Multifuel Generator Market Size, Share & Trends Analysis Report By Fuel Type (Duel Fuel, Tri Fuel), By Power Ratings (Below 350Kva, 351kva to 1000kva, Above 1000Kva), By Application Type (Standby Gensets, Continuous Gensets, Peak Shaving Gensets), By End-User (Residential, Commercial, Industrial) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global multifuel generator market size was valued at USD 23.1 billion in 2023 and is projected to reach a value of USD 38.7 billion by 2032, registering a CAGR of 5.9% during the forecast period (2024-2032). The increase in multifuel generator market share during the forecast period is related to infrastructural development across the globe and the high rise of industrial facilities.

Multifuel generators are capable of operating on multiple types of fuel. Depending on availability and cost-efficiency, these generators can switch between various fuel sources, such as diesel, gasoline, natural gas, propane, and biodiesel. Generators have been a dependable backup for every industry that uses electricity and power in abundance. It is primarily available depending on the power ratings. It is a device that requires an internal combustion engine to operate and runs on a fuel source to produce electricity. 

Most of the generators worldwide run on diesel and gasoline-based generators. Using diesel and gasoline has created serious concerns about its harmful environmental and climate change implications. The combustion motor used in a typical generator releases hazardous gases unfit for the environment. To curb the effect of the emission of harmful gases, multifuel generators come in handy. The emergence of multifuel generators has paved a path for a sustainable environment. Indubitably, uninterrupted power supply is a basic need for all the commercial and industrial sectors, thereby driving the multifuel generator market.

Highlights

• Duel fuel holds a significant market by the fuel type segment.
• 351kva to 1000kva dominates the global market in the power ratings segment.
• Continuous Gensets leads the global market by the application type segment.
• The industrial segment dominates the global market in the end-user segment.

Market Dynamics

Global multifuel generator market drivers

Infrastructural development across the globe

The infrastructural development and the construction sector provide immense opportunities for the multifuel generator market. Infrastructure is the set of assets that underline the development of a country and aid in strengthening its economy. The infrastructure development includes every project from developing highways, bridges, airports, ports, and water transportation to power projects and real estate.  Due to its continuous electricity and power usage, a multi-fuel generator has become an essential part of the construction sector.

Consequently, European Union-funded infrastructural projects in Central and Eastern Europe are projected to increase the demand for multifuel generators in the coming years. The U.S. infrastructure sector is undergoing repair, expansion, and modernization. The U.S. federal government has planned to invest more than USD 1 trillion through several infrastructural development programs such as Rebuilding America (INFRA), Better Utilizing Investment to Leverage Development (BUILD), and Competitive Highway Bridge Program. With such massive upcoming projects to be achieved, the U.S. will more definitely drive the multifuel generator market.

For instance, the allocation of road transport and highway budgets in India has increased by 500% since 2014, resulting in a significant improvement in infrastructure development, as the Press Information Bureau reported. In 2020-21, the speed of highway construction in India reached an unprecedented 37 km/day, setting a new record. 

Industrial facilities on a high-rise

The growing demand for fast-moving consumer goods across various sectors is a crucial driver for industrial development globally. This demand has catapulted the demand for exports and imports of manufactured goods over the past couple of decades. Rising globalization and improved supply chains further act as a catalyst for industrialization. Prominent players are setting up new plants to meet the new demands and introduce new goods to exploit the market potential. These factors are aiding in the setting up new plants that require high amounts of electricity. Generators are crucial in keeping the factories running during a power cut-off. This helps manufacturers avoid any downtime and prevent losses. Hence, thriving industrialization will subsequently improve the demand for multifuel generators in the coming years.

Another crucial factor is the manufacturing exports of goods in the industrial sector. Since the exports from a country are a significant contributor to its economy, the governments in these developing markets, such as China, India, and Africa are taking various initiatives to strengthen the industrialization in their country. According to Indian Brand Equity (IBEF), the Union Budget 2019–20, the government of India allocated USD 540.53 billion to the infrastructure sector to increase the capacity of the Green Energy Corridor Project along with wind and solar power projects.

