The global diesel gensets market was worth USD 15.46 billion in 2017. The growing need for reliable power supply in building & construction, data center, transportation & logistics, commercial infrastructure, healthcare industry, and military applications is expected to increase the market concentration of diesel generator sets over the projected period.
Global Diesel Gensets Market Revenue, By Region, 2015-2025 (USD Billion)
Frequent power outages by virtue of storms, severe weather events, and floods have affected industrial operations, residential homes, commercial establishments, and emergency services. Therefore, strong power backup system for reliable power supply has increased market penetration of diesel gensets over the past few years. However, the emergence of renewable energy and high maintenance cost associated with diesel engines is expected to be the key market restraint.
It’s being expected that by 2030, the Diesel Gensets market cap will hit USD 30406.18 Million at a CAGR growth of about 6.50 %.
Over the past few years, rapid growth in telecommunication, heavy industry, infrastructure, and information technology has encouraged diesel generator manufacturers to expand their product portfolio and offer innovative products to cater to industry-specific requirements. Manufacturers are offering diesel gensets with improved engine life, remote monitoring & control, synchronization with the grid, and automated data analysis to cater to the growing requirement of the buyer. Industrial application accounted for more than 30% of the global diesel gensets market share in 2017. Increased demand for uninterrupted power demand in industrial facilities such as oil & gas industry, mining industry, and automotive industries is expected to fuel the global diesel gensets market growth over the coming years.
Global Diesel Gensets Market Share, By Application, 2017 (%)
The global low power diesel gensets market generated revenues worth USD 7.43 billion in 2017. High purchasing power and the availability of cost-effective products has increased the adoption of low power diesel gensets in developed economies. Moreover, rapid industrialization in India, China, Brazil, and Saudi Arabia is expected to provoke manufacturers to expand product portfolio to increase geographical reach. For instance, in 2017, Mahindra Powerol, a unit of Mahindra Group, invested more than USD 20 million in India to make industrial diesel generators. These generators are powered by Common Rail Diesel Engine (CRDe) technology.
North America accounted for nearly 20% of the global diesel gensets market share in 2017. Growing adoption in mining, marine, railway, and oil & gas industry is expected to increase market penetration over the coming years. Mining industry plays important role in U.S. economy. In 2017, U.S. mining output increased by more than 25% as compared to 2016. Diesel generators accounted for more than 70% of the energy utilized to run various equipment used in the mining industry such as excavating machinery, large drills, and shovels. Increasing demand for iron ore, coal, gas, and other precious metals is expected to strengthen mining industry over the coming years, which in turn will propel the growth of the global diesel gensets market size.
The global diesel gensets industry is competitive in nature as a large number of well-established manufacturers are operating in this industry. Some key manufacturers are Kirloskar Electric Company, Cummins Inc., Caterpillar, Kohler Co., Aggreko, Mitsubishi Heavy Industries, Ltd., Atlas Copco, Generac Power Systems, Inc., FG Wilson, and HIMOINSA.
Caterpillar, Cummins, and other prominent manufacturers are continuously breaking new ground to launch innovative technology and treatments to improve traditional engines. In May 2017, Caterpillar Inc. launched Cat XQ125 mobile diesel generator in its rental power solutions. Optimized productivity, improved fuel efficiency, and meeting emission standards of a new product are expected to strengthen Caterpillar’s market position in the global diesel generator industry.
In addition, manufacturers are adopting partnership strategies to strengthen their distribution channel and increase global presence. For instance, in 2017, NRG Energy, Inc., an American energy company, and Cummins Inc., a U.S. based manufacturer engaged in engines, filtration, and power distribution products, offered combined services for on-site generators to save nearly 15% of energy expenses.
Diesel Gensets Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2030||USD 30406.18 Million|
|Growth Rate||CAGR of 6.50 % during 2022-2030|
|Segment Covered||by Type, by Mobility, by Cooling System, by Application, by End-User, Region.|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and Africa|
|Key Players Profiled||Cummins, Inc., Caterpillar Inc., Generac Power Systems, Inc., Mitsubishi Heavy Industries, Ltd., Rolls-Royce Power Systems AG, AKSA POWER GENERATION (KAZANCI HOLDING), Cooper Corp., Briggs & Stratton Corporation, Atlas Copco, and others.|
Key segments of the global diesel gensets market
Product Overview, 2015-2025 (USD Million)
- Low Power
- Medium Power
- High Power
Application Overview, 2015-2025 (USD Million)
Regional Overview, 2015-2025 (USD Million)
- North America
- Latin America
- Middle East & Africa
- Saudi Arabia