby power systems. They mostly run on gas, but in case of an emergency, they may run on diesel. While the engine runs in dual-fuel mode, natural gas is added to the intake system, lowering the amount of diesel used while preserving the base diesel engine's power density, torque, and transient responsiveness. Many generator manufacturers are implementing bi-fuel technology to combat the strict emission regulations for diesel engines and their high operating costs. For example, Generac Power Systems, Inc. provides two large bi-fuel generators, which are 500 kW and 600 kW.
Dual fuel generators mostly use two types of fuels: natural gas and propane. The demand for dual fuel generators is increasing; hence, many manufacturers are developing these types of generators. For instance, in September 2021, KOHLER Power Systems announced the launch of a 500 kW generator featuring a dual fuel option, including natural gas (primary) and liquid petroleum gas (LPG) (secondary). The system automatically enables the generator to switch from natural gas to LPG, and when LPG is low, it reverts to natural gas. Thus, for efficient power supply, the demand for hybrid, bi-fuel, and dual fuel generators is increasing, fueling the large generator market growth.
The large generator market is segmented into fuel type and industry. Based on fuel type, the large generator market is segmented into diesel, natural gas, hydrogen, and dual. Based on industry, the large generator market is categorized into oil and gas, IT and telecom, power and utility, and others.
Key Findings of Study:
In terms of global large generator market share, Asia Pacific held the largest market share in 2021, followed by North America and Europe. Rising industrialization in countries such as China, Japan, Taiwan, Indonesia, and Singapore and growing manufacturing industry in these countries are a few factors that are creating the demand for the installation of large generators. Countries in Asia Pacific such as China, Japan, South Korea, and India observed a significant paradigm shift in respective industrial sectors, which increased the demand for large generators, contributing to the growth of the APAC large generator market.
The North America large generator market growth can be attributed to the growing IT & telecom industry across the region. Furthermore, the rising manufacturing industry is fueling the demand for large generators. Several large generator market players such as Kohler Co. and Caterpillar Inc provide a variety of large generators, thus boosting the growth of the large generator market in the region.
The growth of the large generator market in Europe is attributed to the presence of a large number of well-established market players in the region, such as Atlas Copco, Siemens AG, ABB, and Himoinsa S.L. These players facilitate the end users across the region as well as international buyers to procure the large generators easily. Further, huge growth in the industrial sectors and aging power grid infrastructure boost the growth of the large generator market in the region.
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