Market Trends of North West Europe Diesel Generator Industry
This section covers the major market trends shaping the North West Europe Diesel Generator Market according to our research experts:
Industrial Sector to Dominate the 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, accounting for more than 50% during the forecast period. Therefore, the increasing demand for continuous and reliable power supply in industries like the pharmaceutical industries and manufacturing facilities, is expected to escalate the demand for diesel generators.
- However, the growth of industries in the North-western region of Europe has been focused on high-income service jobs and not on large-scale manufacturing industries. However, there are a few exceptions such as in the case of Steel and Automotive industries where Germany and the United Kingdom play a leading role. However, these markets have also been facing difficulties in growth especially as Chinese Steel and Electric vehicles capture the European markets.
- As of 2021, the European Union is the second largest producer of steel in the world after China. In 2021,its output was over 177 million tonnes of steel a year, accounting for 11% of global output. Mostly coming from Germany at 40.1 Metric ton. Steel industry is a major consumer of power and requires large of amount of reliable energy for steel manufacturing. Many countries like Germany still use diesel generators for the steel industry, which act as a backbone for country's development work.
- Furthermore, government initiatives to expand the industrial sector, especially in the United Kingdom and Germany, are expected to continue propelling the demand for diesel generators over the forecast period.
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The United Kingdom to Dominate the Market
- The United Kingdom is one of the most developed countries in the world. It is also one of the most industrialized countries in the European region with an ever-increasing demand for energy. With the increasing demand for energy, there is also an increasing need for an uninterrupted power supply among various sectors of the economy.
- The United Kingdom's national grid requires power backup sources that can be used when there is peak demand. The National Grid Electricity Transmission (NGET) has been using Diesel generators (DG) sets to accommodate this peak demand and provide backup power to substations for key activities such as cooling fans, pumps, and lighting, enabling it to continue to perform its crucial role in the electricity transmission system.
- As of 2021, the new orders for construction across the United Kingdom have witnessed significant growth. The New housing public order includes 139.6 orders, New housing private 109.6, all new housing 111.6, and private industrial 167.8 orders. This is expected to drive the North West Europe diesel generators market.
- Backup generators are used at over 250 NGET sites across England and Wales, the majority of which are diesel-powered. These systems provide NGET with the resilience to recover from a loss of power supply event.
- There are various sectors such as agriculture, telecommunication, construction etc., within the United Kingdom that have generators being utilized on a regular basis.
- The construction activity around the country has been increasing in the past few months. The construction output increased by 1.1% in volume terms in January 2022 and is at its highest level since September 2019; this follows an increase of 2.0% in December 2021 and is the third consecutive monthly growth greater than 1.0%.
- The United Kingdom diesel generator market is expected to increase in the forecast period due to the increase in the electricity demand and the rising construction industry.
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