Global Generator Engine Market Research Report: Forecast (2024-2030)

Market Insights & Analysis: Global Generator Engine Market (2024-30):

The Global Generator Engine Market is estimated to grow at a CAGR of around 3.8% during the forecast period, i.e., 2024-30. The market growth is driven by the mounting power outages, growing infrastructure development projects, etc. As energy consumption across the globe continues to elevate with rising urbanization, exploding population, and evolving industries, power outages have become quite prominent, raising concerns worldwide, especially in developing countries.

According to the IEA’s Electricity Market Report 2023, the growth in world electricity demand is anticipated to accelerate to an average of 3% over the next three years. Further, the constantly changing weather conditions resulting in droughts and heat waves have necessitated air conditioning, thereby triggering massive power outages.

• In 2023, the heat wave across the European continent caused power outages on parts of the Italian capital city’s electricity grid.

With growing electricity demand outpacing supply in many regions, there has been a growing need for backup power solutions to mitigate the impact of power outages. Hence, this boosted the requirements of generators to provide backup power, ensuring uninterrupted operations for critical infrastructure, businesses, and households. Hence, this also created demand for generator engines across the globe.

Moreover, with populations aging in many parts of the world, there's a greater demand for healthcare services, particularly for geriatric care and chronic disease management. According to the United Nations, in 2021, 1 in 10 people worldwide were aged 65 or above. In 2050, this age group is projected to account for 1 in 6 people globally. As a result, governments across the globe are investing in health infrastructure to meet the specialized needs of elderly populations and ensure their access to quality healthcare services. This heightened growth of healthcare infrastructures is boosting the adoption of generators for backup in hospitals, further driving the market size of the generator engines.

Global Generator Engine Market Driver:

Proliferation of Data Centers to Thrive the Industry Growth – The increasing need to manage & back up huge amounts of data & information by small, medium, and large businesses across the globe is mounting the adoption of cloud-based technologies, thereby augmenting the demand for data centers. The constant need for electricity to power HVAC equipment, servers, and routers in the data centers resulted in the increased demand for wires & cables. Further, businesses & organizations in the region are increasingly adopting cloud computing to leverage its scalability, flexibility, and cost-efficiency. As a result, cloud service providers such as Amazon, Google, Oracle, etc., are investing in data center infrastructure within the region to meet the growing demand for cloud services. This is leading to the increasing adoption of generators to ensure an uninterrupted power supply to keep the data centers running.

Moreover, the ongoing digital transformation in government & public offices across the world has notably contributed to the need for localized data centers to maintain the privacy of government data. This has led to the expansion of companies like Microsoft, Oracle, etc., to set up data centers to cater to the cloud service needs of the government & enterprises. Thus, growing digital transformation across the globe would notably boost the generator demand worldwide for power backup, thereby driving the growth of the Global Generator Engine Market.

Global Generator Engine Market Opportunity:

Expansion of 5G Telecom Towers to Present an Opportunity for the Market – The exponential growth in data consumption, driven by video streaming, gaming, social media, IoT devices, and cloud-based applications, is boosting 5G technology across the globe. Telecom towers play a crucial role in expanding network capacity by providing additional coverage and capacity in densely populated areas, enabling mobile operators to meet the growing demand for data services. As a result, governments and telecom operators across the globe are increasingly investing in the construction of 5G towers.

• In 2024, T-Mobile shared the results of a USD 200 million investment, which brought 377 new towers and upgraded 121 existing towers to bring more West Virginians, the US online to a worldwide 5G network.

Thus, the proliferation of telecom towers would significantly present an opportunity for the generator engine market during the forecast period, to ensure uninterrupted operation.

Global Generator Engine Market Challenge:

Halting of Oil, Gas, and Mining Activities Due to Government Regulations to Impede the Demand for Generator Engines – Government regulations aimed at environmental protection and sustainability goals could pose a significant challenge to the Global Generator Engine Market, particularly when they result in the halting or restriction of oil, gas, and mining activities. These regulations often impose stringent restrictions on emissions, water usage, land degradation, and other environmental impacts associated with extractive industries.

• In 2023, the NSW Labor government in Australia banned offshore mining and exploration for gas & oil in NSW waters.

