Market Trends of Europe Generator Sets Industry
Industrial Sector is Expected to Dominate the Market
- The industrial sector, which includes mining, manufacturing, agriculture, and construction, accounts for a large share of the energy consumption of any end-use industry.
- The industrial sector is estimated to account for the largest share of power generation in the diesel and gas generator market. Industrial operations mainly depend on electricity generated from generator sets during power outages (to avoid production risks) and in regions with limited grid access.
- In May 2023, Caterpillar announced the addition of two new mobile solutions to its portfolio of portable diesel generator sets that fulfill European Union (EU) Stage V emission criteria. Compared to the Stage IIIA standard, the Cat XQP20 and Cat XQP550 meet the requirements of Stage V standards, including a 90% reduction in nitrogen oxides. With such technology development in emission criteria, the use of generators is expected to increase in the industrial segment, thereby driving the market's growth.
- Europe has used gas as a substitute for coal and oil in power generation. The strengthening of the gas pipeline infrastructure and storage network across Europe is expected to increase the uptake of gas generators in prime power and backup power applications and dissuade public and private enterprises from using diesel as the primary backup fuel. Diversifying the fuel is expected to boost the Europe generator sets market.
- According to EMBER, in 2022, the total electricity generation in European Union accounted for 2795.49 terawatt-hours. Thus, with increasing urbanization and industrialization, power demand is expected to increase, thereby increasing electricity generation, which will drive the market.
- Hence, the industrial segment is expected to dominate the Generator sets market in the forecast period due to its extensive product usage and the sector's growing size.
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The United Kingdom to be a Significant Market
- The United Kingdom is among the leading generator sets markets in the Europe region. This is due to increasing infrastructure projects, expansion of manufacturing facilities nationwide, and rising commercial office spaces. The country benefits from the cost and effectiveness of generator sets, with improved living standards increasing the demand for power backup device segments.
- United Kingdom's vast agriculture sector covers more than 60% of the country's total land area. Although the country's power grid increasingly depends on renewable sources, the agriculture industry still relies on the power backup system. Growth in agriculture and related industries is expected to impact the market positively.
- Data centers are responsible for 1-3% of the country's electricity usage. The amount of data centers in the United Kingdom is expected to increase in the forecast period, whose backup power generation may be provided by the generator sets and which may act as a driver for the market.
- According to the UK Department for Business, in November 2022, total electricity consumption in the United Kingdom accounted for 24.28 TWh, greater than 22.36 TWh as compared to the previous month. An increase in the consumption rate is expected to maintain in the forecast period, thereby driving growth in the market.
- Gas generators are expected to increase their share of generation capacity in the country due to well-established natural gas transmission systems, lower operating costs than diesel generators, and less carbon emission in the atmosphere. An increase in the use of gas generators is expected to aid the market.
- The United Kingdom generator sets market is expected to increase in the forecast period due to increased electricity demand and the rising popularity of gas generators.
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