How Has the Gas Generator Sets Market Evolved Historically and What is its Current Size?
The gas generator sets market has seen considerable growth due to a variety of factors.
• Over the past few years, the size of the gas generator sets market has seen steady growth. It is expected to increase from $8.94 billion in 2024 to $9.36 billion in 2025, with a compound annual growth rate (CAGR) of 4.7%.
This growth during the historic period is due to a rise in demand for trustworthy backup power solutions, increased focus on energy security and grid resilience, further development of industrial and commercial infrastructure, a boost in the production and availability of natural gas, and the necessity for uninterrupted power supply in critical applications.
What is the Forecasted Market Size and CAGR for the Gas Generator SetsMarket?
The gas generator sets market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of gas generator sets is forecasted to experience substantial growth in upcoming years, with a projection to reach $11.41 billion in 2029, growing at a compound annual growth rate (CAGR) of 5.1%.
This predicted growth can be credited to the incorporation of gas generator sets in hybrid and microgrid systems, increased demand for combined heat and power (chp) systems for energy efficiency, the use of low-emission and renewable natural gas sources, customization of generator sets for specific industry requirements, and a focus on decentralized power generation and distributed energy resources. The key trends expected to mark this period include the use of hybrid and multi-energy systems, implementation of smart and remote monitoring, adoption of high-efficiency combined heat and power (chp) applications, progress towards low-emission and emission-neutral technologies, and advancements in control and synchronization systems.
What Are The Key Drivers Fueling Growth In The Gas Generator Sets Market?
The surge in global energy use is anticipated to catalyze the expansion of the gas generator sets market. Rise in key socio-economic factors such as population size, urban development, net income, and industrial actions in both established and evolving economies have led to a significant increase in electricity use worldwide. This escalation in electrical consumption is likely to stimulate the demand for gas generator sets since industries, business and residential structures are investing in portable power solutions like gas generators to tackle routine power cuts. For instance, the International Energy Agency's (IEA) Electricity Market Report of July 2021 predicts a 5% growth in global electricity demand during 2020-21, and 4% during 2021-22. It is projected that China and India alone will be responsible for 9% of the global growth. This rise in global energy use is hence paving the way for gas generator sets market expansion.
What Are The Principal Market Segments In The Global Gas Generator Sets Industry?
The gas generator sets market covered in this report is segmented –
1) By Fuel Type: Natural Gas, Biogas, Other Fuel Types
2) By Power Rating: Less Than 50 kVA, 51 kVA - 125 kVA, 126 kVA - 200 kVA, 201 kVA - 330 kVA, 331 kVA - 750 kVA, Above 750 kVA
3) By Application: Standby, Peak Shaving, Prime Or Continuous
4) By End-User: Residential, Industrial, Commercial, Power and Energy, Other End-Users
Subsegments:
1) By Natural Gas: Spark Ignition Gas Generators, Dual-Fuel Generators
2) By Biogas: Anaerobic Digestion Systems, Landfill Gas Generators
3) By Other Fuel Types: Propane, Synthetic Gas, Hydrogen
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Which Emerging Market Trends Are Altering The Gas Generator Sets Sector?
The trend of product innovation is gaining traction in the gas generator sets market. Several companies present in the market are making strides in developing cutting-edge products to solidify their market standing. To illustrate, in August 2022, Kirloskar Oil Engines Limited, an Indian company known for its sustainable and customer-driven solutions in the gas generator sets market, introduced a new range of gas-powered generators. These IoT-based generators function effectively even in extreme frosty conditions on PNG while boasting a digital monitoring system. Users can remotely track vital metrics and real-time performance of the generator from any location. Furthermore, these generators have lower noise and emission levels compared to traditional generator sets.
Who Are the Key Players in the Gas Generator Sets Market?
Major companies operating in the gas generator sets market include:
• Cummins Inc.
• Briggs & Stratton Corporation
• Kohler Co.
• Generac Power Systems Inc.
• Caterpillar Inc.
• General Electric Company
• Siemens AG
• Rolls-Royce Power Systems AG
• Wärtsilä Corporation
• Doosan Infracore Co. Ltd.
• Mitsubishi Heavy Industries Ltd.
• Yanmar Co. Ltd.
• Himoinsa S.L.
• Perkins Engines Company Limited
• Deutz AG
• MAN Energy Solutions SE
• INNIO Group
• Baudouin
• JCB Power Products Ltd.
• Liebherr Group
• Atlas Copco AB
• Volvo Penta
• John Deere Power Systems
• Scania AB
• WhisperPower B.V.
• Mase Generators
• FG Wilson (Engineering) Ltd.
• SDMO Industries SAS
• Hitzinger GmbH
What are the Regional Insights into the Gas Generator Sets Market?
North America was the largest region in the gas generator sets market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the gas generator sets market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