Thus, to meet the demand of the rapidly growing industrial sector in both the developing and the developed markets, the builders need generators that are fuel-efficient and eco-friendly.

Global multifuel generator market restraints

Limited power generation capacity

Inadequate power generation capacity is a significant market restraint for multi-fuel generators. This constraint impedes the market's capacity to satisfy the escalating power demand, resulting in power supply disruptions and inefficiencies. Due to the limitation of power generation capacity, the market's growth potential and overall performance may be adversely affected by the difficulties faced by businesses and industries that depend on multi-fuel generators.

Global multifuel generator market opportunity

Tri-fuel generators adoption

Implementing tri-fuel generators into the global market for multi-fuel generators represents a substantial opportunity. Tri-fuel generators provide adaptability and versatility by permitting the use of three distinct fuel types, thereby accommodating consumers' varied requirements and preferences. This trend in adoption represents expanding a market segment that places a premium on dependability, efficiency, and environmental sustainability. To provide tri-fuel generators, which are anticipated to experience a higher CAGR over the forecast period, manufacturers and suppliers may wish to expand and innovate their product lines to capitalize on this opportunity. 

Furthermore, the opportunity offered by the market for tri-fuel generators is further underscored by the escalating frequency of power disruptions caused by aging grid infrastructure and the rising demand for uninterrupted and dependable power supply. This emerging phenomenon not only responds to the demand for reliable power solutions but also corresponds with ecological considerations and the movement towards sustainable energy sources, thereby establishing tri-fuel generators as a potentially fruitful pathway for market expansion and advancement.

Regional Analysis

The global multi-fuel generator market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North america dominates the global market

North America is the most significant market shareholder and is estimated to grow at a CAGR of 5.5% over the forecast period. The need for dependable backup power solutions drives the multifuel generator market in North America. The leading cause of this demand is the regular occurrence of natural disasters like hurricanes and snowstorms, frequently resulting in protracted power outages. The market is further propelled by North America being a center for technological advancements in fuel efficiency and generator design. However, strict environmental restrictions that could prevent the adoption of multifuel generators pose barriers to the market's growth. Some businesses and homeowners may find it prohibitive to install these generators due to the substantial initial cost necessary.

Notwithstanding these limitations, there are significant prospects for market expansion. Hybrid systems combining renewable energy sources and multifuel generators are becoming more popular, and government programs that provide incentives and subsidies for greener energy sources are anticipated to increase demand in the market.

Asia-Pacific is estimated to grow at a CAGR of 6% over the forecast period. Due to the region's heavy reliance on energy imports, worries over energy security drive the multifuel generator market in Europe. Multifuel generators are now more critical to provide a steady electricity supply because of this dependence. Market expansion is also fueled by government regulations that encourage using renewable and alternative fuels. However, the market is constrained by the strict emissions and energy efficiency criteria set by the European Union and by high market saturation in certain regions where alternative power sources are already widely used.

However, there are many chances for expansion, especially given the significant push in the direction of sustainable and green energy solutions. Additional prospects for market expansion are provided by technological advancements in smart grid integration and generator technologies.

Asia-Pacific holds a significant market share. The demand for dependable power sources is rising dramatically in Asia-Pacific due to the fast industrialization of nations like China, India, and Southeast Asia, propelling the multifuel generator market. The need for backup power solutions is increased by the region's frequent power outages and uneven power supply in many areas. However, business expansion is constrained by increased pollution controls and environmental concerns.

Furthermore, some consumers and businesses may find the high expense of installing multi-fuel generators to be prohibitive. Notwithstanding these obstacles, the region has a sizable unexplored market with significant growth potential. Adopting multifuel generators is also anticipated to benefit from government support through incentives and legislation.

Segmental Analysis

The global multi-fuel generator market is segmented based on fuel type, Power ratings,  application type, and end-user.

The market is further segmented by fuel type into dual fuel and tri-fuel.

