Market Trends of United States Diesel Generator Industry
This section covers the major market trends shaping the US Diesel Generator Market according to our research experts:
Industrial Segment Expected 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.
- Diesel generators use diesel as a fuel to power the engine. Diesel generators are the least expensive equipment for power generation in the world. These generators can serve as a primary power source, a reliable secondary power source, and also a backup or standby power source for industrial customers across the country.
- Moreover, diesel generators used nowadays are much-improved versions of the earlier model. They produce much less noise and needed less cost of maintenance than other generators, thus driving the market during the forecast period.
- Though diesel is costlier than gas, it has a higher energy density, and more energy can be extracted from the same amount of fuel. Diesel is less flammable than gas and other fuels, meaning it is 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 is 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.
- Hence, owing to the above points, the industrial segment is likely going to dominate the United States diesel generator market during the forecast period.
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Increasing Energy Demand Expected to Dominate the Market
- The constant increase in energy demand and an increasing number of commercial and industrial operations in the country will likely drive the United States diesel generator market during the forecast period. The continually growing demand for uninterrupted power supply in the country is also expected to drive the country's diesel generator market.
- 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 can produce extremely high, dangerous winds, along with lightning, hail, and massive flooding. Consequently, increasing the demand for backup power diesel generators in the country.
- In 2021, the country's total electricity generation was 4115 billion kilowatt-hours, which was 2.7 % higher than what the country produced in 2020, 4007 billion kilowatt-hours. The rising electricity generation in the country exhibits the country's growing commercial and industrial sectors, which require diesel generators for backup power.
- Moreover, the rising oil & gas exploration activities in the United States is expected to boost the demand for diesel generators as the major oil & gas drilling and production process 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. In 2021, the United States was estimated to be one of the largest markets among the regions. This is primarily due to the shale gas plays in the country, which has supported the country in becoming the world's largest producer of crude oil.
- Hence, owing to the above points, the increasing energy demand is expected to drive the United States diesel generator market during the forecast period.
