In developing countries, the production of electricity is quite low, and the grid system isn’t always reliable. Additionally, with digitization, huge volumes of data are being created and used, which is leading to an increasing demand for data centers. Due to these reasons, the global genset market is predicted to reach $22,777.8 million in 2024, from $17,592.6 million in 2019, at a 5.2% CAGR during the forecast period (2020–2024).
Genset Market Segmentation
The diesel division generated the highest revenue in the genset market in 2019, as this fuel is abundantly available around the world. Even though gas gensets of low power ratings are more cost-effective than diesel variants, natural gas is not easily available everywhere, which is why the uptake of gas gensets is lower.
Till 2024, the 76 kVA–375 kVA category will dominate the genset market, on account of the high demand for these variants from small industrial complexes, commercial offices, telecom towers, and hotels. Further, with the increase in construction activities, heavy investments in the development of public infrastructure, and expanding manufacturing industry, the uptake of 76 kVA–375 kVA gensets is projected to rise.
The Middle East and African (MEA) region is expected to grow the fastest in the genset market during the forecast period, as the grid connectivity in many regional countries is poor. Additionally, nations including the U.A.E., Saudi Arabia, Egypt, and Turkey are witnessing rapid industrialization and increasing commercial activities, which are leading to a rising demand for power generation equipment. Infrastructure development, in preparation for World Expo 2020 (Dubai) and 2022 FIFA World Cup (Qatar) and under Saudi Vision 2030, as well as regional governments’ focus on reducing their dependence on oil and gas, are resulting in the expanding construction sector in the MEA.
Competitive Landscape Characterized by Facility Expansions
Genset market players are either raising the production capacity of their existing plants or setting up new ones, in order to meet the increasing demand for gensets and stay ahead in the competition. For instance, in April 2017, a new gas and diesel genset production line was added by Caterpillar Inc. at its Seguin plant in Texas. With 2.2–18 liter engines, the gensets coming out of this line can produce up to 500 kW of power.
Browse report overview with detailed TOC on "Genset Market Research Report: By Fuel (Diesel, Gas, Gasoline), Power Rating (5 kVA–75 kVA, 76 kVA–375 kVA, 376 kVA–750 kVA, Above 750 kVA), Application (Commercial, Industrial, Residential) - Global Industry Analysis and Demand Forecast to 2024" at:https://www.psmarketresearch.com/market-analysis/genset-market
Similarly, in March 2017, Hipower Systems bought a manufacturing facility in Kansas for $24 million, to serve as its new corporate headquarters. Here, designing, engineering, manufacturing, sales, and support operations are carried out, including those for its MTU Detroit portable generators, which comply with the Tier 4 Final emission standards.
Cummins Inc., Caterpillar Inc., AB Volvo, Kohler Co., General Electric Company, Denyo Co. Ltd., Escorts Limited, Kirloskar Oil Engines Limited, Siemens AG, and Generac Holdings Inc. are the major companies in the global genset market.