The rising need for the storage of data has led to the development of various types of supportive infrastructure, such as data centers, which are majorly responsible for driving the demand for diesel gensets, as these systems provide backup power to these centers. Additionally, with globalization and the delocalization of services, increase in the digitization projects undertaken by governments, and revival in the commercial real estate sector, an additional demand for the establishment of single- and multi-tenant data centers has paved the way for large-scale diesel genset adoption globally. Due to these factors, the global diesel genset market is expected to generate $21,929.9 million revenue in 2030, advancing at a CAGR of 6.0% during the forecast period (2020–2030).
However, a slump in the demand for diesel gensets is currently being observed, primarily due to the nationwide lockdowns imposed by several governments in order to curtail the spread of the coronavirus disease. This eventually led to the shutting down of various commercial establishments, including retail stores, offices, hotels, and airports, which account for the major genset demand.
On the basis of power rating, the diesel genset market is classified into 7–14 kilovolt-Ampere (kVA), 15–24 kVA, 25–44 kVA, 45–69 kVA, 70–99 kVA, 100–149 kVA, 150–199 kVA, 200–299 kVA, 300–399 kVA, 400–499 kVA, and 500 kVA and above. Among these, the 7–14 kVA category is expected to be the fastest growing market in the coming years, in terms of value. Owing to the low cost, gensets under this power rating witness a high demand for household lightning. The demand for 7–14-kVA diesel genets in villages and urban residential areas is expected to increase in the coming years, thereby propelling the market.
Further, on the basis of application, the diesel genset market is categorized into commercial, industrial, and residential. The commercial category is expected to hold the largest revenue share during the forecast period. This would primarily be due to the increasing investments in infrastructure in developing countries, complemented by government initiatives for smart city projects, and prospering retail sector across the world on account of the rising consumer spending.
Geographically, the diesel genset market in Asia-Pacific (APAC) is expected to witness lucrative growth as a consequence of the increasing investments in telecom infrastructure, rapid growth in the manufacturing sector, and rising demand for backup power in residential facilities. In APAC, diesel gensets are mainly deployed for meeting auxiliary power requirements, as the region has a moderately developed power infrastructure. Furthermore, the rising instances of power outages in Southeast Asian countries are resulting in the increasing demand for diesel gensets. Besides, government initiatives such as Make in India, Made in China 2025, and Making Indonesia 4.0 are expected to further augment the regional demand for diesel gensets in the near future.
Players in the diesel genset market are launching products to enhance their market presence. For instance, in June 2018, Cummins Inc. announced the launch of QSG12, a new series of diesel-powered gensets designed to function in various settings, including hospitals, manufacturing facilities, and commercial complexes. The C450 D5 model of the series can work in conjunction with other gensets, in addition to the grid, as per requirement.
Similarly, in April 2018, Rolls-Royce plc introduced the 615-kilowatt (kW)–1,250 kW Series 2000 MTU Onsite Energy diesel genset product line for the North American market, thereby expanding its product portfolio of cost-effective, high-power diesel gensets.
Some of the major players operating in the global diesel genset market are 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.