The diesel generators market has been witnessing steady growth over the past few years owing to increasing requirement for reliable and continuous power supply across various industry verticals including mining, construction, oil & gas, data centers etc. Diesel generators are extensively employed as a backup power source to ensure uninterrupted operation during power outages. They provide critical facilities like hospitals, data centers and manufacturing plants with emergency power to prevent costly downtime and data loss. The market is primarily driven by increasing infrastructural investments across developing regions of Asia Pacific and Latin America along with growing urbanization. Furthermore, global power deficit and aged transmission & distribution infrastructure have been augmenting reliance on diesel generators for continuous power needs.
The Global diesel generators market is estimated to be valued at US$ 20.02 Bn in 2024 and is expected to exhibit a CAGR of 5.7% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the diesel generators market are AKSA Power Generation Company, Atlas Copco AB, Caterpillar, Cummins Inc., Doosan Portable Power, Generac Power System Inc., Honda India Power Products Ltd., Kohler Co., Rolls-Royce plc, Wartsila Corporation, Honda India Power Products Ltd., Yamaha Motor Co Ltd., Mitsubishi Heavy Industries Ltd., Mahindra Mahindra Ltd., and Kirloskar Oil Engines Ltd. The key players are focused on new product development and expansion to enhance their market presence.
The growing deployment of renewable power resources and implementation of smart grid technologies are expected to generate numerous opportunities for diesel generators market. Data centers, telecom towers, hospitals etc require uninterrupted electricity which is driven by developments in the above sectors.
Geographically, the Asia Pacific region dominated the diesel generators market and the trend is expected to continue over the forecast period. The region’s rapid industrialization and urbanization have spurred demand for reliable power infrastructure here. Furthermore, China and India’s growing construction industries have augmented reliance on diesel generators for backup power needs.
Market drivers and restraint:
One of the key drivers for the diesel generators market is the increased investments in infrastructure development globally. Construction of roads, airports, seaports, metros etc require large gensets to ensure uninterrupted construction activities. Furthermore, rising urbanization has necessitated constructing new commercial and residential spaces which boost diesel generator usage.
However, growing shift towards cleaner and greener energy along with stringent emission norms for gensets are some of the major challenges restraining diesel generators adoption. The drive for sustainable energy usage promotes renewable power sources like solar, wind over conventional diesel generators to reduce pollution impact of backup power systems. Additionally, high operating costs associated with diesel gensets discourage extensive usage.
Segment Analysis
For the diesel generators market, the dominating sub-segment is low power ratings (0-100 kVA). Generators with power ratings between 0-100 kVA account for more than 50% of the global diesel generators market. This is because generators with low power ratings are used extensively in residential and commercial establishments for emergency backup during power outages. These low power generators are affordable, easily portable and have low maintenance requirements which make them a preferred choice for everyday usage in homes and small businesses.
Global Analysis
Regionally, Asia Pacific dominates the global diesel generators market and accounted for over 35% of the global sales in 2024. Factors such as increasing construction activities and rapid industrialization in countries such as China and India are driving the demand for diesel generators in the region. The region is expected to continue its dominance during the forecast period owing to ongoing infrastructure development projects. North America is the second largest market and is expected to grow at a steady pace due to frequent power outages in the US during extreme weather conditions and increasing need for backup power in telecom towers and data centers.
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