The market for air-cooled single-phase home standby gensets is anticipated to expand at a compound annual growth rate (CAGR) of 7.3% during the forecast period of 2024 and 2032. The market will be propelled by several reasons, such as a rise in power outages, the demand for dependable power sources, and technological developments in generators. The >10–15 kVA category produced the most revenue in 2023, according to a thorough study of market segmentation by power rating; throughout the forecast period, the >20 kVA sector is anticipated to see the highest compound annual growth rate. Fuel type-wise, the Gas sector dominated the market in 2023, while the Diesel segment is expected to develop at the fastest rate between 2024 and 2032. Geographic patterns show that North America was the region with the largest revenue in 2023 and that the Asia-Pacific area would have the highest compound annual growth rate (CAGR) for the projected period. Key competitors including Generac Holdings Inc., Briggs & Stratton Corporation, Kohler Co., Cummins Inc., and Honda Motor Co., Ltd. are present in the competitive landscape and are implementing strategic initiatives to solidify their market positions. The market presents substantial development prospects despite the obstacles presented by high initial costs and maintenance charges, especially in rising nations and sectors with high demand for innovative power solutions. Over the forecast period, the demand for home standby gensets that are both dependable and efficient is anticipated to stay high, fueled by industries' continued innovation and adoption of new technologies.
Market Drivers
An increase in the frequency of blackouts
An increasing number of severe weather events, aging infrastructure, and rising electricity consumption have all contributed to a major increase in the frequency of power outages. This pattern has been especially noticeable in areas like North America and some parts of Asia where severe weather events like heat waves, typhoons, and hurricanes have interrupted the flow of electricity. There is a higher requirement for dependable backup power solutions as a result of these catastrophes occurring more frequently. To guarantee a steady supply of electricity, homeowners are increasingly spending money on air-cooled single-phase home backup gensets, especially in areas vulnerable to these disturbances. For instance, the US has witnessed a rise in the use of these generators as a result of the regular occurrence of hurricanes and winter storms, which frequently result in protracted power outages. Homeowners choose air-cooled gensets because of their dependability and simplicity of use. In addition, the increasing prevalence of telecommuting has made continuous power necessary to sustain connectivity and productivity. Home standby generator sales have surged recently, according to companies like Briggs & Stratton and Generac Holdings Inc., who attribute this growth to an increase in the frequency of power outages. This pattern is anticipated to continue as weather patterns become increasingly erratic due to climate change and the aging electricity infrastructure is unable to keep up with demand.
Technological Developments in Generators
Developments in technology have been a major factor in the market expansion for air-cooled single-phase home standby gensets. Modern generator sets are more ecologically friendly and efficient thanks to innovations in engine design, fuel efficiency, noise reduction, and emissions control. As an illustration, producers have created sophisticated air-cooled engines that offer reliable performance and extended operational life. Additionally, improved digital control systems have been included in gensets, enabling improved unit management and monitoring. These systems improve the ease and dependability of the gensets by enabling remote monitoring, automatic start-up, and shut-down features. Models with such cutting-edge capabilities have been released by companies like Honda and Kohler, increasing their attractiveness to tech-savvy customers. Moreover, consumers can monitor and operate their generators via smartphone apps that provide real-time information on fuel levels, maintenance plans, and operational status thanks to the integration of smart home technologies with gensets. With less downtime and increased dependability, homeowners can maintain their generators more effectively thanks to this link. More environmentally friendly generator sets have been developed as a result of the drive to reduce carbon footprints. Advancements in fuel technologies, including the utilization of natural gas and propane, have led to gensets that emit fewer emissions in comparison to conventional diesel-powered units. These innovations appeal to customers who care about the environment in addition to meeting legal requirements. The capacities and efficiency of home standby gensetsets are anticipated to significantly increase as technology advances, propelling their market acceptance.
