U.S. Diesel Genset Market To Generate $3,132.4 Million Revenue by 2030

The U.S. diesel genset market is projected to generate $3,132.4 million revenue in 2030, advancing at a CAGR of 4.1% during 2021–2030. The substantial growth can be attributed to the rising demand for standalone and backup power sources, primarily in residential buildings, retail stores, office spaces, hospitals, and hotels.

Furthermore, the market is expected to be driven by the high-volume demand for medium- and high-power diesel gensets from the commercial sector and the growth in the industrial sector, which requires these gensets for manufacturing, construction, mining, power, and oil and gas applications.

In recent times, due to the power outages caused by the aging electricity grid infrastructure, people in the U.S. are going for backup power sources, such as diesel or gas gensets and solar PV systems. Among these power sources, diesel and gas gensets are highly preferred, owing to their low initial capital requirement and high reliability. Manufacturing plants and commercial offices are the major end users of these gensets in the country. The sale of diesel gensets is expected to grow further in the forecast period, due to their increasing demand in commercial offices, educational institutions, and residential buildings.

During the COVID-19 pandemic, the temporary suspension of outdoor activities and closure of manufacturing facilities, retail stores, offices, hotels, and airports had a major impact on the market. However, with the economic recovery in 2021, the market started witnessing significant growth, due to the proliferating construction of data centers and hospitals across the country.

Demand for Backup Power Gensets To Record Higher Growth Rate

The demand for backup power gensets is expected to exhibit a higher CAGR over the forecast timeframe in the market, based on the power requirement. The infrastructural developments including data centers and the growth in the commercial sector, along with the rising vulnerability of power outages caused due to natural disasters, are fueling the demand and use of backup power gensets across the country.

As of 2021, the U.S. diesel genset market, based on mobility, was led by the stationary category, with a revenue share of around 60%. This is attributed to the surging adoption rate of these generators by corporate offices, and data centers. Moreover, the development of hospital facilities, growth in the manufacturing industry, and rise in oil and gas exploration activities contribute to the growth of the market in this category.

Product Launches Are Most-Effective Strategic Measure

Players operating in the diesel genset industry have been extensively involved in product launches to earn a competitive advantage. For instance, in November 2021, Caterpillar Inc. introduced nine new Cat GC diesel generators for medium- to large-sized stationary standby applications. The three models from 800 kW to 1250 kW for 60 Hz applications are available in North America.

Similarly, in October 2021, Generac Holdings Inc. launched MDE330 and MDE570 diesel mobile generators, which are aimed at providing ease of operation and maintenance.

Some of the key enterprises in the U.S. diesel genset market are 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.