Diesel Generator Market Research Report - Global Forecast till 2027

Diesel Generator Market Research Report: Information By Power Rating (375 kVA - 1,000 kVA and above 1,000 kVA), By Portability (Stationary and Portable), By End-Use (Industrial, Commercial and Agriculture) - Forecast till 2027

ID: MRFR/E&P/2215-CR | October 2020 | Region: Global | 155 pages

Diesel Generator Market Overview


Diesel Generator Market size is estimated to cross USD 7.9 Billion by 2025 and register a CAGR of 4.6% during the forecast period.


The high pace of industrialisation, steadily increasing living standards, and heightened global demand for uninterrupted power supply will be seen driving the global market during this period. A growing onus upon global governments to improve electrification rates in the remotest of areas and an overall increase in data centres and commercial facilities across the world are major factors positively impacting the market trends.


Diesel generators are power backup appliances that keep the power supply on during connection breakup or power outages to prevent any disruptions in ongoing processes and operations. These generators do not need any grid connections and work on fuel that is injected into the engine at various intervals. While initially considered tedious, these diesel generators have been improving in performance efficiency with newer innovative technologies which have also contributed towards making their overall maintenance cost effective.


The global market growth is also attributable to a significant rise in the generator adoption rate in the telecommunication and data center sectors. Diesel generators are low cost machines that deliver high power – two traits that make them highly desirable for telecommunication and data centers that survive on round the clock uninterrupted power supply.  


The diesel generator market analysis done in this report focuses on the current and future expected trends of the diesel generator industry and takes a detailed look at the market dynamics, competitive landscape and various market segments contributing towards the improving market outlook globally.


COVID-19 Analysis

The COVID-19 lockdowns across the globe brought a massive slowdown in the industry and brought the market in a negative growth state that began in late 2019 and continued well into 2020. A massive decrease in the global construction activities and the subsequent delays that occurred hit the global Market especially hard. However, with the lockdowns easing now, and economies getting back onto the industrialisation path, the outlook in the global market looks promising and is expected to grow at a sustained rate during the forecast period.


Competitive Landscape
Following is a list of Key Companies Covered in this Report:



  • Kirloskar Electric Company (India)

  • Denyo Co Ltd (Japan)

  • Greaves Cotton Limited (India)

  • Ashok Leyland (India)

  • Mitsubishi Heavy Industries Ltd (Japan)

  • Rolls-Royce plc (UK)

  • Wärtsilä (Finland)

  • Caterpillar (US)

  • Cummins Inc (US)


Market Dynamics Industrial Sector Will Drive The Global Diesel Generator Market

The industrial sector, including the mining, manufacturing, agriculture and construction sectors, commands the largest share in the energy consumption matrix. This is because these sectors require constant and uninterrupted power. Also driving the market will be the demand for power supply coming from healthcare facilities and the pharmaceutical industry.


Telecommunication sector base stations also require continuous electrical power to work and provide service and the rate at which the telecom industry has been registering growth will directly impact the diesel generator industry further.


Another major driving factor in the market is the increase in power consumption in developing countries during the forecast period 2019-2025. This increase is expected to overload existing power infrastructure and lead to more and more power outages during the forecast period – an important factor conducive to market growth in the region.


Data Centres Offer New Opportunities For Diesel Generator Market

The economies today are functioning on an increasingly data-heavy model. The management, interpretation and warehousing of all this data require continuous power supply and hence a swift increase in data is creating an upward trend in the global market also. Data center operators tend to spend millions on backup power-generation to ensure convenient and hassle-free service to clients. This creates a critical need for power backup and provides huge potential for diesel generators.


High pace industrialisation and commercialisation of the emerging economies, power demand of the residential sector of developed economies, and an ever-increasing need for power in defense operations will create substantial opportunities for the market growth by 2025.


Major players in the global diesel generator market are investing in product innovations in order to manufacture next generation smart generators with a remote monitoring facility. The additional features of the next-generation generators are expected to bring performance efficiency, thereby inducing growth in the market.


Renewable Energy Market Restraints Growth


The increasing attention of global economies towards renewable energy sources and an ever increasing global demand for clean and green energy will be seen restraining the global diesel generator market growth during the forecast period and beyond.


As more and more people are becoming increasingly aware of their carbon footprint, the demand for carbon-based fuels is expected to decrease in the coming years. This along with the rapidly expanding natural gas generator technology and the maintenance-related challenges for diesel generators will be the main restraining factors for the diesel generator industry.


