Gas Generator Market to Grow by USD 3.04 Billion from 2025-2029, Driven by Power Grid Failures and AI’s Impact on Market Trends – Technavio

NEW YORK, Jan. 14, 2025 /PRNewswire/ — Report on how AI is redefining market landscape – The global gas generator market  size is estimated to grow by USD 3.04 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of  6.1%  during the forecast period. Increasing instances of power grid failure is driving market growth, with a trend towards rising demand for repair and remanufacturing of energy equipment. However, availability of diesel generators in market  poses a challenge. Key market players include Aggreko Plc, Atlas Copco AB, Briggs and Stratton LLC, Caterpillar Inc., Champion Power Equipment Inc., Chroma Power Systems India Pvt. Ltd., Cooper Corp., Cummins Inc., DIMAX International GmbH, Endress Elektrogeratebau GmbH, Generac Holdings Inc., Himalayan Power Machines Co., Kohler Co., Mahindra and Mahindra Ltd., R Schmitt Enertec GmbH, Rolls Royce Holdings Plc, Teksan Generator Power Industries and Trade Co. Inc., and Yanmar Holdings Co. Ltd..

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Key Market Trends Fueling Growth

The generator industry is experiencing significant growth, with the generator market revenue projected to reach new heights. Energy policies promoting clean energy and the increasing demand for reliable power supply are key drivers. Gas generators, particularly natural gas generators, are gaining popularity due to their lower carbon emissions compared to fossil fuels. Residential and small-scale industries, as well as utilities, are major consumers. Power outage rates, caused by human activities and natural calamities, are increasing, leading to higher demand for generators. Gas generators offer a reliable fuel source, reducing the need for diesel and its associated maintenance costs. The population explosion and industrial sectors require more power capacity, further fueling demand. However, deforestation and rising sea levels pose environmental concerns, making clean energy technologies essential. Gas generators play a role in this transition, offering a balance between power needs and environmental impact. 

In large-scale applications like water and wastewater treatment, gas generators represent a substantial investment cost. Replacing these components can be expensive for many end-users, leading them to consider repair or remanufacturing instead. For gas generators used in corrosive and harsh environments, advanced techniques such as plasma arc welding and laser cladding are commonly used for repair and renovation. These material processing and coating technologies effectively restore worn-out and degraded mechanical components. 

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Market Challenges

• The generator market revenue continues to grow in the generator industry, driven by increasing power supply demands in both residential and industrial sectors. Energy policies promoting clean energy and reducing carbon emissions are fueling the demand for clean energy technologies like natural gas generators. However, power outage rates remain a challenge due to human activities and natural calamities. Utilities are turning to gas-fired generators for their reliable fuel source and greater power capacity. Small-scale industries and population explosion in developing countries also contribute to gas generator demand. Natural gas generators emit fewer carbon emissions compared to diesel generators, making them an attractive alternative. Despite their benefits, gas generators contribute to deforestation and rising sea levels due to natural gas extraction. Proper maintenance of gas generators is crucial to minimize environmental impact and ensure optimal performance.
• In the power generation industry, the shift from diesel to gas generators has been a notable trend. Fuel economy is a crucial consideration for industrial buyers, making gas generators an attractive option due to their higher efficiency. Diesel engine technology has seen advancements aimed at enhancing fuel economy. One such modification is the improvement in engine ignition, achieved by optimizing the combination of oxygen and fuel within the engine. These changes have led to more efficient power backup solutions for industries.

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Segment Overview 

This gas generator market report extensively covers market segmentation by

1. End-user 
• 1.1 Industrial
• 1.2 Commercial
• 1.3 Residential
2. Geography 
• 2.1 Europe
• 2.2 North America
• 2.3 APAC
• 2.4 Middle East and Africa
• 2.5 South America

1.1 Industrial-  Gas generators are widely used as auxiliary power sources in various industries such as construction, mining, chemical manufacturing, and semiconductor fabrication. With global industrialization, the need for uninterrupted power supply is increasingly important, particularly in developing countries like China, Brazil, and India. Construction sites often lack access to electricity grids, making gas generators essential for running required construction equipment. The mining industry also heavily relies on portable gas generators to operate mining equipment. Uninterrupted power is crucial for industries, leading to the use of backup gas generators during power outages to prevent losses. The industrial sector’s growth is expected to increase the demand for low and medium gas generators, contributing to the market’s growth during the forecast period.

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Research Analysis

The global generator market is witnessing significant growth due to the increasing demand for reliable power solutions in various industries and sectors. The market is driven by advancements in generator technology, which includes the adoption of cleaner fuels like natural gas and propane. Innovations in gas generator design have led to increased efficiency and power output, making them a popular choice for businesses and individuals seeking alternative power sources. Gas generators offer several advantages over traditional diesel generators, including lower emissions, easier refueling with cleaner fuels, and reduced maintenance requirements. The market for gas generator parts and accessories is also growing, providing opportunities for suppliers to offer solutions for installation, repair, and maintenance. Portable gas generators are gaining popularity due to their flexibility and ease of use, making them ideal for emergency power backup and remote power applications. The market for large-scale gas generators with high capacity is also expanding, driven by the demand for reliable power in industries like construction, oil and gas, and telecommunications. Overall, the gas generator market is poised for continued growth, driven by technological innovations, cleaner fuel options, and increasing demand for reliable power solutions.

Market Research Overview

The generator market revenue is projected to grow significantly in the coming years, driven by the increasing demand for reliable power supply, especially in the context of energy policies promoting clean energy and reducing carbon emissions. The generator industry is witnessing a shift towards clean energy technologies, including natural gas generators, due to their lower carbon footprint compared to fossil fuels. Power supply challenges, such as power outage rates, population explosion, and human activities, are major factors driving the demand for generators in both residential and industrial sectors. Natural gas generators are becoming increasingly popular due to their reliability as a fuel source and their ability to provide power capacity quickly in the event of power outages or natural calamities. However, the use of gas generators also raises concerns about environmental impact, including carbon emissions and deforestation. The generator industry is responding by developing more efficient and cleaner technologies to reduce these impacts. Small-scale industries and utilities are also turning to natural gas generators to meet their power needs, as they offer a more reliable and cost-effective alternative to diesel generators, which require frequent maintenance. Overall, the generator market is expected to continue growing, driven by the need for reliable power supply and the shift towards cleaner energy sources. Natural gas generators are likely to play a significant role in this growth due to their reliability, efficiency, and lower carbon footprint compared to traditional fossil fuel generators.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• End-user

• Industrial
• Commercial
• Residential

• Europe
• North America
• APAC
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio