Diesel Generator Market Size, Share and Industry Analysis, by Power Rating (Below 75kVA, 75-375-kVA, 375-750kVA, and Above 750kVA), By Portability (Stationary and Portable), By Application (Continuous Load, Peak Load, and Standby Load), By End-User (Mining, Oil & Gas, Construction, Residential, Marine, Manufacturing, Pharmaceuticals, Commercial, and Others) and Regional Forecast, 2019-2026.

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The diesel generator market growth is attributed to extensive exploration and production activities across the world to meet the growing demand for energy. In addition, exponential infrastructure development, coupled with rising urbanization is predicted to augur well for the market. For instance, In February 2019, A pact was signed by France’s Naval Group and Australia of a worth USD 35 billion to build 12 attack class submarines for the Australian Navy. The construction is scheduled to start in late 2023 and suppliers for the top five submarine components such as main motor, diesel generator, batteries, switchboard, and weapon discharge system will be announced soon.  

MARKET TRENDS

Massive Population Growth Continues To Increase The Demand For Power

According to the United Nation's report released in July 2019, the world’s population is projected to increase by 2 billion in the next 30 years, from 7.7 billion currently to 9.7 billion in 2050. Over 90% of the population growth will come from developing countries which typically have low electrification rate. The considerable population growth will inevitably increase the power shortfall, which ultimately provides healthy growth for the industry.

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Aging Grid Infrastructure Anticipated to Bode the Growth of the Market

Aging grid infrastructure in both developed and emerging economies and the retirement of technologies that are no longer favorable such as coal will see a rise in the construction of newer power plants. Moreover, growing investment in grid connectivity in developing countries set to drive the diesel generator market.

MARKET DRIVERS

Stellar Growth in Oil & Gas as well as Minerals & Mining Industry

The consumption of hydrocarbons has been rising continuously owing to enormous progress in transportation, space & aviation, and sea-borne trade. Most of the industry verticals rely on fossil fuels to produce consumer goods. The growing demand for electronic products, automobile, and renewable energy system set to accrue the requisition for metals which drive the mining industry. Following this trend, the global DG set likely to gain substantial growth in the upcoming years.

Exponential Construction Activities in Emerging Economies

Urbanization is the key factor for the growth of the construction activities in developing countries. Some of the emerging economies, such as India and China, where more people are moving to metro cities which consequently increases the demand for houses. Moreover, the Indian government's ambitious project, “Housing for All by 2022,” projected to bode the construction sector. On the other side, investment in electrification projects, road infrastructure, metro and railway network expansion might offer a sufficient market size.

MARKET RESTRAINT

Paradigm Shift Towards Adoption of Renewable Energy System to Mitigate Rising Greenhouse Emissions (GHGs)

The tremendous economic development comes at the cost of environmental degradation. Rising GHG emissions adversely affect the atmosphere increasing the earth’s temperature. Many countries are amending strict rules and regulations in a bid to curb harmful pollutants released from the combustion of fossils fuels. Besides, the rising adoption of a clean energy system to meet growing energy demand set the market on the back foot.

SEGMENTATION

By Power Rating Analysis

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High Power Application Expected To Auger Above 750kVA Segment

Based on power rating, the market is divided into Below 75kVA, 75-375kVA, 375-750kVA, and Above 750kVA. Among these, above 750kVA accounts for a substantial share of the market owing to high power demand in mining, oil & gas, and construction, among others. However, Below 75kVA and 75-375kVA exhibit healthy growth in the forecasted period due to the increasing demand for diesel generators in residential and commercial sectors.

By Portability Analysis

Stationary Genset to Account Substantial Market Size

The global diesel generator market based on portability is classified into stationary and portable. Stationary power is dominating the diesel genset market. The growth is attributed to continuous power demand from mine and oil & gas companies for exploration activities. Also, the extensive construction activities in emerging economies set to fuel the diesel genset market. On the other hand, portable genset is mostly used for emergency power applications such as in residential and commercial sectors.

By Application Analysis

Rising Demand for Uninterrupted Power Supply Auger the Continuous Load

The deficient power supply in remote locations due to poor grid infrastructure set to drive the diesel genset industry. In addition, growing minerals & mining as well as oil & gas exploration likely to auger the industry oulook. Several entities operating in these sectors opt for an alternative like diesel generator to meet their high power demand. Thus, the growing investment in recovering fossils fuels, metals, and minerals inflating the continuous load market size.

