Market Trends of Latin America Portable Generator Industry
This section covers the major market trends shaping the Latin America Portable Generator Market according to our research experts:
Residential Sector Expected to Dominate the Market
- The residential segment of the portable generators market is predicted to expand and drive the market, majorly because of the prevalent installation of gensets across households to ensure the availability of emergency power supply in the event of a blackout or grid failure.
- According to the Empresa de Pesquisa Energética (Brazil's Energy Research Office), residential energy consumption increased from 124.91 terawatt-hours in 2013 to about 149.8 terawatt-hours in 2021.
- Further, a portable generator is easy to move and benefits owners who carry it to various off-grid locations frequently. In addition, Latin America has an increasing demand for residential energy. However, there is poor power quality in the region, which drives the market for portable generators.
- For instance, in January 2022, Argentina's capital Buenos Aires witnessed a power outage that left 700,000 households without electricity amid a heat wave with temperatures above 40 degrees Celsius.
- Overall, Latin America's increasing residential power demand and poor power quality would aid the portable generator market.
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Mexico Expected to Dominate the Market
- Local power cuts are regular in Mexico, especially in bad weather conditions, such as thunderstorms and heavy rains. Thus, localized power cuts are part and parcel of living. The frequent power cuts drive the demand for portable generator sets to sustain living and businesses in the country.
- Due to the COVID-19 pandemic, the number of professionals working from home has increased tremendously, directly driving the demand for residential portable generators to work for an uninterrupted power supply.
- The electricity generation in Mexico has been rising since 2011. For instance, in 2011, the power generation was about 292.1 terawatt-hours, reaching around 336 terawatt-hours in 2021.
- However, the portable generator market is also driven by planned power outages by electricity regulating authorities. For example, in 2021, Mexico's National Energy Control Center (CENACE) announced planned power outages owing to the nation's maintenance of 21 terawatt-hour power generation capacity. This directly aids the portable generator market for residential, commercial, and industrial applications.
- Furthermore, Mexico has witnessed massive growth in the industrial sector, with the automotive sector as the frontrunner. Mexico is the region's largest automotive manufacturer, with an annual production of 4,000,000 units, as of 2022. The high growth in the sector demands a high power supply, and thus alternative power sources too.
- Overall, the increasing demand for electricity and frequent power cuts in the nation would aid the portable generator market during the forecast period.
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