US Generator Market 2024–2033

Reports Description

US Generator Market was valued at USD 5.8 Billion in 2024 and is expected to reach USD 11.8 Billion by 2033, at a CAGR of 6.3% during the forecast period 2024 – 2033.

A generator is a device that uses mechanical energy to produce electrical energy. It generally works on the concept of electromagnetic induction, in which a coil of wire rotates inside a magnetic field, generating an electric current in the wire.

US Generator Market Growth Factors

Surging industrialization

The surge in industrialization in the United States has driven the rise of the generator market. As businesses grow and infrastructure development increases, there is a greater requirement for dependable and uninterrupted power supply to support operations.

Generators play an important role in providing continuity during power outages, which can be damaging to industrial processes and result in large financial losses. Furthermore, as production becomes more automated and digitalized, there is a greater emphasis on power quality and dependability, making backup power solutions important.

Manufacturing, construction, healthcare, telecommunications, and data centers rely extensively on generators to reduce the hazards associated with power outages. Furthermore, the rising trend toward distributed energy systems and the incorporation of renewable energy sources into the grid emphasizes the importance of backup power solutions for maintaining grid stability and ensuring uninterrupted operations.

This confluence of variables has spurred demand for generators in the United States, resulting in market expansion and developments in generator technology to satisfy changing industrial requirements.

Increasing adoption of hybrid generator

The introduction of hybrid generating systems has had a substantial influence on the US generator business, driving both innovation and growth. Hybrid generators combine traditional fossil fuels, renewable energy sources such as solar or wind, and energy storage technologies to improve efficiency, flexibility, and sustainability.

This adaptability addresses the changing energy situation, where there is an increasing need for greener, more dependable power options. Businesses and people are increasingly looking for options that not only lower their carbon impact but also offer backup power during disruptions.

Hybrid generators meet these requirements by optimizing power generation depending on resource availability and demand, assuring continuous supply while reducing environmental effects. Furthermore, government incentives and laws supporting renewable energy usage fuel the industry and encourage investment in hybrid generator technology.

As a result, demand for hybrid systems in the US generator industry rises dramatically, resulting in market development, technical improvement, and a shift toward more sustainable energy practices.

US Generator Market: Restraints

High operational costs

High operating costs hinder potential purchasers, especially in businesses that rely significantly on backup power systems, such as healthcare and data centers. The initial cost of acquiring generators, together with recurring expenditures for fuel, maintenance, and compliance, can strain budgets and limit adoption.

Furthermore, rigorous environmental rules and rising fuel prices increase operational costs, making it difficult for enterprises to justify the long-term viability of generator use. Furthermore, the necessity for qualified specialists and specific training to operate and maintain generators increases the operational load, particularly for small businesses with limited resources.

Finally, the high operational costs create hurdles to entrance and development within the US generator sector, possibly suffocating innovation and impeding the broader adoption of backup power solutions throughout various sectors.

US Generator Market: Opportunities

Integration of IoT

The incorporation of IoT (Internet of Things) technology has considerably boosted the US generator industry by improving efficiency, dependability, and maintenance capabilities. IoT-enabled generators have sensors and networking capabilities that enable real-time monitoring of numerous metrics such as fuel levels, engine performance, and operational status.

This real-time data allows predictive maintenance, allowing businesses to identify possible faults before they cause costly downtime. IoT connection also offers remote monitoring and control, allowing operators to manage generators from anywhere using mobile devices or laptops.

Moreover, IoT enables generator performance optimization through data analytics, allowing operators to find potential for efficiency improvements and cost reductions. With the growing demand for dependable backup power solutions in industries such as healthcare, manufacturing, and telecommunications, incorporating IoT technology into generators has become critical, propelling development and innovation in the US generator market.

US Generator Market: Segmentation Analysis

The US Generator market is segmented by type, voltage rating, application, end user and region.  Based on type, the market is classified into stationary and portable. Stationary dominated the market in 2023 with a market share of 65.2% and is expected to keep its dominance during the forecast period 2024-2033.

Stationary generators play an important part in defining the generator industry in the United States because of their adaptability, dependability, and wide range of uses. These generators, also known as standby or backup generators, provide critical power backup solutions for a variety of industries, including residential, commercial, industrial, and institutional buildings.

In the domestic sector, they provide homeowners with peace of mind during power outages by assuring uninterrupted electrical supply for vital items such as refrigerators, lighting, and heating systems. In commercial and industrial contexts, stationary generators serve as important backup power sources for key activities, protecting against possible losses due to downtime.

The rising frequency and severity of natural catastrophes and grid disruptions are driving increased demand for stationary generators as businesses and people seek dependable backup power options.

Based on voltage rating, the market is classified into Below 100 kVA, 100kva to 350 kVA, 350 kVA to 1000 kVA and Above 1,000 kVA. 350 kVA to 1000 kVA dominated the market in 2023 with a market share of 32.8% and is expected to keep its dominance during the forecast period 2024-2033.

