The Global Air-Cooled Generators Market size is expected to reach $5.6 billion by 2030, rising at a market growth of 5.5% CAGR during the forecast period. In the year 2022, the market attained a volume of 2,250.89 thousand units, experiencing a growth of 5.0% (2019-2022).
Asia Pacific region hosts various commercial and industrial sectors, including manufacturing, healthcare, hospitality, telecommunications, and IT services. Therefore, the Asia Pacific region captured $1,756.62 million revenue in the market in 2022. Also, the China market utilized 548.36 thousand units Air-Cooled Generators in 2022. These sectors rely on these for backup and standby power to maintain operations, ensure business continuity, and safeguard critical equipment and facilities from power outages and disruptions.
The major strategies followed by the market participants are Product Launches and Product Expansions as the key developmental strategy to keep pace with the changing demands of end users. For instance, In July, 2023, Kohler Co. launched the 26 kW (26RCA) air-cooled home standby generator, designed to provide effortless, automatic operation by utilizing the home's fuel sources. The new product helps homeowners enjoy uninterrupted power supply during outages without any manual intervention. Additionally, In June, 2023, Cummins Inc. revealed the Onan C-Power QSB7E generator for the commercial marine industry. The new product is accessible as either an open or enclosed unit, available in both 50 and 60 Hz variants, boasting an output capability of up to 195 kWe.
Based on the Analysis presented in the KBV Cardinal matrix; Siemens AG is the forerunner in the market. In June, 2022, Siemens AG introduced Siemens Xcelerator, an open digital platform, aimed at speeding up digital transformation and value generation for customers in various sectors such as industry, buildings, grids, and mobility. Siemens Xcelerator offers a selected range of IoT-enabled hardware, software, and digital services from both Siemens and certified third-party providers. Companies such as Honda Motor Co. Ltd., Baker Hughes Company, Mitsubishi Heavy Industries Ltd. are some of the key innovators in the market.
Ensuring an uninterrupted power supply, as is reliance on electricity for critical operations in various industries and sectors, is paramount. These offer a reliable backup power solution that seamlessly kicks in during grid outages or disruptions, minimizing downtime and preventing costly interruptions to business operations. Therefore, increasing demand for backup power is driving the market's growth.
Energy security is essential for maintaining business continuity and operational resilience, especially in industries that rely heavily on uninterrupted power supply for critical operations. Enterprises operating in industries like medical care, banking, telecommunications, information technology, manufacturing, and retail are highly vulnerable to extended downtime or disruptions in their business operations. Hence, growing awareness of energy security is propelling the market's growth.
Air-cooled generators rely on air for cooling, which becomes less effective at dissipating heat as ambient temperatures rise. In high-temperature environments, air's cooling capacity is limited, leading to reduced efficiency in heat dissipation from the generator components. High operating temperatures can cause performance degradation in generator components such as engines, alternators, and electrical systems. Hence, reduced efficiency at high temperatures is hampering the market's growth.
Drivers 
Restraints 
Opportunities 
Challenges Based on type, the market is bifurcated into portable and stationary. In 2022, the portable segment garnered 66.9% revenue share in the market. The benefit of mobility with portable air-cooled generators is that users can move them to other places as needed. This versatility makes them ideal for construction sites, outdoor events, camping trips, and other temporary or remote settings where access to grid power may be limited or unavailable.
On the basis of system, the market is segmented into enclosed system and open ventilated system. In 2022, the open ventilated system segment attained 24.5% revenue share in the market. Open ventilated systems allow greater airflow around the generator components, facilitating more efficient engine cooling and other critical parts.
By end user, the market is divided into industrial, residential, and others. In 2022, the residential segment registered 59.0% revenue share in the market. Residential users prioritize uninterrupted power supply to maintain essential appliances and comfort systems during grid outages caused by severe weather, utility failures, or other emergencies.
Free Valuable Insights: Global Air-Cooled Generators Market size to reach USD 5.6 Billion by 2030
Region-wise, the market is analysed across North America, Europe, Asia Pacific, and LAMEA. In 2022, the North America region generated 21.6% revenue share in the market. North America encompasses vast rural and remote areas where access to reliable grid power may be limited or non-existent.
The market competition in the Air-Cooled Generators sector is marked by a mix of established manufacturers, emerging players, and technological innovators vying for market share in a dynamic landscape. Established companies leverage their extensive experience, brand reputation, and global presence to maintain their competitive edge. These industry incumbents often invest heavily in research and development to enhance product performance, reliability, and efficiency while also focusing on expanding their distribution networks and aftermarket services to cater to diverse customer needs.
| Report Attribute | Details |
|---|---|
| Market size value in 2022 | USD 3.7 Billion |
| Market size forecast in 2030 | USD 5.6 Billion |
| Base Year | 2022 |
| Historical Period | 2019 to 2021 |
| Forecast Period | 2023 to 2030 |
| Revenue Growth Rate | CAGR of 5.5% from 2023 to 2030 |
| Quantitative Data | Volume in Thousand Units, Revenue in USD Billion, and CAGR from 2019 to 2030 |
| Number of Pages | 311 |
| Number of Tables | 653 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Type, System, End User, Region |
| Country scope |
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| Companies Included | Briggs & Stratton, LLC (KPS Capital Partners), Generac Holdings, Inc., Honda Motor Co. Ltd., Kohler Co., Yamaha Corporation, Siemens AG, Mitsubishi Heavy Industries Ltd., Toshiba Corporation, Cummins, Inc., Baker Hughes Company |
By Type (Volume, Thousand Units, USD Billion, 2019-2030)
By System (Volume, Thousand Units, USD Billion, 2019-2030)
By End User (Volume, Thousand Units, USD Billion, 2019-2030)
By Geography (Volume, Thousand Units, USD Billion, 2019-2030)
The Market size is projected to reach USD $5.6 billion by 2030.
Rapid growth of urbanization and industrialization globally are driving the Market in coming years, however, Limited long-term durability of air-cooled generators restraints the growth of the Market.
Briggs & Stratton, LLC (KPS Capital Partners), Generac Holdings, Inc., Honda Motor Co. Ltd., Kohler Co., Yamaha Corporation, Siemens AG, Mitsubishi Heavy Industries Ltd., Toshiba Corporation, Cummins, Inc., Baker Hughes Company
In the year 2022, the market attained a volume of 2,250.89 thousand units, experiencing a growth of 5.0% (2019-2022).
The Enclosed System segment is generating highest revenue in the Market by System in 2022; thereby, achieving a market value of $4.1 Billion by 2030.
The Asia Pacific region dominated the Market by Region in 2022, and would continue to be a dominant market till 2030; thereby, achieving a market value of $2.7 Billion by 2030.
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