The global diesel genset market is projected to reach $17,821.3 million by 2024, registering a CAGR of 5.8% during the forecast period. Globally, the demand for diesel fueled gensets is primarily driven by the growing requirement for standalone power and backup power in construction sites, industries, residential buildings, retail stores, office spaces, hospitals, and hotels, according to P&S Intelligence.
The demand for diesel fueled gensets is growing with the aging grid infrastructure in countries like the U.S. and insufficient grid infrastructure in countries including Nigeria, Algeria, Ghana, and several other African and Latin American countries. In order to withstand the growing demand for standalone and backup power requirements, several diesel genset market players have been investing a huge amount for developing their product lines. For instance, players including Kirloskar Oil Engines Limited, Cummins Inc., and Kohler Co. have resorted to partnerships with other companies to reduce capex, develop and localize production lines, and offer customized solutions.
Insights into market segments
The diesel genset market is segmented on the basis of power rating and application. Based on power rating, the market is categorized into 5 kVA–75 kVA, 76 kVA–375 kVA, 376 kVA–750 kVA, and above 750 kVA diesel gensets. Among these, 5 kVA–75 kVA gensets accounted for the largest market share in terms of sales volume during the historical period, owing to the high demand for these gensets in application areas with low-power requirements. The demand is majorly generating by rising power outages and absence of proper power infrastructure in developing countries, driving the demand for 5 kVA–75 kVA diesel gensets in the market.
Further, on the basis of application, the diesel genset market is classified into commercial, industrial, and residential applications. Of these, the commercial sector held the largest share in the market, with more than 50% share in 2018. This can be ascribed to the heavy demand for high-power gensets in commercial buildings and data centers for both backup and prime power supply. Growing urbanization in developing countries, which are coming up with smart city projects, and increasing data center installations in both developed and developing countries are expected to help the market for these gensets in commercial sector to grow with a promising rate during the forecast period.
Commercial offices to generate a high demand for diesel gensets
In 2018, commercial offices accounted for over 25% sales value in the commercial application of diesel fueled gensets. Globally, commercial office applications majorly include commercial buildings and data centers. In these commercial offices, data centers have a significant revenue contribution, owing to their requirement of high-capacity gensets.
The advent of new technologies, such as edge computing, internet of things (IoT), cloud computing, and artificial intelligence, is driving the development of hyperscale data centers, which are equipped with thousands of servers and therefore, require uninterrupted electricity supply for smooth operations. This need for reliable electricity supply in data centers is expected to drive the diesel genset sales, further boosting the diesel genset market growth during the forecast period.
Browse report overview with detailed TOC on "Diesel Genset Market Research Report: By Power Rating (5 kVA–75 kVA, 76 kVA–375 kVA, 376 kVA–750 kVA, Above 750 kVA), Application (Commercial, Industrial, Residential), Regional Insight (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) – Global Industry Analysis and Forecast to 2024" at:https://www.psmarketresearch.com/market-analysis/diesel-genset-market
Competitive landscape of the diesel genset market
Some of the major players operating in the global diesel genset market are Caterpillar Inc., Cummins Inc., Generac Holdings Inc., Kohler Co., General Electric Company, Denyo Co. Ltd., AB Volvo, Escorts Limited, Siemens AG, and Kirloskar Oil Engines Limited.
Caterpillar Inc. held over 24% share in the diesel genset market in 2018. The company has a robust product portfolio and a vast distribution network (comprising dealers and e-commerce gateways). The company offers diesel generator sets under the Caterpillar, FG Wilson, Perkins, and Olympian brands.
DIESEL GENSET MARKET SEGMENTATION
Market Segmentation by Power Rating
Market Segmentation by Application
Market Segmentation by Region