Air Cooled Single Phase Home Standby Gensets Market - Growth, Future Prospects and Competitive Analysis, 2024 - 2032

The air cooled single phase home standby gensets market is expected to grow at a CAGR of 7.3% during the forecast period of 2024 to 2032, driven by various factors including increased power outages, the need for reliable power sources, and advancements in generator technology. The detailed analysis of market segmentation by power rating reveals that the >10-15 kVA segment generated the highest revenue in 2023, while the >20 kVA segment is expected to witness the highest CAGR during the forecast period. Regarding fuel type, the Gas segment led the market in 2023, whereas the Diesel segment is projected to register the highest growth rate from 2024 to 2032. Geographic trends indicate that North America generated the highest revenue in 2023, while the Asia-Pacific region is expected to experience the highest CAGR during the forecast period. The competitive landscape is marked by key players such as Generac Holdings Inc., Briggs & Stratton Corporation, Kohler Co., Cummins Inc., and Honda Motor Co., Ltd., who are adopting strategic initiatives to strengthen their market positions. Despite the challenges posed by high initial costs and maintenance expenses, the market offers significant growth opportunities, particularly in emerging economies and sectors with high demand for advanced power solutions. As industries continue to innovate and adopt new technologies, the demand for reliable and efficient home standby gensets will remain strong, driving market growth during the forecast period.

Market Drivers

Increased Frequency of Power Outages

The frequency of power outages has risen significantly due to a combination of aging infrastructure, severe weather events, and increased demand for electricity. This trend has been particularly evident in regions like North America and parts of Asia where extreme weather conditions such as hurricanes, typhoons, and heatwaves have disrupted power supply. The rising incidence of these events has led to a greater need for reliable backup power solutions. Homeowners, especially in areas prone to such disruptions, are increasingly investing in air-cooled single-phase home standby gensets to ensure continuous power supply. For example, the US has seen an uptick in the adoption of these gensets due to the frequent occurrence of hurricanes and winter storms that often lead to prolonged power outages. The reliability and ease of use of air-cooled gensets make them a preferred choice among homeowners. Additionally, as telecommuting becomes more prevalent, the need for uninterrupted power has become critical for maintaining productivity and connectivity. Companies such as Generac Holdings Inc. and Briggs & Stratton have reported increased sales of home standby generators in recent years, attributing this growth to the rising frequency of power outages. This trend is expected to continue as climate change leads to more unpredictable weather patterns and the aging power infrastructure struggles to meet growing demand.

Advancements in Generator Technology

Technological advancements have played a significant role in driving the growth of the air-cooled single-phase home standby gensets market. Innovations in engine design, fuel efficiency, noise reduction, and emissions control have made modern gensets more efficient and environmentally friendly. For instance, manufacturers have developed advanced air-cooled engines that provide consistent performance and longer operational life. Enhanced digital control systems have also been integrated into gensets, allowing for better monitoring and management of the units. These systems enable remote monitoring, automatic start-up, and shut-down features, which enhance the convenience and reliability of the gensets. Companies like Honda and Kohler have introduced models equipped with such advanced features, making them more appealing to tech-savvy consumers. Furthermore, the integration of smart home technology with gen-sets allows users to manage and control their generators through mobile apps, providing real-time data on fuel levels, maintenance schedules, and operational status. This connectivity ensures that homeowners can maintain their gensets more efficiently, reducing downtime and enhancing reliability. The push towards reducing carbon footprints has also led to the development of more eco-friendly gensets. Innovations in fuel technologies, such as the use of propane and natural gas, have resulted in genetics that produce lower emissions compared to traditional diesel-powered units. These advancements not only meet regulatory standards but also appeal to environmentally conscious consumers. As technology continues to evolve, the capabilities and efficiency of home standby gensets are expected to improve further, driving their adoption in the market.

Growing Demand for Reliable Power Sources

The growing demand for reliable power sources is another key driver of the air-cooled single-phase home standby gensets market. As modern households become increasingly dependent on electronic devices and appliances, the need for uninterrupted power supply has become paramount. This is particularly true in regions where power grids are unreliable or where power outages are frequent. The reliance on electricity for essential functions such as heating, cooling, cooking, and communication necessitates the use of backup power solutions. Home standby gensets provide a seamless transition during power outages, ensuring that households can continue to operate without disruption. The increasing prevalence of home-based businesses and remote working arrangements has further amplified the need for reliable power. Professionals working from home require a steady power supply to ensure that their work is not interrupted, which has led to a surge in demand for home standby generators. Additionally, the rise in the number of electric vehicles (EVs) and the need for home charging stations have contributed to the demand for reliable power sources. Homeowners investing in EVs are also looking at backup power solutions to ensure that their vehicles can be charged even during power outages. The expansion of smart home devices and automation systems has also driven the need for reliable power. Smart home systems, which include security systems, lighting controls, and entertainment systems, require a consistent power supply to function effectively. The integration of home standby gensets with smart home systems ensures that these devices remain operational during power interruptions. This growing reliance on reliable power sources is expected to continue driving the demand for air-cooled single-phase home standby gensets.