By End-User Analysis

Oil & Gas Is Projected to Lead the Industry Size  

Energy is quintessential for the economic progress of the world. Oil & gas is largely used in several industry verticals as well as electricity generation. The expansion of automotive, space & aviation and manufacturing plants increased the fuel consumption of oil & gas. Operators are mainly investing in exploration activities to meet growing demand which expected to offer a lucrative market for the growth of the diesel generator. Simultaneously, growing demand for minerals and metals, rising seaborne trade, and expansion of pharma companies likely to drive the global diesel generator industry demand.

REGIONAL ANALYSIS

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The detailed study of the global diesel generator market indicates that the Asia Pacific is likely to dominate the industry size. India is poised to grow at rapid pace owing to population explosion and the government’s “Housing for all by 2022” vision. In addition, the Indian Railways are planning to install/replace the diesel generator currently being used to power AC in trains. Similarly, the massive exploration & production activities in China, along with the expanding mining industry is projected to impart multifold growth to the industry size. The identical trend has been in the Middle East & Africa, in which oil baron nations are continuously investing in multiplying the production of oil & gas. Also, the scheduled FIFA World Cup 2022 in Qatar, where the government is making spending extensively to build world-class infrastructure, is projected to drive the industry size. On the other hand, African countries binding to provide electricity by investing in grid infrastructure which offers healthy growth.

Other regions exhibit stellar growth owing to rising seaborne trade, expansion of manufacturing, pharmaceuticals, space & aviation, and mining industries. North America exhibits steady growth due to increasing Capex on building data centers, recent shale gas revolution, and the presence of prominent automotive companies in the world. Likewise, Europe shows slight growth owing to an amendment of strict rules and regulations to curb greenhouse emissions.

KEY INDUSTRY PLAYERS

Key Players Will Continue to Shape the Global DG Set Market Trends

The notable players in the DG set industry might dominate the global market. The companies are investing in research & development to enhance the performance characteristics of generators. International regulatory authorities are implying stringent rules and regulations to mitigate rising carbon emission which certainly affects the industry growth. Thus companies compete based on efficiency, durability, attaining emission norms, and sustainability which make competition fruitful and healthy.

List of Key Companies Profiled:

• Aggreko (United Kingdom)


• Caterpillar Inc. (United States)


• Cummins Inc. (United States)


• Himoinsa (Spain)


• John Deere (United States)


• Kohler-SDMO (France)


• Wartsila (Finland)


• Kirloskar Electric Co. Ltd (India)


• Generac Power Systems (United States)


• FG Wilson (United Kingdom)


• Atlas Copco (Sweden)


• American Honda Motor Company, Inc. (United States)


• Briggs & Straton (United States)


• Inmesol S.L.U (Spain)


• HIPOWER SYSTEMS (United States)

KEY INDUSTRY DEVELOPMENTS:

• September 2018 – United States Department of Defense awarded a contract worth USD 490.9 million to Cummins Inc. to deliver diesel-powered generators. Under the agreement, the company will provide Advanced Medium Mobile Power Sources (AMMPS) generator sets by 2023. The AMMPS units are 21% more efficient, 35% quieter, and 40% more reliable than its predecessor Tactical Quiet Generators (TQGs).


• July 2017 – Aggreko unveiled the world’s only diesel power generator for rental use in hazardous applications. The 750kVA unit is fully equipped with additional safety features enabling it to use in a dangerous area. The company claimed that it could generate electricity in areas at risk explosion.

FUTURE OUTLOOK

The rising power deficit in remote areas and lack of grid infrastructure in emerging economies is likely to augur the DG industry. Furthermore, a growing number of data centers coupled with tremendous development in information and communication technology, which require an uninterrupted power supply set to accrue industry size. The expansion of real estate, road infrastructure, and government spending on the metro, railways expected to leverage the DG set demand in the upcoming years.

REPORT COVERAGE

The diesel generator report presents a comprehensive assessment of the global diesel generator industry by offering valuable insights, facts, industry-related information, and historical data. Several methodologies and approaches are adopted to make meaningful assumptions and views. Furthermore, the report offers a detailed analysis and information as per market segments, helping our readers to get a comprehensive overview of the global market.

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Along with this, the report provides an elaborative analysis of market dynamics, emerging trends, and competitive landscape. Key insights offered in the report are the adoption trends of power solutions by individual segments, recent industry developments such as partnerships, mergers & acquisitions, consolidated SWOT analysis of key players, Porter’s five forces analysis, and key industry trends.

REPORT SCOPE AND SEGMENTATION