Increasing Need for Dependable Energy Sources
Another major factor propelling the market for air-cooled single-phase residential standby gensets is the increasing need for dependable power sources. Modern homes are becoming more and more reliant on electronics and appliances, so having a steady power source is essential. This is especially true in areas with unstable power systems or frequent power outages. The usage of backup power solutions is required because basic tasks like cooking, heating, cooling, and communicating all depend on energy. Households can continue to run smoothly during blackouts thanks to home standby gensets, which offer a smooth transition. The demand for dependable power has increased due to the rise of home-based enterprises and remote work arrangements. There is a growing need for home standby gensets since professionals who work from home need a consistent power source to make sure their job is not interrupted. Reliable power sources are also in more demand due to the growing number of electric cars (EVs) and the requirement for home charging stations. To guarantee that their EVs can be charged even in the event of a power outage, homeowners who are investing in EVs are also considering backup power options. The demand for dependable power has also been fueled by the growth of automation systems and smart home gadgets. For smart home technologies to work properly, such as entertainment, lighting, and security systems, a steady power source is necessary. Smart home systems and home standby gensets work together to guarantee that these appliances continue to function even in the event of a power outage. The market for air-cooled single-phase residential backup gensets is predicted to continue to be driven by this increasing reliance on dependable power sources.
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Restraint
High Maintenance and Initial Expenses
The high initial cost and continuous maintenance requirements of air-cooled single-phase residential standby gensets are major barriers to the market. For homeowners, installing and buying standby gensets for their homes can be a significant financial commitment. Depending on the generator's features and power level, costs might vary greatly, but they usually cover the generator itself, installation charges, and any required permits. A mid-range, high-quality air-cooled generator, for instance, may set you back several thousand dollars, not to mention the additional expense of expert installation. Many consumers may find this initial cost outlay to be a barrier, especially in areas where disposable income is limited. Furthermore, these generator sets might be difficult to maintain. To guarantee that the generatorset performs effectively and dependably when needed, routine maintenance is essential. This includes regular maintenance, oil changes, and replacing worn-out parts, all of which can increase the cost of the generator during its lifetime. Although genset manufacturers like Generac and Kohler provide warranties and maintenance packages, prospective purchasers may be put off by the cost and effort of maintaining these units. Concerns exist around operating costs as well, particularly with relation to gensets that operate on petrol or diesel. It may be costly to operate these generators during protracted power outages due to fluctuating fuel prices. While natural gas and propane are more affordable and environmentally benign alternatives, their use may be restricted in some locations due to the lack of infrastructure supporting these fuels. A major obstacle to the widespread use of home backup generator sets is the high upfront and continuing maintenance costs. But technological developments and economies of scale should eventually bring these prices down, opening up gensets to a wider range of buyers.
Market by Power Rating
By power rating, the market for air-cooled single-phase home standby gensets can be divided into four segments: < 10 kVA, >10–15 kVA, >15–20 kVA, and >20 kVA. The >10–15 kVA sector produced the most revenue in 2023. Because it strikes an ideal balance between price and power output, this segment is very popular and may be used for many different types of household applications. These gen-sets are reasonably priced, yet they nevertheless supply enough power to run necessary household appliances and systems during blackouts. They are especially well-liked in residential settings where power outages occur frequently but do not last for long. In contrast, the >20 kVA category is anticipated to grow at the fastest rate between 2024 and 2032. The move towards home automation, which necessitates higher power outputs, and the growing use of larger homes are what are driving this segment's rise. The higher power output of >20 kVA gensets is advantageous for larger households with many high-energy-consuming equipment, such as HVAC systems, electric vehicles, and complex home entertainment systems. To maintain productivity, there is also a greater need for more robust backup solutions due to the rise in remote work and home-based enterprises. The >20 kVA category is expanding as a result of technological advancements that produce high-power gensets that are more compact and efficient. A wider spectrum of customers may now purchase and install these gen-sets with greater ease, thanks to their decreasing cost. The >20 kVA segment is anticipated to dominate the market in terms of growth rate as demand for dependable and high-capacity backup power solutions rises.
