Electric Generator Market Size, Share, Opportunities, And Trends By Type, Application, End-user, And Geography - Forecast From 2025 To 2030
Description
Electric Generator Market Size:
The electric generator market is expected to grow at a 5.89% CAGR, achieving USD 39.137 billion by 2030 from USD 29.392 billion in 2025.
Electric Generator Market Highlights:
- Powering telecom towers: Generators are ensuring uninterrupted connectivity.
- Supporting data centers: Units are providing reliable backup energy.
- Driving Asia-Pacific demand: Industrialization is boosting installations.
- Enabling emergency response: Systems are delivering critical power.
- Enhancing household reliability: Homes are adopting standby generators.
- Meeting construction needs: Sites are using portable units daily.
- Advancing sustainable options: Models are incorporating cleaner fuels.
A machine that transforms mechanical energy into electrical energy for use in external circuits is known as an electric generator. For a constant source of electricity, a generator converts mechanical energy, such as steam, gas, and water, into electrical energy. Some of the key factors driving the electric generator market in recent years include the improvement in electric motor energy efficiency, rising demand for electric generators from the agricultural and industrial sectors, expanding HVAC system use, and rising demand for hybrid and electric vehicles.
According to the BP Statistical Review of World Energy, 2022 report, the total electric energy generation in the world has increased from 26889.2 TWH in 2020 to 28466.3 TWH in 2021, around a 6.5% of growth rate. This shows that increasing electricity demand will lead to the electricity generator market growing and will drive this market.
Electric Generator Market Drivers:
- The Increasing demand for uninterrupted power supply in the telecom industry will drive market growth
The emphasis on economic growth and rising industrialization investments is driving up demand for electricity globally. World energy consumption is rising as a result of greater investments in industrialization and a focus on economic growth. The bulk of commercial and industrial sectors rely on a continuous, uninterrupted power supply to minimize equipment damage, service disruptions, and data loss. The goal to reduce power outages has led to greater investment in high-quality power infrastructure.
OTT services like Netflix, Amazon Video, Hotstar, Hulu, and others have become more and more well-known in recent years. In October 2022, according to NDTV, Netflix subscribers watched 452,000 hours of material in 2021, and there has been an increase of 2.4 million subscribers in 2022 third quarter. In order to use these applications, consumers are actively investing in high-speed internet connections. As a result of this rising demand, several telecom companies around the world have been erecting additional towers. These telecom towers are equipped with high-capacity industrial generators as a backup in case of power outages to prevent signal disruption. As a consequence, the growing telecom industry, which also contributes to the development of new business opportunities and an increase in market earnings, is what is driving the need for generators.
According to the announcement by India’s Ministry of Power on Feb 2023, due to the expanded grid lines and the increased power generation, the market for Electric generators will also expand in rural areas lines and industries based in rural areas, as it is said by the government that entire nation is now connected and can move 112 GW of power from one region to another and this will build the electric generation sources to increase the capacity of power generation and transmission. The market for electric generators has a tremendous opportunity due to the development and widespread use of smart grids in countries that fully meet the requirements of a smart grid system. This will tend to increase the installation of electric generators in all commercial households and will grow this market at a rapid pace.
- The rise in demand for electricity will boost the market for electric generators
Industrialization and increased home energy demand as a result of the expansion of household access to electricity in rural regions are some of the factors propelling the growth of electric generators globally. Globally, the power demand is continually increasing, which has led to more energy resources being used. More electric generators are presently present everywhere in big industries and households. The development of contemporary electric cars and incentives to utilize them have increased industry power consumption, and this will lead to an increase in power electric generators.
According to EIA, 2021 electricity consumption globally has increased from 2020 to 2021, and from 2020 23,966 billion kWH has risen to 25343 billion kWh of consumption. Thus, we can predict that due to the increase in the electricity demand spread across the country in households worldwide, is increasing year-on-year the demand for electric generators will also increase and grow, and thus the Electric generators market.
Electric Generator Market Geographical Outlook:
- During the forecast period, the Asia-Pacific tends to grow in the electric generators market
The electric generators market is anticipated to be the largest in the Asia Pacific during the projected period. Due to its high population density, the Asia Pacific has a significant demand for power.
In September 2022 According to PTI, which cited official statistics, India's electricity consumption increased by 13.31% annually to 127.39 billion units (BU) and by 11.65% for the first half of the 2022 fiscal year this showcases that the demand for consumption of electricity is increasing which will tend to increase the installation of electric generators in the households and industrial areas of the Asia Pacific region. The market for electric generators is driven by investments in smart grid and smart city technologies, growth in data centers, a rise in the construction industry, and a rise in industrialization and households.
According to the BP Statistical Review of World Energy 2022 report, it is said that the energy generation capacity of the Asia Pacific has increased from 12949.3 TWH in 2020 to 13994.4 TWH in 2021, which shows an increase of 8.4%, which is the highest compared to other regions.
The Asia-Pacific region is increasing at a rapid pace as the government is investing in this market. Also, as it is said, the population is increasing, thus the energy generation capacity has to increase as the number of industrialization and households will increase, due to which the increase in the installation of electric generators will take place, and thus will propel the market growth.
Electric Generator Market Developments:
- December 2025: Cummins India unveiled its next-generation CPCBIV+ compliant 82.5 kVA genset at EXCON 2025, featuring a more compact footprint and optimized performance for the quick-commerce and infrastructure sectors.
