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The global diesel genset market stood $13,773.0 million in 2019, which is set to witness a CAGR of 6.0% during the forecast period (2020–2030). This growth is majorly attributed to the rising demand for emergency and stationary power backup across various end-use industries, namely marine, oil & gas, manufacturing, healthcare, construction, telecom, and automotive.
COVID-19 has created a negative impact on the global diesel genset market, with the shutdown of commercial and industrial establishments in order to curtail the spread of the disease. In view of this, the production of diesel gensets has temporarily been put on hold in several countries.
In 2019, the backup power category accounted for the larger size in the diesel gensets industry, on the basis of power requirement. This was because of the rising installations of diesel gensets as a backup power source in individual houses, housing societies, data centers, manufacturing plants, retail outlets, telecom towers, and hospitality establishments. The demand for these gensets is further expected to rise during the forecast period on account of the increase in construction projects and manufacturing operations worldwide.
The stationary diesel genset category, based on mobility, is projected to witness the faster growth in the global diesel genset market during the forecast period. This can be attributed to the high-volume demand arising for stationary diesel gensets for manufacturing operations in emerging economies, such as China, India, Brazil, and Indonesia. Furthermore, the rapid urbanization is leading to the increasing demand for all types of products, thus impelling industries to adopt stationary diesel gensets to provide a continuous supply of electricity and ensure uninterrupted operations.
Historically (2014–2019), the commercial classification held the largest share in the application segmentation. This can be mainly attributed to the high adoption rate of diesel gensets in commercial areas, such as offices and retail establishments, including shopping malls, for both prime and backup power. The demand for such systems from the commercial sector is further expected to rise with the growing number of retail establishments, particularly in developing countries.
15–24 kilovolt-Ampere (kVA) was the largest power rating category in the diesel genset market in 2019, in terms of sales volume. This is attributable to the high-volume demand for these gensets from residential facilities, small industrial complexes, commercial offices, retail outlets, and telecom towers. Power outage issues in emerging economies, such as China, India, Brazil, Thailand, and Indonesia, coupled with the aging transmission infrastructure, are further expected to propel the demand for these gensets for meeting the prime and auxiliary power requirements.
During the historical period (2014–2019), APAC held the largest diesel genset market share due to the wide adoption of these systems in the commercial and residential sectors, increase in construction activities, and high demand for low-power diesel gensets at telecom towers. Furthermore, diesel gensets are majorly employed as an auxiliary power source in China and India by all kinds of users: residential, industrial, and commercial.
One of the major factors responsible for driving the market growth in the region is the increasing instances of power outages due to extreme weather conditions, including hurricanes. During such instances, diesel gensets provide power to a growing number of commercial and housing projects. As per reports by the International Monetary Fund (IMF), the U.S. and Canada are both expected to witness considerable growth in their gross domestic product (GDP) owing to the low mortgage rates, increasing population, and growing construction sector, as developers continue to shift their focus to suburban regions. The growth in the construction of residential and commercial facilities will continue to boost the demand for diesel gensets for meeting primary and backup power requirements during the construction and tenant occupancy of these facilities.
In recent years, major manufacturers in the diesel genset market have been fairly active, taking various steps to enhance their product portfolio, expand their customer reach, develop their brand identity in foreign markets, and ensure aftermarket services for their products. For instance, in February 2019, Cummins Inc. launched the new ignition-protected 7.5-kilowatt (kW) Onan marine generator in the U.S. The genset is designed to supply auxiliary power to marine vessels with gasoline propulsion engines. Hence, the market is expected to witness more such strategic activities during the forecast period, in the light of the growing market competition and increasing efforts of the companies to venture into higher-potential markets.
The increasing creation and consumption of data globally have led to the development of data centers as supportive infrastructure to store and analyze the data and provide related services. Furthermore, the advancements in technology, such as autonomous cars and intelligent personal assistants, and the growing application of the internet of things (IoT), cloud computing, and digital currencies are expected to create the need for more data centers, which, in turn, would drive the demand for diesel gensets to serve auxiliary and prime power requirements at these installations. Diesel gensets are employed to power critical and non-critical components, such as servers, backup controls, heating, ventilation, and air conditioning (HVAC) systems, and security systems, thereby contributing to the growth of the market.
Several African nations, including Nigeria and Ghana, have an extremely weak power infrastructure, characterized by a high base power deficit and significant power transmission losses, which, in turn, are responsible for the high demand for alternative power sources, such as diesel gensets, in these countries. Additionally, from a global standpoint, factors such as the old infrastructure and insufficient capex for the development and maintenance of grids have led to an erratic power supply and, in certain countries, low power production. One of the best solutions to the conundrum of low power supply is the development of off-grid solutions or use of power generation equipment, such as diesel and gas gensets.
|Base Year (2019) Market Size||$13,773.0 Million|
|Forecast Period (2020-2030) CAGR||6.0%|
|Report Coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Companies’ Strategic Developments, Key Offerings of Key Players, Company Profiling|
|Market Size by Segments||By Power Requirement, By Mobility, By Power Rating, By Application, By Region|
|Market Size of Geographies||U.S., Canada, U.K., France, Germany, Russia, Italy, Spain, Poland, India, China, Philippines, Vietnam, Indonesia, Brazil, Mexico, Argentina, Turkey, Saudi Arabia, U.A.E., Nigeria, Algeria|
|Secondary Sources and References (Partial List)||Arab Petroleum Investment Corporation, Bureau of Indian Standards, European Commission, Federal Ministry of Finance, Budget and National Planning, Genset Manufacturers’ Association, India Diesel Engine Manufacturers’ Association, International Council on Clean Transportation, International Monetary Fund, International Renewable Energy Agency|
The global diesel genset market is consolidated in nature, with the presence of players such as Caterpillar Inc., Cummins Inc., Kohler Co., Generac Holdings Inc., General Electric Company, Denyo Co. Ltd., AB Volvo, Kirloskar Oil Engines Limited, Atlas Copco AB, Siemens AG, Yanmar Holdings Co. Ltd., Doosan Corporation, and Mitsubishi Heavy Industries Ltd.
In recent years, players in the industry have launched a number of new and advanced products in order to stay ahead of their competitors. For instance:
The global diesel genset market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.
Based on Power Requirement
Based on Mobility
Based on Power Rating
Based on Application
In 2030, the diesel genset market will value $21,929.9 million.
Commercial is the largest category within the application segment of the diesel genset industry, in value terms.
APAC is the largest, while North America will be the fastest-growing diesel genset market.
The rapid construction of data centers and uncertain grid power supply in developing countries are propelling the diesel genset industry.
The majority of diesel genset market players are launching new generators for a larger industry share.