The electric generator market is expected to grow at a 5.89% CAGR, achieving USD 39.137 billion by 2030 from USD 29.392 billion in 2025.
A machine that transforms mechanical energy into electrical energy for use in external circuits is known as an electric generator. For a constant source of electricity, a generator converts mechanical energy, such as steam, gas, and water, into electrical energy. Some of the key factors driving the electric generator market in recent years include the improvement in electric motor energy efficiency, rising demand for electric generators from the agricultural and industrial sectors, expanding HVAC system use, and rising demand for hybrid and electric vehicles.
According to the BP Statistical Review of World Energy, 2022 report, the total electric energy generation in the world has increased from 26889.2 TWH in 2020 to 28466.3 TWH in 2021, around a 6.5% of growth rate. This shows that increasing electricity demand will lead to the electricity generator market growing and will drive this market.
The emphasis on economic growth and rising industrialization investments is driving up demand for electricity globally. World energy consumption is rising as a result of greater investments in industrialization and a focus on economic growth. The bulk of commercial and industrial sectors rely on a continuous, uninterrupted power supply to minimize equipment damage, service disruptions, and data loss. The goal to reduce power outages has led to greater investment in high-quality power infrastructure.
OTT services like Netflix, Amazon Video, Hotstar, Hulu, and others have become more and more well-known in recent years. In October 2022, according to NDTV, Netflix subscribers watched 452,000 hours of material in 2021, and there has been an increase of 2.4 million subscribers in 2022 third quarter. In order to use these applications, consumers are actively investing in high-speed internet connections. As a result of this rising demand, several telecom companies around the world have been erecting additional towers. These telecom towers are equipped with high-capacity industrial generators as a backup in case of power outages to prevent signal disruption. As a consequence, the growing telecom industry, which also contributes to the development of new business opportunities and an increase in market earnings, is what is driving the need for generators.
According to the announcement by India’s Ministry of Power on Feb 2023, due to the expanded grid lines and the increased power generation, the market for Electric generators will also expand in rural areas lines and industries based in rural areas, as it is said by the government that entire nation is now connected and can move 112 GW of power from one region to another and this will build the electric generation sources to increase the capacity of power generation and transmission. The market for electric generators has a tremendous opportunity due to the development and widespread use of smart grids in countries that fully meet the requirements of a smart grid system. This will tend to increase the installation of electric generators in all commercial households and will grow this market at a rapid pace.
Industrialization and increased home energy demand as a result of the expansion of household access to electricity in rural regions are some of the factors propelling the growth of electric generators globally. Globally, the power demand is continually increasing, which has led to more energy resources being used. More electric generators are presently present everywhere in big industries and households. The development of contemporary electric cars and incentives to utilize them have increased industry power consumption, and this will lead to an increase in power electric generators.
According to EIA, 2021 electricity consumption globally has increased from 2020 to 2021, and from 2020 23,966 billion kWH has risen to 25343 billion kWh of consumption. Thus, we can predict that due to the increase in the electricity demand spread across the country in households worldwide, is increasing year-on-year the demand for electric generators will also increase and grow, and thus the Electric generators market.
The electric generators market is anticipated to be the largest in the Asia Pacific during the projected period. Due to its high population density, the Asia Pacific has a significant demand for power.
In September 2022 According to PTI, which cited official statistics, India's electricity consumption increased by 13.31% annually to 127.39 billion units (BU) and by 11.65% for the first half of the 2022 fiscal year this showcases that the demand for consumption of electricity is increasing which will tend to increase the installation of electric generators in the households and industrial areas of the Asia Pacific region. The market for electric generators is driven by investments in smart grid and smart city technologies, growth in data centers, a rise in the construction industry, and a rise in industrialization and households.
According to the BP Statistical Review of World Energy 2022 report, it is said that the energy generation capacity of the Asia Pacific has increased from 12949.3 TWH in 2020 to 13994.4 TWH in 2021, which shows an increase of 8.4%, which is the highest compared to other regions.
The Asia-Pacific region is increasing at a rapid pace as the government is investing in this market. Also, as it is said, the population is increasing, thus the energy generation capacity has to increase as the number of industrialization and households will increase, due to which the increase in the installation of electric generators will take place, and thus will propel the market growth.
| Report Metric | Details |
|---|---|
| Total Market Size in 2026 | USD 29.392 billion |
| Total Market Size in 2031 | USD 39.137 billion |
| Growth Rate | 5.89% |
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Segmentation | Type, Application, End-User, Geography |
| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| Companies |
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