|Status : Published||Published On : Oct, 2022||Report Code : VREP3022||Industry : Energy & Power||Available Format :||Page : 210|
The global diesel genset market size is expected to reach USD 35.67 billion by 2030 from USD 19.56 billion in 2021, thereby registering a 7% CAGR during the forecast period. A generator set or genset is a cost-effective device that transforms mechanical energy into electrical power for several electrical applications and is highly efficient and reliable. A generator set is made up of a motor and an alternator that is connected and fixed onto a base along with other components. Batteries, fuel tank, control panel, and automatic transfer switch are among the other main parts of a generator set. Gensets are mostly employed as backup equipment for power outage in the construction site, grid, and industry. A genset has a number of benefits that make it a popular option for a number of applications which include utility paralleling switchgear that allows for automatic or manual operation, automatic operation that may be started locally or remotely utilising SCADA system, and automatic load management system and voltage support in utility mode.
Insight by Power Requirement
Based on Power Requirement, the global diesel genset market is bifurcated into Prime Power and Backup Power. Backup power is anticipated to grow at a faster pace during the forecast period as gensets are extensively deployed to provide backup electricity at individual units, manufacturing facilities, data centers, housing societies, retail shops, telecom towers, and hospitality firms. The demand for backup power is expected to increase further as a result of the expanding industrial and construction industries.
Insight by Mobility
Based on Mobility, the global diesel Genset market is bifurcated into Stationary and Portable. The stationary gensets is anticipated to contribute the largest share during the forecast period owing to the increased demand for diesel gensets in the manufacturing sector of several emerging nations like India, Indonesia, China, and Brazil. Furthermore, rapid urbanisation will lead to increase demand for stationary gensets in order to meet the rising need for electricity in the future.
Insight by Power Rating
Based on Power Rating, the global diesel genset market is segregated into 7–14 kVA, 15–24 kVA, 25–44 kVA, 45–69 kVA, 70–99 kVA, 100–149 kVA, 150–199 kVA, 200–299 kVA, 300–399 kVA, 400–499 kVA, 500 kVA and Above. The 7-14 kVA power rating is anticipated to have a high CAGR during the forecast period. Diesel generators with a power rating of 7 to 14 kVA are frequently utilised for residential lighting due to their affordability. Furthermore, the use of these systems is rapidly expanding in rural and urban residential areas.
Insight by Application
Based on Application, the global diesel genset market is fragmented into Commercial, Industrial, and Residential. Commercial users include Retail establishments, Commercial offices, Telecom Towers, Hospitals, and Hotels. Industrial user includes Manufacturing and Energy & Power. The commercial segment dominates the global diesel genset market owing to rapid industrialization and flourishing construction sector that comprises greenfield and brown field infrastructural projects will propel industry development of diesel gensets. For backup and primary power supply, generator sets are extensively deployed in offices, malls, retail stores, and many other commercial places. Furthermore, the need for gensets in the commercial sector will continue to rise due to increased private infrastructure spending and government-led smart city initiatives.
Factors attributing to the market growth of the global diesel genset market include a surge in market demand for stationary and emergency power backup among several industry verticals such as healthcare, construction, marine, manufacturing, telecom, oil & gas, and automotive. Additionally, the market will increase as a result of the rapid installation of backup supply systems and the increasing consumer inclination and awareness toward cost-effective and dependable backup power solutions. In addition, the rising demand for electricity globally, and the growing concern for the increasing number of power outages will propel the market demand for reliable power sources like standby generators, thereby accelerating the market expansion of the global diesel genset industry during the forecast period. Increased grid failure brought on by extreme weather will have a favourable effect on the business environment of diesel gensets.
Moreover, rapid digitalization, increased adoption of intelligent personal assistants and autonomous cars, and surge in demand for IoT, digital currencies, and cloud computing will propel the market growth for the diesel genset industry globally as it will provide additional space to store all the digital data being created. Thus, the rising number of data centers will drive market growth for the diesel genset market. Thus, a few of the main elements propelling demand for diesel generator sets include high fuel availability, low volatility rates, and long lifespans.
There is high capital investment and huge installation and maintenance costs for setting up diesel gensets that may pose challenges to the market growth of the diesel genset market. Moreover, shifting focus towards renewable power generation and stringent government regulations towards emission of greenhouse gases from diesel gensets will also stymie market expansion.
Asia-Pacific dominates the diesel genset market due to the increased number of power outages, urbanization, the surge in number of construction activities, infrastructural development, mounting installation of low-power rating gensets in the telecommunication sector, and rising demand for uninterrupted power from industrial and commercial sectors will propel the market growth in the region. Moreover, the rising need for adequate grid infrastructure will bolster the demand in the region.
North America is expected to grow at a rapid pace during the forecast period as the region is seeing an increasing number of power outages due to severe weather occurrences like tornadoes and hurricanes, rising demand for standby generators, and mounting investment in the construction industry. Furthermore, many new commercial and residential buildings are being built as a result of an increase in Americans' and Canadians' disposable income. These locations are intended to install generators in significant numbers for backup and primary power supply both during construction and after being leased, thereby drives the market development of global diesel genset industry.
Major players in the diesel genset market have been fairly active, taking various steps to expand their customer reach, develop their brand identity in foreign markets, and ensure aftermarket services for their products.
The industry players operating in the global diesel genset industry are looking for technological advancements owing to operational constraints like noise levels, pollutant emission levels, and the ability to function in extreme environments and climatic circumstances like humidity, sandstorms, and severe environments.
To remain competitive in the global diesel gensets market, manufacturers are providing developed monitoring equipment, control systems, and digital technology. Furthermore, the growing popularity of portable diesel generators for residential applications is expected to boost market growth over the forecast period.
Caterpillar is the prominent generator set manufacturer, with the widest range of specifications available. Cat commercial and industrial diesel generator sets provide reliable, clean, and cost-effective power for prime, continuous, or standby power applications. The core design of the diesel engine components, combined with advances in electronics, air management, and fuel delivery, ensures peak performance even at higher temperatures and altitudes. Every Cat diesel generator set is designed, engineered, and built for maximum performance. All major components are individually tested, and once the generator set is assembled, the entire unit is tested for operation and safety at and above 100% of rated load.
KOHLER® diesel generators are designed to power a wide range of applications, including hospitals, gas stations, data centres, and airports. And, with their trusted KD Series generators, they can provide massive power up to 4 MW.
Recent Development by Key Players
In August 2022, Caterpillar is expanding its standby diesel generator set series with three 60 Hz power nodes ranging from 20 to 30 kW. According to the company, the units have a small footprint and are suitable for a variety of standby applications such as small healthcare, retail and commercial enterprises, telecommunications, water and wastewater treatment processes, municipal infrastructural facilities, and office spaces.
In June 2022, Cummins Inc. has introduced the C1000D6RE, a new 1MW twinpack rental generator that provides a competitive rental power solution for a wide range of applications across North America. Cummins, a company synonymous with technology, dependability, and service since 1919, will manufacture the new C1000D6RE model in Fridley, Minnesota.
Key Players Covered in the Report
Some of the prominent players in the global diesel genset industry include Cummins Inc., Caterpillar.Co, Denyo Co.,Ltd, ABB, Wärtsilä, Siemens, Kohler Co., PR INDUSTRIAL srl, Generac Power Systems, Inc., and General Electric