Vietnam Diesel Generator Set Market To Generate Revenue Worth ~$150 Million by 2030
- Published: July 2022
The Vietnam diesel generator set market will advance at a CAGR of 3.6% during 2021–2030, to reach $150 million approx. by 2030. This can be ascribed to the growing manufacturing sector in the country. As of 2021, Vietnam’s domestic manufacturing sector contributed around 25% of its GDP. Also, the garment and textile sector has witnessed strong growth and plays a vital role in the economic development of Vietnam, making the country the fourth-largest exporter of garments across the globe after China, Germany, and Bangladesh. The growth in several sectors drives the need for power, which, in turn, the demand for generators is increasing in the country.
Sales of Above 750 kVA DG Sets Account for the Largest Market Share
In 2021, the above 750 kVA category held the largest revenue share in the market. This is mostly due to the growing industrial sector in Vietnam, which has high electricity needs. The nation is also one of the key manufacturing hubs in Asia and it produces goods for several biggest Western brands in the fields of tech, garment, and sportswear. For instance, the country is the third-largest supplier of footwear across the world, after China and India. Moreover, Vietnam is focusing on increasing its trade, which has been a substantial spur for startups to enlarge their production facilities, thus contributing to the high need for diesel generator sets.
Whereas, the 5–75 kVA category is expected to witness the highest CAGR, of 4.2%, between 2021 and 2030. These generators are in high demand, especially for applications in the residential and commercial sectors. Electricity is essential for a country's economic development, but Vietnam lacks a functional grid infrastructure, which results in an insufficient power supply that interferes with the functioning of both residential and commercial areas. Thus, the need for 5–75 kVA generators is increasing in the country, to meet the need for backup power.
Industrial Sector Dominates the Market
The industrial sector in Vietnam accounted for the largest market share in 2021, and it is expected to grow at a CAGR of 3.4% from 2021 to 2030. Vietnam is a desirable industrial hub because of its relatively big and trained workforce. In addition, the Vietnamese government supports businesses that provide raw materials, spare parts, and components to several sectors. Thus, the growing industrial sector driving the need for power, which, in turn, the demand for generator sets is increasing.
Major players operating in the Vietnam diesel generator set market include Yanmar Holdings Co. Ltd., Huu Toan Group Co. Ltd., Kibii, Perkins Engines Co. Ltd., Vietgen, Atlas Copco, Cummins Inc., Caterpillar Inc., and Vico Ltd.