Military Generator Market Size Expected To Reach $2 Billion By 2031
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North America dominated the global military generator market in 2021. This is primarily due to the highest military spending in the U.S. The country invests heavily in the procurement and development of new military systems. Moreover, the U.S. is the leader in the implementation of modern technologies in the military, navy, homeland security, and other defense agencies. The U.S. Department of Defense (DoD) is the nation's largest government agency with an annual budget of $721.5 billion as of the fiscal year 2020. This allocation was a 5.2% rise from the 2019 budget for the DoD. The U.S. Army heavily invests in the modernization of the existing defense infrastructure and the installation of advanced military generators.
Moreover, governments of developed and developing countries such as the UK, India, China, Russia, and the U.S. are significantly spending on military electricity grid equipment to improve their emergency energy sector. For instance, in September 2021, the U.S. Department of Defense signed a $3.67 million contract with Enginuity Power Systems to develop transformational hybrid genset technology. These government activities are expected to drive the market growth during the forecast period.
Developments in the field of air defense technology to enhance the capabilities of the present missile systems, increasing security measures for guarding activities, and improving the capability of weapons & missile systems are some of the key factors driving the growth of the military generator market.
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Combination light towers with generators are a comprehensive movable outdoor lighting system capable of producing high-power illumination in nearly any environment. The light tower and generator systems range from miniature portable tower and generator systems suitable for smaller work sites to full-size mobile tower generators capable of lighting up to 10 acres. Manufacturers can custom-tailor light towers according to the requirements of customers and service the equipment. For instance, the ALASKA defense designed the Alaska 1,000-Watt Portable Light Tower (1KPLT) to provide portable lighting to remote areas with a compact generator that provides up to 10 hours of continuous lighting to improve productivity and ensure safety. Thus, developments are expected to propel the growth of the market.
On the basis of fuel type, the global military generator market has been segmented into diesel, natural gas, and hybrid/others. The diesel segment is expected to experience significant growth during the forecast period. The development and adoption of diesel engines for large tactical power system are key factors that are expected to drive the growth of the diesel generator market. For instance, in November 2022, Cummins Inc. was selected by the U.S. Department of Defense to develop, manufacture, test, and produce 500 kW generator sets in two configurations to meet the electrical power needs of the Large Tactical Power System (LTPS) program and the Dept. of Defense (DoD).
However, natural gas is easier to access during a disaster or operation as it is carried in underground, wind-and stormproof lines, and is readily available anywhere. It is easier to store than diesel or gasoline. In addition, diesel generators can grow fungus, become gelled or develop sediment if stored improperly. According to the Natural Gas Supply Association, as long as a propane container remains intact, the gas can remain useable for an indefinite period of time. As of 2019, natural gas generators accounted for the largest share of overall generation capacity (43%) in the U.S. Moreover, diesel generators are a significant contributor to air pollution and as natural gas is one of the least contributors to air pollution, therefore, natural gas generators are the best sustainable option for power backup.
Significant factors that impact the growth of the military generator market comprise an increase in government spending on defense, the development of small tactical power generators, and technological advancement in diesel generators. However, factors such as stringent emission regulations for diesel engines and alternative backup power equipment are expected to hinder the growth of the market. Furthermore, rise in the development & adoption of DRASH tents systems and the increasing use of hybrid generators are expected to create new growth opportunities for the military generator market during the forecast period.
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COVID-19 Impact Analysis
Lockdowns undertaken by many countries in response to the rapid spread of the COVID-19 virus have impacted activities in defense, aviation, electronics, and other industries. Governments around the world emphasized the healthcare industry to tackle the spreading COVID-19 virus, which harmed the defense industry's performance. Owing to growing trade restrictions, revenue crisis and raw material scarcity were among the key concerns negatively impacting the military equipment and systems manufacturing enterprises, and many organizations postponed their programs.
KEY FINDINGS OF THE STUDY
By type, the AC generator segment is anticipated to exhibit significant growth in the near future.
By installation type, the stationary generator segment is anticipated to exhibit significant growth in the near future.
By application, the field hospital segment is anticipated to exhibit significant growth in the near future.
By fuel type, the diesel segment is anticipated to exhibit significant growth in the near future.
By capacity, the up to 60 KW segment is anticipated to exhibit significant growth in the near future.
By region, Asia-Pacific is anticipated to register the highest CAGR during the forecast period.
Key players operating in the global military generator market include Caterpillar CMCA Group of Companies, Cummins Inc., Fischer Panda, HDT Global, KOHLER SDMO, Leonardo DRS, SFC Energy AG, The Dewey Electronics Corporation, and Rolls-Royce plc.
David Correa
Allied Market Research
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