The global diesel generator market size was valued at $20.8 billion in 2019, and is expected to reach $37.1 billion by 2027, registering a CAGR of 9.8% from 2020 to 2027. Diesel generator is a device that converts chemical energy into electrical energy with the help of devices such as diesel engine and electric generator. Diesel generator can function for several hours to several weeks or till the grid power is recovered. The efficiency of diesel generator is between 30% and 50%, and is the combination of diesel engine and alternator efficiencies. The key advantages of diesel generator include prolonged durability, economic nature than other generators, high efficiency, and quick start-up time. However, the use of diesel generators leads to environmental pollution requires high maintenance & operating cost.
The report includes the study of the diesel generator market with respect to the growth prospects and restraints based on the regional analysis. The study includes Porter’s five forces analysis of the diesel generator industry to determine the impact of suppliers, competitors, new entrants, substitutes, and buyers on the market growth. Several end users can benefit from diesel generators in a number of ways, as diesel generator include prolonged durability, economic nature than other generators, high efficiency, and quick start-up time which boosts its demand in the market. However, the use of diesel generators leads to environmental pollution which requires high maintenance & operating costs.
Diesel generators are commonly used as standby power sources in residential, commercial, and industrial settings. Diesel generators can serve as the primary source of power in off-grid or remote locations where grid connection is not feasible or cost-effective. They are often used in remote or isolated areas where access to the electricity grid is limited or non-existent. Diesel generators are used in several applications such as oil and gas exploration sites, telecommunications towers, research stations, and rural electrification projects, hospitals, power construction sites and mining operations.
The growth global diesel generator market is driven by rise in demand for continuous & stable power supply and rapid industrialization & urbanization in the developing economies. However, implementation of stringent government regulations toward greenhouse gases emissions from diesel generators and rapid development of the renewable energy sector are the key factors hampering the growth of the market. On the contrary, increase in technological advancements in diesel generator and increase in demand for energy from various end-use industries are anticipated to provide lucrative growth opportunities for the key players to maintain the position in the market in the upcoming years.
Diesel generators are available in various sizes and power capacities which boost its demand in a wide range of applications. Diesel generators can be easily transported and deployed in different locations, providing flexibility for temporary or remote power needs. Their portability and quick setup feature make diesel generators valuable in construction sites, events, and emergency situations which drive the diesel generator market trends in near future.
Diesel fuel also offers higher energy density compared to other fuels, resulting in better fuel efficiency, and longer running times for diesel generators. Diesel fuel is readily available in most regions, which results in easy adoption of diesel generators for several industries and applications. Diesel generators are capable of delivering high power output, handling heavy electrical loads and accommodating sudden load fluctuations without significant performance degradation which drives its demand in various applications.
The integration of diesel generators with renewable energy sources and energy storage systems presents diesel generator market opportunities for more efficient and sustainable power generation. The integration systems can optimize fuel consumption, reduce emissions, and provide reliable power even in intermittent renewable energy scenarios. The combination of diesel generators with energy storage systems can enhance their performance and flexibility.
Energy storage systems can absorb excess power generated by the diesel generator during low load periods and discharge the energy during high load demand which will enhance the performance of diesel generators. The upcoming opportunities for diesel generators lie in the integration with renewable energy sources, expanding applications in remote and off-grid areas, and the ongoing demand for reliable backup power in critical infrastructure sectors.
While diesel generators offer numerous benefits to end users, however, there are several restraining factors which limit its usage. Production of electricity from diesel generators results in the emission of nitrogen oxides (NOx), particulate matter (PM), and carbon dioxide (CO2) gas. These emissions contribute to air pollution and can have negative impacts on air quality and public health, especially in densely populated areas.
Therefore, government and higher authorities are coming up with strict environmental regulations and concerns about increase in pollution level which restrain the growth diesel generator market share in near future. The installation and operation of diesel generators may be subject to various regulations, permits, and compliance requirements. Meeting these regulatory requirements and obtaining necessary approvals can add complexity and time to the deployment of diesel generators which also restrain the market growth.
