The Japanese diesel generator set market will advance at a CAGR of 5.5% during 2021–2030, to reach $1816 million approx. by 2030. This can be ascribed to the technological advancements in diesel generators. To suit the unique needs of the Japanese, major market participants are concentrating on improving the mechanism and power system of diesel gensets.
For instance, Cummins Inc. announced, in January 2022, the global release of the C550D5 (50 Hz) and C500D6 (60 Hz) series diesel gensets for prime and standby applications. With 42 kVA per liter of displacement, this series is designed to give a better power density than its 15- and 16-liter rivals.
In 2021, the above 750 kVA category held the largest revenue share in the Japanese diesel generator set market. This is mostly due to the industrial sector's high electricity requirements. Japan is a global leader in the production of robots and factory automation systems. Five out of the top 10 global producers are Japanese and among them, they have an estimated 30% global market share. Moreover, Japan's major export industries include automotive, consumer electronics, semiconductors, and iron and steel.
Furthermore, the country's focus is on the creation of more value in trade, which has been a significant stimulus for startups to expand their production facilities, thus contributing to the high need for diesel generator sets in Japan, to meet the backup power source.
The commercial category dominated the market in 2021, and it is expected to maintain its supremacy during the forecast period as well, under the application segment. This is because most of the diesel generator sets are being sold to the commercial sector. After the reopening of economies in the second quarter of 2020, Japan is witnessing significant growth in this sector.
Because of its technologically developed infrastructure, Japan has become a hub for multinational companies and startups. With the surging commercial market in Japan, the requirement for electricity has increased in the country, which is directly boosting the growth in the sales of diesel generator sets.
Key players in the Japanese diesel generator set market have been involved in product launches to remain competitive. For instance, in March 2021, Mitsubishi Heavy Industries Ltd. developed 2,000 kVA DG with the highest output, which is widely used in factories, office buildings, hospitals, data centers, and other facilities.
Major players in the market include Yanmar Holdings Co. Ltd.; Denyo Co. Ltd.; Atlas Copco Ltd.; Airman Hokuetsu Industries Co. Ltd.; Atlas Copco Ltd.; Kubota Corporation; Cummins Inc.; Namsang Engineering Co. Ltd.; Mitsubishi Heavy Industries Ltd.; and NIPPON SHARYO LTD.