by Diesel generators work on the principle of converting chemical energy stored in diesel into electrical energy. They have advantages such as low running costs, high efficiency, easy operability, and ability to operate effectively with lower fuel intake under low load. Due to blackouts during natural disasters and power outages, there is increasing demand for backup power sources. Diesel generators have become an integral part of disaster recovery plans for industries, businesses and households as they provide reliable backup power.
The global diesel generators market is estimated to be valued at US$ 20.02 Bn in 2024 and is expected to exhibit a CAGR of 5.7% over the forecast period 2024 To 2031.
Key Takeaways
Key players: AKSA Power Generation Company, Atlas Copco AB, Caterpillar, Cummins Inc., Doosan Portable Power, Generac Power System Inc., Honda India Power Products Ltd., Kohler Co., Rolls-Royce plc, Wartsila Corporation, Honda India Power Products Ltd., Yamaha Motor Co Ltd., Mitsubishi Heavy Industries Ltd., Mahindra Mahindra Ltd., and Kirloskar Oil Engines Ltd. have established their dominance in the global market through continuous innovation and expansion of their product portfolio.
Key opportunities: Growing power crisis in developing countries and increasing demand for reliable backup power during power outages and natural disasters will create lucrative opportunities for diesel generator market players over the forecast period.
Technological advancements: Advancements in genset technology such as use of high-speed diesel engines, on-board computers, remote monitoring systems are enhancing capabilities of diesel generators. Introduction of intelligent microprocessor control panels and cloud-based monitoring has improved efficiency and ease of operations.
Market Drivers
Rising energy demand from industrialization: Rapid industrialization in developing countries like India, China, Brazil is fueling the demand for reliable and efficient power sources like diesel generators to meet industrial electricity needs. This will remain a key driver for market growth over the coming years. Growing investments in industrialization should further propel the diesel generators market.
Current challenges in the Diesel Generators Market
The diesel generators market is facing challenges such as stringent environmental norms regarding carbon emissions from diesel generators. Various countries and regions have implemented emission regulations such as Euro IV and Tier IV emission standards that mandate the use of ultra-low sulfur diesel fuel to reduce sulfur dioxide emissions from diesel generators. Moreover, noise pollution from diesel generators is also a major concern, especially in densely populated areas. Technological advancements in renewable energy are also posing a challenge as there is a gradual shift towards cleaner energy sources for both utility as well as backup power applications.
SWOT Analysis
Strength: Diesel generators provide reliable backup power during grid failures. They are also cost-effective for both continuous and temporary power supply applications.
Weakness: Diesel generators are noisy and cause air and noise pollution. Additionally, they require regular maintenance and troubleshooting.
Opportunity: Advancements in emission control technologies provide an opportunity to reduce environmental impact. Remote monitoring systems allow better asset utilization and performance optimization.
Threats: Stringent emission norms and incentive policies favoring renewable energy adoption pose a major threat. Volatility in diesel fuel prices also increases operational costs.
Geographical regions of concentration
North America accounts for the largest share of the diesel generators market in terms of value. This is attributed to frequent power outages caused by natural disasters in the United States. Additionally, the data center industry and mining activities in the region drive the demand.
Fastest growing region
Asia Pacific region is expected to witness the highest growth in the diesel generators market during the forecast period. Rapid industrialization and infrastructure development in countries such as China and India are the key drivers. Additionally, power deficit issues in rural areas of these densely populated nations favor the adoption of diesel generator sets.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
