The global Diesel Generator Market size is forecasted to reach $17.8 billion by 2026, growing at 5.0% from 2021-2026. The increasing adoption of diesel generator in various industries such as construction, manufacturing and so on is set to be the major driver for the growth of the market over the forecast period 2021-2026. Additionally, increasing construction activities such as road construction, rail construction and bridge construction will accelerate the market growth scope for flywheel diesel generator manufacturing companies during the forecast period 2021-2026. Moreover, lack of grid infrastructure and power plants/solar plants/wind turbines in remote areas is the other factor that influences the growth of the market for heat engine applications. Furthermore, increasing demand for diesel generators among data centers to provide interruption-free service to their client also supports the growth of the market. Such factors are analyzed to drive the market during the forecast period 2021-2026.
The report based on: “Diesel Generator Market Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the Diesel Generator Market industry outlook.
By Power Capacity: 0-100 kVA, 100-350 kVA, 350-1000 kVA, above 1000 kVA
By Portability: Stationary Generators, Portable Generators
By Application: Standby Power, Peak Shaving, Prime or Continuous Power, Black Start
By End-Users: Residential, Commercial, Construction, Mining and Industrial
By Geography: North America (USA, Canada and Mexico), Europe (U.K., Germany, Italy, France, Netherland & Rest of Europe), APAC (China, Japan, South Korea, India, Australia & Rest of APAC), South America (Brazil, Argentina & Rest of South America), RoW (Middle East & Africa)
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- Above 1000 kVA segment is analyzed to witness the highest growth rate in the Diesel Generator market during the forecast period 2021-2026, owing to the growing adoption in industries such as manufacturing, mining and so on
- Industrial Sector is anticipated to grow with the highest CAGR of around 5.9% in the global Diesel Generator Market during the forecast period 2021-2026, owing to its adoption as reliable electric power back up.
- APAC region is analyzed to witness the fastest growth in the global Diesel Generator market during 2021-2026, owing to rising construction activities in this region.
Global Diesel Generator Market Value Share, By Geography, 2020 (%)
Diesel Generator Market Segment Analysis- By Power Capacity
Above 1000 kVA segment is analyzed to account for the highest CAGR of 6.4% in the global Diesel Generator Market during the forecast period 2021-2026. Above 1000 kVA is mainly used for heavy duty applications in various industries such as Oil & Gas, Manufacturing, Construction and mining. Moreover many companies are developing high power capacity generators to provide uninterrupted power supply in commercial places such as office, hospitals and so on. In March 2021, Mitsubishi Heavy Industries Engine & Turbocharger, Ltd. (MHIET) invented a 2,000-kVA diesel generator with the highest output level in a Japanese-made packaged generator. It is designed to use primarily in places such as factories, hospitals, office buildings, and data centers. The new diesel generator provides uninterrupted operation for more than 168 hours (one week) and a quick startup time of 10 seconds from power failure.
Diesel Generator Market Segment Analysis- By End-Users
Based on end-users segmentation, Industrial Sector held the highest Diesel Generator Market share of around 38.2% in the global Diesel Generator market in 2020. Industrial sector rely on reliable source of electricity generation system i.e. diesel generator as a backup during power outage to evade production risk. The factors such as lack of grid infrastructure in remote areas as well as government initiatives to support infrastructure in developing countries have been contributing to the growth of the Diesel Generator market. Construction Industry held the highest share of energy consumption among all industrial sectors, owing to growing construction activities worldwide. The major factors such as growing projects on construction of roads and changes in building of railway as well as metro rail systems have contributed to the growth of construction industry. Construction activities such as road construction, excavations for foundations, bridge construction, bore well digging, rail construction, concrete mixing, metro construction and so on need electricity in sites to operate different machines required to tackle construction activities. In most of the sites, grid supply is limited, so the companies rely on diesel generators to supply electric power, thus boosting the growth of the market. In November 2019, Asian Infrastructure Investment Bank decided to invest $2.5 Billion in building India’s metro infrastructure as well as in construction of road, thus will increase the demand for diesel generator as a backup source of electric power among construction sites.