Dual Fuel Generators are expected to dominate during the forecast period. Typically, gasoline and propane are the two fuel types that dual fuel generators can operate on. These generators feature effortless fuel-switching capabilities, allowing users to select fuel sources according to their preferences and the fuel source.

Tri Fuel Generators also referred to as Triple Fuel Generators, are engineered to operate on petroleum, natural gas, propane, and propane. By enabling multiple fuel sources on a single generator, these devices provide users with flexibility and convenience while eliminating the necessity to acquire distinct generators for each fuel type.

The market is further segmented by Power Rating into Below 350Kva, 351kva to 1000kva, and Above 1000Kva.

351Kva to 1000Kva segment accounted for the largest market share of the global multi-fuel generators market. Generators falling within the voltage range of 351 KVA to 1000 KVA are specifically engineered to operate at elevated power requirements. These generators are frequently employed in industrial and commercial environments requiring substantial power to sustain operations. They offer dependable and resilient power solutions for systems operating on a medium to large scale.

Generators with a power rating below 350 KVA are designed to accommodate more modest power demands. Small businesses, residential use, and applications requiring a moderate power level can benefit from these generators. They provide a compact and effective power solution to meet fundamental electricity requirements.

Above 1000KVA Generators are considered high-capacity apparatuses well-suited for critical infrastructure such as hospitals, data centers, and extensive industrial facilities that necessitate a significant power supply. These generators provide an exceptionally high power output to satisfy the rigorous electricity requirements of large-scale operations.

The market is further segmented by application type into Standby Gensets, Continuous Gensets, and Peak Shaving Gensets.

Continuous gensets account for the most significant global market share in the application type segment. Continuous generators are designed for use in situations that necessitate a consistent and uninterrupted provision of power. Critical infrastructure, data centers, hospitals, and industrial facilities where outage is unacceptable frequently employ these generators. Continuous generator sets guarantee a dependable power supply to sustain ongoing operations without any disruptions.

Standby generators are designed to supply supplementary power during utility outages or disruptions. They are frequently implemented in industrial, commercial, and residential environments to guarantee an uninterrupted power supply during critical situations. Standby generator sets play a crucial role in sustaining operations and averting disturbances caused by power outages.

Peak shaving generators are employed to mitigate peak demand charges by producing electricity during periods of elevated consumption. These generators offset peak loads by helping to reduce energy expenses during periods of high demand and alleviating the burden on the electrical grid. Peak shaving generator sets serve a critical function in assisting industries and businesses to optimize their energy usage and reduce costs.

The market is further segmented by end-user into Residential, Commercial, and Industrial.

The industrial segment holds a significant global market share in the end-user segment. Multi-fuel generators are utilized by industrial end-users in factories, manufacturing plants, data centers, and other industrial facilities to prevent power outages that may result in production halts and financial losses. Generators of this nature furnish a dependable power supply that maintains industrial operations, averts equipment damage, and guarantees the uninterrupted flow of vital industrial processes.

Multi-fuel generators serve residential end-users, providing backup power solutions for residences during power outages or emergencies. By guaranteeing the continued operation of critical appliances and devices in the event of a disruption in the primary power supply, these generators provide homeowners with convenience and reassurance.

Commercial end-users employ multi-fuel generators to ensure that commercial establishments, offices, and businesses have a continuous electricity supply. Generators of this nature fulfill an indispensable function by safeguarding sensitive equipment, ensuring uninterrupted operations, and mitigating financial losses resulting from power disruptions. Commercial users utilize multi-fuel generators to sustain their daily operations and uphold their level of productivity.

Recent Developments

• March 2024- The collaborative effort between Schneider Electric and Mainspring to develop a multi-fuel microgrid solution is detailed in the article published in PV magazine USA. This pioneering technology integrates the EcoStruxure Microgrid Solution from Schneider Electric and the Linear Generator from Mainspring in order to offer a fuel-flexible alternative for industrial and commercial clients seeking to reduce the carbon footprint of their activities.