Diesel generators produce electricity through combustion of diesel fuel in an engine coupled to an alternator. They have better fuel efficiency as compared to petrol generators and provide reliable backup power option. Diesel generators are commonly used by industries, telecom towers, hospitals, data centers and large commercial complexes for backup power supply in case of outages.
The Global Diesel Generators Market is estimated to be valued at US$ 20.02 Bn in 2024 and is expected to exhibit a CAGR of 5.7% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the Diesel Generators are AKSA Power Generation Company, Atlas Copco AB, Caterpillar, Cummins Inc., Doosan Portable Power, Generac Power System Inc., Honda India Power Products Ltd., Kohler Co., Rolls-Royce plc, Wartsila Corporation, Honda India Power Products Ltd., Yamaha Motor Co Ltd., Mitsubishi Heavy Industries Ltd., Mahindra and Mahindra Ltd., and Kirloskar Oil Engines Ltd.
The growing demand for reliable backup power from industrial and commercial sectors is fueling the Diesel Generators Market Growth. Technological advancements like advanced control panels, lower sound levels, and improved fuel efficiency of new diesel generators are also supporting the market expansion.
Market Trends
There is a rising demand for eco-friendly diesel generators owing to stringent emission norms. Diesel Generator Companies are focusing on developing fuel-efficient and low emissions generators using advanced filtration systems and refined diesel fuels. Adoption of solar panels integrated with diesel generators is also a emerging trend to reduce diesel consumption and make power backup more sustainable.
Market Opportunities
Increasing investments in data center construction across regions will drive opportunities for diesel generators suppliers. Rapid industrialization and infrastructure development in emerging economies of Asia Pacific and Latin America are other key factors that will present lucrative growth opportunities. Adoption of smart control systems and connectivity in diesel generators is expected to open new areas of opportunities over the forecast period.
Impact of COVID-19 on Diesel Generators Market Growth
The outbreak of COVID-19 pandemic has significantly impacted the growth of Diesel Generators Market globally. During the initial phase of lockdowns imposed across various countries, the demand from end use sectors such as commercial, residential, and industrial substantially declined. The restrictions on non-essential constructions and manufacturing activities led to reduced requirement of backup power solutions. The supply chain disruptions caused by lockdowns also constrained the production and delivery of diesel gensets to customers. The postponed or cancelled projects in 2020 weighed down on the market revenues.
However, as lockdowns eased in 2021, the demand started recovering gradually. The increased focus on ensuring uninterrupted power supply to healthcare facilities treating COVID patients boosted sales. Moreover, the growing concerns over power outages amid pandemic encouraged various industries and institutions to strengthen their backup power infrastructure. The rising work from home trend expanded the residential installations of diesel generators as a precautionary measure. The construction of makeshift hospitals and vaccination centers also positively influenced the post-pandemic demand. Going forward, the market is anticipated to regain growth momentum backed by continued investments in critical infrastructure development and emergency preparedness.
North America Dominates the Diesel Generators Market in Terms of Value
In terms of value, North America holds the majority share in the global Diesel Generators Market as of 2024. The region enjoys a well-established base of genset end users across various sectors. The frequent power outages caused by extreme weather conditions in the US and Canada drive the requirement for reliable backup power solutions. Moreover, the ongoing investments in infrastructure modernization and utility grid resilience projects are supporting the regional market growth.
Asia Pacific Emerges as the Fastest Growing Regional Market for Diesel Generators
Asia Pacific region is expected to witness the fastest growth in the Diesel Generators Market during the forecast period of 2024 to 2031. Factors such as rapid industrialization, rising construction activities, and expansion of oil & gas and mining industries are fueling the genset installations in Asia Pacific countries. Furthermore, the increasing penetration of digital connectivity and focus of governments on bolstering the energy security are augmenting the regional demand. China, India, Japan, Indonesia, and South Korea present significant growth opportunities for market participants.
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