Diesel Generator Market Outlook to 2028

Market overview

Demand for low-cost emergency power backup systems in commercial and industrial applications, favorable government policies for industrial growth, and rising demand for diesel generators in developing economies such as India, China, and Brazil are the primary driving factors in the market.

The Publisher defines a diesel generator set as a packaged combination of a reciprocating engine, electric generator (often referred to as an alternator), and various other components (such as an excitation system, control system) used to produce electricity in several applications.

One of the most common uses for diesel generators is to provide backup or standby power to buildings and systems in a power outage. Industries such as mining, healthcare, commercial operations, construction, manufacturing, oil and gas operations, telecommunications, and data centers rely heavily on diesel generators.

Modern diesel generators are intended to monitor electric current continually, and they automatically start when there is a power outage and shut down when the service is restored.

Diesel-powered engines require less maintenance and are capable of handling larger power loads. They are built to provide significant amounts of power for a long time. Despite the fact that diesel is somewhat more expensive than other fuel sources, these generators use less fuel than gas generators while performing the same labor.

Despite the threat from gas and alternative fuel generator sets, diesel generators are expected to maintain dominance in the generator sets market throughout the projection period.

Market developments and trends

• Diesel generators are increasingly being used in industrial sector operations for the duration of power interruptions
• USA sees a steady growth in diesel generator usage in the residential sector due to increasing weather-related power outages due to natural calamities, stringent emission standards, and environmental advantages
• The new 'Home as a Sanctuary' mega-trend resulted in the rise in demand for residential generators. Demand and production for home standby generators have been ramped up, and capacity for these items is anticipated to grow further in 2021
• Diesel generators in Asia, Australia, and Europe are in demand due to the growing construction market, mining markets, and standby power requirements
• The Africa diesel generator market is experiencing an increase in demand for diesel generators with more than 3,000 kVA from large-scale sectors such as metal production, food and beverage manufacturing, mining, and automotive manufacture
• Atlas Copco signed MoU with China Kuantan Energy to develop solar opportunities in China
• Caterpillar introduced 23 new lower-cost Cat GC standby diesel generator sets ranging from 33-1100 kVA to reach new retail electric power customers, explicitly optimized for stationary standby power applications
• Generac acquired Deep Sea Electronics, an advanced controls manufacturer and designer, in June 2021. Deep Sea Electronics' expertise will complement Generac's focus on power production. It will assist drive entrance into microgrid applications, a market that the Company thinks will be an essential component of the future power grid

Opportunities

• Data centers are being constructed to meet the increasing data needs. They need reliable backup power to protect critical data and require generators that provide immediate and uninterruptible power supply to the data centers in case of power outages. Manufacturers can increase the manufacturing and production of diesel generators to meet the demand
• The construction of 5G networks is increasing, and 5G networks require generators to sustain base stations and towers
• The increasing use of renewable energy alongside reducing cost allows manufacturers to offer hybrid generators to meet the increased demand. Hybrid generators contain renewable energy components with a second form of power generation like diesel or fossil fuels, reducing cost and increasing efficiency.
• Increasing activities in the oil and gas and construction sectors require efficient power backup during downtime. These sectors are seeing a growing demand for diesel-powered generators for backup power supply

Publisher's Diesel Generator Market report provides insights into the current global and regional market demand environment and prognosis.

The study offers a thorough examination of the many factors that impact the diesel generator market growth. The study also comprehensively analyses the diesel generator market by segmenting it based on geography (North America, Europe, Asia-Pacific, Middle-East and Africa, and South America) and end-user (Industrial, Commercial, Residential).

The report also discusses current and future market possibilities, market trends, advancements, and the effect of Covid-19 on the diesel generator market, essential developments, regions, and segments poised for the fastest-growth, competitive landscape. Further, the diesel generator market size, and demand forecast, growth rates will also be provided in the report.


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