Market Trends of North America Portable Generator Industry
This section covers the major market trends shaping the North America Portable Generator Market according to our research experts:
Diesel Fuel Type Expected to Witness Significant Growth
- Compact and easily movable, a portable diesel generator can be considered a multipurpose backup option for specific house or workshop applications. When you need a long-time backup for particular rooms or machinery, portable diesel gensets can be easily moved and used as a direct power source, like an extra switchboard.
- Diesel is the most efficient fuel option for gensets as it offers a higher power output than any other fuel per unit. This also allows DG set manufacturers to design a compact generator that provides more power than a larger CNG Genset. Hence, the cost of production is reduced, making it more affordable for the general public.
- Diesel engines consume fuel more efficiently than others, allowing longer runtime with the same fuel capacity. Portable generators must be compact and lightweight enough to be movable, limiting the fuel capacity any generator manufacturer can design in their product. For this reason, a diesel generator is the best option to have the most extended power backup during power outages.
- For instance, the National Electrical Code 517-13 and the California Electrical Code require all hospitals and critical care facilities to have backup power systems that start automatically and are up and running at full capacity within 10 seconds after power failure. Moreover, the California Building Code in the United States requires emergency facilities to operate during disasters. This eliminates natural gas as a power source for generators because, during a disaster, such as an earthquake, gas lines are immediately turned off to avoid the risk of fire and explosion during a rupture.
- Emergency diesel generators are available in various sizes based on the electricity demand. These diesel generator units can be permanently installed at fixed locations, such as hospitals, or brought on a mobile trailer to disaster sites or outage areas.
- According to BP Statistical Review of World Energy 2022, the region's primary energy consumption in 2021 totaled 113.70 exajoules (EJ), i.e., an increase of about 4.8%, compared to the previous year's value (108.79 EJ).
- Therefore, based on the above-mentioned factors, the diesel segment is expected to witness significant growth for the portable generator market in North America during the forecast period.
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United States to Dominate the Market
- As of 2021, the United States is the 2nd largest energy consumer in the world after China and has a huge electricity demand. Despite a complex electricity grid infrastructure and 100% electricity access across the country, problems like power outages and increasing demand for standby power sources are expected to drive the demand for the portable generator market in the country.
- According to the United States Energy Information Administration (EIA), electricity consumption in the country totaled 3,930 TWh in 2021, i.e., an increase of about 2% compared to the previous year's value (3,856 TWh).
- Power outages cost an average of about USD 18 billion to USD 33 billion annually in the country. Therefore, generators are considered the most viable options for making business operations run continuously without interruption.
- This, in turn, increases the demand for the portable generator market during the forecast period, making customers more biased toward electricity shortages. This allows them to focus on their core competencies and expertise instead of worrying about managing finances for purchasing the machine.
- The United States national grid largely operates based on a demand response system. The electricity prices in the country fluctuate based on demand. To save money on electricity, customers in the country are increasingly using off-grid power systems, like portable generators, to provide electricity when demand and power tariffs are high.
- Therefore, based on the above-mentioned factors, the United States is expected to dominate the portable generator market in North America during the forecast period.
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