Diesel Generator Market Segment Analysis-By Geography
APAC held the highest Diesel Generator Market share of around 37.1% in the global Diesel Generator Market in 2020 and is further set to grow at a significant rate during the forecast period 2021-2026. The factors such increasing construction activities, rapid industrialization and increasing investment in buildings and infrastructure projects have been contributing to the market growth across the APAC region in long run. Moreover government investment in infrastructure projects will create opportunities for the growth of the Diesel Generator market. For instance, Government of India planned to invest US$ 1.4 trillion on infrastructure portfolio till 2023 to have a sustainable development of the country. The Government of India also planned an investment of US$ 750 billion for railways infrastructure from the year 2018-2030. Such investments can boost the demand for Diesel Generators as a reliable backup for power generation in the long run.
Diesel Generator Market Drivers
Increasing infrastructure investment
Increasing infrastructure investment is set to be one of the factors that can drive the market forward during the forecast period 2021-2026. Investment in infrastructure can contribute to the economic growth and increase the productivity of different sectors. It is also crucial for regional development. The rapid adoption of diesel generator for infrastructural works as back up of electric power will create ample opportunities for the growth of the market. In April 2021, US Government planned to invest USD 2.25 trillion to modernize its infrastructure such as dams, levees, and roads. Such investments can provide enough growth opportunities for the Diesel Generator Market. Similarly, in March 2021, Government of China planned to invest USD 30 billion to ramp up the infrastructure in Tibet such as building new expressways and modernizing the present ones. Such investments can further influence the market growth in the long run.
Increasing demand for diesel generators for data centers is set to be one of the factors that can drive the market forward
Growing demand for diesel generators for data centers is set to be one of the factors that can drive the market forward. Data Centers helps user to access data quickly, exhaust a considerable amount of electric power, not only for their normal operations but also for freezing the rooms in which they are enclosed. According to International Energy Agency report, data centers consume around 1% of global electricity use in 2019. Moreover, hyper-scale data center operators invest millions of dollars on backup electric power source to offer interruption free service to their client, thus will create demand for diesel generators. For instance, in June 2021, Caterpillar Inc. collaborated with Microsoft Corporation to provide Cat® C175-20 and C18 diesel generator sets for standby power applications in the first phase of Microsoft data centers under construction in Sweden. Such developments can further influence the growth of Diesel Generator Market in the long run.
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Diesel Generator Market Challenges
Stringent regulations by the Government
Increasing stringency in government environmental regulations to reduce carbon emission acts as a major challenge for the growth of Diesel Generators Market. Diesel Generators are harmful for the environment. The consumption of 1 litre of diesel produces 2.7 kg of carbon dioxide. It does not produce only carbon monoxide but also creates other pollutants such as particulate matter and nitrogen oxides. In order to reduce carbon footprints, government of several countries have initiated various policies and regulations. For instance European Union’s climate neutrality goals by 2050 will lead to the use of cleaner alternatives of power generators. Owing to the above mentioned factor, use of diesel generator will be significantly impacted, thus hampering its market growth.
Diesel Generator Market Landscape
Partnership, Acquisitions, Collaboration, technology launches and R&D activities are key strategies adopted by players in the Diesel Generator Market. The Diesel Generator Market top 10 companies include Caterpillar Inc, Cummins Inc, Generac Holdings Inc, Kohler Co, MTU Onsite Energy, Mitsubishi Heavy Industries Ltd., Atlas Copco AB, Doosan Corporation, Kirloskar Oil Engine Ltd and F G Willson.
- In June 2021, Caterpillar Inc announced the addition of 12 latest models to rapidly developing series of Cat® GC diesel generator sets. The new diesel generator set is designed for stationary standby applications and primarily for global electrical contractor market.
- In December 2019, Generac Holdings Inc launched the new Industrial DC Diesel Generator Set. The new SDC015 Industrial Diesel Generator is designed to use as a backup for multiple global applications which includes wireless communication and telecom applications, hybrid energy systems and DC power solutions.
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