Impact of COVID-19 on the Global Genset Market
The outbreak of COVID-19 has impacted the global economy, with the majority of the industry players suffering losses due to the lockdowns. Businesses related to the production and supply of gensets are also facing significant challenges. The demand for power has declined significantly, which can be attributed to the closure of manufacturing facilities across the globe. For instance, in 2020, the electricity demand in China dropped by over 13% as compared to the 2019 consumption. The countries with the highest electricity consumption comprise of China (6,510 TWh), the United States (3,865 TWh), India (1,230 TWh), Russia (922 TWh), and Japan (918 TWh) arranged in descending order as per the statistical data year ending 2019.
Organizations have adopted remote working policies to ensure business continuity during the pandemic. But the manufacturing firms that have not adopted technology solutions such as computer vision, robotics, IoT for manufacturing, artificial intelligence, and so on are suffering from severe losses due to factory closures and other restrictions imposed by the government authorities. Furthermore, the rising fuel prices due to lower crude oil exports are hampering the market growth.
planned New electric generating capacity addition in The U.S. (2020)
Out of the total electricity generation capacity of 117,000 MW, power plants with 41,037 MW capacity were shut down due to diminished energy demand from high-paying commercial consumers. Also, the distribution companies purchased power through new agreements. According to the MRFR analysis, these factors have lowered the demand for gensets. However, with gradual relaxations in the lockdowns, the demand for gensets is expected to grow as the demand for energy is expected to rise with the manufacturing facilities resuming operations.
Source: U.S. Energy Information Administration
Source: Primary Experts, Secondary Sources, and MRFR Analysis