Market Trends of Generator Sets Industry
Below 75 kVA Capacity Generators to Dominate the Market
- Less than or equal to 75 kVA generator sets are used in the telecom sector, commercial complexes, small restaurants, small-scale industries, and petrol stations, among others, primarily as backup power in grid-connected areas and as the main power source in off-grid areas.
- The purchase of small generators is mostly based on price and requirement rather than efficiency, as they offer emergency backup power. The unreliable and limited access to power, especially in rural areas, has been the major reason for the huge demand for low-capacity generators.
- The demand for small generators in the range of 0-75 kVA is increasing drastically with the change in the commercial sector landscape, especially in the developing countries of Asia-Pacific and African regions.
- The building and construction market is on the rise in India and China due to current government initiatives such as smart cities and green building initiatives, which are expected to create demand for portable generators during the forecast period and, in turn, drive the generator sets market.
- According to the United Kingdom's Office for National Statistics, the gross value added of the construction industry increased from GBP 20.97 billion in the first quarter of 2010 to about GBP 34.98 billion in the first quarter of 2022.
Therefore, based on the above-mentioned factors, below-75 kVA capacity generator sets are expected to have the largest market share during the forecast period.
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Asia-Pacific to Dominate the Market
- The generator sets market in the Asia-Pacific region is expected to hold the largest market in 2022 and dominate the market over the forecast period.
- China is the leading generator sets market in the Asia-Pacific region due to the increasing infrastructure projects, widening power demand-supply gap, expansion of manufacturing facilities across the nation, and rising commercial office spaces. The country benefits from the cost and effectiveness of diesel generators, with improved living standards increasing the demand for power backup devices.
- In addition, the rapid growth in various end-use sectors, such as infrastructure, telecommunications, information technology (IT), and IT-enabled services, is expected to further spur the demand for generator sets in India. For instance, in January 2023, Google entered into an agreement to acquire a data center spanning over 3.81 lakh sq ft in Navi Mumbai through a long-term lease of 28 years.
- The increasing power blackouts have significantly hampered the manufacturing sectors in Indonesia, which has increased the adoption of generator sets in the country to ensure a continuous and reliable power supply. South Sumatra and Jakarta are the key contributing areas for the growth of the market in Indonesia, owing to the frequent power blackouts in these areas.
Therefore, based on the above-mentioned factors, Asia-Pacific is expected to dominate the global generator set market during the forecast period.
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