Diesel Generator Market

Diesel Generator Market Size (2024-2029):

The Global Diesel Generator Market is predicted to grow from around USD 22.0 billion in 2023 and is projected to reach a valuation of USD 34.53 billion in 2029, with a current CAGR of 9.43% during the forecast period 2024-2029.

Market Overview:

The worldwide diesel generator market is predicted to record a steady expansion rate through the end of 2026 due to increased call for continuous power supply and the profitability of diesel generators. A continuous power supply is a basic electricity required to operate a predefined set of electrical equipment. The basic electrical supply must be maintained at all times and represents the minimum amount of electricity that the end-user facility will need to successfully operate the facility's equipment and systems.

Market Drivers

The relentless growing call for power supply and the need to cut costs will drive the call for products for years to come. In addition to this, a massive need for electricity in manufacturing, telecommunications, marine, construction, residential, healthcare, and chemicals will embellish the market expansion chart in an upward direction in the next few years. Apparently, a large population increase, rapid industrialization, and infrastructure expansion are just some of the main factors that will favorably influence the expansion of the diesel generator industry in the coming years. In addition to this, the escalating use of devices driven by the aid of electronics will lead to a great need for generators for continuous supply in the event of a power outage, thus multiplying the expansion of the diesel generator industry in the world over the foreseen period. Escalating call for diesel generators in end-use sectors and power grid failure and power deficit events are the main drivers of worldwide market expansion. The call for electricity has increased exponentially, due to rapid industrialization and increased per capita consumption of electrical energy. The growing call for diesel generators in end-use sectors and the cases of power grid failures and energy deficits are the main drivers of worldwide market expansion.

Market Restraints:

However, low operating costs and low initial investments are some of the key factors supporting today's need for diesel generator sets.

Market Opportunities:

However, low operating prices coupled with the requirement for less initial capital will not only undo market inhibitions but will create lucrative expansion horizons for the market in the years to come. Therefore, the expansion prospects of the diesel generator market are strongly influenced by the escalating call for products in the related sectors, which ensures new opportunities for business expansion and market expansion for the important market players.

Market Challenges:

However, strict government laws to reduce the carbon footprint will hamper product penetration for the next decade.

Market Key Developments:

• Caterpillar Inc. has announced the launch of the Cat DE1100 GC diesel generator set. Designed exclusively for use in stationary standby applications and engineered to Caterpillar's high standards for quality and productivity, the DE1100 GC offers excellent customer value by providing performance and reliability with best-in-class network support. Cat dealers.
• Mahindra Powerol, a division of the Mahindra Group, announced its higher kVA diesel generator (DG) segment with the introduction of its new 250/320 kVA DG range, powered by the Mahindra MPower engine series, according to a company.

DIESEL GENERATOR MARKET REPORT COVERAGE:

Market Segmentation:

Diesel Generator Market - By Application:

• Standby power
• Peak shaving
• Prime or Continuous power

Diesel Generator Market - By Power Rating:

• 0-100 kVA
• 100-350 kVA
• 350-1000 kVA
• Above 1000 kVA

The call for diesel generators rated 350-1000 kVA is predicted to increase during the foreseen period, due to their use in a wide range of applications in the oil and gas, telecommunications, data centre, and healthcare sectors.

Diesel Generator Market - By End User:

• Industrial
• Commercial
• Residential

The industrial segment accounted for the largest market share in 2021 and is predicted to dominate the market during the foreseen period. The utility/power generation and oil and gas industries have been major contributors to the diesel generators in the industrial fragment.

Diesel Generator Market - Regional Analysis:

• North America 
• Europe 
• Asia Pacific
• Latin America 
• Middle East & Africa 

Asia-Pacific had the largest share of 34.3% in 2021 and is predicted to grow at the fastest CAGR over the foreseen period, with China as the main revenue contributor to regional market expansion. The escalating number of manufacturing facilities and infrastructure projects, the widening gap between electricity supply and call, and the rapid development of commercial offices in China are predicted to drive industry expansion in the region. In Asia-Pacific, diesel generators are employed primarily for relief, as the region has a moderately developed power infrastructure that provides low-cost electricity from the distribution grid. The structure of call for diesel generator sets depends on several factors such as the country's electrical infrastructure, emission standards, and the purchasing power of customers.

North America accounted for a significant market share in 2020, with the United States dominating the entire region. The continued development of data center infrastructure and other commercial markets, coupled with the escalating vulnerability of the power grid to weather-related outages, has led to an increase in call for reliable backup power solutions. Stimulating in turn the call for diesel generators throughout the Region. Currently, the UK is facing a significant gap in the call and supply of electricity which is estimated to be around 5%. The closure of old coal-fired power plants without replacing them with new efficient power generation units has led to a power shortage.

Market Key Players:

The Prominent Players in the Global Diesel Generator Market are 

1. Kirloskar Electric Company (India)
2. Denyo Co Ltd (Japan)
3. Greaves Cotton Limited (India)
4. Ashok Leyland (India)
5. Mitsubishi Heavy Industries Ltd (Japan)
6. Rolls-Royce plc (UK)
7. Wärtsilä (Finland)
8. Caterpillar (US)
9. Cummins Inc (US)