Black Start Generator Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The black start generator market is expected to grow at a CAGR of more than 2% over the forecast period of 2020-2025. Factors such as rising electricity consumption, growth in the industrial and telecom sector are expected to help drive the market for black start generators during the forecast period. Black start generators are extremely beneficial in accelerating system restoration, during and after a power cut or power failure at power generation stations. However, rising reliability of electricity supply and lower number and duration of power cuts are expected to hamper the demand for the black start generator market.

Key Highlights

• Diesel-based generators are expected to dominate the market for the black start generator market, owing to factors like relatively low cost and maintenance.
• The rising shift towards a greener and cleaner renewable energy generation is expected to provide an excellent opportunity for the black start generator players due to the low reliability of energy generation from renewable energy resources.
• Asia-Pacific is expected to be the fastest-growing market during the forecast period, owing to factors like rising electricity consumption and growing industrial sector.

Key Market Trends

Diesel-Based Generators to Dominate the Market

• Diesel-based generators are expected to dominate the market for the black start generator market, owing to factors like relatively low cost and maintenance.
• With the rising global energy consumption, the need for more power generation plants is inevitable, and with it, the demand for black start power generators is bound to rise. Primary energy consumption has grown by over 20% from 482.82 exajoules in 209 to 583.9 exajoules in 2019.
• Diesel generators are preferred over other forms of black start generators due to their reliability and the capability to instantly activate after a power cut or failure.
• Other forms of black start generators like hydroelectric black tart generating units are not feasible everywhere and require a substantially large water reservoir nearby, because of which diesel black start generators are the most used form of black start generators.
• Therefore, with the increase in the demand for energy, diesel generators for emergency power supply are expected to dominate the market.

Asia-Pacific to Dominate the Market

• Asia-Pacific is expected to be the fastest-growing market for black start generators during the forecast period. Asia-Pacific is one of the fastest-growing regions in the world owing to the increasing population, urbanization, and industrialization. As a result, the demand for guaranteed power supply is high. For addressing these demands, many countries are investing in energy generation and transmission and distribution infrastructure.
• As per the International Energy Agency (IEA), the world’s most populated country China is likely to install 36% of total worldwide hydroelectricity generation capacity and 40% of all global wind energy between 2015-2021. China has over 259,000 MW of new coal plants in various stages of development and accounts for more than 1/3 of the global coal plant pipeline. Black start generators are bound to be used for these developments.
• India, due to its service industry, is quickly becoming a hub for data centers, with its largest data center being inaugurated in July 2020, a number of new data center project are also coming up in the near future. Data centers require black start generators to keep operating during power cuts.
• On the other hand, both China and India hold a major share of the world’s industrial sector, mainly the energy-intensive manufacturing sector. While China’s industrial energy consumption in the highest in the world at a 29% share of the global industrial energy consumption in 2018, India is rapidly catching up with a steady increase in its industrial sector.
• Therefore, the aforementioned factors are expected to drive the market in the forecast period.

Competitive Landscape

The black start generator market is fragmented. Some of the major companies are Aggreko plc, Caterpillar Inc., Cummins Inc., Mitsubishi Heavy Industries Ltd, and Man Diesel & Turbo Se.

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