The Insight Partners
In recent years, the demand for power has increased due to various factors such as the lack of reliable power grid infrastructure.
Based on our most recent analysis of the large generator market, taking into account the impact of COVID-19 and global trends, we anticipate that the market will experience substantial growth in the coming years. Specifically, we project that the market size will expand from US$ 6,176.78 million in 2022 to US$ 10,440.97 million by 2028. This represents a CAGR of 9.1% from 2022 to 2028. Our study takes into consideration various factors driving the growth of the Large Generator Market. One major driver is the increasing demand for power generation in various industries, including construction, mining, and oil and gas. In these industries, there is a critical need for a reliable and continuous power supply, and large generators provide a solution to this challenge. Additionally, the growing emphasis on renewable energy sources has created a need for large generators that can efficiently support intermittent power supply from renewable sources. The market for large generators is segmented by fuel type and industry. Diesel generators have traditionally dominated the market due to their fuel efficiency and reliability. However, in recent years, natural gas generators have gained popularity due to their lower emissions and cost-effectiveness. We expect that natural gas generators will continue to gain market share in the coming years as more companies prioritize sustainability and environmental responsibility.
As a result, the demand for large generators has surged in various industries. The mining industry, for example, requires an uninterrupted power supply due to the use of heavy-duty equipment like excavating machinery, conveyor belts, drillers, and cranes that require a continuous power supply, even in harsh environments. Similarly, the oil & gas and petrochemical industries need a highly reliable electrical power supply to ensure safety and protect people, assets, and the environment. A power supply that is uninterrupted is required for various operations like drilling, pumping, and loading.
In addition, on oil rigs, an uninterruptible power supply is mandatory to ensure the signal lighting is operational at all times. Hence, the growing demand for an uninterrupted power supply in the oil & gas and petrochemical industries is driving the growth of the large generator market.
The manufacturing industry requires an uninterrupted power supply to ensure high-volume production and maintain product quality. Even a slight power disruption at a manufacturing plant can lead to low production volume, affecting the quality of the product. Hence, there is a rising demand for large generators in manufacturing plants. Additionally, the data center market is rapidly growing due to the digital revolution and the rollout of 5G networks. The data center industry’s growth is fueling the demand for an uninterrupted power supply, further driving the large generator market’s expansion.
France has emerged as a significant player in the global data center market, with 163 colocation data centers spread across 47 areas, supported by an annual investment of over US$1.2 billion in the sector. This growth in data center infrastructure has led to a rise in demand for large generators, and companies are increasingly looking to meet this demand. For instance, in July 2022, Sterling Generators announced a strategic partnership with Moteurs Baudouin, a French power generation diesel and gas engine manufacturer.
Similarly, Kohler, a power system manufacturer, announced in August 2021 that it will invest millions of dollars in its production site in France over the next five years to meet the growing demand for generators in the data center market. Kohler currently manufactures around 17,000 generators annually and aims to increase this number with the investment. Thus, the data center market growth in France is driving the adoption of large generators and fueling the growth of the overall large generator market.
The large generator market report profiles key players, including Caterpillar Inc, Cummins Inc, Rolls-Royce plc, INNIO Jenbacher GmbH & Co OG, and Mitsubishi Heavy Industries Ltd. This study offers detailed market insights that enable market players to devise growth strategies accordingly.
