Market Trends of Asia-Pacific Portable Generator Industry
This section covers the major market trends shaping the APAC Portable Generator Market according to our research experts:
Residential Sector to Witness Significant Growth
- The residential segment of the portable generators market is predicted to expand and drive the market, majorly caused by the prevalent installation of gensets across households to ensure the availability of emergency power supply in the event of a blackout or grid failure.
- According to the Energy Information Administration (EIA), about 70% of the increase in residential energy consumption is occurring in Asia-Pacific, led by China and India, as standards of living increase and as demand for lighting and energy-using appliances and equipment increases.
- Additionally, according to BP Statistical Review of World Energy 2022, the primary energy consumption in the Asia-Pacific region accounted for about 272.45 exajoules (EJ), i.e., an increase of nearly 6.4%, when compared to the previous year's value (256.69 EJ).
- Portable generators can be carried from one site to another, ensuring that all construction sites have the power necessary to run smoothly. Without them, it would be difficult to draw power from a central location to power various plants in various regions. A portable generator should always be available whether your construction is large or medium. For instance, in August 2022, South Korea's new government unveiled plans to increase home supply, i.e., around 2.7 million new homes across the country over the next five years, including hundreds of thousands of properties in big cities where a short supply has been blamed for rapid price rises. Additionally, the government would provide various financial, administrative, and tax advantages to young and lower-income earners when they buy or rent homes.
- As the population has grown, more marginalized people have been forced to live in areas prone to natural disasters, such as cyclonic activity and floods. Due to this, densely populated nations, such as India, China, and the ASEAN countries, which are highly vulnerable to havoc wrecked by massive cyclonic activities, earthquakes, and floods, rely on mobile power generation units during emergency response, which forms an important part of disaster management strategies after major natural disasters.
- Therefore, rising concerns about power instability in the residential sector due to natural calamities and the need for uninterrupted operations are driving the portable generator market in the Asia-Pacific region during the forecast period.
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China to Dominate the Market
- China is expected to lead the Asia-Pacific market due to increasing infrastructure projects, widening power demand-supply gap, expansion of manufacturing facilities across the nation, and rising commercial office spaces.
- The country benefits from the cost and effectiveness of portable generators, with improved living standards increasing the demand for power backup devices. According to China Electricity Council (CEC), Chinese households consumed around 1,170 terawatt hours (TWh) of electricity in 2021. The secondary sector, which includes the manufacturing industries happened to be the largest power-consuming sector, at some 5,610 terawatt hours.
- Factors, such as expanding existing manufacturing units across the country and the dedicated 'Made in China' initiative Lau China by the Chinese central government are expected to drive the portable generator market under the diesel-based fuel type segment.
- Also, in May 2021, owing to the electricity shortage in Guangdong province, China's power crunch China'sced factories to switch to portable generators. In China, the export- and the heavy-industry-led rebound had caused a surge in electricity use, with consumption climbing 20% through April 2021 compared with last year and up 15% from 2019 levels, when COVID-19 was not a factor. Temperatures in Guangdong, in the country's southern region, have also been higher than normal.
- At the same time, there has been a late start to the wet season, leaving hydropower reservoirs low. Coal prices have also surged as mining output has dropped amid a government-led safety campaign, making generators less keen to ramp up thermal power output. The electricity shortages, caused partly by the resurgence in economic activity, are causing disruptions to businesses that threaten to slow their recovery. Hence, due to the electricity shortages, many industries in the country have switched to portable generators, thus, increasing the market's demand during forecast period.
- Therefore, based on the above factors, China is expected to dominate the portable generators market in the Asia-Pacific region during the forecast period.
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