Market by Fuel
The fuel types that make up the market segmentation include Gas, Diesel, and Other (such as propane and hybrid systems). The Gas segment brought in the most money in 2023. Gas-powered generators are recommended because of their easier access to natural gas infrastructure in many residential locations, reduced operating costs, and cleaner pollutants. They are better suited for residential use because they are quieter than diesel gensets. Gas-powered gensets are popular because they are convenient to use and provide a constant supply of natural gas during blackouts. This is because there is no need to store significant amounts of fuel. On the other hand, over the forecast period of 2024 to 2032, the Diesel category is anticipated to grow at the fastest rate. Diesel generators are renowned for their strength, dependability, and increased power production capacities, which qualify them for more extended and severe power outages. By resolving some of the issues with pollutants and fuel consumption, developments in diesel engine technology have also improved the efficiency and environmental friendliness of these gensets. Furthermore, diesel generator sets are a favored option in regions vulnerable to severe weather events because of their resilience in adverse weather conditions. This market is predicted to rise significantly as a result of growing knowledge of the advantages of diesel gensets, technological developments, and the creation of more portable and effective types. The trend towards more environmentally friendly and sustainable solutions is also driving growth in the Other section, which includes propane and hybrid systems. Hybrid systems, which integrate conventional gensets with renewable energy sources, are gaining popularity because they provide a sustainable and balanced approach to power generation. The market is anticipated to be dominated by the petrol and diesel sectors, with the diesel segment growing at the fastest rate, as demand for clean and efficient power solutions rises.
Geographic Trends
The market for air-cooled single-phase home standby gensets exhibits notable regional differences in revenue and growth rates, according to a geographic analysis. North America led the market in revenue generation in 2023. The need for home standby gensets in this region has been pushed by the high frequency of power outages caused by severe weather, the aging power infrastructure, and the increased use of home automation systems. Due to their susceptibility to hurricanes, heat waves, and wildfires, states like Florida, Texas, and California have been important hubs for the installation of home standby gensets, which has increased significantly in the United States in particular. In addition, North America has a significant demand for dependable backup power solutions due to its high standard of living and growing number of home-based enterprises. The Asia-Pacific area, on the other hand, is anticipated to have the greatest CAGR between 2024 and 2032. The market expansion in this area is being driven by fast urbanization, rising disposable incomes, and rising knowledge of the advantages of home standby gensets. The growing population and mounting pressure on the electricity grid are causing regular power disruptions in countries like China and India. As a result, there is an increasing need for dependable backup power options. Furthermore, the market for home standby generator sets is being further stimulated by the adoption of cutting-edge technology and the creation of smart cities in nations like South Korea and Japan. The region's concentration of major manufacturers and the accessibility of reasonably priced genset models are both driving the market's expansion. The Asia-Pacific region is anticipated to dominate the market in terms of growth rate as infrastructure continues to advance and demand for a steady supply of electricity rises.
Competitive Trends
The market for air-cooled single-phase home standby generator sets is very competitive, with several major companies in the industry, such as Honda Motor Co., Ltd., Briggs & Stratton Corporation, Kohler Co., Cummins Inc., and Generac Holdings Inc. Due to their huge distribution networks, robust brand awareness, and vast product ranges, these firms lead the market in 2023. Two of the leading companies in the industry, Generac Holdings Inc. and Briggs & Stratton, rely on their cutting-edge technology and extensive service portfolios to stay in the lead. Generac has a competitive advantage thanks to its focus on incorporating smart technology, such as Internet of Things-enabled solutions, into its gen-sets. In the industry, Generac is a popular option because of this technological innovation, which also lowers maintenance costs for end users while increasing the efficiency and dependability of their goods. In a similar vein, Briggs & Stratton has prioritized product expansion and innovation to strengthen its market position. The growing need for effective and silent backup power solutions has been well met by the company's launch of high-efficiency and low-noise gensets. By providing prompt and dependable assistance, Briggs & Stratton's extensive worldwide service network bolsters its market position. Kohler Co. has also achieved notable market success by concentrating on broadening its product line and improving its service offerings. Through strategic alliances and acquisitions, the business has been able to grow its clientele and into new markets. Kohler's success in the home standby genset industry can be attributed to its focus on offering tailored solutions for a range of applications. Honda Motor Co., Ltd. and Cummins Inc. have been able to stay competitive by consistently developing new products and placing a high priority on quality. With their wide dealer network and reputation for producing dependable and high-quality generator sets, Cummins has been able to take a sizable chunk of the market. Honda, a brand well-known for its robust and technologically sophisticated generator sets, keeps spending money on R&D to provide cutting-edge power solutions catered to the requirements of many industries. The competitive trends also show that mergers and acquisitions, strategic alliances, and major-player collaborations are becoming more and more important. These tactics are meant to open up new markets, improve technological capabilities, and diversify product offerings. For example, collaborations between technology businesses and genset manufacturers enable the creation of tailored solutions to address particular operational difficulties across multiple industries.
