How is Expanding Construction Industry Driving Genset Market?

The construction activities in developed and developing countries, including the U.S., Indonesia, China, the U.K., and India, are expected to increase at a rapid pace because of the swift industrialization in emerging economies, recovering economy, private and public partnerships, and increasing investments in commercial and residential infrastructure. Other than this, the construction industry is also witnessing considerable growth in Gulf Cooperation Council countries, which ci because of the integration of innovative technologies in business practices, recovery in oil prices, implementation of fiscal reforms by governments, and lowering geopolitical uncertainties.


Proper electric supply at construction sites is a must, which is why, the demand for gensets in increasing as well. Genset is utilized for referring to portable generators, which comprise alternator/electric generator and an engine, that provide energy. These equipment can be used as the main source of power or as a supplementary source during peak hours. As per a report by P&S Intelligence, the global genset market is predicted to reach a value of $22,777.8 million by 2024, increasing from $17,592.6 million in 2019, advancing at a 5.2% CAGR during the forecast period (2020–2024).


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Among the different applications of gensets, namely residential, commercial, and industrial, their largest demand was generated for the commercial application in the past. This is due to the rising funding for public infrastructure advancements, expanding retail sector, and growing construction of smart cities. Geographically, Asia-Pacific emerged as the largest genset market in the past, which can be attributed to the rapid expansion of the manufacturing sector on account of government initiatives in the region. In addition to this, investments for the development of telecommunications infrastructure are increasing in the region, thereby driving the demand for gensets.


The key trend in the genset market is the numerous measures being taken by generator manufacturers to stay ahead of the competition. For instance, Cummins Inc., Caterpillar Inc., Atlas Copco AB, and Mahindra Powerol Ltd., and several other companies launched new gensets in 2018 to expand their portfolio. The new variants feature various improvements from older-generation products, which reflect the several challenges diesel as well as gasoline generators face, including strict environmental norms and competition from not only substitutes, but also other genset manufacturers. Similarly, several market players have entered into partnerships to develop and localize production, reduce their capital expenditure, and provide customized power solutions.

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