Diesel Genset Market

Diesel Genset Market Size (2024-2029):

The Global Diesel Genset Market was worth US$ 21.83 billion in 2023, and it is estimated to reach a valuation of US$ 35.86 billion by 2029, expanding at an annual growth rate (CAGR) of 8.62% between 2024 and 2029.

Market Overview:

This expansion is primarily attributed to the growing call for relief and stationary relief in various end-use industries, namely marine, oil and gas, manufacturing, healthcare, construction, telecommunications, and automotive. The advantages of diesel generators, such as better energy efficiency and low cost, are also predicted to increase the adoption of diesel gensets in various industries and drive market expansion over the next ten years. A diesel generator is a combination of a diesel engine with an electric generator, thus forming a distributed production unit. The basic function is the production of electricity through an internal combustion engine to produce energy from gaseous fuels. The main advantage of decentralized generation is the rapid increase in electricity compared to traditional generation in power plants. Particularly suitable for remote areas, diesel generators are an effective solution to address power shortages and growing power calls. Heavy industries, commercial areas, information technology (IT) parks, and residential areas are some of the main markets for this industry.

Market Trends:

The diesel Genset market is driven by the need for a reliable, mobile, and easy-to-use backup power source to operate in off-grid locations or in conjunction with existing grid-covered locations. Part of the reason for its popularity is also the inefficiency associated with distributing and transmitting power through cables over long distances. Since the electrical industry aims for a continuous power supply to alleviate any emergency, the diesel genset is likely to be of utmost importance. A potential threat arises in the form of alternative ways to store batteries using benign materials and renewable energy sources.

Market Drivers:

The escalating creation and consumption of data worldwide have led to the development of data centres as a supporting infrastructure for storing and analyzing data and providing related services. Furthermore, technological advancements such as autonomous cars and smart personal assistants, and the growing application of the Internet of Things (IoT), cloud computing, and digital currencies, are predicted to create the need for more data centers, which in turn would stimulate the call for diesel generators to satisfy the auxiliary and main energy needs of these facilities. Diesel gensets are employed to power critical and non-critical components such as servers, backup controls, heating, ventilation, air conditioning (HVAC) systems, and security systems, thus contributing to the expansion of the market.

Market Restraints:

COVID-19 has negatively impacted the worldwide diesel generator market, closing commercial and industrial facilities in an effort to slow the spread of the disease. In this context, the production of diesel generators has been temporarily suspended in several countries.

Market Opportunities:

Penetration of the existing generator set market coupled with well-established technology provides relief to the diesel genset industry. There is an opportunity to advance the cause of diesel gensets in emerging economies, where many new industries are likely to establish themselves over the next decade. Proper and timely maintenance of generator sets can ensure this goal is achieved by reducing costs and improving performance.

Market Challenges:

However, government efforts to reduce greenhouse gas emissions and rising oil prices are among the main factors that may hamper world market expansion during the foreseen period. The escalating awareness and adoption of environmentally friendly electric generators can also hamper the call for diesel gensets and slow the expansion of the worldwide diesel genset market to some extent.

DIESEL GENSET MARKET REPORT COVERAGE:

Market Segmentation:

Diesel Genset Market - By Product:

• Low power generators
• Medium power generators
• High power generators

Among products, the high-power generator segment represents the largest share of the worldwide diesel genset market and is predicted to maintain its dominance over the foreseen period due to the escalating adoption of high-power generators in the commercial sector and the industrial sector. 

Diesel Genset Market - By Power:

• Low power (0-350 kVA)
• Medium power (350-1000 kVA)
• High power (above 1000 kVA)

The medium power (350-1000kVA) segment holds the largest share of the market. The increasing prevalence of the utilization of electronically operated devices is promoting the growth rate of the market. 

Diesel Genset Market - By End-User:

• Residential
• Commercial
• Industrial

Among end-users, the residential segment is predicted to represent the strongest expansion in the worldwide diesel generator market, as the diesel generator offers various advantages such as automatic start and power restoration, 24/7 service, low vibration, and noise. 

Market Regional Analysis:

 The Diesel Genset report includes the segmentation of Regions:

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

During the historical period (2014-2019), APAC had the highest market share of diesel gensets due to the wide adoption of these systems in the commercial and residential sectors, the increase in construction activity, and the high call for diesel generators' low power in telecommunications towers. One of the main factors responsible for market expansion in North America is the increase in power outages due to extreme weather conditions, including hurricanes. In such cases, diesel gensets provide power for a growing number of commercial and residential projects. According to reports from the International Monetary Fund (IMF), both the United States and Canada are predicted to experience considerable expansion in their gross domestic product (GDP) due to low mortgage rates, population expansion, and expansion in the sector, developers continue to focus on suburban areas.

 Expansion in the construction of residential and commercial facilities will continue to drive the call for diesel generators to meet primary and backup power needs during construction and tenant occupancy of these facilities. North America has represented the highest revenue share in the worldwide market due to the growing adoption of diesel generators due to the automation of operating benefits and lower costs in the countries of the region. Europe also contributes the second largest part of the worldwide target market. The Asia-Pacific region market is predicted to post lucrative expansion in terms of revenue in the worldwide market during the foreseen period due to escalating adoption to meet the growing energy consumption in the industrial sector in countries in development like India and China. In the region.

Impact of COVID-19 on the Diesel Genset Market:

COVID-19 has disrupted every sector in an unprecedented way. The government has imposed a lockdown and ban on flights in the first half of 2020 when there is very less demand for the diesel genset market.  However, slowly the world is coming back to normal by resuming activities across the world. This attribute is likely to boost the shares of the market tremendously.

Market Key Players:

1. Caterpillar Inc.
2. Cummins Inc.
3. Kohler Co.
4. Generac Holdings Inc.
5. General Electric Company
6. Denyo Co. Ltd.
7. AB Volvo
8. Kirloskar Oil Engines Limited
9. Atlas Copco AB
10. Siemens AG
11. Yanmar Holdings Co. Ltd.
12. Doosan Corporation
13. Mitsubishi Heavy Industries Ltd.

Market Key Developments:

• In 2018, Mahindra powerol introduces its latest line of high-power diesel generators.
• Pramac, a leader in generator sets and handling equipment, is happy to present its latest range of stationary diesel goods.