The spike in demand for 350 to 1000 kVA generators in the United States has had a substantial impact on generator market dynamics. This movement is largely driven by several variables. For starters, the growing requirement for dependable backup power solutions in a variety of industries, including commercial, industrial, and residential, has fuelled demand for larger capacity generators.

Industries such as data centers, healthcare institutions, industrial plants, and telecommunications rely largely on the constant power supply to be operational, which drives the use of bigger generators. Furthermore, as the frequency and severity of extreme weather events increase, there is a greater awareness of the need for disaster preparedness, prompting companies and homes to invest in reliable backup power systems.

Furthermore, technological developments have made bigger generators more efficient, dependable, and cost-effective, which has boosted their popularity. As a result, the 350 kVA to 1000 kVA sector has emerged as a prominent growth driver in the US generator market, changing market preferences and industry strategies to meet this rising demand.

Based on application, the market is classified into backup power, continuous power and peak shaving power. Continuous Power dominated the market in 2023 with a market share of 45.5% and is expected to keep its dominance during the forecast period 2024-2033.

The generator industry in the United States is driven by continuous power because of its vital role in guaranteeing constant energy supply across several industries. In a dynamic economic context where businesses rely largely on steady electricity, generators are critical backup devices that protect operations from disturbances caused by grid outages or variations.

Industries such as healthcare, data centers, manufacturing, and telecommunications require constant electricity to keep key services running and avoid costly downtime. Furthermore, the growing frequency of extreme weather events and natural disasters emphasizes the significance of dependable power generation for emergency response and recovery activities.

As a consequence, companies and organizations prioritize investments in durable generator systems capable of providing uninterrupted power, resulting in growth in the US generator industry.

Furthermore, advancements in generator technology, such as increased fuel efficiency, remote monitoring capabilities, and integration with renewable energy sources, help to drive market growth by providing more sustainable and cost-effective power solutions tailored to changing customer needs and regulatory requirements.

Based on end user, the market is classified into residential, commercial and industrial. Industrial dominated the market in 2023 with a market share of 43.1% and is expected to keep its dominance during the forecast period 2024-2033.

The industrial sector plays a pivotal role in driving the US generator market owing to its reliance on continuous and reliable power supply for operations. Industries ranging from manufacturing and building to oil and gas, healthcare, and telecommunications require backup power solutions to reduce the risk of power outages, which can result in major production losses, safety dangers, and financial consequences.

Generators offer a consistent supply of electricity during power outages, maintenance shutdowns, or isolated operations with restricted access to the main power grid. Furthermore, businesses are increasing their investments in backup and prime power generators to maintain continuous operations in the face of increased worries about grid stability, aging infrastructure, and the effect of extreme weather occurrences.

Technological advancements, such as the development of more fuel-efficient and environmentally friendly generator systems, as well as the integration of smart features for remote monitoring, diagnostics, and predictive maintenance, which improve operational efficiency and reduce downtime, are driving up demand for generators in the industrial sector.

Report Scope

US Generator Market: Recent Developments

• In February 2022, the Massachusetts Institute of Technology (MIT) Lincoln Laboratory held a demonstration for the USMC of the portable hydrogen fuel generator.

• In February 2023, Cummins Inc. introduced readily available natural gas standby generator sets with power outputs of 175KW and 200KW for customers in North America.

• In January 2022, Honda announced plans to begin selling its new EU32i portable generator. The device has a freshly built dedicated engine with a maximum output of 3.2 kVA. The company’s first target markets are Europe and North America, with the product eventually being introduced to the rest of the globe.

List of the prominent players in the US Generator Market:

• Caterpillar Inc.
• Generac Holdings Inc.
• Cummins Inc.
• Kohler Co.
• Briggs & Stratton Corporation
• Wärtsilä Corporation
• MTU Onsite Energy
• Mitsubishi Heavy Industries Ltd.
• Wacker Neuson SE
• Yanmar Holdings Co. Ltd.
• Aggreko PLC
• Atlas Copco AB
• Himoinsa S.L.
• Ingersoll Rand Inc.
• Kirloskar Electric Company Ltd.
• MQ Power Corporation
• Multiquip Inc.
• SDMO Industries
• Siemens AG
• FG Wilson
• Others

These key players are adopting various growth strategies such as mergers & acquisitions, joint ventures, expansion, strategic alliances, new product launches, etc. to enhance their business operations and revenues.

The US Generator Market is segmented as follows:

By Type

• Stationary
• Portable

By Voltage Rating

• Below 100 kVA
• 100kVA to 350 kVA
• 350 kVA to 1000 kVA
• Above 1,000 kVA

By Application

• Backup Power
• Continuous Power
• Peak Shaving Power

By End User

• Residential
• Commercial
• Industrial