Summary of our market study

The global genset market experienced a downturn in 2020 due to the COVID-19 pandemic, leading to reduced electricity demand as businesses and manufacturing plants shut down during lockdowns. Despite this challenge, the market has shown signs of recovery, with several factors in 2022 suggesting new growth trajectories, including increased energy requirements from the manufacturing sector and the rising need for emergency backup power solutions.

This resurgence is also driven by the Russian-Ukrainian conflict starting in February 2022, which significantly impacted the French electricity market and led to a dramatic increase in electricity prices. Consequently, gensets are increasingly viewed as a reliable alternative during peaks in electricity consumption. In 2021, the global genset market was valued at $4.43 billion and is forecasted to grow at a CAGR of 5.34% from 2022 to 2030, anticipated to reach $7 billion by the end of the decade.

Despite a declining workforce and the number of companies in the French electric generator manufacturing sector between 2012 and 2021, the domestic market remained relatively stable until 2021. However, the first nine months of 2022 indicated higher sales, likely influenced by European energy crises. Notably, generators with less than 75 kVA capacity dominated the market, and diesel generators accounted for 70% of global sales by 2020, with manufacturers like Cummins, Generac Power Systems, Kohler, and Caterpillar leading the way. Amidst rising production prices and the shift toward eco-friendly solutions, the genset market continues to adapt to changing demands and global circumstances.

Evolving Demand for Gensets Amidst Energy Transition and Market Challenges in France

The French market for generators, or gensets, is experiencing a complex transformation driven by a variety of factors. On the one hand, there's an increase in demand across residential, commercial, and industrial sectors due to heightened concerns about energy reliability and a spike in electricity prices. This surge is partly attributed to geopolitical tensions and maintenance shutdowns in the nuclear sector, which have played roles in increasing energy prices and creating fears of potential power cuts.

In the business sector, sectors such as retail, public administration, defense, human health, and education are among the highest electricity consumers, with retail alone accounting for consumption in the range of 13,000 to 16,000 gigawatt-hours. This places a steady demand on the genset market from these sectors, seeking backup and continuous power solutions.

The residential sphere tells a similar story. The French populace is increasingly worried about energy prices, with over 80 percent feeling the impact on their bills. A large majority are concerned about future trends and express a readiness to adopt energy-saving measures to contribute to France's energy independence. This sentiment may push homeowners to consider gensets as a safeguard against potential disruptions and a way to manage expenses.

Despite the industrial slowdown caused by the COVID-19 pandemic, the genset market is regaining momentum. Trends point to a diversifying market that is leaning towards more ecological offerings, including electric and solar-powered gensets, in addition to the traditional diesel and gasoline models. There is a significant presence of electrically rechargeable generators in best-selling rankings, suggesting consumer inclinations towards environmentally friendly options.

Generators are not just in demand for emergencies but are also considered for their potential to shave peak power consumption, a throwback to past practices such as the EJP "peak-shaving" scheme. With over 6,000 installations across France, businesses continue to utilize these powerful units as a steadying force in the midst of an unpredictable energy landscape.

The manufacturing sector for electric motors, generators, and transformers has seen stable market sales over the years, with a noticeable downturn in 2020. However, forecasts for 2022 suggest a rebound, indicating a potential rise in production and profitability in the sector. Amidst these trends, the genset market in France remains diverse and competitive. With the presence of both national and international manufacturers, the marketplace offers a broad range of products tailored to different uses – from residential and DIY to commercial stands and industrial worksites.

Key Players Shaping the Generator Set Market Landscape

As the demand for generator sets evolves with the changing energy landscape, the market has witnessed the rise and resilience of several key players. These companies have not only endured the test of time and fluctuating market conditions but have also positioned themselves as indispensable solution providers across various sectors. Let's delve into an overview of these establishments that are pivotal to the genset marketplace.

  • Cummins - An indomitable force in the industry, Cummins is renowned for its reliable and innovative diesel and natural gas-powered gensets. With a legacy that spans over a century, this company’s generators are synonymous with durability and high performance, catering to critical sectors like healthcare and data centers, among others.