- November 2025: Caterpillar releases 3.1 MW Cat® G3520 Fast Response natural-gas generator sets, engineered for rapid load acceptance, mission-critical backup, and participation in demand response programs.
- June 2025: Caterpillar and District Energy St. Paul demonstrate a 2.0 MW hydrogen-fueled CHP generator system, showcasing sustainable generator performance with 100% hydrogen fuel in real-world operations.
- April 2025: Generac Power Systems launched a new high-capacity generator lineup ranging from 2.25 MW to 3.25 MW, specifically engineered to support hyperscale, colocation, and enterprise AI data centers.
Electric Generator Market Scope:
| Report Metric | Details |
|---|---|
| Electric Generator Market Size in 2025 | USD 29.392 billion |
| Electric Generator Market Size in 2030 | USD 39.137 billion |
| Growth Rate | 5.89% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | Billion |
| Segmentation | Type, Application, End-User, Geography |
| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in Electric Generator Market |
|
| Customization Scope | Free report customization with purchase |
Electric Generator Market Segmentation:
- ELECTRIC GENERATOR MARKET BY TYPE
- AC
- DC
- Others
- ELECTRIC GENERATOR MARKET BY APPLICATION
- Transformers
- Electric Motors
- Electric Power Grids
- Others
- ELECTRIC GENERATOR MARKET BY END-USER
- Building & Construction
- Power & Energy
- Household & Small Business
- Telecommunication
- Others
- ELECTRIC GENERATOR MARKET BY GEOGRAPHY
- North America
- USA
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Others
- Europe
- Germany
- France
- United Kingdom
- Spain
- Others
- Middle East and Africa
- Saudi Arabia
- UAE
- Others
- Asia Pacific
- China
- India
- Japan
- South Korea
- Indonesia
- Thailand
- Others
- North America
Frequently Asked Questions (FAQs)
The market is expected to grow at a CAGR of 5.89%, reaching USD 39.137 billion by 2030, up from USD 29.392 billion in 2025, driven by rising global electricity demand.
Major drivers include increasing demand for uninterrupted power supply, rapid industrialization, expansion of telecom infrastructure, growth in HVAC systems, and rising adoption of electric and hybrid vehicles.
Telecom towers require continuous power to avoid service disruptions and data loss. With rising OTT usage and network expansion, operators increasingly deploy high-capacity generators as backup power systems.
Asia-Pacific leads the market due to high population density, rapid industrialization, increasing electricity consumption, smart city investments, and strong government support for power infrastructure expansion.
Key trends include hydrogen-fueled generators, fast-response natural gas gensets, CPCB-compliant low-emission systems, and high-capacity generators designed for data centers and AI workloads.
Table Of Contents
1. EXECUTIVE SUMMARY
2. MARKET SNAPSHOT
2.1. Market Overview
2.2. Market Definition
2.3. Scope of the Study
2.4. Market Segmentation
3. BUSINESS LANDSCAPE
3.1. Market Drivers
3.2. Market Restraints
3.3. Market Opportunities
3.4. Porter’s Five Forces Analysis
3.5. Industry Value Chain Analysis
3.6. Policies and Regulations
3.7. Strategic Recommendations
4. TECHNOLOGICAL OUTLOOK
5. ELECTRIC GENERATOR MARKET BY TYPE
5.1. Introduction
5.2. AC
5.3. DC
5.4. Others
6. ELECTRIC GENERATOR MARKET BY APPLICATION
6.1. Introduction
6.2. Transformers
6.3. Electric Motors
6.4. Electric Power Grids
6.5. Others
7. ELECTRIC GENERATOR MARKET BY END-USER
7.1. Introduction
7.2. Building & Construction
7.3. Power & Energy
7.4. Household & Small Business
7.5. Telecommunication
7.6. Others
8. ELECTRIC GENERATOR MARKET BY GEOGRAPHY
8.1. Introduction
8.2. North America
8.2.1. USA
8.2.2. Canada
8.2.3. Mexico
8.3. South America
8.3.1. Brazil
8.3.2. Argentina
8.3.3. Others
8.4. Europe
8.4.1. Germany
8.4.2. France
8.4.3. United Kingdom
8.4.4. Spain
8.4.5. Others
8.5. Middle East and Africa
8.5.1. Saudi Arabia
8.5.2. UAE
8.5.3. Others
8.6. Asia Pacific
8.6.1. China
8.6.2. India
8.6.3. Japan
8.6.4. South Korea
8.6.5. Indonesia
8.6.6. Thailand
8.6.7. Others
9. COMPETITIVE ENVIRONMENT AND ANALYSIS
9.1. Major Players and Strategy Analysis
9.2. Market Share Analysis
9.3. Mergers, Acquisitions, Agreements, and Collaborations
9.4. Competitive Dashboard
10. COMPANY PROFILES
10.1. Generac
10.2. Nidec Industrial Solutions
10.3. R Schmitt Enertec GmbH
10.4. Cummins Inc
10.5. Caterpillar Inc.
10.6. Eram Power Projects Pvt Ltd
10.7. Wiba Generators
11. APPENDIX
11.1. Currency
11.2. Assumptions
11.3. Base and Forecast Years Timeline
11.4. Key benefits for the stakeholders
11.5. Research Methodology
11.6. Abbreviations
LIST OF FIGURES
LIST OF TABLES
Companies Profiled
Nidec Industrial Solutions
R Schmitt Enertec GmbH
Cummins Inc
Eram Power Projects Pvt Ltd
Wiba Generators
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