When oil, gas, and mining activities are halted or curtailed due to regulatory compliance requirements, there is a slowdown in demand for generator engines used in these industries. Generator engines are essential for powering a wide range of equipment and machinery in oil and gas exploration, extraction, processing, and transportation, as well as in mining operations. However, when these activities are disrupted, the need for generator engines decreases, leading to restricted sales for manufacturers and suppliers, thus limiting the market expansion.

Global Generator Engine Market Trend:

Growing Focus on Sustainable Generator Engines  – The generator industry is currently experiencing a notable shift towards sustainable power solutions, largely motivated by heightened awareness of climate change. This transition encompasses various key developments aimed at reducing environmental impact and meeting stringent emission norms. As a result, engine manufacturers are offering alternative fuel engines, such as biofuels, compressed natural gas (CNG), and liquefied natural gas (LNG), into generator systems. These cleaner alternatives are being increasingly adopted to replace conventional diesel, aligning with government initiatives aimed at reducing reliance on fossil fuels and promoting environmental sustainability.

Furthermore, there is a significant focus on enhancing engine designs to improve efficiency and decrease emissions. Engine manufacturers are actively investing in advanced technologies to optimize combustion processes and lower fuel consumption, consequently reducing environmental impact. Hence, this trend is expected to drive an increased demand for low-emission generator engines in the coming years.

Global Generator Engine Market (2024-30): Segmentation Analysis

The Global Generator Engine Market study by MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2024–2030 at the national levels. In accordance to the analysis, the market has been further classified as:

Based on Fuel Type:

• Diesel
• Natural Gas

Diesel dominates the market during the forecast period due to fuel efficiency, durability, and the ability to provide reliable power for extended periods. Also, they are the preferred choice for applications requiring high power output and continuous operation. Hence, the diesel segment has a significant market share in the Global Generator Engine Market. 

Further, diesel engines typically have higher energy efficiency compared to natural gas engines, especially in terms of power output per unit of fuel consumed. This makes diesel generator engines more attractive in applications where fuel efficiency is a primary consideration.  Additionally, diesel generator engines are preferred over natural gas engines for their resilience and reliability in harsh operating conditions or during emergencies.

Based on End User

• OEMs
• Aftermarket

OEMs hold a prominent share in the Global Generator Engine Market due to the expansion of OEMs into new geographies, the introduction of new technologies, infrastructure developments, etc. OEMs such as Cummins, Caterpillar, and others, are strategically expanding their footprints into new geographical regions owing to growing demand for generators. This expansion opens up new markets for generator engines, as infrastructure development projects in these regions may require reliable power sources, driving up the demand for generator engines.

Global Generator Engine Market (2024-30): Regional Projection

Geographically, the Global Generator Engine Market expands across:

• North America
• South America
• Europe
• The Middle East & Africa
• Asia-Pacific

Asia-Pacific is set to hold a prominent share in the Global Generator Engine Market during the forthcoming period due to rapid industrialization & urbanization, booming infrastructure development, etc. Countries in the Asia-Pacific region, such as China, India, and Southeast Asian nations, are undergoing rapid industrialization and urbanization. This growth in industrial and urban infrastructure development drives the demand for reliable power sources, including generator engines, to support manufacturing facilities, commercial complexes, residential buildings, and other infrastructure projects. Moreover, governments such as India, Indonesia, Thailand, etc., are investing heavily in infrastructure development, including transportation networks, utilities, telecommunications, and public facilities.

• In 2023, Thailand planned to invest USD 15 billion in transport infrastructure, to boost economic growth.

These projects require reliable power sources to support construction activities, operation of machinery, and temporary power supply during project implementation. Generator engines play a crucial role in meeting these power requirements in the coming years.

Global Generator Engine Recent Development:

• 2023: Cummins, announced the launch of its CPCBIV+ emission standard-compliant range of genset engines. The new product range incorporates advanced after-treatment systems and engineering expertise to improve fuel efficiency and load-taking capability while ensuring adherence to stringent emission norms.
• 2023: Rolls-Royce reached an agreement with Deutz AG to take over the lower-power-range engines business.

Gain a Competitive Edge with Our Global Generator Engine Market Report

• Global Generator Engine Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• Global Generator Engine Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.