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The global diesel generator market is expected to grow from USD 12.76 billion, in 2019 to USD 18.48 billion, in 2026 at a CAGR of more than 5.37% during the forecast period of 2021 - 2026. The COVID-19 pandemic has led to a reduction in electricity consumption, impeded economic growth in major countries across the world, and has led to large-scale disruptions in supply chain which have resulted in a production decline in Q1 and Q2 2020. Factors such as increasing demand for uninterrupted and reliable power supply coupled with the increase in demand from the commercial sector including the healthcare industry are expected to drive the market. However, the growing demand for generators based on alternative fuels such as natural gas and biofuels is expected to restrain the growth of the market.
- Industrial sector is estimated to account for the largest share of the revenue from the sales of diesel generators in 2020 owing to the increasing demand for continuous and reliable power supply in the industrial and manufacturing facilities.
- The commercial and industrial sectors of emerging economies, the residential sector of developed economies, and the increasing need for power in defense operations are expected to create significant opportunities for market participants in the near future.
- Asia-Pacific accounted for the largest share in the market in 2019, with majority of the demand coming from countries such as China and India.
Scope of the Report
The diesel generator market report includes:
|Less Than 75 kVA|
|Between 75 to 375 kVA|
|More Than 375 kVA|
|Standby Backup Power|
|Peak Shaving Power|
Key Market Trends
Industrial Sector to Dominate the Market
- In 2019, the industrial sector has accounted for the largest share in the diesel generator market. Industrial operations are mainly dependent on electricity generated from diesel generators during power outages (to avoid production risks) and in regions where grid access is limited.
- The industrial sector, which includes mining, manufacturing, agriculture, and construction, accounts for the largest share of energy consumption of any end-use sector. Therefore, the increasing demand for continuous and reliable power supply from these industries, especially from healthcare facilities, pharmaceutical industries, and manufacturing facilities, is expected to escalate the demand for diesel generators.
- Many different industries, like the construction industry, require a reliable source of electricity. Such industries make up a large user base for backup generators; with the growth of such sectors in the world especially as the world’s growth picks up after the receding coronavirus, the demand for backup generators is expected to increase further in the forecast period.
- China and India are expected to witness robust industrial growth in the coming years on account of the sharp increase in manufacturing sectors, which is expected to drive the demand for diesel generators in the industrial sector.
- As of 2020, steel production in China accounted for approximately 50% of the global steel production, which makes it a huge market for diesel generators, as the steel industry is extremely energy-intensive and its operations are highly dependent on power generated from diesel generators during power outages.
- Furthermore, government initiatives to expand the industrial sector, especially in China and India, are expected to continue propelling the demand for diesel generators over the forecast period.
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Asia-Pacific to Dominate the Market
- Asia-Pacific has dominated the global diesel generator market in 2019 and is expected to continue its dominance during the forecast period as well.
- China is the leading diesel generator market in the Asia-Pacific region owing to increasing infrastructure projects, widening power demand-supply gap, expansion of manufacturing facilities across the nation, and rising commercial office spaces. The country benefits from the cost and effectiveness of diesel generators, with improved living standards increasing the demand for power back-up devices
- Also, the rapid growth in various end-use sectors, such as infrastructure, telecommunication, and information technology (IT) & IT-enabled services, existing manufacturing units across the country, and the dedicated ‘Made in China’ initiative launched by the Chinese central government are expected to drive the diesel generator market in the country.
- The Indian government is focusing on improving the economy through increased infrastructure spending, mainly on roads, railways, and metro rail. With a new metro rail policy on the anvil and every large city in India looking to construct a metro rail network, diesel generators have immense growth opportunities in metro rail projects.
- In Indonesia, the increasing power blackouts have significantly hampered the manufacturing sectors, which has increased the adoption of diesel generators in the country to ensure a continuous and reliable power supply. South Sumatra and Jakarta are the key contributing areas for the growth of the diesel generators market in Indonesia owing to the frequent power blackouts in these areas.
- Hence, Asia-Pacific is expected to dominate the market due to its large population and low transmission capabilities leading to an increase in demand for diesel generators in the country.
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The global diesel generator market is moderately fragmented. Some of the major players operating in this market include Atlas Copco AB, Caterpillar Inc., Cummins Inc., Kohler Co., and Generac Holdings Inc.
- The increasing number of data centers across the globe is expected to increase the demand for diesel generators as a source of backup power. The number of hyper-scale data centers in the world has increased by 12.5%, from 448, in 2018 to 504, in 2019.
- The oil ministry of India is pitching for converting diesel generators (DGs) used by telecom towers to run on natural gas to cut the economy’s carbon footprint by reducing diesel consumption and expanding the clean-burning fuel’s share in India’s primary energy basket. The oil ministry in the country is looking to reduce the diesel consumption by 326 liters of diesel a year if the 182,000 of the 520,000 plus towers where the conversion is possible to switch to gas. This may lead to a further change in the fuel which is expected to restrain the market.
- The California Public Utilities Commission will allow California’s utilities to continue to rely on diesel standby generators to provide reliable electricity supply during planned outages known as public safety power shutoffs. Near-zero emissions diesel backup generators coupled with low carbon renewable diesel fuel will address environmental concerns while keeping the lights on for many Californians
Table of Contents
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.2 Market Size and Demand Forecast, in USD billion, till 2026
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Regional Hotspots
4.6 Market Dynamics
4.7 Supply Chain Analysis
4.8 Porter's Five Forces Analysis
4.8.1 Bargaining Power of Suppliers
4.8.2 Bargaining Power of Consumers
4.8.3 Threat of New Entrants
4.8.4 Threat of Substitutes Products and Services
4.8.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1.1 Less Than 75 kVA
5.1.2 Between 75 to 375 kVA
5.1.3 More Than 375 kVA
5.3.1 Standby Backup Power
5.3.2 Prime Power
5.3.3 Peak Shaving Power
5.4.1 North America
188.8.131.52 United States
184.108.40.206 Rest of North America
220.127.116.11 Rest of Asia-Pacific
18.104.22.168 United Kingdom
22.214.171.124 The Netherlands
126.96.36.199 Rest of Europe
5.4.4 Middle-East and Africa
188.8.131.52 Saudi Arabia
184.108.40.206 United Arab Emirates
220.127.116.11 Rest of Middle-East and Africa
5.4.5 South America
18.104.22.168 Rest of South America
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Atlas Copco.
6.4.2 Caterpillar Inc.
6.4.3 Cummins Inc.
6.4.4 Doosan Corporation
6.4.5 Generac Holdings Inc.
6.4.6 Kirloskar Oil Engines Limited
6.4.7 Kohler Co.
6.4.8 Mitsubishi Heavy Industries Engine & Turbocharger Ltd
6.4.9 MTU Onsite Energy
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Diesel Generator Market market is studied from 2018 - 2026.
What is the growth rate of Diesel Generator Market?
The Diesel Generator Market is growing at a CAGR of >5.37% over the next 5 years.
What is Diesel Generator Market size in 2018?
The Diesel Generator Market is valued at 12 Billion USD in 2018.
What is Diesel Generator Market size in 2026?
The Diesel Generator Market is valued at 18 Billion USD in 2026.
Which region has highest growth rate in Diesel Generator Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Diesel Generator Market?
Asia Pacific holds highest share in 2019.
Who are the key players in Diesel Generator Market?
- Atlas Copco AB
- Caterpillar Inc.
- Cummins Inc.
- Generac Holdings Inc.
- Kohler Co.
Are the major companies operating in Diesel Generator Market.