North America Generator Sales Market Outlook, 2028

Generators work on the principle of converting mechanical energy into electrical energy. These are highly used in the automotive industry, where vehicles require electrical energy to run the lights and other equipment. The generator sales market in North America has traditionally been a significant market due to various factors such as extreme weather conditions, natural disasters, and the need for backup power in residential, commercial, and industrial settings. Generators are used as a reliable source of electricity during power outages or in areas without access to the main power grid. The market for generators in North America is influenced by various factors, including the overall economic conditions, population growth, industrial development, infrastructure projects, and government regulations related to power backup and emergency preparedness. Additionally, factors like increasing reliance on technology and the growing importance of uninterrupted power supply in critical sectors such as healthcare, telecommunications, data centres, and manufacturing also contribute to the demand for generators. Greater consumption is the outcome of rapid industry and urbanisation. Due to this situation, businesses and individuals are no longer solely dependent on power networks and are now purchasing generators to assure a constant supply of electricity. Both emerging and developed countries have seen a dramatic increase in power usage in recent years. The North American market has also benefited from growing investments in the exploitation of hydrocarbons from reserves.

According to the research report "North America Generator Sales Market Outlook, 2028," published by Bonafide Research, the North America Generator Sales market was valued at USD 6.55 Billion in 2022. Sales of generators are significantly influenced by power disruptions brought on by severe climates like cyclones, storms, or snowstorms. The demand for alternative power solutions grows as extreme temperatures become more common in North America. Customers in the residential, commercial, and industrial sectors use generators to maintain uninterrupted operations and guarantee a steady supply of electricity during blackouts. With the increasing reliance on technology in various aspects of life and business, the need for a stable power supply becomes crucial. Data centres, IT infrastructure, and telecommunications networks require continuous power to prevent data loss, maintain connectivity, and ensure smooth operations. The demand for generators is driven by the need to provide backup power to support these technological systems. In some regions, the power grid infrastructure is ageing and prone to failures or outages. This drives the demand for generators as individuals and businesses seek to mitigate the risks associated with an unreliable power supply. Based on the report, the North America market is segmented by application types, including standby, prime, continuous, and peak shaving. In the region, the standby generator has the highest market share. Over time, there has been a tremendous increase in the demand for energy from a variety of end users, including residential, commercial, and industrial sectors. As a result, there is now a much greater requirement for consistent and dependable power sources, which has increased the need for standby generators. When there is a power outage, standby generators serve as a backup power source. The need for the installation of standby generators is also being fueled by rapid industrialization, rising populations, and expanding infrastructure in North American countries like the US and Canada.

Based on the report, the market is segmented into end users, including industrial, commercial, and residential. In the North America region, the industrial segment used the most generators. In the future, the commercial segment will grow at the highest CAGR rate. Industries heavily rely on a stable and uninterrupted power supply to maintain continuous operations. Power outages can result in significant financial losses due to halted production, equipment damage, and downtime. Generators act as a reliable backup power source, ensuring that critical processes and machinery remain operational during power outages. Industries often experience periods of high electricity demand, known as peak load periods. During these times, the power grid may struggle to meet the increased demand, leading to voltage fluctuations or potential brownouts. Generators allow industrial facilities to manage their peak loads by supplementing the grid's power supply, ensuring consistent and uninterrupted operations. The oil and gas sector often operates in remote locations and on offshore platforms where access to the main power grid is limited or non-existent. Generators are used to power drilling rigs, pump stations, and other critical equipment necessary for extraction, refining, and distribution processes. Manufacturing facilities require a consistent power supply to operate machinery, production lines, and other equipment. Generators are utilised as backup power sources to mitigate the risks associated with power outages and ensure continuous production. Based on the report, the power rating segments include below 100 KVA, 100–350 KVA, 350–1000 KVA, 1000–2500 KVA, 250–5000 KVA, and above 5,000 KVA. In North America, below 100 kVA has the highest market share in the region. This is due to the high volume of backup power requirements in the commercial sector. To supply uninterrupted power to offices, hospitals, malls, and restaurants, generally, a silent generator with a power rating of 46 kVA–100 kVA is used. Based on the design segment, which includes stationery and portable, in North America, the stationery segment is leading the generator market. Due to Stationary generators are equipped with internal combustion engines that can run on various fuels, including diesel, natural gas, propane, or biogas. The engine is responsible for generating mechanical energy. The increasing reliance on technology in various aspects of life and business necessitates a stable power supply. Data centres, telecommunications networks, and other technology-dependent industries require uninterrupted power to prevent data loss, maintain connectivity, and ensure smooth operations. Stationary generators provide a backup power solution to support these critical systems. In North America, residential users also rely on stationary generators to provide backup power during outages. These generators are often used to maintain essential services such as lighting, heating or cooling systems, refrigeration, and security systems. Residential customers value the peace of mind and convenience that backup power provides, particularly during extended outages.

Based on the report, the North American market is segmented into three countries, including the United States, Canada, and Mexico. Among them, the United States is dominating the market in 2022. Based on the sales channel, which includes direct and indirect In North America, the indirect sales channel is leading the generator sales market. There are some prominent generator manufacturers based in North America: Generac Power Systems, Cummins Inc., Kohler Co., and Caterpillar Inc. There are no government policies regarding generator sales in the North America region; however, there are some common themes and regulations that may impact generator sales. Governments in North America have been implementing environmental regulations to reduce emissions and promote cleaner energy sources. These regulations may include emission standards for generators, particularly for larger industrial or commercial units. Compliance with these standards may require manufacturers to incorporate emission control technologies or use cleaner fuel options. Noise regulations are in place to address the potential noise pollution caused by generators. Local or regional authorities may impose restrictions on noise levels generated by generators, particularly in residential or urban areas. Manufacturers are often required to design and produce generators that meet noise emission limits. Governments at various levels in North America often provide incentives to promote the use of renewable energy sources. These incentives may include tax credits, grants, or rebates for individuals or businesses that install renewable energy systems such as solar or wind power. While not directly related to generator sales, these policies may impact the demand for backup generators as part of hybrid or off-grid renewable energy systems.

Considered in this report

• Geography: North America
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report

• North America Generator Sales market with its value and forecast along with its segments
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report:

• United States
• Canada
• Mexico

By Fuel Type

• Diesel
• Gas
• Others (LPG, biofuel, coal gas, producer gas, gasoline, and propane gas)

By Application

• Standby
• Prime & Continuous
• Peak Shaving

By End User

• Industrial
• Commercial
• Residential

By Power Ratings

• Below 100 kVA
• 100–350 kVA
• 350–1,000 kVA
• 1,000–2,500 kVA
• 2,500–5,000 kVA
• Above 5,000 kVA

By Sales Channels

• Indirect
• Direct

By Design

• Stationary
• Portable

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Smart Lighting industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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Manmayi Raval

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