Challenges


Very strict governmental guidelines imposed on the use of diesel fuel to ensure reduced emissions and maintaining environmental regulations will make the crux of the challenge that the global diesel generator market growth will face during the forecast period and even beyond. Significantly reducing emission levels, while maintaining performance standards, will prove to be the main challenge for generator manufacturers globally.


Advancement in green technologies has also led to significant demand for natural gas generators that have resilient engine parts such as hardened valves to increase efficiency and performance. Also, natural gas generators are less expensive than diesel generators below 150kW and are highly cost-effective


Diesel Generator Market Segment Overview
The report delves deep into the market analysis by segmenting diesel generators into various types based on factors such as capacity, application, portability and geographical region etc. The major segments studied in detail in the report are as:


By Capacity



  • Less Than 75 kVA

  • Between 75 to 375 kVA

  • More than 375 kVA


By End-User



  • Residential

  • Commercial

  • Industrial


By Application



  • Standby Backup Power

  • Prime Power

  • Peak Shaving Power


By Portability



  • Stationary Generators

  • Portable Generators


By Geography



  • North America

  • Europe

  • Asia-Pacific

  • South America

  • Middle-East and Africa


Regional Analysis

The developing economies in the Asia Pacific region will be seen leading the growth in the global market value. China and India will register impressive growth in the segment during the forecast period because of the vigorous rate of industrialisation and a sharp increase in manufacturing sectors, which is expected to drive the demand for diesel generators in the industrial sector.


The rapid rate of generator adoption in industries such as infrastructure, telecommunication, and IT & IT-enabled services is expected to further the demand trend for diesel generators in India. An aggressive push to enhance infrastructural set up in the country in the coming years will witness huge investments in the construction of roads, metro trains and railways. All these factors combines will provide ample growth opportunities to the market revenue in the country.


Also, manufacturing sectors in Indonesia, South Sumatra and Jakarta will be seen contributing immensely to the global growth of the diesel generators market during the forecast period.


Recent Developments



  • In January 2020, Cummins launched a new 500 kW mobile diesel genset, which complies with Tier 4 emission standards. This model of genset has a 500 kW power rating as per ISO 8528, and is powered by a US Tier 4 Final-certified QSX15 Cummins engine.

  • In May 2019, Cummins Inc. and Isuzu Motors Ltd announced a partnership by entering the Isuzu Cummins Powertrain Partnership agreement. This partnership aims to evaluate and develop new diesel and diesel-based powertrains for the global market  of diesel generator.


Report Overview


This report covers the diesel generator market landscape and its growth prospects over the forecast period and analyses recent product innovations to give an overview of potential global and regional market shares. The report also provides the following in-depth information.



  • In-depth analysis to understand the future scope and outlook of the global market and its commercial landscape.

  • Detailed analysis of global market region, type, end-users and application and with sales and revenue from 2021 to 2025.


A closer and detailed look at the market driving forces, growth opportunities, restraints and challenges unique to the the market revenue during the forecast period.



Report Scope:
Report Attribute/Metric Details
  Market Size   2025:USD 7.9 Billion
  CAGR   4.6% CAGR (2020-2027)
  Base Year   2019
  Forecast Period   2020-2027
  Historical Data   2018
  Forecast Units   Value (USD Billion)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Power Rating ,Portability and End-Use
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Kirloskar Electric Company (India), Denyo Co Ltd (Japan), Greaves Cotton Limited (India), Ashok Leyland (India), Mitsubishi Heavy Industries Ltd (Japan), Rolls-Royce plc (UK), Wärtsilä (Finland), Caterpillar (US), Cummins Inc (US)
  Key Market Opportunities

  • High pace industrialisation and commercialisation of the emerging economies
  • Power demand of the residential sector of developed economies
  • Ever-increasing need for power in defense operations
  •   Key Market Drivers

  • Power requirement in industrial sector, mining, manufacturing, agriculture and construction sectors
  • Demand for power supply in healthcare facilities and the pharmaceutical industry


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    Frequently Asked Questions (FAQ) :


    Increasing power outages is likely to boost the growth of the market.

    Increasing fuel prices is likely to check the augmentation of the market.

    The segments on the basis of power rating are 375 KVA–1000 KVA and above 1000 KVA

    The segments based on portability are stationary and portable.

    The end-use segments are commercial, industrial, and agriculture.

    The prominent players are Kirloskar Electric Company (India), Greaves Cotton Limited (India), Denyo Co Ltd (Japan), Ashok Leyland (India), Rolls-Royce plc (UK), Caterpillar (US), Wärtsilä (Finland), Mitsubishi Heavy Industries Ltd (Japan), and Cummins Inc (US).