Diesel Generator Market Analysis By Product, By End Use, By Region And Segment Forecasts From 2015 To 2022

Industry Insights

The global diesel generator market size was accounted for USD 12.65 billion, in 2014. It is projected to ascend with a CAGR of 6.8% over the estimated duration. Growing demand from the industrial, residential, and commercial sectors is projected to fuel the market growth. The market is also expected to be driven by rising demand from many developing nations over the estimated duration. Increasing requirements for constant power supply and rising instances of power outages are also propelling the market.

Factors such as growing population, rapid industrialization, and infrastructure development in developing nations such as India and China are responsible for increasing power demand in these nations. Diesel generators are the most preferred power backup solutions owing to advantages like safe to operate, reliability, less fuel usage, and cost-effectiveness.

Diesel generators are equipment that supplies electricity during a power cut and blackout, thus, preventing in stoppage of routine business activities. Diesel generators are made available in different arrangements for various applications. Compression-ignition is used in these engines to burn fuel. An injector is used to put fuel in the engine at different periods. A normal air-compression ratio in an engine varies from 14:1 to 25:1. Today’s diesel engines require low maintenance and they offer complete reliability during a power cut over gasoline generators.

Solution providers of the diesel generator market are liable for installing, designing, and maintaining the continuous power supply. An in-house engineer is required by the large companies who own a variety of generators to look after these gensets. On the other hand, small companies, commercials, and residences that use diesel generators for power backup prefer to maintain a contract with electrical contractors or generator dealers.

End-use Insights

The commercial segment occupied a market share of 39.8% in 2014. The segment growth is attributed to the growing usage of diesel generators in hospitality sectors which include resorts and hotels. Coastal regions are more prone to natural disasters, such as hurricanes and cyclones, which require continuous power backup, which, in turn, is predicted to fuel the segment growth in the upcoming years.

However, rapid urbanization in various developing nations might hinder the growth of the segment in the industrial and residential sectors. The substantial growth of commercial sectors is witnessed in developing countries of MEA and the Asia Pacific. Major sectors such as retail, telecom, and IT are expanding rapidly in these regions, thereby, driving the demand for diesel generators.

Product Insights

Low power gen-sets occupied a diesel generators market share of 49.0% in 2014. Gensets having an output power of 0-350 kVA are categorized in low-power generators. These generators use combustion engines to produce power and are widely used in commercial and residential applications. This product is facing stiff competition from natural gas generators in certain regional markets as natural gas generators are a cleaner and economical source of power backup.

High power generators are expected to foresee rapid growth over the forecast years owing to increasing application in the manufacturing sector. These generators are also used in remote locations such as marines, which require a constant supply of electricity, as the direct power supply is difficult most of the time. High power generators are capable of providing 1000 kVA power and above. This product is cheaper than natural-gas generators, in terms of maintenance and operating costs. Standby diesel generators have a wide range of applications in the forestry and agriculture industry.

Regional Insights

The Asia Pacific is the largest market for diesel generators. Factors such as growing purchasing power in developing nations such as China and India and the rapidly growing manufacturing sector are predicted to fuel the regional market growth over the estimated duration. Nations such as India, Japan, China, and South Korea are the key production hubs for consumer electronics. These hubs are anticipated to expand more over the forecast years.

Asia Pacific region has semi-developed power infrastructure that supplies electricity at economical rates from the power grid. This has resulted in the extensive use of diesel generators for power backup in the region. Factors such as emission norms, per capita income of consumers, and the nations’ power infrastructure, drives the demand for diesel generators.  

Diesel Generator Market Share Insights

Various players in the market are introducing new products adhering to the environmental regulations and guidelines laid down by several regulatory bodies. Thus, a shift towards sustainable gensets is predicted in the upcoming years.

For instance, a company named Cummins India, in 2013, introduced a new power generator, which is in compliance with the new norms laid down by CPCB II. Leading players in this industry include FG Wilson Inc., Burtonwood Generator & Switchgear Services Ltd., Kirloskar Electric Co., Ltd., Aggreko PLC., Mitsubishi Heavy Industries, Ltd., Wacker Neuson SE, Cummins Inc., Himoinsa S.L.Wartsila, Corporation, APR Energy PLC, and Atlas Copco AB.  

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2013 to 2022. For the purpose of this study, Million Insights has segmented the global diesel generator market report on the basis of product, end-use, and region:

• Product Outlook (Revenue, USD Million, 2013 - 2022)
    • Lower Power
    • Medium Power
    • High Power

• End User Outlook (Revenue, USD Million, 2013 - 2022)
    • Residential
    • Commercial
    • Industrial

• Regional Outlook (Revenue, USD Million, 2013 - 2022)
    • North America
        • U.S.
    • Europe
        • Germany
        • U.K.
    • the Asia Pacific
        • China
        • India
        • Japan
    • Latin America
        • Brazil
    • Middle East & Africa
        • Saudi Arabia