Residential Gas Generator Market: Global Industry Analysis and Forecast (2023-2029)

A residential gas generator is used to generate electricity in a home or other residential setting using natural gas as a fuel source. These generators are typically installed as a backup power source in case of a power outage or other emergency situations. The generator is usually connected directly to the home's natural gas supply and can be started manually or automatically in the event of a power outage. These generators offer greater convenience and reliability. Major players in this sector are taking initiatives to make these generators more cost-effective which will further the demand and market share for the Residential gas generators market.

Residential Gas Generator Market dynamics

With the growing threat of climate change, extreme weather events such as hurricanes, tornadoes, and blizzards are becoming more frequent and severe. This has led to more power outages, increasing the need for backup power solutions like residential gas generators. Also, in an increasingly digital and interconnected world, a reliable source of power is essential for many aspects of modern life. As a result, the demand for backup power solutions is likely to continue to grow. The adoption of natural gas as a source of energy for residential generators over diesel is increasing due to growing environmental concerns. Less carbon dioxide, nitrogen, and sulfur are emitted via natural gas generators than diesel generators. In addition, these generator sets also produce less noise and have no peculiar smell during operation which is not the case with diesel generators. Moreover, natural gas is available at a low price, unlike diesel whose prices keep on fluctuating and are on the higher side. Thus, the unreliable power supply and continuous demand for electricity along with the advancements in technology, and availability of low-cost fuel are important factors that drive the demand for household generators.

As technology continues to evolve, residential gas generators are likely to become more efficient, affordable, and easier to use which will lead to increased purchases of the same. In the Asia Pacific region, the Governments are taking many initiatives to boost the infrastructure with the concept of smart and sustainable cities which is an opportunity for many small residential gas generator manufacturers. Also, nowadays home automation systems are becoming increasingly popular, and gas generators can be integrated into these systems to provide seamless backup power. This is creating another opportunity for gas generator manufacturers to develop products that can be easily integrated into home automation systems, thus increasing the market share of residential gas generators.

However, in the rural areas of developing countries, the direct connectivity of gas pipelines to households is not developed which can be a hindrance to direct gas supply making it a lesser convenient option.  Although gas generators are becoming more environmentally friendly, they still emit carbon monoxide and other pollutants. As a result, many homeowners and regulatory bodies are concerned about the environmental impact of gas generators thus shifting to more environmentally friendly solutions like battery backup systems, solar panels, and wind turbines where feasible.

Residential Gas Generator Market Segmentation

By type: Residential gas generators market is divided into Stationary and Portable. In terms of type, portable generators dominated the residential generators market in 2022, and it is anticipated that this segment is expected to continue to grow at the fastest rate during the forecast period. Portable generators are usually smaller in size, ranging from 1kW to 8kW in power output capacity and are ideal for use in camping, outdoor events, and emergency backup power in small households. Portable generators with Bluetooth capabilities are another emerging trend that is growing in popularity. With this end users will now be able to control a generator using their smartphone and monitor fuel levels, the duration of the entire activity, performance, and create maintenance reminders, among other things. Additionally, these devices will also assist in finding nearby dealers for servicing needs. Thus, the multipurpose use of portable generators coupled with the advancements in technology attracts manufacturers and customers and will in turn drive the market for portable generators, thereby, contributing to global market growth.

By power rating: By power rating, the up to 20 KW segment is expected to be the largest contributor during the forecast period since many basic to advanced household requirements can be covered with this power rating.

Regional analysis: By region, Asia-Pacific is anticipated to have the largest market size throughout the forecast period. Major drivers of market expansion include the growing manufacturing sector, rapid urbanization, rising populations, and rising per capita incomes among consumers in developing nations like China, Malaysia, Indonesia, South Korea, Thailand, and India. Additionally, it is projected that favorable government measures and assistance for the use of clean energy sources and rural electrification projects to close the electricity supply and demand gap will further contribute to the growth of the market. The markets in Australia and New Zealand also make a major contribution to the increase in market revenue. These nations have an increasing frequency of power failures and blackouts, which has led to a rise in the use of generators in the area and subsequent market expansion.

Frequent hurricanes and thunderstorms have caused disruptions to the well-established electricity transmission networks in the United States, increasing the demand for gas generators. For example, the winter storm that hit Texas in February 2021 resulted in widespread power outages, leaving millions of homeowners without electricity for several days. As a result, many homeowners have become more aware of the need for backup power solutions and are looking for reliable and convenient options like residential generators. Also, the stringent emission norms that are being put in place by the Governments in North America and Europe in order to curb the environmental impact caused by greenhouse gases and carbon emissions, have furthered the use of gas as a substitute for diesel and thus the rise of Residential gas generators in the market.

Over the course of the forecast period, the Middle East and Africa gas generator market is anticipated to have moderate revenue growth. This is explained by the substantial natural gas reserves found in some Middle Eastern nations, including Iran and Qatar.

Competitive Landscape

Market is getting consolidated through mergers and acquisitions, JVs, and Strategic Alliances. The report has tracked the recent M&As, JVs happened in last five years. Potential JVs and M&As are also covered in the report. The competitive landscape chapter covers market structure by analysing the market leaders, followers and new entrants by countries.

Consolidations are happening to expand the product portfolios, bring in latest technology, enter new markets, and enhance the distribution networks of the companies. For example, in 2018, Generac Power Systems acquired Selmec Equipos Industrials, a Mexican manufacturer of commercial and industrial generators, to expand its presence in Latin America. It is expected that the market will continue to see consolidation in the coming years, as companies look for ways to increase their market share and remain competitive in the face of changing market conditions. More details about the dominant players in the countries, their market shares, their recent market strategies to thrive in the market are shared in the report.

Research Methodology:

The research conducted utilized both primary and secondary data sources to ensure that all possible factors affecting the market were thoroughly examined and validated. The market size for top-level markets and sub-segments is normalized and the impact of inflation, economic downturns, regulatory & policy changes, and other variables is factored into the market forecast.

The bottom-up approach and multiple data triangulation methodologies are used to estimate the market size and forecasts. The percentage splits, market shares, and breakdowns of the segments are derived based on weights assigned to each of the segments on their utilization rate and average sale price. The country-wise analysis of the overall market and its sub-segments are based on the percentage adoption or utilization of the given market Size in the respective region or country. Major players in the market are identified through secondary research based on indicators that include market revenue, price, services offered, advancements, mergers and acquisitions, and joint.

Extensive primary research was conducted to acquire information and verify and confirm the crucial numbers arrived at after comprehensive market engineering and calculations for market statistics, market size estimations, market forecasts, market breakdown, and data triangulation.

Key players

• Generac Holdings Inc.
• Caterpillar Inc.
• Mitsubishi Heavy Industries Ltd
• Cummins Inc.
• Kohler Co.
• Himoinsa S.L.
• Briggs and Stratton Corporation
• Kirloskar Electric Co., Ltd.
• Aggreko PLC
• F.G. Wilson
• Champion Power Equipment
• Honda Motor Co., Ltd
• SDMO Industries SAS
• Yamaha Motor Co., Ltd
• Atlas Copco AB
• Hyundai Heavy Industries Co., Ltd
• Bredenoord
• MTU-onsite Energy GMBH
• Mahindra Powerol
• Yanmar Co., Ltd
• Coopercorp Generators