North America Diesel Generator Industry Overview
|Study Period:||2018 - 2028|
|CAGR:||> 3 %|
*Disclaimer: Major Players sorted in no particular order
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North America Diesel Generator Market Analysis
The North America Diesel Generator Market is expected to register a CAGR of more than 3% during the forecast period.
COVID-19 negatively impacted the market in 2020. Presently the market has reached pre-pandemic levels.
- Over the long term, factors like increased demand for uninterrupted power supply and rising instances of power outages in the region due to natural calamities are expected to drive the market.
- On the other hand, the increasing shift towards cleaner energy sources is a major restraint hindering market growth.
- Nevertheless, with the increasing deployment of data centers in the region with the Internet of Things (IoT) adoption, the demand for diesel generator sets is expected to create enormous opportunities for diesel generator deployment.
- The United States is expected to lead the generator sets market in the North American region due to the increasing infrastructure projects and rising power outages in the country.
North America Diesel Generator Industry Segments
The diesel generator is equipment that uses a diesel engine to generate electricity. It uses an alternator to generate electricity. They are typically used in developing areas not connected to the power grid and where power outages are frequent.
The North America Diesel Generator Market is segmented by capacity, application, end user, and geography. By capacity, the market is segmented into less than 75 kVA, between 75 to 375 kVA, and more than 375 kVA. By application, the market is segmented into standby power, prime/ continuous power, and peak shaving. By end user, the market is segmented into residential, commercial, and industrial. The report also covers the market size and forecasts for the North America Diesel Generator Market across major countries. For each segment, the market sizing and forecasts have been done based on revenue (USD Billion).
|Less than 75 kVA|
|Between 75-375 kVA|
|More than 375 kVA|
|Prime/ Continuous Power|
|The United States|
|Rest of North America|
North America Diesel Generator Market Trends
This section covers the major market trends shaping the North America Diesel Generator Market according to our research experts:
Industrial Sector is to Dominate the Market
- The industrial sector is most likely to dominate the market for diesel generators. During power outages, i.e., to prevent production risks and in places where grid connectivity is limited, industrial operations depend heavily on electricity generated by diesel generators. As of 2021, the primary consumption in North America was about 113.70 exajoules which is around 4% higher than in 2020 (108.79 exajoules).
- The rapid development of new industries and the increasing number of power outages due to natural calamities like hurricanes are considered significant factors that are driving the North America Diesel Generator Market growth.
- Various industrial activities such as mining, oil and gas exploration, and railways require heavy-duty generators for operation. The growing number of applications in various industries is also expected to drive the market.
- Though diesel is costlier than gas, it has a higher energy density, and more energy can be extracted from the same fuel. Diesel is less flammable than gas and other fuels, making it safer to store and handle.
- Moreover, diesel generators are more reliable, and the initialization of diesel generator sets is more economical than gas generator sets. Due to the ease of transportation and storage of diesel, easy on-site fuel availability has also made diesel generator sets more popular than gas generator sets.
- The United States and Canada are expected to have substantial industrial growth over the coming years due to a sharp expansion in manufacturing sectors, which is expected to drive the demand for diesel generators in the industrial sector during the forecast period.
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The United States is Expected to Dominate in the Market
- The United States is the leading generator sets market in the North American region due to the 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 backup devices.
- In addition, the rapid growth in various end-use sectors, such as infrastructure, telecommunication, information technology (IT), and IT-enabled services, is expected to spur the demand for generator sets in the United States. For instance, in April 2022, Google announced it would invest around USD 9.5 billion in new offices and data centers in the United States by the end of 2022. Such investments are likely to increase demand for generator sets during the forecast period.
- Moreover, the rising oil & gas exploration activities in the United States are expected to boost the demand for diesel generators as the major oil & gas drilling and production processes are operated in remote areas where less or no power utility is available. Hence, diesel generators are required for proper operations in the oil & gas sector.
- According to the BP Statistical review of world energy 2022, oil production in the United States has an annual growth rate of 0.9%. Since the last decade, the country has registered a growth rate of 7.7%. The total crude oil produced in the United States was 16,585 thousand barrels per day in 2021. The United States held an 18.5 % share in global crude oil production in 2021.
- Furthermore, the use of diesel generators as critical power generation sources has significantly increased in recent years. According to National Weather Services, the weather pattern in the country has changed in the past few years, driving the turbulent hurricanes. Hurricanes produce extremely high, dangerous winds, lightning, hail, and massive flooding. Consequently, increasing the demand for backup power diesel generators in the country.
- Therefore, as per the abovementioned points, the demand for diesel generators is estimated to increase in the United States during the forecasted period.
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North America Diesel Generator Market Competitor Analysis
The North America Diesel Generator Market needs to be more cohesive. Some of the key players in the market (not in particular order) include Caterpillar Inc., Cummins Inc., Generac Holdings Inc., MTU Onsite Energy Corp, and Kohler Co.
North America Diesel Generator Market Top Players
Generac Holdings Inc.
MTU Onsite Energy Corp
*Disclaimer: Major Players sorted in no particular order
North America Diesel Generator Market Recent Developments
- October 2021: Cummins Inc. announced the new SD 20 diesel generator for commercial mobile applications. The SD 20 is well suited for various trailer and vehicle applications such as disaster relief, mobile medical, mobile command centers, ambulances, food trucks, and utility boom trucks.
- August 2021: Caterpillar announced that Microsoft is likely to use Cat diesel generator sets to supply standby power solutions at its data centers in Sweden. The Cat C175-20 and C18 generator sets provide complete standby power solutions in Sweden's first phase of data centers (under construction stage). Preem Evolution Diesel Plus, a renewable liquid fuel, can power all the generator sets.
North America Diesel Generator Market Report - 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 2027
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.6 Supply Chain Analysis
4.7 Porter's Five Force Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitute Products and Services
4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1.1 Less than 75 kVA
5.1.2 Between 75-375 kVA
5.1.3 More than 375 kVA
5.2.1 Standby Power
5.2.2 Prime/ Continuous Power
5.2.3 Peak Shaving
5.4.1 The United States
5.4.3 Rest of North America
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Caterpillar Inc.
6.3.2 Cummins Inc.
6.3.3 Generac Holdings Inc.
6.3.4 MTU Onsite Energy Corp
6.3.5 Kohler Co.
6.3.6 Aggreko plc
6.3.7 Briggs & Stratton Corporation
6.3.8 Winco Inc.
6.3.9 Multiquip Inc.
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
North America Diesel Generator Market Research FAQs
What is the study period of this market?
The North America Diesel Generator Market market is studied from 2019 - 2027.
What is the growth rate of North America Diesel Generator Market?
The North America Diesel Generator Market is growing at a CAGR of >3% over the next 5 years.
Who are the key players in North America Diesel Generator Market?
Caterpillar Inc., Cummins Inc., Generac Holdings Inc., MTU Onsite Energy Corp, Kohler Co are the major companies operating in North America Diesel Generator Market.
North America Diesel Generator Industry Reports
In-depth industry statistics and market share insights of the North America Diesel Generator sector for 2020, 2021, and 2022. The North America Diesel Generator research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the North America Diesel Generator report PDF.