Diesel Power Engine Market

Diesel Power Engine Market Size (2023-2028):

The Global Diesel Power Engine Market size is projected to achieve USD 8.64 billion by 2028 from an estimated value of USD 6.76 billion in 2022 and is predicted to register a CAGR of 4.37% during the given period 2023-2028.

Market Overview:

The rise in industrialization increased living standards, and the demand for reliable backup power are the major drivers for the market. Moreover, increased investments in data centers and commercial facilities are predicted to further drive this product's demand. Diesel is an indoor combustion engine that uses the heat of compression for the ignition of a fuel charge. Like spark plugs, coils, and distributor assemblies, mechanical ignition components utilized in gasoline engines aren't required for ignition. Instead, because the piston in a diesel cylinder moves upward on its compression stroke, it compresses the air within the cylinder. The cylinder's air temperature increases to ignite the diesel oil because it is injected into the cylinder. Despite the basic difference in the way ignition occurs, the main components of a diesel engine are almost like those found in a gasoline engine. 

Market Drivers:

Electricity may be a critical resource to drive growth for any country. Consistent with the International Energy Outlook 2019 by EIA, global electricity demand is predicted to extend by 2.11% per annum until 2040. A serious part of the expansion is predicted to occur in non-OECD countries, such as China and India. However, the short-term electricity demand in 2020 is predicted to fall by 5% as a consequence of COVID-19 and, therefore, the resultant economic downturn. Just in case of a faster recovery, the demand is predicted to fall by 2%. Global energy electricity production capacity grew at a faster rate, and therefore the growth of the T&D network development has not kept pace, thereby leading to reliability issues like power outages and surges.

Market Restraints:

Energy sources like fuel cells, batteries, renewables, solar PVs, and SOFC cells can act as alternative sources of power generation and storage in many developed countries. As an example, the demand for efficient power generation has been on a continuing rise within the US, with many organizations seeking to chop down their electricity and heating costs. Solid oxide fuel cells offer an energy efficiency of over 60% as compared to competing technologies like reciprocating engines, which have an efficiency of 35%. Moreover, the expansion of renewable energy, like solar and wind, has driven down per cost of the produced energy. The value of power generation using diesel is 2–3 times quite the value incurred using renewable energy technologies.

Market Opportunities:

The power generation requirement for remote areas or off-grid locations, like telecom towers, remote industrial units, small villages, islands, and more, is often met by hybrid power generation. The bulk of the off-grid sites are located in developing regions like Africa and the Asia Pacific, where electrification isn't absolute. According to World Energy Outlook, the electrification rate in Sub-Saharan Africa is 35%, and therefore the rural electrification rate is merely 19%; approximately 550 million people live without electricity. Because of the shortage of grid networks in developing countries of Asia Pacific, approximately 600 million people live with no access to electricity. Laying down grid networks in these regions to make sure 100% electrification requires an enormous investment. The facility demands of such remote sites are met through hybrid power solutions involving diesel generators and renewables.

DIESEL POWER ENGINE MARKET REPORT COVERAGE:

Market Segmentation:

Diesel Power Engine Market By - Operation:

• Standby 
• Prime
• Peak Shaving

The diesel power engine market has been classified based upon operation into standby, prime, and peak shaving. Standby diesel engines are employed by end-users for emergency power supply. Within the loss of power supply from the grid, the buyer can believe the diesel engine-powered gensets to temporarily satisfy the demand. The standby segment is predicted to possess a bigger market share thanks to the fast start capability, the low initial cost of diesel engine-powered generators, and the lack of huge-scale commercially viable alternatives for backup power solutions. Increased industrialization and growing data center investments in Europe and North America are likely to fuel the diesel power engine market demand.

Diesel Power Engine Market - By Power rating:

• Below 0.5 MW
• 0.5-1 MW 
• 1.0-2 MW 
• 2.0–5 MW
• Above 5 MW

During this capacity category, the demand for diesel power engines comes from large-scale residential facilities, commercial complexes, hospitals, small-scale datacentres, and other commercial end-users. In commercial complexes and office spaces, the facility demand mainly comes from lighting loads and HVAC loads. According to BNP Paribas 2019 Global Commercial land Report, European commercial land investments in 2018 amounted to EUR 264 billion, and therefore the market is predicted to retain its positive momentum in the future.

Diesel Power Engine Market - By End-user:

• Industrial
• Commercial
• Residential

The diesel power engine market has been segmented into industrial, commercial, and residential by the user. The commercial sector is predicted to be the fastest-growing market during the forecast period thanks to the increased commercial sector investments, especially in hospitals, and datacentres. One of the few sectors that saw a surge in demand during the ongoing COVID pandemic are datacentres and hospitals. Companies like Microsoft (US), Amazon (US), Alphabet (US), Apple (US), and Facebook (US) spent above USD 70 billion in total in 2019 on capital projects. Emergency standby power is required for data centres to remain online despite the most powerful system supply interruptions. These developments are expected to drive the expansion in the commercial segment.

Market Regional Analysis:

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

Based on geography, the Diesel Engine market is segmented into five regions, namely, Asia Pacific, Europe, North America, Middle East & Africa, and South America. The Asia Pacific is predicted to be the most important diesel power engine market share during the forecast period. Urbanization and increased standard of living, including industrialization, contribute to growing electricity demand. The diesel power engine market is predicted to grow in this region to satisfy the requirement for reliable backup and prime power supply for industries, commercial facilities, and residential end-users.

Impact Of COVID-19 on the Diesel Power Engine Market

The recent global pandemic outbreak caused due COVID-19 has affected the expansion of the diesel engine market. The demand side has a negative impact on account of nationwide lockdowns, which, in turn, has caused turmoil within the global economic growth, leading to declining business spending and investments in new projects—however, the diesel engine market shares grow at a higher rate in the coming years.

Market Key Players:

Some of the prominent players operating in the Diesel Engine Market are

1. Caterpillar Inc. (U.S.) 
2. Cummins, Inc. (U.S.) 
3. MAN SE (Germany)
4. Rolls-Royce Holdings plc. (U.K.) 
5. Wärtsilä Corp (Finland)
6. Mitsubishi Heavy Industries, Ltd. (Japan) 
7. Volvo Penta (Sweden)
8. Hyundai Heavy Industries Co., Ltd. (South Korea) 
9. Doosan (South Korea)
10. Yanmar Co., Ltd. (Japan) 
11. Kubota Corporation (Japan)
12. Kohler Co. (U.S.)