April 7, 2022

Used Generator Growth Forecast Through 2028

outdoor-generator-for-emergency-use

With the high demand for reliable and continuous power, industrial generators have become crucial for power backup. This is attributed to the unreliable grid power supply that has led to an increase in power outages. All businesses and companies rely on backup generators to ensure continuous commercial operations. This has led to the rapid rise in demand for used industrial generators.

According to the Business Insights report, the global generator market is expected to grow from $26 billion to $38 billion in 2028, registering a CAGR of 5.9% in the 2021-2028 period. With industrialization at its peak, the gap between reliable and available power supply keeps growing. Therefore, the increase in uninterrupted power demand has made a backup generator an essential piece of equipment in any business setting. That, among other factors, has led to the rapid growth of the demand for industrial used generators.

Factors Leading to the Growth of the Used Generator Market

1. Lack of reliable grid infrastructure

Natural calamities like storms or machine failures have led to increased power blackouts that have significantly crippled residential, commercial and industrial operations. A winter storm left thousands without power across Texas, Arkansas, Ohio, Tennessee to New York. With power lines down and power restoration taking weeks, this shows how fragile the national grid is.

That has led to the increased adoption of generator sets to ensure continuous and reliable power supply in these unpredictable weather events, including hurricanes, floods, and tornadoes.

2. Businesses implementing smart strategic ideas

With most businesses opting not to let anything cripple their operations, they invest in a used generator before a power outage. Since companies need an immediate power solution, using a used generator has proved an innovative and reliable business idea worth implementing. Not only is a used generator cheap, but it's also easy to install and maintain. 

3. The high demand for reliable power

With modern business practices needing reliable power, used generators are part and parcel of any critical business operation. All commercial operations depend on generator backup for seamless operations from on-site computers and heating to refrigeration.

4. Used generators in response to a storm

Various business operations are disturbed by storms, which cause power outages for long periods. To combat this, businesses need backup generators to remain in operation. However, the problem is that ordering a new generator requires a lot of paperwork and takes a long time to reach on-site. Therefore, used generators have become a better alternative. With their quick processing and installation process, a business can be back in operation within the shortest time possible, even after a damaging storm.

5. Increased reliance on diesel generators as a source of power

With the adoption of used diesel generators in different sectors such as IT, healthcare, and telecom, the demand for them is expected to increase steadily. In fact, diesel generators have a projected growth forecast of 5%, with the global diesel generator market size expected to grow from 16 billion to 23 billion in 2028.

Used diesel generators have become a reliable source of power that shield businesses from interruptions during a grid outage.

6. Well-maintained generators can last for over 20 years

Backup generators are only used during emergencies and power outages. That means that they rarely operate, and with proper maintenance practices, they can function for 20-40 years. Therefore, investing in used generators is cheaper than buying a new one. 

Portable Generator Market

Portability, easy storage, and the emergence of natural fuel sources are driving factors for the growth of portable generators. As per the Fior Markets report, the mobile generator market is expected to grow from USD 1.8 billion in 2020 to USD 3.04 billion by 2028, growing at 75% in the forecast period 2020-2028. 

This growth is attributed to the increased demand for low-cost and diesel-fueled generators. Diesel-fueled generators last longer and provide heavier kW outputs than alternative-fueled generators. Portable generators are commonly used in the construction, gas/oil, and mining industries. However, the residential market for portable generators is expected to be the most dominant market.

Looking for a Used Industrial Generator? We Can Help

As proved by the statistics, you should not let your business remain behind as companies across the globe are adopting used backup generators. At Power System Services, we can help you meet your generator needs. Our professionals can guide you in finding an industrial generator that best suits your business model. 

Feel free to contact us and let our experts help you plan your next used industrial generator investment that will keep your business in operation all the time.