 

  • Generac Power Systems - As a leader in residential, commercial, and industrial backup power, Generac prides itself on a diverse product range that includes portable, residential, commercial, and industrial generators. Their rapid growth and expansion have solidified their presence in various markets, offering power solutions that ensure continuity and efficiency.

 

  • Kohler - With a rich history and a commitment to exceptional quality, Kohler has carved a niche for itself in the generator sector. Its generators are known for their robust construction and seamless integration into various applications, from residential to industrial.

 

  • Multiquip - Catering to the construction and industrial sector, Multiquip has built a reputation for providing versatile and dependable power solutions. Their generators are designed to support the rigorous demands of construction sites and industrial operations.

 

  • Harrington Generators International Ltd - As a specialist in the power generation field, Harrington Generators offers an array of gensets that cater to various power needs. Known for their reliability and technical prowess, they serve a global clientele seeking quality power sources.

 

  • Caterpillar - A behemoth in heavy machinery and power systems, Caterpillar's generator sets are integral to businesses requiring robust and continuous power supply. Their solutions often serve as the backbone for emergency power needs in critical situations.

 

  • Honda Siel Power Products - Honda’s generators are esteemed for their portability, fuel efficiency, and low noise levels, making them a go-to choice for residential and light commercial use. Their technological innovations have set high standards in the industry.

 

  • SDMO - A part of the Kohler family, SDMO Industries is a major player based out of France, specializing in the design, manufacture, and installation of generating sets. They deliver tailor-made energy solutions worldwide.
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Summary and extracts

1 Market overview

1.1 Definition and presentation

Generating sets are self-contained devices that produce electricity and consist of an internal combustion engine that drives an alternator. They come in a wide range of models, from a few kilograms to several dozen tons in weight. Power is measured in volt-amperes (VA), kilovolt-amperes (kVA) or megavolt-amperes (MVA). The most powerful gensets are powered by diesel engines or gas turbines.

The genset market can be segmented according to several criteria:

  • Electrical capacity (< 75 kVA, 75 - 350 kVA and > 350 kVA)
  • Use (commercial, residential or industrial)
  • Fuel type
  • End application (standby, Prime/Continuous Power and Peak Shaving Power)

For all sectors of use (from events to construction, from the food industry to healthcare), the presence of generators in the structure is particularly important in the event of a power cut.

The generator market can be divided into three main categories:

  • High-power generators, built by manufacturers with very large industrial engines (Caterpilar, Jenbacher...). These are standby generators purchased by large-scale industrial consumers, hospitals and public authorities, and by installers of cogeneration plants. This market is currently driven by the considerable worldwide growth in data centers. These units are manufactured to special order.
  • Medium-power generators mass-produced by genset manufacturers (Pramac, etc.) are used mainly in the construction and public works sectors, and in the events industry to meet one-off power or electrical safety requirements. Most of these gensets are rented for short periods.
  • Small, mass-produced generators distributed by DIY superstores and specialist retailers. These sets are often manufactured in China, using engines produced by the world's leading engine manufacturers (Honda, Kipor....)

A new trend on the French market is the rental of medium-power generators. Even if the French electricity grid is highly reliable, many industrial sectors need to secure their energy requirements in the event of a power cut. This is why several market players have emerged in the generator rental sector(Kiloutou and Loxam, for example).

In 2020, the COVID-19 pandemic had a negative impact on the global genset market. This was the consequence of several lockdowns that led to the closure of retail outlets as well as many manufacturing plants, and thus a reduction in global electricity demand.however, in 2022, a number of factors have led to the start of new growth in the genset market, including rising energy demand from the manufacturing industry and the growing need for emergency back-up power solutions.

The Russian-Ukrainian conflict, underway since February 2022, has also had a significant impact on the French electricity market. It has led to a considerable rise in prices: as an indication, the price per MWh per month for VSEs in 2023 reached €240/MWh, compared with €140/MWh in 2022. This represents an opportunity for the genset market, which could be used to a greater extent during peaks in electricity consumption, particularly in winter.