Restraint

High Initial Cost and Maintenance

One significant restraint on the air-cooled single-phase home standby gensets market is the high initial cost and ongoing maintenance requirements of these units. The purchase and installation of home standby generators can represent a substantial investment for homeowners. Costs can vary significantly depending on the power rating and features of the genset, but they generally include the generator itself, installation fees, and any necessary permits. For example, a high-quality, mid-range air-cooled generator can cost several thousand dollars, and professional installation can add to this cost. This initial financial outlay can be a barrier for many consumers, particularly in regions with lower disposable incomes. Additionally, the maintenance of these gensets can also pose a challenge. Regular maintenance is crucial to ensure that the genset operates efficiently and reliably when needed. This includes routine checks, oil changes, and replacement of worn-out parts, which can incur additional costs over the lifespan of the generator. While manufacturers like Generac and Kohler offer maintenance packages and warranties, the cost and effort involved in maintaining the gensets can deter potential buyers. Furthermore, there are concerns regarding the operational costs, especially for gensets running on diesel or gasoline. Fluctuating fuel prices can make it expensive to run these generators during extended power outages. Although there are more cost-effective and eco-friendly options such as natural gas and propane, the infrastructure for these fuels may not be readily available in all areas, limiting their use. The combination of high initial costs and ongoing maintenance expenses poses a significant challenge to the wider adoption of home standby gensets. However, advancements in technology and economies of scale are expected to gradually reduce these costs, making gensets more accessible to a broader consumer base.

Market by Power Rating

The air-cooled single-phase home standby gensets market can be segmented by power rating into <= 10 kVA, >10-15 kVA, >15-20 kVA, and >20 kVA. In 2023, the >10-15 kVA segment generated the highest revenue. This segment's popularity is due to its optimal balance between cost and power output, making it suitable for a wide range of household applications. These gen-sets provide sufficient power to run essential home appliances and systems during outages without being prohibitively expensive. They are particularly favored in residential areas where power outages are frequent but do not last for extended periods. On the other hand, the >20 kVA segment is expected to witness the highest CAGR during the forecast period of 2024 to 2032. The growth in this segment is driven by the increasing adoption of larger homes and the trend toward home automation, which requires higher power outputs. Larger homes with multiple high-energy-consuming devices, such as HVAC systems, electric vehicles, and extensive home entertainment systems, benefit from the higher power output of >20 kVA gensets. Additionally, the growing number of home-based businesses and remote work setups has increased the demand for more powerful backup solutions to ensure uninterrupted productivity. The advancement in technology, leading to more efficient and compact high-power gensets, is also contributing to the growth of the >20 kVA segment. These gen-sets are becoming more affordable and easier to install, making them accessible to a broader range of consumers. As the demand for reliable and high-capacity backup power solutions continues to rise, the >20 kVA segment is expected to lead the market in terms of growth rate.

Market by Fuel

The market segmentation by fuel type includes Diesel, Gas, and Other (such as propane and hybrid systems). In 2023, the Gas segment generated the highest revenue. Gas-powered gensets are preferred due to their cleaner emissions, lower operational costs, and easy availability of natural gas infrastructure in many residential areas. They are also quieter compared to diesel gensets, making them more suitable for residential use. The convenience of not having to store large quantities of fuel and the continuous supply of natural gas during power outages contributed to the popularity of gas-powered gensets. The Diesel segment, however, is expected to witness the highest CAGR during the forecast period of 2024 to 2032. Diesel gensets are known for their durability, reliability, and higher power output capabilities, making them suitable for longer and more demanding power outages. Advances in diesel engine technology have also made these gen-sets more efficient and environmentally friendly, addressing some of the concerns related to emissions and fuel consumption. Additionally, the robustness of diesel gensets in extreme weather conditions makes them a preferred choice in areas prone to severe weather events. The increasing awareness of the benefits of diesel gensets, combined with technological advancements and the development of more compact and efficient models, is expected to drive significant growth in this segment. The Other segment, which includes propane and hybrid systems, is also gaining traction due to the push towards more sustainable and eco-friendly solutions. Hybrid systems that combine renewable energy sources with traditional gensets are becoming more popular as they offer a balanced approach to power generation and environmental sustainability. As the demand for clean and efficient power solutions continues to grow, the gas and diesel segments are expected to dominate the market, with the diesel segment leading in growth rate.