Furthermore, diesel fuel is used in the operation of electricity generation from diesel generators. Although diesel fuel is widely available, the price of diesel is volatile in nature and may be influenced by various factors such as global oil prices, taxes, and transportation costs. The cost of diesel fuel can make the operation of diesel generators relatively expensive, especially in regions where fuel prices are high or volatile. Additionally, in remote or off-grid areas, the logistics and transportation of diesel fuel to the generator site may result in high operation cost which become challenge for diesel generator market.
The accelerate the focus on renewable energy sources and energy diversification in developing regions. Governments and large industries may prioritize investing in clean and sustainable energy solutions to reduce dependence on fossil fuels and minimize geopolitical risks. This shift towards renewable energy could potentially challenge the demand for diesel generators in the long run.
The global market of diesel generator is segmented into type, mobility, cooling system, application, end-use industry, and region. Depending on type, the market is categorized into small, medium, and high. On the basis of mobility, it is bifurcated into stationary and portable. By cooling system, it is classified into air cooled and liquid cooled. The application covered in the study include standby backup power and peak shaving. As per end-use industry, the market is segregated into residential, commercial, and industrial. Region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The global diesel generator industry covers in-depth information of the major industry participants. Some of the major players in the market include Caterpillar, Inc., Cummins, Inc., Rolls Royce plc, Kohler Co., Generac Power Systems, Inc., Southwest Products, Atlas Copco AB, FG Wilson, Denyo Co., Ltd., and Kirloskar Electric Company.
Other players in the value chain of the market include Mitsubishi Heavy Industries, Volvo Penta, Wacker Neusan, Wuxi Kipor Power, Yanmar Co. Ltd., Wartsila Corporation, and APR Energy, LLC.
The key players are adopting numerous strategies such as product launch, agreement, and joint venture to stay competitive in the market of diesel generator.
For instance, Caterpillar, Inc., a construction machinery manufacturing company, launched new 30 KVA mobile diesel generator set in 2019. It is named as Cat XQP30, a 50/60 Hz, which is available in two versions, in which one version meets European Union (EU) Stage IIIA emission standards and another provides low brake-specific fuel consumption (BSFC). This product launch is expected to strengthen the product portfolio of the company.
In addition, Cummins, Inc., a power equipment manufacturer, launched new ignition protected marine generator in 2019. The new generator is named as the MDKBJ Onan marine generator. This generator is designed to supply auxiliary power to a vessel with gasoline propulsion engines. This is anticipated to strengthen the product portfolio of the company.
Diesel Generator Market, by Type
By type, the large diesel generator segment held the largest market share in 2019, owing to increase in demand from large-scale industries such as mining, healthcare, commercial, manufacturing, and data centers.
By Type
Large Diesel Generator is projected as the most lucrative segment.
Diesel Generator Market, by Mobility
On the basis of mobility, the stationary diesel generator segment dominated the global market in 2019, in terms of share, owing to increase in demand from the industrial sectors such as manufacturing, mining, agriculture, and construction.
By Mobility
Stationary is projected as the most lucrative segment.
Diesel Generator Market, by Cooling System
By cooling system, the air cooled diesel generator segment garnered the highest market share in 2019. This is attributed to increase in demand from residential and commercial consumers such as apartments, complexes, malls, and others.
By Cooling System
Air Cooled is projected as the most lucrative segment.
Diesel Generator Market, by Application
On the basis of application, the peak shaving segment exhibited the highest market share in 2019. This is attributed to increase in maximum power demand in densely populated areas and from manufacturing operations (when production rate is high).
By Application
Peak Shaving is projected as the most lucrative segment.
Diesel Generator Market, by End Use Industry
By end-use industry, in 2019, the commercial segment held the largest diesel generator market share, owing to increase in demand from the commercial sites such as shops, complexes, malls, theatres, and other applications.
By Industry
Commercial is projected as the most lucrative segment.
Diesel Generator Market, by Region
Asia-Pacific garnered the highest share in the market in 2019, in terms of revenue, and is anticipated to maintain its dominance throughout the forecast period. This is attributed to the presence of key players and huge consumer base in the region. In addition, diesel generator is gaining importance in the construction, healthcare, and IT industries, owing to its reliability and superior fuel efficiency, which, in turn, are expected to augment the growth of the market during the forecast period.
By Region
Asia-Pacific holds a dominant position in 2019 and would continue to maintain the lead over the forecast period.