Finally, the end of the tariff shield previously put in place by the Borne government suggests an increase of almost 9% for 2024, and a potentially harsh winter in 2024, to the benefit of generator production companies.

1.2 The global market

The global genset market was valued in **** at $*.** billion, and is expected to grow at a CAGR of *.**% over the period ****-****, reaching a market value of * billion by the end of the decade. [***]

Global market size for generator sets World, **** - **** Source : Precedence Research * forecasts

it should be noted that ...

1.3 The domestic market

In order to study the size of the genset market, we will look at the market for the manufacture of motors, generators and electrical transformers (***), of which it is a part.

sales trends in the market for the manufacture of electric motors, generators and transformers France, ****- Jan-Sept ****, in billions of ...

1.4 Foreign trade

In order to study the foreign trade data for generating sets, we looked at data relating to customs code ****, which defines: "Generating sets and electric rotary converters."

trend in the level of exports of generating sets and electric rotary converters France, ****-****, in millions of euros Source: ****

Between **** and ****, France's exports ...

2 Demand analysis

2.1 Demand for electricity determines demand for gensets

In the last quarter of ****, electricity consumption at normal temperatures was *.*% lower than in ****, and *.*% lower than in the ****-**** period: this impacted demand for electrical generators, unevenly across sectors.

In the last quarter of ****, national consumption fell by *% compared with historical averages. This drop initially impacted the industrial sector, with ...

2.2 Demand explodes with rising energy prices and fears of power cuts

In the past, the use of generators was much more common. This was the era of the EJP "peak-shaving" scheme. Since ****, EDF had been encouraging businesses to buy powerful generators to produce electricity and sell it at low prices on winter days, when peaks in electricity demand could destabilize the grid. ...

2.3 Focus on residential demand

The use of electricity

Electricity is used by households to power several appliances. The average breakdown of electricity consumption in France is shown below. It shows that heating, cooling, washing, information and communication technologies and domestic hot water account for the majority of electricity consumption.

Average breakdown of residential electricity consumption ...

2.4 Focus on electricity demand in business and industry

In the service sector, retail is the activity that consumes the most electricity, as shown in the graph below. In ****, the retail sector consumed **,*** gigawatt-hours. The following activities consume the most electricity: public administration and defense, human health, education, wholesale trade and telecommunications.

Economic activities in the tertiary sector that consume ...

3 Market structure

3.1 Value chain

3.2 Industry players and organization

In order to study the forces at work in the genset market, data relating to NAF code **.**Z, which defines the"manufacture of electric motors, generators and transformers". This aggregate includes the following activities:

The manufacture of electric motors (***) Manufacture of electrical distribution transformers Manufacture of arc-welding transformers Manufacture of fluorescent ...

3.3 Type of generator depending on use

The type of genset required depends on its intended use. The table below summarizes the different options according to the desired use:

Source: ****

3.4 French players

According to Europage, a sourcing platform for companies in the BtoB business sectors, there are ** players positioned in the generator set segment in France. They are divided into several categories. The four main categories (***) are listed in the table below:

note the presence in the above table of several French generator ...

4 Offer analysis

4.1 Offer typology

Not all generators have the same capacities or the same technologies. There are three main types on the market: gasoline-powered generators, diesel-powered generators and soundproof generators.

Gasoline-powered generators

Gasoline-powered generators are appreciated for their versatility. They are suitable for domestic use, for DIY enthusiasts for example. They are available with electric ...

4.2 Production price trends

French industry output price index trends for all markets for NAF code **.** France, ****-*****, index base *** in **** Source: ****

The price of electric motors, generators and transformers naturally varies enormously according to the technology used and the power required. However, INSEE indices show that the production price of electric motors, generators and ...

4.3 Best-selling model prices

The Amazon marketplace lists the best-selling products in the "generators and energy" category. The top ** products are listed in the table below (***):

Source: ****

*Price "from

In the table above, we can see the presence of several generators that recharge electrically. Indeed, with the growing concern about carbon impact, the offer ...

