The Global "Gasoline Gensets Market" is expected to reach at a high CAGR of 3.7% during the forecast period 2022-2029.
A gasoline genset or generator set is an energy generation device that utilizes gasoline to produce electrical energy. A gasoline genset has two primary parts, an engine that converts chemical energy into mechanical energy and an alternator, which converts this mechanical energy and produces electrical energy. Gasoline gensets finds application in locations where power outage is frequent such as areas that are not properly integrated into the power grid and developing areas.
The working principle of gasoline gensets is simple electromagnetic induction. However, the process of power generation starts at the engine, where the chemical gasoline is converted to mechanical energy by combustion. The generated mechanical energy is employed to spin the alternator, which contains a rotor and stator. When the alternator’s rotor is spun across the magnetic field between the rotor and stator, a voltage is generated due to electromagnetic induction. The stator is connected to the load, through which the generated electricity flow to the connected devices or grid.
Source: DataM Intelligence Analysis (2021)
The global energy crisis that creates power cuts across the globe acts as the market driver for the global gasoline genset market. Further, growing industrial activities such as mining, oil drilling and construction propels the market. Nonetheless, the concerns regarding environmental pollution and greenhouse gas emissions by gasoline gensets are restraining the growth of the gasoline genset market.
Global energy crisis and widespread power outages globally
The world is undergoing an extreme energy crunch due to reduced energy production and increased consumption. For instance, the extreme cold weather and lack of wind during summer have left Europe with a depleted energy reserve. Further, the price of energy has drastically increased from US$ 21/ megawatt-hour to US$ 107 megawatt-hour in the region due to the same fact. A similar trend could be seen in countries such as China, Brazil, among others, where the availability of energy has drastically culled due to numerous environmental as well as economic parameters.
Although the depletion in electrical energy globally is a circumstance of immense concern, the respective parameter could boost the demand for gasoline gensets. Since industries such as construction, mining, oil drilling, among others, are heavily dependent on power and has a presence in developing areas disconnected from power grids, the growth in these industries, along with the growing energy crisis and increasing power outages, could create a heavy hike in terms of demand and sales in the global genset market. As a result, the respective factor could be considered one of the primary market drivers for the genset market.
Growing Environmental pollution and associated concerns
Since the operation of gasoline gensets requires gasoline, a natural gas, greenhouse gases such as methane, carbon dioxide, among several others, would be released into the atmosphere. The release of such gases has severe environmental impacts such as global warming, ozone layer depletion and degradation of air quality.
Even though the amount of greenhouse gases emitted by the household gasoline gensets could be considered negligible, the case scenario is very different for industrial-grade gasoline gensets that are operated extensively and could significantly be added with the amount of greenhouses generated by the power generation industry. For instance, In 2020, the electric power industry in U.S. generated 1.55 million metric tons—1.71 million short tons—of carbon dioxide emissions (CO2). Per kWh, this amounted to around 0.85 pounds of CO2. Electricity generating emissions vary depending on the type of fuel/energy source used and the type and efficiency of the production.
Since the concerns associated with environmental pollution, particularly the growing air pollution and its impact on depleting the ozone layer and global warming, are rising rapidly across the globe. The respective factor is expected to limit the growth of global gasoline gensets and could be considered a viable market restraint for the respective market.
The influence of the pandemic COVID-19 on the global genset market tends to be neutral because of certain opposing factors. The first and foremost factor is the growing power outages due to the reduction in electricity production globally. For instance, in April 2020, the overall mean electricity generation from 16 European nations fell by 9% (25 GW), with fossil energy generation falling by 28% (24 GW) and nuclear energy falling by 14%. (11 GW).
The growing energy demands and energy crunch due to the disruptions in power production and depleting power reserves in numerous countries have initiated a huge demand for gasoline gensets, particularly in the industrial sectors of these countries such as construction, mining and oil drilling, where electricity requirement is colossal.
However, the decreased manufacturing process and disruptions in the supply chain of finished products and raw materials of gasoline gensets tend to decrease the overall sales of gasoline gensets. As a result of these two opposing factors, the respective market remained untainted during the COVID-19 pandemic and therefore, the impact of the pandemic could be considered neutral for the respective market.
The global gasoline gensets market is segmented based on power rating, phase, end-user and region.
Growing constructional activities due to globalization, industrialization and urbanization helped the construction segment to dominate the end-user segment of the global gasoline genset market
On the basis of end-use, the global gasoline genset market is segmented into residential, commercial and construction. Out of the mentioned segments, construction is expected to dominate the global gasoline gensets market during the forecast period due to infrastructure developments, including residential and non-residential, that are robust and driven by appropriate investments.
Furthermore, the rapid spread of COVID-19 has resulted in an increase in the development of healthcare facilities and makeshift hospitals, which will increase demand for these gensets. For instance, as per data, globally, construction volumes are predicted to rise by 3.2 percent per year on average.
Seven countries in Europe are predicted to see double-digit% rises. Over the long term (2023 to 2030), global construction output is expected to grow by an average of 2.3 percent per year, with increases of more than 8% per year in Tanzania (8.4% per year), Ethiopia (8.4% per year) and Bangladesh (8% per year). Further, the value of global building output in US$ is expected to rise from $11.6 trillion in 2020 to about $14.8 trillion in 2030.
Source: DataM Intelligence Analysis (2021)
The growing number of power outages and growing consumer rising awareness associated with end-user preferences for emergency readiness would help North America to dominate the region's segment of the global gasoline genset market
Due to frequent blackouts and chronic power outages, sensitive as well as age-old power grid systems and rising consumer awareness, the gasoline gensets market in U.S. is predicted to grow rapidly. Further, The market statistics will be bolstered by the increasing severity of weather-related disasters, which are followed by protracted power outages, as well as the growing consumer reliance on power backup systems.
Due to the continued growth of residential and commercial enterprises, the Asia-Pacific gasoline gensets market is expected to grow significantly. China, India and Japan dominate the gasoline generator market due to increased globalization and urbanization. People's lifestyles and work cultures have changed, resulting in an increase in electricity use. Electricity is consumed in significant quantities by households, electric vehicles and production and manufacturing firms. The growing electricity consumption and reduced electricity production rates in the region also supplement Asia-pacific's growth in the global gasoline gasket market.
Source: DataM Intelligence Analysis (2021)
The global gasoline gensets market is filled with the presence of several corporate giants due to the increasing applications of gasoline gensets in households, construction and other industrial sectors. Major players in the market include Kohler Power, Honeywell, SUMBER MAS SEJAHTERA, Jet Power Company, Generac, Kirloskar, SUMEC Machinery & Electric Co., Ltd., Armstrong Power, Caterpillar Inc., Siemens AG, among others. The key market players are implementing several strategies such as mergers, acquisitions, product launches, contributions and collaborations to achieve growth in the global gasoline gensets market.
Overview: Kohler Power is a giant in the power generation market established in 1920 and its headquarters is in Wisconsin, U.S. The company mainly manufactures engines, generators and UPS. Kohler is responsible for the development of the earliest modern-day generators. The KOHLER Automatic Power & Light, which was originally designed to power KOHLER plumbing items in rural America, now provides instant electricity to homes, boats and companies globally.
The global gasoline gensets market report would provide approximately 61 tables, 59 figures and almost 180 pages.
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