Market Trends of Portable Generator Industry
Industrial Sector Projected to be a Significant Market Segment
- Portable generators are an excellent choice for industrial sites before an electrical supply is established. They are also frequently used by emergency responders when a large amount of power is needed on location.
- The demand for portable industrial generators is expected to remain strong over the coming years, driven by increasing infrastructure development, urbanization, and the growing need for reliable backup power. Diesel-powered portable generators are likely to be the dominant fuel type due to their high energy density and performance in various conditions.
- The majority of the countries worldwide have several infrastructure development projects in the works. Hence, the demand for steel is increasing. In 2023, total steel production was around 1.892 billion tonnes, having increased from 1.878 billion tonnes in 2019.
- Saudi Arabia has announced plans to invest around USD 38 billion in the water sector. Further, private parties are likely to invest USD 10 billion in the development of the sector over the coming years. In addition, in August 2023, Saudi Arabia announced 12,000 km of planned water projects.
- Saudi Arabia is leading in terms of infrastructure development worldwide. Projects like NEOM in Saudi Arabia are expected to create immense demand for portable generators. Under the NEOM project, Saudi Arabia is likely to develop its northwest region with several futuristic projects.
- Additionally, under Vision 2030, the country is likely to invest nearly USD 66.67 billion in healthcare and energy infrastructure. Hence, all such construction activities are likely to create opportunities for generators that can be utilized as prime power sources in off-grid or remote locations across Saudi Arabia.
- Further, globally, there are several development projects related to renewable, manufacturing, food and beverage, and several other industries. Expansion in these industries is likely to create demand for portable generators that are used on construction sites.
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North America Projected to Hold a Significant Market Share
- Portable generators are widely used in North America, particularly in the United States and Canada. They are popular among homeowners, small business owners, and contractors who need access to power in locations where a traditional power grid is not available or during power outages.
- In H1 2024, the electricity consumption in the United States was about 1.95 trillion kWh. The commercial segment accounted for approximately 34.6% of the total electricity consumed in the period. The commercial segment includes offices, retail, educational, public, and government facilities and public services, such as water supply, telecommunications equipment, and outdoor and public street lighting. According to EIA, computers, office equipment, and refrigeration combined accounted for the largest share of electricity consumption.
- Despite the presence of a complex electricity grid infrastructure and 100% electricity access nationwide, problems like power outages and increasing demand for standby power sources are expected to drive the demand for the backup power generation market in the United States. Power outages cost an average of about USD 18 billion to USD 33 billion per year in the United States. Therefore, backup generators and UPS are considered the most viable options for making business operations run continuously without any interruption.
- Moreover, increasing awareness among customers about the features and benefits of backup power, as well as the best-suited equipment combination for personal use, is driving the demand for portable generators, especially in the residential and commercial segments.
- The United States has been grappling with increasingly severe weather patterns, including storms, hurricanes, and cyclones. A staggering 80% of power outages in the country are attributed to these extreme weather events.
- Texas, Michigan, California, and North Carolina are among regions across the United States that recorded the highest hours of power outages. In July 2024, Hurricane Beryl severely impacted the market, knocking out power for around 3 million homes and businesses. Further, Texas experienced a thunderstorm in May 2024, during which nearly 600,000 consumers were without electricity in the region. Hence, such weather conditions have created demand for backup power solutions like portable generators in these states.
- Additionally, places like California face frequent natural disasters due to extreme weather conditions. In February 2024, California faced a storm, with extreme rainfall leading to nearly 475 mudslides or debris flows. Hence, such conditions in the country have created significant demand for portable generators.
- Thus, owing to the abovementioned developments, North America is set to witness growth in the portable generators market during the forecast period.
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