4.4 Supply trends

A greener offering

In view of the climatic and noise nuisances associated with conventional generators, many players are looking for solutions to provide reliable, non-polluting and quiet sources of electricity when power is needed.

at the Alès international conference on green vehicles, Enedis, in partnership with Schneider Electric, presented the ...

5 Regulations

5.1 Hours-of-use regulations

As with any engine-powered machine, the use of generators in urban areas or close to neighborhoods is subject to noise regulations.

The law prohibits the use of noisy engine-powered tools outside the following time slots:

on working days: from *:** a.m. to ** p.m. and from *:** p.m. to *:** p.m. ...

5.2 Generator location regulations

Under ERP (***).

The genset must be located in an approved room:

Access to the room is restricted to qualified personnel. The room is identified and easily accessible to the emergency services. The walls and high floor of the room are not in direct communication with rooms accessible to the public. Installation ...

6 Positioning the players

6.1 Segmentation

Source: ****

  • SDMO (Groupe Kohler)
  • FG Wilson (Caterpillar Groupe)
  • Eneria (Bergerat Monnoyeur)
  • Jenbacher (GE Group)
  • Pramac
  • Delta Service Location
  • 2AST
  • Clarke Energy France
  • H2SYS
  • Eodev

List of charts presented in this market study

  • Worldwide generator market size
  • Change in number of employees in the manufacture of electric motors, generators and transformers
  • Number of companies manufacturing electric motors, generators and transformers
  • Trend in exports of generating sets and rotary electrical converters
  • Trade balance and imports of generating sets and rotary electric converters
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Latest news

Hydrogen: EODev raises €46 million to compete more effectively with diesel fuel - 24/11/2023
  • EODev founded in 2019
  • Present in 25 countries
  • Employs 90 people
  • Plans to double sales to 18 million euros
  • Its flagship product, the GEH2, sold over a hundred units worldwide in 2023
  • Raised 20 million euros in 2021 and 46 million euros in 2022
  • Majority owned by Energy Observer
  • Contract worth over 20 million euros with Toyota Australia
  • 85% of sales generated internationally, including 30% in Europe
  • Maritime transport is a key market for EODev, given the obligation to reduce emissions from ships at berth by 70% by 2050.
Eodev: 46 million euros to accelerate development of its hydrogen generators - 15/11/2023
  • The French government has dedicated €9 billion to the development of hydrogen equipment manufacturers and users since 2018.
  • EODev, an independent company, employs 90 people.
  • EODev has grown significantly, from 4 generators sold in 2021 to over 100 units sold worldwide in 2023.
  • EODev has entered into a partnership with Toyota Australia, which has become the company's first franchisee.
  • The French company already covers 25 countries through its international expansion.
Hydrogen: H2SYS steps up industrialization - 25/08/2023
  • Groupe Idec Invest Innovation invests 1.5 million euros in H2SYS.
  • The Idec Group's investment fund has invested 45 million euros in start-ups in the green energy and decarbonization sectors.
  • H2SYS achieves sales of 1.4 million euros in 2022
  • H2SYS generates 25% of its sales from exports.
  • h2SYS employs 22 people.
H2SYS to build a factory for its hydrogen generator sets - 11/08/2023
  • H2SYS was founded in 2017. A new factory is planned, with an estimated budget of €10 million.
  • At present, H2SYS has a production capacity of around 150 machines a year.
  • With the new plant, production capacity will increase to 800 or 1,000 machines per year.
  • H2SYS sales have doubled since 2021, reaching 1.4 million euros in 2022.
  • A diesel-powered generator emits three times more CO2 than a hydrogen-powered one.

Companies quoted in this study

This study contains a complete overview of the companies in the market, with the latest figures and news for each company. :

SDMO (Groupe Kohler)
FG Wilson (Caterpillar Groupe)
Eneria (Bergerat Monnoyeur)
Jenbacher (GE Group)
Pramac
Delta Service Location
2AST
Clarke Energy France
H2SYS
Eodev

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