Uncertain grids, growing market: The rise of backup power solutions in the US

In recent years, the generator market has seen remarkable growth, with more consumers opting for backup power solutions than ever before.

The US generator sales market size was valued at $6.10 billion in 2023. The market is projected to be worth $6.43 billion in 2024, and reach $10.26 billion by 2032, according to Fortune Business Insights. This surge highlights a shift in consumer behavior, where backup power is becoming a staple in more households.

Generators come in various designs, each catering to different needs. According to Home Depot’s Generator Buying Guide:

There are three basic types of generators: whole house generators, portable generators, and inverter generators.

• Whole house generators (home standby generators) are the best generators for home use. They are designed to provide ample power for your appliances and HVAC systems.
• Portable generators are often used on job sites to power air compressors, nail guns, saws, hammer drills, and other equipment. Most are loud, but there are quieter portable generators too.
• Inverter generators are ideal for camping, boating, and other recreational activities. They operate more quietly than other generators and provide power for lights, heaters, fans, radios, smart phones, and more.

In recent years, several regions in the US have experienced significant power outages, often linked to severe weather events or changing electric production sources. For instance, the February 2021 winter storm in Texas left millions without power for days, exposing vulnerabilities in the state’s electric grid. Similarly, California has faced rolling blackouts due to wildfire risks and energy supply issues, while New York has been grappling with grid stability issues following the shutdown of the Indian Point nuclear power plant in 2021.

While data on individual motivations for purchasing generators is limited, it’s plausible that the growing awareness of grid instability is a contributing factor. For example, the Houston Chronicle reported a significant increase in the number of luxury homes sold with standby generators in Houston, Texas between 2018 and 2023.

As concern for reliable power continues to rise, it’s crucial to address the underlying issues plaguing our electric grid. Consumers shouldn’t have to rely on generators as a necessary safeguard against power outages, especially in a country with such vast energy resources. Grid managers and legislators at all levels should prioritize reliable power sources so that generator ownership is seen as a luxury rather than a necessity.