Product Code: 51767
The global diesel generator market is expected to grow at a CAGR of less than 2% during the forecast period of 2020 - 2025. The targets of the governments of various countries to achieve significant improvement in the rural electrification rate, increase in power outages in the urban areas, and the longer timeframe required to set up the transmission and distribution infrastructure are some of the driving factors for the diesel generator market. On the flipside, the increasing availability of natural gas and the rapidly expanding natural gas generator technology, increasing deployment of renewables as alternative power source, and the maintenance challenges for diesel generators are the restraining factors for the market studied.
- Industrial sector is estimated to account for the largest share of the revenue from sale of diesel generators in 2019 owing to the increasing demand for continuous and reliable power supply from the industrial sector.
- The commercial and industrial sectors of emerging economies, the residential sector of developed economies, and the increasing need for power in defense operations are expected to create significant opportunities for market participants in the near future.
- Asia-Pacific accounted for the largest share in the market in 2019, with majority of the demand coming from countries such as China and India.
Key Market Trends
Industrial Sector to Dominate the Market
- In 2019, industrial sector is estimated to account for the largest share in the diesel generator market. Industrial operations are mainly dependent on electricity generated from diesel generators during power outages (to avoid production risks) and in regions where grid access is limited.
- The industrial sector, which includes mining, manufacturing, agriculture, and construction, accounts for the largest share of energy consumption of any end-use sector. Therefore, the increasing demand for continuous and reliable power supply from these industries, especially from healthcare facilities, pharmaceutical industries, and manufacturing facilities, is expected to escalate the demand for diesel generators.
- China and India are expected to witness robust industrial growth in the coming years on account of the sharp increase in manufacturing sectors, which is expected to drive the demand for diesel generators in the industrial sector.
- As of 2018, steel production in China accounts for approximately 50% of the global steel production, which makes it a huge market for diesel generators, as the steel industry is extremely energy-intensive and its operations are highly dependent on power generated from diesel generators during power outages.
- Furthermore, government initiatives to expand the industrial sector, especially in China and India, are expected to continue propelling the demand for diesel generators over the forecast period.
Asia-Pacific to Dominate the Market
- The diesel generator market in the Asia-Pacific region dominates the diesel generator market in 2019 and is expected to dominate the market over the forecast period.
- China is the leading diesel generator market in the Asia-Pacific region owing to increasing infrastructure projects, widening power demand-supply gap, expansion of manufacturing facilities across the nation, and rising commercial office spaces. The country benefits from the cost and effectiveness of diesel generators, with improved living standards increasing the demand for power back-up devices
- Factors such as the expansion of existing manufacturing units across the country and the dedicated 'Made in China' initiative launched by the Chinese central government are expected to drive the diesel generator market in the country.
- In addition, the rapid growth in various end-use sectors, such as infrastructure, telecommunication, and information technology (IT) & IT-enabled services is expected to further spur the demand for diesel generators in India.
- The Indian government is focusing on improving the economy through increased infrastructure spending, mainly on roads, railways and metro rail. With a new metro rail policy on the anvil and every large city in India looking to construct a metro rail network, diesel generators have immense growth opportunities in metro rail projects.
- The increasing power blackouts have significantly hampered the manufacturing sectors in Indonesia, which has increased the adoption of diesel generators in the country to ensure continuous and reliable power supply. South Sumatra and Jakarta are the key contributing areas for the growth of diesel generators market in Indonesia owing to the frequent power blackouts in these areas.
The global diesel generator market is fragmented. Some of the key players in this market include Atlas Copco AB, Caterpillar Inc., Cummins Inc., and Generac Holdings Inc.
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Table of Contents
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
2 EXECUTIVE SUMMARY
3 RESEARCH METHODOLOGY
4 MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Market Size and Demand Forecast, in USD billion, till 2025
- 4.3 Recent Trends and Developments
- 4.4 Government Policies and Regulations
- 4.5 Regional Hotspots
- 4.6 Market Dynamics
- 4.6.1 Drivers
- 4.6.2 Restraints
- 4.7 Supply Chain Analysis
- 4.8 Porter's Five Forces Analysis
- 4.8.1 Bargaining Power of Suppliers
- 4.8.2 Bargaining Power of Consumers
- 4.8.3 Threat of New Entrants
- 4.8.4 Threat of Substitutes Products and Services
- 4.8.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
- 5.1 Capacity
- 5.1.1 Less Than 75 kVA
- 5.1.2 Between 75 to 375 kVA
- 5.1.3 More Than 375 kVA
- 5.2 End-User
- 5.2.1 Residential
- 5.2.2 Commercial
- 5.2.3 Industrial
- 5.3 Application
- 5.3.1 Standby Backup Power
- 5.3.2 Prime Power
- 5.3.3 Peak Shaving Power
- 5.4 Geography
- 5.4.1 North America
- 126.96.36.199 United States
- 188.8.131.52 Canada
- 184.108.40.206 Rest of North America
- 5.4.2 Asia-Pacific
- 220.127.116.11 Australia
- 18.104.22.168 China
- 22.214.171.124 India
- 126.96.36.199 Rest of Asia-Pacific
- 5.4.3 Europe
- 188.8.131.52 Russia
- 184.108.40.206 United Kingdom
- 220.127.116.11 Netherlands
- 18.104.22.168 Norway
- 22.214.171.124 Rest of Europe
- 5.4.4 Middle-East and Africa
- 126.96.36.199 Saudi Arabia
- 188.8.131.52 Iran
- 184.108.40.206 UAE
- 220.127.116.11 Egypt
- 18.104.22.168 Nigeria
- 22.214.171.124 Rest of Middle-East and Africa
- 5.4.5 South America
- 126.96.36.199 Brazil
- 188.8.131.52 Colombia
- 184.108.40.206 Venezuela
- 220.127.116.11 Rest of South America
6 COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Share Analysis
- 6.3 Strategies Adopted by Leading Players
- 6.4 Company Profiles
- 6.4.1 Atlas Copco.
- 6.4.2 Caterpillar Inc.
- 6.4.3 Cummins Inc.
- 6.4.4 Doosan Corporation
- 6.4.5 Generac Holdings Inc.
- 6.4.6 Kirloskar Oil Engines Limited
- 6.4.7 Kohler Co.
- 6.4.8 Mitsubishi Heavy Industries Engine & Turbocharger Ltd
- 6.4.9 MTU Onsite Energy
7 MARKET OPPORTUNITIES AND FUTURE TRENDS