- On the basis of end user, the renewable power generation segment is expected to hold the largest share of the market.
- The internal combustion engine segment is expected to be the fastest-growing segment of the market.
- The Asia Pacific region is a leading market for variable speed generators.
The global variable speed generator market is projected to reach $8.36 billion by 2022, growing at a CAGR of 7.63%, from an estimated $5.79 billion in 2017. The growth of this market is majorly driven by rising alternative energy programs, increasing government mandates over energy efficiency, and growing industrialization and urbanization.
The variable speed generator market is dominated by a few major players that have a wide regional presence and are established brand names. The leading players in the market include ABB (Switzerland), GE (US), Siemens (Germany), Wartsila (Finland), Cummins (US), and Rolls Royce (UK).
The major strategies adopted by leading market players include contracts & agreements, new product launches, expansions and investments, mergers & acquisitions, and joint ventures and collaborations. Contracts & agreements was the most commonly adopted strategy from January 2014 to December 2017. New product development was the second most widely followed strategy during the same period. Two of the leading market players are highlighted in the section below.
The report segments the variable speed generator market, by generator type, into doubly fed induction generator (DFIG), permanent magnet synchronous generator (PMSG), variable speed-self excited induction generator (SEIG), and wound rotor induction generator (WRIG). The permanent magnet synchronous generator (PMSG) segment is expected to grow at the highest CAGR during the forecast period. The increasing adoption of the PMSG technology for wind power generation as well as diesel-electric gensets is driving the growth of the PMSG segment.
The variable speed generator market, by end user, is segmented into renewable power generation, hydroelectric power generation, marine and shipbuilding, oil & gas and mining, commercial and residential, defense, aerospace, co-generation, telecommunications, and industrial standby power. The commercial and residential segment is expected to grow at the highest CAGR during the forecast period. This segment is primarily driven by the demand for efficient variable speed standby gensets for commercial and residential applications in Europe, Asia Pacific, and North America.
The variable speed generator market, by prime mover, is segmented into wind turbine, hydro turbine, gas and steam turbine, and internal combustion (IC) engine. The IC engines segment is expected to grow at the highest CAGR during the forecast period. The increasing implementation of variable speed generators for aerospace and marine applications is expected to drive the market.
The variable speed generator market, by power rating, is segmented into up to 100 kVA, 100 kVA–1 MVA, 1 MVA–25 MVA, and above 25 MVA. The 1 MVA–25 MVA segment is expected to grow at the highest CAGR from 2017 to 2022. The increasing capacity addition in offshore wind projects and the commercialization of high power rated permanent magnet synchronous generators will create new revenue pockets for this segment.