Three-Phase Generator Set Market

Three-Phase Generator Set Market Size (2024-2029):

The Global Three-Phase Generator Set Market was worth US$ 22.92 billion in 2022 and is anticipated to reach a valuation of US$ 44.25 billion by 2028 and is predicted to register a CAGR of 9.85% during 2023-2028.

Market Overview:

A major factor driving the growth of the global three-phase generator set market is the increasing need for a steady and dependable power supply, which is being caused by inadequate electrical grid infrastructure. The market will also rise as a result of quick industrialization and rising infrastructure development spending. Moreover, the market expansion will be fueled by the continued use of genets as a main power generation source throughout the industrial sector.

The rise in demand for three-phase generator sets in developing nations like China and India, along with the incorporation of novel technologies by producers, are the reasons for the expansion. The primary drivers of demand for these sets are the growing requirement for Mobile Power sources in nations with unstable electrical infrastructure, as well as the growing demand from the construction and equipment manufacturing industries.

The development of next-generation generator sets is another factor with tremendous market growth potential. Companies are working on new technologies to reduce harmful emissions and noise to meet the clean energy demands and goals. Some of these technologies will use renewable and biodiesel fuels produced from animal fat and vegetable fat. Other producers are building hybrid diesel generator sets that use batteries and solar panels to minimize their dependency on diesel fuel.

Market Restraints:

There are multiple factors that hinder the global three-phase generator market growth. The need for wiring, transformers, and control systems results in additional material costs. Their complex design also requires specialized manufacturing techniques and experienced labor, which raises costs. 

Moreover, it requires routine maintenance and upkeep due to extensive circuitry and numerous components. This contributes to higher operating expenses and possible downtime for maintenance and deters adoption even further.

Market Opportunities:

The niche applications are expected to provide more potential prospects for the global three-phase generator set market. In certain cases and industries, three-phase power continues to be essential. So, providing specialized solutions for these particular applications can open up opportunities for growth despite the market's general decline. Niche applications like construction, mining, emergency services, disaster relief, data centers, server farms, marine and offshore activities, and military and defense are some of the potential areas for the market. 

Market Challenges:

The global three-phase generator set market is facing considerable challenges due to a gradual shift towards renewable power generation. The potential of renewable energy sources to produce electricity on-site could decrease the demand for generator sets for extra power because they have become increasingly feasible and affordable. This is especially true in areas with a surplus of renewable resources and stable power infrastructure. Also, diesel-powered generator sets emit greenhouse gasses and air pollution, which are against the clean energy targets and result in more stringent rules regarding the usage of generators. Furthermore, greater levels of green energy are achievable with investments in modernization and expansion of the grid because it will improve weather prediction, minimize the impact of geographic variations, and provide storage and load flexibility so that backup power plants won't need to be kept operating.

THREE-PHASE GENERATOR SET MARKET REPORT COVERAGE:

Market Segment Analysis:

Three-Phase Generator Set Market - By Fuel Type:

• Gasoline Three Phase Generator Set (TPGS)
• Diesel TPGS
• Heavy Duty
• Light Duty
• Nature Gas TPGS 
• Less Than 1000 KVA
• 1000-5000 KVA
• Above 5000 KVA
• Biogas TPGS 
• Propane TPGS 
• Hybrid TPGS 
• Other

Equipped with an automated voltage regulator (AVR), a gasoline engine, and three-phase generator sets may provide high torque and start up fast, all without requiring complicated electrical controls. AVRs usually use sensors to measure pressure, frequency, current flow, and other variables to calculate when their rated output value will be reached. The AVR modifies voltage and frequency to maintain a steady output while the system is under demand.

Diesel engines produce power at a steady rotational speed regardless of any fluctuating loads that may be present while the system is in use. Whether they are operating at maximum or minimal load, they deliver consistent, uninterrupted electricity.

Three-Phase Generator Set Market - By Capacity:

• Low Power (below 100 KVA)
• Medium Power (100 KVA TO 1000 KVA)
• High Power (above 1000 KVA)

The medium power segment is the dominant category of the global three-phase generator set market. These generators are widely used in commercial buildings, small businesses, healthcare facilities, and construction sites. This broad applicability and versatility are driving the market growth. Also, urbanization and increasing reliance on emergency power are boosting the expansion of the segment in commercial buildings and data centers.

Three-Phase Generator Set Market – By Application:

• Standby Power
• Prime Power
• Peak Shaving

The standby power segment holds an estimated 40 percent share of the global three-phase generator set market. But, the peak shaving segment will close the gap with standby power in the coming years. The standby power may dominate in developed economies. But in developing regions, prime power may hold a larger share. The prime power segment holds around 25 percent market share. Mining, oil and gas exploration, and remote communities rely on prime power generators.