Key Benefits For Stakeholders
- The report provides an extensive qualitative and quantitative analysis of the current market trends and future estimations.
- The global diesel generator market forecast analysis from 2020 to 2027 is included in the report.
- A comprehensive analysis of the factors that drive and restrict the growth of market is provided.
- Estimations and forecast are based on factors impacting the growth of the market, in terms of value.
- Profiles of leading players operating in the market of diesel generator are provided to understand the global competitive scenario.
- The report provides extensive qualitative insights on the significant segments and regions exhibiting favorable diesel generator market growth.
The ongoing conflict between Russia and Ukraine have several impacts on the diesel generator market. The conflict can lead to disruptions in the supply chains of diesel generators, including the production, transportation, and distribution of equipment and components. Disruptions in the supply chain result in delays in deliveries and increased costs of equipment, affecting the availability and affordability of diesel generators in the market.
Furthermore, Armed conflicts and geopolitical tensions often lead to economic instability in the affected Europe region. Economic downturns can result in reduced industrial activities, decreased construction projects, and lower demand for diesel generators. The economic impact of the war can have a negative effect on the overall diesel generator market.
Economic slowdowns reduced the industrial production and manufacturing activities in all the regions. The manufacturing and industrial sectors which are dependent on diesel generators as backup power sources or for off-grid operations postpone the expansion of plants which leads to decrease in demand for diesel generators.
Diesel Generator Market Report Highlights
| Aspects | Details |
 By Type |
|
 By Mobility |
|
 By Cooling System |
|
 By Application |
|
 By End Use Industry |
|
 By Region |
|
 Key Market Players | Kohler Co., Caterpillar, Inc., Generac Power Systems, Inc., Southwest Products, Kirloskar Electric Company, FG Wilson, Cummins, Inc., Rolls Royce plc, Atlas Copco AB, Denyo Co., Ltd. |
Analyst Review
Rapid industrialization is the key factor attributed to the leading position of Asia-Pacific region in the global diesel generator market. The Asia- Pacific region is further expected to provide lucrative opportunities to leading diesel generator manufacturers, owing to its huge potential to set up manufacturing plants and surge in demand for diesel generators.
Increase in demand for reliable and continuous power supply is the key factor driving the growth of the global diesel generator market during the forecast period. However, implementation of stringent government regulations toward greenhouse gases emissions from diesel generators and rise in environmental pollution due their usage hamper the growth of the market. On the contrary, increase in government investments in the electrification of rural and remote areas is anticipated to provide remunerative opportunity for the key players to maintain the pace in the diesel generator market in the upcoming years.
Renowned global market leaders such as Caterpillar, Inc., Cummins, Inc. and Rolls Royce PLC are adopting various key growth strategies to strengthen their market position. Furthermore, these companies are focused on agreement, joint venture, and product launch to cater to the increasing demand for diesel generators.
Among the analyzed geographical regions, Asia-Pacific is likely to account for the highest revenue in the market throughout the forecast period, followed by North America, Europe, and LAMEA.
In terms of revenue growth, the CAGR of the global diesel generator market is 9.8% by 2027.
Increasing technological advancements along with increase in demand for energy from the various end use industries are the key trends in the diesel generator market.
To get latest version of diesel generator market report can be obtained on demand from the website.
The potential customers of the diesel generator market are residential, commercial and industrial.
On the basis of type, large diesel generator will drive the diesel generator market growth during the forecast period. On the basis of mobility, stationary segment will drive the growth of the diesel generator market.
The top ten market players are selected based on two key attributes – competitive strength and market positioning
The applications of the diesel generator market are standby backup power, peak shaving, institutes, and other applications.
Top players in the diesel generator market are Caterpillar, Inc., Cummins, Inc., Rolls Royce plc, Kohler Co., Generac Power Systems, Inc., Southwest Products, Atlas Copco AB, FG Wilson, Denyo Co., Ltd., and Kirloskar Electric Company.
In terms of revenue, the market size of diesel generator market is anticipated to reach $37.1 billion by 2027, growing at CAGR of 9.8% from 2020 to 2027.
Asia-Pacific will provide business opportunities for diesel generator market during the forecast period. This is attributed to the huge consumer base, increase in construction activities, high demand for uninterrupted and reliable power supply from consumers.
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