Published: May 2022 | Report Code: 11668 | Available Format: PDF | Pages: 317
The U.S. diesel genset market size stood at $2,175.6 million in 2021, and it is expected to rise at a growth rate of 4.1% during 2021–2030. The market growth is supported by the augmenting requirement for uninterrupted and reliable power supply and the rising instances of power outages in the country. Further, the surging development of corporate offices, hotels, and residential homes boosts the demand for power backup solutions, which, in turn, bolsters the demand for gensets.
According to a report published by the U.S. Census Bureau, construction spending in February 2022 was $1,704.4 billion, about 0.5% more than the revised January estimation of $1,695.5 billion. This growth in the U.S. construction sector generates a significant demand for diesel gensets, as a considerable number of construction activities are taking place in areas with an insufficient supply of grid-based power, thereby warranting the application of diesel gensets.
Further, there have been increased instances of power outages in the U.S. in recent years, primarily due to natural calamities and other factors, such as the aging power grid infrastructure and overloading. Important places, such as hospitals, nuclear power plants, telecom towers, data centers, and fire stations, require 24/7, stable, and continuous supply of power. Power failure can affect devices and equipment in these application areas, thereby hampering their ability to function properly, owing to their inability to handle load surges and discontinuous power supply. Therefore, growth in these areas boosts the demand for gensets in the country.
The diesel gensets for backup power requirements generated a higher revenue, around $1.9 billion, in 2021. This is attributed to the rising installations of diesel gensets in houses, shops, hotels, retail establishments, commercial buildings, healthcare facilities, hospitality units, manufacturing facilities, and other facilities, for a backup power source.
In order to avoid power outages, due to the aging electricity grid infrastructure and natural calamities, along with adverse weather conditions, people in the country started installing generators powered by various fuels, such as diesel. The diesel gensets are highly preferable in the country, owing to their low cost and easy availability. Thus, the high installation rate of diesel gensets is expected to further increase in the country during the forecast period.
Report Attribute | Details |
Historical Years |
2017-2021 |
Forecast Years |
2022-2030 |
Market Size in 2021 |
$2,175.6 Million |
Revenue Forecast in 2030 |
$3,132.4 Million |
Growth Rate |
4.1% CAGR |
Report Scope |
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling |
Segments Covered |
By Power Requirement; By Application; By Mobility; By Power Rating |
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The demand for diesel gensets for residential applications is expected to register the highest CAGR during the forecast period. This can be due to the proliferating residential sector and accelerating use of generators with a capacity below 80 kW as power backup solutions in residential houses to power devices such as water pumps, water purifiers, and geysers.
The demand for 150–199 kVA gensets was the highest in 2021 in the U.S. diesel genset market, and this category is expected to showcase a CAGR of over 4% during the forecast period. The demand for these gensets primarily arises for the applications in residential societies and commercial areas, including telecom towers, small commercial offices, and retail outlets. The power grid system in the U.S. is aging and becoming inefficient. In order to counter the power cuts, commercial buildings and offices are using diesel gensets with a power rating of 150–199 kVA.
In 2021, the sales of stationary diesel gensets accounted for a larger revenue share in the market, and the category is projected to witness the same trend during the forecast period as well. This can be ascribed to their increasing application areas and these gensets are the major power generation source in housing societies, commercial buildings, data centers, manufacturing plants, oil and gas refining units, product distribution centers, electricity generation and transmission centers, transportation structures, and hospitality facilities.
The U.S. is witnessing an increasing usage of data centers by hyperscale cloud providers and enterprise companies, which seek to capitalize on domestic and global data consumption. Furthermore, with the rapid evolution and adoption of technologies such as the IoT, edge computing, and 5G connectivity in the U.S., additional storage space for data is required, which, in turn, is expected to drive the demand for data centers during the forecast period.
Data centers require a continuous supply of power, and therefore, generate a high demand for 24/7, reliable power sources. Additionally, data center components, such as power controls, server rooms, HVAC systems, and security controls, do not easily tolerate power spikes, and a loss of power can disrupt their operation; therefore, the use of diesel gensets is essential in such settings. The number of data centers in several cities, such as Atlanta, Chicago, Dallas, New York Tri-state, Northern Virginia, Phoenix, and Silicon Valley, has witnessed a significant rise since 2015, which is expected to continue during the forecast period. Thus, this factor drives the growth of the market in the country.
Several companies operating in the U.S. diesel genset market are laying emphasis on introducing new products to improve their product portfolios and attract a huge customer base. For instance, in November 2020, KOHLER Co. announced the launch of KD1250-4, KD2500-4, and KD3250-4 large diesel industrial generators, which are certified for Tier 4 EPA Final air quality standards. Similarly, in June 2021, Caterpillar Inc. launched an additional 12 new models of Cat GC diesel generator sets for stationary standby applications, and also introduced three new power nodes for the Cat C18 diesel generator, which offer a higher power density and occupy up to 55% less floor space.
The report offers comprehensive market segmentation analysis along with market estimation for the period 2017–2030.
Based on Power Requirement
Based on Mobility
Based on Power Rating
Based on Application
During 2021–2030, the growth rate of the U.S. diesel genset market will be around 4%.
In 2021, the size of the U.S. diesel genset market stood at $2,175.6 million.
Stationary is the largest mobility category in the U.S. diesel genset market.
The major U.S. diesel genset market drivers are the augmenting requirement for uninterrupted and reliable power supply, rising instances of power outages, and surging development of corporate offices, hotels, and residential homes.
Top players in the U.S. diesel genset market include Caterpillar Inc., Cummins Inc., Kohler Co., Kubota Corporation, Generac Holdings Inc., Rolls-Royce plc, AB Volvo, Atlas Copco AB, Wacker Neuson Group, and Doosan Enerbility Co. Ltd.
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