Three-Phase Generator Set Market - By End User Industry:

• Shipbuilding Industry
• Equipment Manufacturing Industry
• Construction Industry
• Healthcare
• Data Centers
• Oil and Gas
• Others

The Construction industry is leading with a significant share of the global three-phase generator set market. This industry greatly relies on three-phase generators for power in remote and unreliable grid areas. The increasing demand for infrastructure development in emerging economies is driving this segment's market growth. Moreover, the oil and gas segment is the second dominant industry after construction. Three-phase generators are primary power sources in the oil and gas industry for continuous and reliable power during exploration, drilling, and refining activities. The demand in this sector can be influenced by fluctuating oil prices and activity levels.

Market Regional Analysis:

• North America
• Europe
• Asia-pacific
• Middle-east and Africa
• Latin America

Asia Pacific is anticipated to hold the highest three-phase generator set market growth rate because of the strong demand for electricity in India and China. The fastest-growing population in the region is driving up the need for infrastructural development, industrial expansion, and electricity. Generators are highly necessary to fulfill the rising demand for power in the commercial, industrial, and residential sectors. In addition, the regional governments are making significant investments in the expansion of telecommunications, transportation, and energy infrastructure. Stable energy sources are necessary for these projects, and generators are frequently employed as reserve power for vital infrastructure and as backup power during the building phase.

The North American three-phase generator set market is a mature market with high penetration in the commercial and industrial sectors. The major factors boosting the market growth in the region are infrastructure development, extra healthcare power requirements, and the increasing need for dependable power in data centers. Moreover, growing consumer demands for eco-friendliness and energy efficiency combined with the increasing popularity of inverter generators will promote industry expansion. Furthermore, the market is seeing a change due to the increasing popularity of portable three-phase generators for certain uses such as construction and distant labor.

Europe is expected to thrive further during the forecast period, considering the opportunities presented by the energy crisis. One of the factors propelling the growth of the three-phase generator set market in European countries, particularly in Germany, is the increasing prevalence of more sensitive electronic products that are susceptible to damage from power outages, spikes, and other power irregularities because of the absence of linear regulators. Apart from this, three-phase generators and other dependable reserve power options are becoming more expensive owing to rising energy prices, dependence on neighboring countries for energy requirements, and grid weaknesses. However, manufacturers are encouraged to build because of strict environmental requirements to invest in cleaner and more effective generating technology.

Latin America's three-phase generator set market size is propelled by significant infrastructure investments and the need for a stable electricity supply in remote places. The requirement for power supply in off-grid areas is leading to the demand for diesel generators. Also, there are underdeveloped and developing nations in the South American region. When it comes to backup generators or unconventional power production, these nations are very capable. In areas that lack grid connectivity and in blackouts, industrial operations mostly rely on electricity produced by diesel generators.

The Middle East and Africa three-phase generator set market is predicted to achieve a CAGR of around 2 percent during the forecast period. Nigeria is anticipated to have the biggest market because of its sizable population and rapid economic expansion. A growth in the population will drive up the power demand. Also, many African nations in Western Africa, to meet their daily electrical needs, mainly depend on small-capacity generators. The utility grid is unable to meet the demand for a consistent and dependable power supply, which is the major cause behind this.

Impact of COVID-19 on the Global Three-Phase Generator Set Market:

COVID-19 imposed a major effect on the global three-phase generator set market. It has led to a rise in "prosumerism," or the practice of people investing in personal preparedness products and growing more independent. This includes choices for reserve power for households and businesses, such as portable three-phase generators. This pattern could result in an increase in the market for additional compact, easily operated, reasonably priced three-phase generators that are customized to meet specific requirements.

However, during the pandemic, customer awareness about the continuous power supply increased, which formed a positive outlook for the market. An additional factor supporting the global market expansion is the growing demand for emergency electrical backups, which is largely fueled by the need to address regular and significant blackouts caused by local utilities.

Market Key Players:

1. GENELEC
2. Inmesol
3. FUJIAN YANAN POWER GROUP
4. JCB Power Products Ltd
5. FG WILSON
6. KOHLER POWER SYSTEMS
7. Coelmo spa
8. LISTER PETTER
9. CAPSTONE TURBINE
10. MTU Onsite Energy

Market Recent Developments:

• In May 2023, Solis introduced the S6 Advanced Power Hybrid Inverter, which focuses on generator connectivity and multiple input methods. It provides up to 10 seconds of 200 percent increase in power backup overload capacity in addition to automatic UPS changeover.
• In May 2023, JCB extended its electric Powerpack range to 400V three-phase output with three large models. Now, there are five versions in the line, which have a combined storage capacity of 23 to 104kWh.