Inverter Generator Market - Global Outlook and Forecast 2020-2025

INDUSTRY INSIGHTS

The inverter generator market size to cross USD 2.8 billion by 2025, growing at a CAGR of over 6% during the forecast period. The global market is experiencing growth due to rapid industrialization in developing countries and the proliferation of chargeable electronic devices. North America generated the highest revenue in 2019. The growth of the market can be attributed to increasing camping and power grid failure in countries such as the US and Canada and climate changes in North America. APAC is expected to witness the highest growth in terms of revenue during the forecast period. Due to weather and non-weather-related conditions in APAC countries, power outages are expected to impact the demand for inverter generators' growth positively. The building & construction industry is on the rise in India and China due to government initiatives to develop smart cities, which is expected to generate portable generators' demand during the forecast period. Moreover, the increase in camping activities worldwide, especially in Europe, along with the rising disposable income and increased consumption of consumer electronics, is expected to boost the market for inverter generators during the forecast period.

SNIPPETS

• The rise in sustainable fuel sources is expected to drive solar power and fuel demand during the forecast period.
• The global inverter generator market is moderately fragmented, with Techtronic Industries Company, Champion, Honda, Generac, and Stanley Black & Decker, to name a few leading the chart.
• North America was the largest market and is expected to lead during the forecast period owing to the easy availability and affordability of inverter generators.
• The rise in construction activities in the APAC region is a major driver for the APAC inverter generator market's growth.

GLOBAL INVERTER GENERATOR MARKET SEGMENTATION

This research report includes a detailed segmentation by

• Fuel
• Application
• Size Type
• Geography

INSIGHTS BY APPLICATION

Increasing camping activities are expected to boost the demand for inverter generators globally. Consumers have become more dependent on personal communication devices such as phones, tablets, and laptops during the lockdown. Millennials, especially, who are born in the era of smartphones, have shown increasing inclination toward hand-held devices and smartphones. The dramatic rise of music festivals since the late 2000s, which spread over the weekend to a couple of days, has spawned the popularity of camping tents, which are indirectly affected the demand for campsite and recreational generators.

The emergency use & home standby segment witnessed the shipment of over 572 thousand units in 2019.  An inverter generator for emergency use is one of the essential tools for home safety. The power generated by a portable generator can provide safety to a household in natural calamities. These devices can prove ideal choices for consumers living in a disaster-prone area. As these uninterrupted power supply machines are portable and come at a lower price, they are purchased for emergency needs.

INSIGHTS BY FUEL

The global gas-powered commercial inverter generator market was valued at over $625 million in 2019. Gas-powered devices are in demand and are proving to be an excellent choice for tougher and demanding tasks. However, reducing oil prices would raise competition for gas-powered devices. These machines do not require charging, but they need regular maintenance to keep up performance and improve durability. Moreover, changing government regulations on pollutions is one of the major challenges faced by diesel generators.

Owing to high functionalities and increasing popularity, many consumers are opting for battery-powered inverter generators. The battery-powered device will be expected to eliminate both capacity and trouble-free messiness associated with petrol-powered versions while eliminating the shortcomings and inconveniences associated with corded inverters. Advances in battery technology have made these machines commercially viable. Moreover, there is a trend toward providing complete battery management systems in the market and faster-charging systems. Hence, these developments are expected to continue at a rapid pace.

INSIGHTS BY SIZE TYPE

Recreational inverter generators are designed to be a portable power source, which is one of the major factors for increased application. As compact and designed to carry with one hand, they max out at around 2,000 watts, which is maximum for tailgating or camping. Continuous innovations in this segment are boosting the industry. Vendors are increasingly collaborating with tech companies to increase usability and acceptance among consumers.  Vendors are incorporating telescoping handles in their generators, which helps them in maneuverability. They are also integrating Bluetooth technology, which sends critical information to the user’s smartphone, including current output wattage, fuel level, and remaining run time. However, they are compact and reliable. Research shows that these models emit carbon monoxide at a rate that can quickly build up to unsafe levels in an enclosed space.

The mid-sized segment is expected to observe an incremental growth of over $280 million during the forecast period. These generators are well-suited for users of recreational vehicles. They produce all power to plug-in appliances such as toasters or microwaves. Similarly, a large-sized inverter generator can be connected directly to the electricity supply with a safety device called a transfer switch. They are mostly used for the job site and construction, and military as they need a lot more energy than recreational activities and emergency in homes. They are also used in office buildings and hospitals. The segment is expected to grow at a CAGR of over 6% during 2019–2025.

INSIGHTS BY GEOGRAPHY

The growth in portable generators across North America is expected to boost inverter generators' demand during the forecast period. Several factors currently drive the North American inverter generator market. Inverter generators are low-priced alternatives to standby alternatives and more efficient comparatively. Their installation and operating costs are minimal, making them an ideal choice for residents, small businesses, and campsites. Moreover, the increased dependency on interconnected technology systems and growth in the adoption of grid infrastructure and multipurpose power generation systems have further spurred portable generators' demand. In the Midwest and Eastern US regions, much of transmission and distribution networks are above ground, leaving them vulnerable to the effects of severe weather, including high winds, heavy rain, ice, snow, and electrical storms. Floods caused by heavy rains or hurricane-related storm surges can lead to major power interruptions, which increases the need for portable power solutions. 

INSIGHTS BY VENDORS

The global inverter generator market is characterized by low market concentration, with high competition among players. The present scenario drives vendors to alter and refine their unique value proposition to achieve a strong market presence. The market confronts the threat of infiltration with low-quality products from Chinese vendors. Major vendors continually compete for the leading position in the market, with occasional spurts of competition from other local vendors. The market is characterized by the presence of diversified global and regional vendors. Currently, the industry is moderately fragmented and is dominated by vendors such as Techtronic Industries, Generac, Honda, Champion, and Stanley Black & Decker, among others. All these major vendors have a global presence in three major geographical regions: North America, APAC, and Europe.

The inverter generator market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:

Segmentation by Fuel Type

• Gas-powered
• Battery-powered
• Propane-powered
• Mixed/Hybrid Fuel
• Solar-powered
• Others

By Application

• Camping & Recreation
• Emergency Use & Home Standby
• Jobsite & Construction
• Others

By Size Type 

• Recreation
• Medium-sized
• Large-sized

By Geography

• North America
  • US
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
• APAC
  • China
  • Japan
  • South Korea
  • Australia
  • India
• Latin America
  • Brazil
  • Mexico
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa