Residential Generators Market

Global Residential Generators Market Size (2024-2032):

The size of the global residential generators market was worth USD 10.79 billion in 2023. The global market is anticipated to grow at a CAGR of 4.57% from 2024 to 2032 and be worth USD 16.13 billion by 2032 from USD 11.28 billion in 2024.

Current Scenario of the Global Residential Generators Market

When there is a power outage in a remote location, residential generators are used to supply temporary electricity. These generators have a power output range of 1–0kW and can run on diesel, gasoline, biodiesel, propane, and natural gas, among other fuels. Domestic and commercial uses for generator sets include in-house power backup, commercial events, live shows, tailgate events, concerts, market complexes, equipment and tools at building sites, and more. Generators are an excellent solution for end customers who want temporary energy generation due to their portability and availability of traditional fuel sources. The need for low-emission natural gas is expected to influence the fuel sources used in generators in the next years.

The instability of electricity systems is blamed for the rise in household generators. Moreover, the demand for residential generators market is driven by areas prone to natural catastrophes and abrupt power outages. Generators with a power output of up to 6 kW are the most frequent generators utilized by home end users. Such generators are used in houses in emergency situations to power a range of appliances such as lights, freezers, sump pumps, heaters, TVs, water purifiers, and air conditioners. Tailgating, camping, and a number of other activities all make use of residential generators.

Advanced electrical circuitry and high-tech magnets are used in inverter generators. Inverter generators, as opposed to standard generators, provide pure AC power and are primarily used to power current-sensitive appliances. Inverter generators are gaining traction in the small-scale household generator market. Dual fuel generators combine the benefits of both gas and diesel generators, enhancing backup power system dependability. Dual fuel generators typically run on gas, but they may also run entirely on diesel in an emergency. To overcome diesel engine pollution restrictions and higher running expenses, some generator manufacturers are embracing dual-fuel technology. As a result, traditional diesel generator sets are being phased out in favor of dual-fuel generators.

MARKET DRIVERS

The industry is likely to be driven by an increase in the number of power outages caused by aging grid infrastructure and harsh weather events. Because energy transmission and distribution infrastructure is the backbone of every country's power industry, aging grid infrastructure is more prone to power outages. Transmission systems that have not been adequately modernized may not be able to handle the extra load and, in some situations, will fail, resulting in a power outage. Transmission and distribution networks in wealthy nations were built a long time ago, and even with regular maintenance, the infrastructure is destined to deteriorate beyond a certain age. Extreme weather is also expected to increase the demand for generators. The electrical system in the United States is prone to unpredictably frequent power outages. As a result, increased expenditures on backup power solutions, as well as expanding consumer awareness of disaster preparedness, will promote market growth.

MARKET RESTRAINTS

The market's expansion is being held back by generators' limited power-producing capability. generators have a finite amount of electricity and can only be used as a backup to a conventional power supply. The electricity generated by gensets can only be utilized for temporary or emergency purposes and cannot be used to replace utility power. Generators can only manage a certain amount of load; for larger loads, higher-power generators or additional generators are necessary. As the load grows, so does the size of the generator, which has an impact on mobility. Is likely to hamper the market.

IMPACT OF COVID-19 ON THE GLOBAL RESIDENTIAL GENERATORS MARKET

COVID-19 has had an influence on the complete market and also the rate of growth in 2019-2020 as a result of the effect of COVID-19 spreads. Our most up-to-date research, perspectives, and insights on the management issues that matter most to companies and organizations about the market, which is leading through the COVID-19 crisis to risk management and digitizing operations so as to deliver trusted information and experiences to decision-makers. Because governments were required to adopt lockdowns during the primary 1/2 of 2020 as a result of COVID-19, the generator market has stalled. Governments and municipal governments established strict restrictions, and every non-essential activity was suspended. Because end users' operations were halted, this had a negative impact on the generator business.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Residential Generators Market Analysis By Type

The portable generators segment led the residential generators market, and it is expected to continue to develop at the quickest rate over the forecast period. Portable generators are appealing to both manufacturers and customers because of their versatility. In the home generators market in the United States, portable generators are becoming increasingly popular.

Global Residential Generators Market Analysis By Fuel

Diesel generators are expected to have the largest share of the Global Residential Generators Market. Diesel generators offer a constant supply of electricity. Improved versions of diesel engines are being used in household generator systems in the United States. The high expense of diesel generators, on the other hand, is limiting industry expansion. As a result, the minimal cost of maintenance more than compensates for the original expenditure. Finally, manufacturers are actively focusing generators toward specific clients based on their specific needs.

Natural Gas generators are expected to see rapid growth in the Global Residential Generators Market. Natural gas generator sales are being driven by cost efficiency and lower emissions. On the other hand, people dislike natural gas since it is incredibly explosive and might cause fire danger. Furthermore, because natural gas requires a direct pipeline connection, many users are without fuel.

Global Residential Generators Market Analysis By Power Rating

Power ranging from 4kW-8kW is expected to have the largest share in the Global Residential Generators Market. Pumps, air conditioners, drills, high-pressure washers, and industrial motors are all powered by 4- 8 KW portable generators (up to 3 hp).

REGIONAL ANALYSIS

North America is expected to have the largest share of the Global Residential Generators Market. The United States and Canada, which are among the region's and world's largest users, account for the majority of the generator market. The generator market in this area is likely to be driven by power disruptions, natural gas network penetration, and high peak-time energy costs.

Asia-Pacific is expected to see rapid growth in the Global Residential Generators Market. The rising manufacturing sector in a number of nations, including Malaysia, China, India, Australia, and South Korea, is expected to drive significant growth in the Asia Pacific. Government measures to deliver power in rural regions are expected to have a significant impact on the growth of the residential gas generators market.

KEY PLAYERS IN THE GLOBAL RESIDENTIAL GENERATORS MARKET

Companies playing a prominent role in the global residential generators market include Generac Holdings Inc., Cummins Inc., Caterpillar Inc., HIMOINSA, Kirloskar Oil Engines Limited, Kohler Co., Atlas Copco, Siemens AG, Honeywell International Inc, Yamaha Generators, and Others.

RECENT HAPPENINGS IN THE GLOBAL RESIDENTIAL GENERATORS MARKET

• Cummins Inc. has announced that it has acquired Jacobs Vehicle Systems (JVS). The partnership adds new technology to Cummins' existing and future advanced diesel engine platforms, providing growth prospects.
• Caterpillar Inc. claims to be the only company to provide Cat generator sets that can run entirely on hydrogen, including totally renewable green hydrogen, on a designed-to-order basis. The business will first introduce commercially viable power production options that can be designed to run on natural gas combined with up to 25% hydrogen, according to the company.

DETAILED SEGMENTATION OF THE GLOBAL RESIDENTIAL GENERATORS MARKET INCLUDED IN THIS REPORT

This research report on the global residential generators market has been segmented and sub-segmented based on type, fuel, power rating and region.

By Type

• Portable
• Stationary

By Fuel

• Gasoline
• Diesel
• Natural Gas

By Power Rating

• Less Than 4 kW
• 4 kW - 8 kW
• 8 kW - 17 kW
• More than 17 kW

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa