Global Diesel Generator Market - 2024-2031

Report Overview

Global Diesel Generator Market reached US$ 19.46 billion in 2023 and is expected to reach US$ 33.03 billion by 2031, growing with a CAGR of 6.84% during the forecast period 2024-2031.

The global increase in energy demand greatly exceeds the available supply. Continual population increase, infrastructure development and rapid industrialization in emerging economies are key drivers of power demand. Diesel generators are highly preferred due to their many advantages, such as cost-effectiveness and exceptional fuel efficiency, which makes them especially popular in emerging regions, predominantly Asia-Pacific.

Notwithstanding these benefits, they can pose certain drawbacks, including noise pollution and the release of toxic chemicals. An estimate by the World Nuclear Association suggests that the electricity consumption is expected to increase twofold compared to the present levels. Furthermore, US Department of Energy predicts that solar energy will increasingly dominate as the most abundant energy source.

A substantial expansion in the economy of prominent emerging countries, such as India and Brazil, is projected by the year 2050. When considering GDP at purchasing power parity (PPP), India is projected to rise from being the third largest to the second largest economy in the world, following only China. Nations such as Brazil, India and South Africa are already experiencing adverse effects from inadequate electricity provision. Approximately 65% of the global economy is projected to be comprised of emerging economies.

The predicted expansion of US market can be attributed to the increasing expenses associated with power outages in various IT-enabled service companies and data centers, as well as the growing consumer consciousness regarding the requirement of a dependable emergency power source. Furthermore, the market is particularly influenced by the increasing susceptibility of grid power stations to the catastrophic effects of fluctuating weather conditions in the region.

Market Dynamics

Rising Electricity Demand of Diesel Generators in Ensuring Power Reliability

Given the indisputable significance of a reliable and continuous power supply in promoting the well-being of modern civilizations, the dependence on electricity has grown more evident. Within the contemporary digital economy, which functions continuously, electricity plays a crucial role in several industries, ranging from supporting essential medical equipment in hospitals to enabling remote work and virtual meetings.

The recent difficulties arising from global events such as the COVID-19 epidemic have further emphasised the crucial significance of electricity in our everyday existence. The IEA World Energy Outlook reveals that the share of electricity in final energy consumption has consistently increased from 15% in 2000 to 20% at present. Projections suggest that if current trends continue, this percentage will further rise to 24% by 2040. In the face of increasing electricity demand, diesel generators play a crucial role in guaranteeing reliability during power grid outages or disruptions.

As numerous enterprises, commercial organizations and residential communities strive to minimize the negative effects of power outages and maintain uninterrupted operations, the dependence on diesel generators is expected to increase. The changing pattern highlights the essential function that diesel generators serve in providing backup power solutions and meeting the changing energy needs of contemporary civilizations.

Government Policies and Environmental Regulations

The most influential government agencies in a number of nations have implemented a variety of policies and goals with the intention of encouraging the adoption of environmentally friendly technologies and reducing reliance on fossil fuels. There are a number of nations that are obligated to adhere to extensive goals and implement carbon-free power sources, such as solar, hydro and wind, which may impede the development of the diesel generator set market.

Furthermore, the industry is also experiencing the implementation of rigorous rules to cut down on the release of harmful compounds, which will also make it more difficult for the product to gain widespread acceptance. In October of 2020, the Delhi Pollution regulate Committee implemented a Graded Response Action Plan to regulate the levels of pollution in the nation's capital city of Delhi. As part of this plan, diesel generator sets were also prohibited from being used.

Market Segment Analysis

The global diesel generator market is segmented based on portability, power rating, application, end-user and region.

Based on the power rating, Above 750 kVA dominated the market

Above 750 kVA is anticipated to be the prevailing market category, mostly influenced by heavy industrial applications. Furthermore, the extensive utilization of generator sets is prevalent in enterprises at different levels and is required to support excess load during emergency situations. These aspects are supporting the expansion of the diesel generator market. Consequently, the surge in industrial operations, particularly in the oil & gas and construction sectors, has led to a higher need for diesel generator power sets with power ratings exceeding 750 kVA.

Customers looking for dependable off-grid energy or a customized combined heat and power package can use Aggreko's 375 kVA gas generator hiring service to get affordable, low-emission power. Portable generator equipment is a significant market driver in the 375-750 kVA rating range. The increasing need for portable equipment in industrial sectors is amplifying the 375-750 kVA category.

Market Geographical Share

Rising Power Demand in Asia-Pacific

Asia-Pacific has a dominant position in the worldwide diesel generator industry. China has emerged as the dominant market for diesel generators in the region due to key factors such as growing infrastructure projects, widening power demand-supply disparity, growth of manufacturing facilities nationwide and increasing commercial office spaces.

The nation derives advantages from the affordability and efficiency of diesel generators, while enhanced quality of life propels the need for power backup systems. Furthermore, the diesel generator market in China is anticipated to be propelled by the fast expansion in several end-use sectors, the presence of manufacturing facilities nationwide and the deliberate 'Made in China' campaign initiated by the Chinese central government.

The Indian government prioritizes enhancing the economy by allocating more funds towards infrastructure development, particularly in the areas of highways, trains and metro rail facilities. The imminent implementation of a new metro rail policy and the desire of every major city in India to build a metro rail network present significant growth prospect for diesel generators in metro rail projects.

In contrast, a subcommittee of the government's air quality council lifted the prohibition on diesel generator sets in Delhi-NCR in February 2022, with immediate effect. The panel has indicated that there has been a recent improvement in air quality and anticipates additional improvement in the next days.

Market Competitive Landscape

The major global players in the market include Caterpillar Inc., Aggreko, Cummins Inc., Himoinsa, John Deere, Kohler SDMO, PRAMAC, Kirloskar Electric Co. Ltd., Generac Power Systems, FG Wilson, Atlas Copco, American Honda Motor Company Inc., Briggs & Stratton, Ingersoll Rand, Yamaha Motor Co. Ltd.

Russia-Ukraine War Impact Analysis

Due to the ongoing conflict between Russia and Ukraine, Ukraine's energy infrastructure has been greatly affected, resulting in a heavy reliance on diesel generators as a backup power source. Amidst Russia's bombing campaign in the 2022/23 heating season, extensive devastation resulted in substantial areas of Ukraine experiencing frequent disruptions in their electricity and heating supply.

With Ukraine bracing for another difficult winter, the demand for diesel generators is expected to stay strong. Given the ongoing challenges of repairing and strengthening energy infrastructure, it is clear that diesel generators will remain essential in maintaining a reliable power supply. Nevertheless, the use of these generators highlights the fragility of Ukraine's energy system, particularly in light of persistent attacks and the possibility of severe weather conditions.

By Portability

Stationary

Portable

By Power Rating

Below 75 kVA

75 - 375 kVA

375 - 750 kVA

Above 750 kVA

By Application

Continuous Load

Peak Load

Standby Load

By End-User

Mining

Oil & Gas

Construction

Residential

Marine

Manufacturing

Pharmaceutical

Commercial

Telecom

Electric Utility

Data Centers

Others

By Region

North America

US

Canada

Mexico

Europe

Germany

UK

France

Italy

Spain

Rest of Europe

South America

Brazil

Argentina

Rest of South America

Asia-Pacific

China

India

Japan

Australia

Rest of Asia-Pacific

Middle East and Africa

Key Developments

In October 2023, Aggreko launched their most recent Tier 4 Final generators in the Canadian market. Beginning in 2022, the units will be offered in US as Canadian Standards Association (CSA)-certified alternatives ranging from 100 kW to 500 kW. The company asserted that it created the generators to adhere to the strictest emissions regulations for diesel-powered generators set forth by the US Environmental Protection Agency (EPA) and Canadian Environmental Protection Act (CEPA).

Caterpillar Inc. announced the introduction of the Cat(R) XQ330 Series of Mobile Diesel Generators in February 2023. It is an innovative power solution designed for standby and mission-critical applications, which complies with US EPA Tier 4 Final emission criteria. The XQ330 has a powerful Cat C9.3B diesel engine that produces a maximum power output of 288 kW in standby mode and 264 kW peak power at 60 Hz.

In February 2023, Pramac GmbH, an Italian company that specializes in electrical solutions, generators and material handling equipment and is a wholly-owned subsidiary of P.R. Industrial s.r.l. and a division of Generac Power Systems, declared the acquisition of REFU Storage Systems GmbH (REFUstor) from REFU Elektronik GmbH.

Why Purchase the Report?

To visualize the global diesel generator market segmentation based on portability, power rating, application, end-user and region, as well as understand key commercial assets and players.

Identify commercial opportunities by analyzing trends and co-development.

Excel data sheet with numerous data points of the diesel generator market with all segments.

PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.

Product mapping available as Excel consisting of key products of all the major players.

The global diesel generator market report would provide approximately 79 tables, 74 figures and 220 pages.

Target Audience 2024

Manufacturers/ Buyers

Industry Investors/Investment Bankers

Research Professionals

Emerging Companies