Geographic Segment

The geographic analysis of the air-cooled single-phase home standby gensets market shows significant variations in revenue and growth rates across different regions. In 2023, North America generated the highest revenue in the market. The high incidence of power outages due to severe weather conditions, aging power infrastructure, and the widespread adoption of home automation systems have driven the demand for home standby gensets in this region. The United States, in particular, has seen a surge in the installation of home standby generators, with states like Florida, Texas, and California being major markets due to their vulnerability to hurricanes, heat waves, and wildfires. Additionally, the high standard of living and the increasing number of home-based businesses have contributed to the strong demand for reliable backup power solutions in North America. On the other hand, the Asia-Pacific region is expected to witness the highest CAGR during the forecast period of 2024 to 2032. Rapid urbanization, increasing disposable incomes, and the growing awareness of the benefits of home standby gensets are driving the market growth in this region. Countries like China and India are experiencing frequent power outages due to the expanding population and the increasing strain on the power grid. This has led to a rising demand for reliable backup power solutions. Moreover, the adoption of advanced technologies and the development of smart cities in countries like Japan and South Korea are further boosting the market for home standby gensets. The presence of key manufacturers in the region, along with the availability of cost-effective genset models, is also contributing to the market growth. As the infrastructure continues to develop and the demand for uninterrupted power supply increases, the Asia-Pacific region is expected to lead the market in terms of growth rate.

Competitive Trends

The competitive landscape of the air-cooled single-phase home standby gensets market is characterized by the presence of several key players, including Generac Holdings Inc., Briggs & Stratton Corporation, Kohler Co., Cummins Inc., and Honda Motor Co., Ltd. In 2023, these companies led the market due to their extensive product portfolios, strong brand recognition, and widespread distribution networks. Generac Holdings Inc. and Briggs & Stratton are two of the dominant players in the market, leveraging their advanced technology and comprehensive service offerings to maintain their leadership. Generac's focus on integrating smart technologies into their gensets, such as IoT-enabled solutions, has provided them with a competitive edge. This technological innovation not only improves the efficiency and reliability of their products but also reduces maintenance costs for end-users, making Generac a preferred choice in the industry. Similarly, Briggs & Stratton has emphasized product innovation and expansion to solidify its market position. The company's introduction of high-efficiency and low-noise gensets has resonated well with the increasing demand for efficient and quiet backup power solutions. Briggs & Stratton's robust global service network ensures quick and reliable support, further strengthening their market presence. Kohler Co. has also made significant strides in the market by focusing on expanding its product range and enhancing its service capabilities. The company's acquisitions and strategic partnerships have enabled it to enter new markets and expand its customer base. Kohler's emphasis on providing customized solutions for various applications has contributed to its growth in the home standby gensets market. Cummins Inc. and Honda Motor Co., Ltd. have maintained their competitive positions through continuous product development and a strong focus on quality. Cummins' reputation for high-quality and reliable gensets, coupled with their extensive dealer network, has helped them capture a significant market share. Honda, known for its technologically advanced and durable gensets, continues to invest in research and development to offer innovative power solutions tailored to the needs of various industries. The competitive trends also highlight a growing focus on mergers and acquisitions, strategic partnerships, and collaborations among key players. These strategies are aimed at expanding product portfolios, enhancing technological capabilities, and gaining access to new markets. For instance, partnerships between genset manufacturers and technology companies facilitate the development of customized solutions that address specific operational challenges in various sectors.

Historical & Forecast Period

This study report represents an analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends & technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. The key data points that enable the estimation of Air Cooled Single Phase Home Standby Gensets market are as follows:

Research and development budgets of manufacturers and government spending

Revenues of key companies in the market segment

Number of end users & consumption volume, price, and value.

Geographical revenues generated by countries considered in the report

Micro and macro environment factors that are currently influencing the Air Cooled Single Phase Home Standby Gensets market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top-down and bottom-up approach for validation of market estimation assures logical, methodical, and mathematical consistency of the quantitative data.

Market Segmentation

Power Rating

<= 10 kVA

>10-15

>15-20

>20

Fuel

• Diesel

• Gas

• Other

Region Segment (2022-2032; US$ Million)

North America

U.S.

Canada

Rest of North America

UK and European Union

UK

Germany

Spain

Italy

France

Rest of Europe

Asia Pacific

China

Japan

India

Australia

South Korea

Rest of Asia Pacific

Latin America

Brazil

Mexico

Rest of Latin America

Middle East and Africa

GCC

Africa

Rest of Middle East and Africa

Key questions answered in this report

What are the key micro and macro environmental factors that are impacting the growth of Air Cooled Single Phase Home Standby Gensets market?

What are the key investment pockets concerning product segments and geographies currently and during the forecast period?

Estimated forecast and market projections up to 2032.

Which segment accounts for the fastest CAGR during the forecast period?

Which market segment holds a larger market share and why?

Are low and middle-income economies investing in the Air Cooled Single Phase Home Standby Gensets market?

Which is the largest regional market for Air Cooled Single Phase Home Standby Gensets market?

What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?

Which are the key trends driving Air Cooled Single Phase Home Standby Gensets market growth?

Who are the key competitors and what are their key strategies to enhance their market presence in the Air Cooled Single Phase Home Standby Gensets market worldwide?