Global Diesel Generator Market by Power Rating (Medium Power, Low Power, High Power) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global diesel generator market was worth USD 16.4 billion in 2019. It is projected to grow at an 8.0% compound annual growth rate (CAGR), between 2020 and 2027. The market is expected to grow due to the increasing demand for reliable and uninterrupted power supply from end-use segments such as manufacturing, construction, telecom, oil & gas, marine, residential and chemical. Global electricity demand is influenced by rapid industrialization, continuous population growth, and infrastructure development. Increasing use of electronic equipment has led to a greater demand for generators to protect against sudden interruptions of electricity supply and disrupt daily business activities.

Due to rising power costs across many IT enabled service companies and data centers as well as increasing consumer awareness about the need for reliable emergency power supply, the market in the U.S. will experience significant growth over the forecast period. The market is also driven by increasing vulnerability of grid power stations for disasters due to changing weather conditions throughout the country.

The market's solution providers are responsible for the manufacturing, installation, maintenance, repair, and replacement of generator systems. End-market customers can be generator dealers or electricians. These contracts include product supply and maintenance. Companies can also assign an in-house monitoring technician to oversee large numbers of generators in industrial-scale operations.

Stringent government regulations aimed at reducing harmful carbon emissions will likely increase the use of gas-based generators instead of diesel generators. This trend is expected to reduce the demand for diesel generators in all end-use industries. However, diesel generator sets are still in high demand due to their low initial investment and low operating costs.

Insights on Power Rating

The large number of applications in both residential and commercial sectors meant that low power diesel generators had a 43.7% revenue share in 2019. Generators below 80 kW can be used in residential homes as backup power solutions to power water pumps, water purifiers and AC units. The low price of these diesel generators will play an important role in driving product demand over the next few years.

The highest expected CAGR for medium power diesel generators is 8.9% during the forecast period. The segment will be driven by a growing demand from developing countries like Brazil, India, China and China for low-cost emergency power backup systems for industrial and commercial applications.

The medium power diesel generators are used in small-scale businesses, petrol stations, the telecom sector and other commercial complexes. It can be used as an emergency power source in grid-connected areas or as a primary source for electricity in off-grid locations. The key elements that keep the segment competitive in the diesel generator market are its increased scalability and reliability, as well as its longer engine life.

The forecast period will see significant growth in high power diesel generators due to the rising demand for power, manufacturing and marine industries that require continuous power supply. Because it is economically impossible to provide power to remote locations, high power diesel generators can be used to generate and distribute power.

Application Insights

In 2019, the commercial application segment held 44.7% of the total revenue and is expected to see significant growth in the future. The wide range of diesel generators' applications in many industries such as healthcare, telecom, hospitality, telecom and agriculture can explain this growth. Diesel generator sets can be used in commercial establishments to provide power backup for sudden power outages, such as electrical outages and voltage fluctuations. If not addressed, these can lead to financial loss.

Over the forecast period, residential applications are expected to experience significant growth. Rising customer awareness, increasing load demand on the main grid, and an increase in power outages are some of the key factors driving the demand for diesel generators in the residential sector. Diesel generators can also be used as a backup power source for households in the event of an electrical outage or grid failure.

In 2019, the industrial application segment was second in revenue. This segment covers the industrial application sector, as well as electric utilities, mining and transport, logistics, and oil & gas sector. Due to their high power consumption, these sectors are in great demand for diesel generators. This segment is driven by favorable government policies in the developing countries, like Brazil and India, for industrial development.

Regional Insights

Asia Pacific accounted for 34.7% of the region's total market share in 2019. It is expected to grow at the fastest CAGR during the forecast period. The major revenue contributor to regional market growth will be China. A rising number of manufacturing plants and infrastructure projects, rising electricity demand and supply gap, and rapid development in China of commercial office space are expected to boost industry growth. Diesel generator sets are mainly used in Asia Pacific as backup, due to the region's relatively developed power infrastructure which supplies low-cost electricity from its utility grid. Different factors influence the demand for diesel generator sets, including the country's electricity infrastructure, emission norms and the purchasing power.

In 2019, North America held a large market share, with the U.S. holding a dominant position in the region. The region's growing dependence on the power grid for weather-based outages and the continuous development of infrastructure for data centers and commercial markets has resulted in a rise in demand for reliable backup power solutions. This in turn stimulated the demand to buy diesel generators.

Market Share Insights & Key Companies

In order to grow their service offerings and increase their market share, major industry players are pursuing various inorganic and organic strategic growth strategies. Caterpillar Inc. is a major player in the generator sets market and has announced in May 2020 the addition of Cat GC diesel generators to its extensive product line of diesel generators. Cat GC diesel generator sets include eight new models, with standby power ratings ranging from 250 kW up to 600 kW. Generac Power System also acquired Selmec in June 2018. Selmec designs and manufactures diesel generators ranging from 10 kW up to 2,750kW, and natural gas generators ranging from 30 kW up to 400kW. The following are some of the major players in the diesel generator market:

• Cummins Inc.

• Caterpillar Inc.

• Honda Siel Power Products Ltd.

• Doosan Corporation

• Kohler Co.

Up Market Research published a new report titled “Diesel Generator Market research report which is segmented by Power Rating (Medium Power, Low Power, High Power), By Players/Companies Honda Siel Power Products Ltd, Cummins Inc, Doosan Corporation, Caterpillar Inc, Kohler Co”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Diesel Generator Market Report Segments:

The market is segmented by Power Rating (Medium Power, Low Power, High Power).

Diesel Generator Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Diesel Generator Market

Overview of the regional outlook of the Diesel Generator Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Diesel Generator Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Diesel Generator Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Medium Power

                2. Low Power

                3. High Power

7. Market scenario by region, sub-region, and country.
8. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
9. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
10. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Diesel Generator Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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• Correctly Positioning New Products
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Reasons to Purchase the Diesel Generator Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.