Diesel Generator Industry Overview
The global diesel generator market size was estimated at USD 16.36 billion in 2023 and is expected to grow at a CAGR of 9.6% from 2024 to 2030. Increasing energy demand globally far outstrips the supply. Factors, such as continuous population growth, infrastructure development, and rapid industrialization in emerging economies drive power demand.
Diesel generators are favoured for their numerous benefits, including low operating costs and superior fuel efficiency, making them particularly popular in developing areas, notably the Asia Pacific region. Despite these advantages, they also have several disadvantages, such as noise pollution and the emission of harmful gases. The World Nuclear Association has predicted that the electricity demand is likely to double from current levels. In addition, the U.S. Department of Energy forecasts that solar energy will become the most plentiful energy source available.
Gather more insights about the market drivers, restrains and growth of the Diesel Generator Market
Significant growth in the economies of major developing nations, such as India and Brazil, is expected by 2050. India is expected to grow from being the third largest to the second largest economy in the world, only after China in terms of GDP at PPP (purchase power parity). Countries, such as Brazil, India, and South Africa, are already suffering due to a low power supply. Emerging economies are expected to account for 65% of the global economy. The U.S. market is anticipated to witness substantial growth owing to rising costs of power outages across several IT-enabled service firms and data centers and growing consumer awareness of the need for a reliable emergency power supply. In addition, the market is also driven by the rising vulnerability of grid power stations to disasters caused by changing weather conditions across the region.
Solution providers are mainly responsible for manufacturing, installing, maintaining, and repairing generator systems. Dealers or electrical contractors typically enter into supply and maintenance agreements with end-market consumers, which include commercial establishments, residential areas, and small businesses that use generators for emergency power backup. In addition, companies often appoint an in-house monitoring engineer to oversee the operation of numerous generators in industrial-scale settings. Stringent government regulations regarding reducing harmful carbon emissions are expected to boost the penetration of gas-based generators over diesel generators. This trend is anticipated to restrict the demand for diesel generators across all end-use sectors. However, low operating costs and low initial investment are among the key factors sustaining the current requirement for diesel generator sets.
Key Companies profiled:
• 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
Browse through Grand View Research’s Category Power Generation & Storage Industry Research Reports.
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Diesel Generator Market Segmentation
Grand View Research has segmented the global diesel generator market based on power rating, application, region:
Diesel Generator Power Rating Outlook (Revenue, USD Million, 2018 – 2030)
• Low Power Generator
• Medium Power Generator
• High Power Generator
Diesel Generator Application Outlook (Revenue, USD Million, 2018 – 2030)
• Industrial
• Commercial
• Residential
Diesel Generator Regional Outlook (Revenue, USD Million, 2018 – 2030)
• North America
o U.S.
o Canada
o Mexico
• Europe
o UK
o Germany
o Russia
o France
• Asia Pacific
o China
o Japan
o India
o South Korea
• Central & South America
o Brazil
o Argentina
• Middle East & Africa
o Saudi Arabia
o UAE
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Key Diesel Generator Company Insights
Key companies are adopting several organic and inorganic expansion strategies, such as mergers & acquisitions, new product launches, capacity expansion, mergers & acquisitions, and joint ventures, to maintain and expand their market share.
• In May 2023, Cummins, a power generation equipment and engine manufacturer, launched a novel diesel generator set powered by their B45 engine, a 4.5-liter, four-cylinder diesel engine designed for power generation applications. This new generator set is expected to provide reliable power for a variety of industries, including construction, rental, and prime power
• In August 2022, Caterpillar launched three standby diesel generators ranging from 20 to 30 kilowatts (KW) for the North American market. These diesel generator sets, powered by the Cat C2.2 engine, are designed for small industrial, telecommunications, and commercial applications. They meet U.S. EPA emergency emission standards and industry safety certifications and offer features like exceptional performance, compact size, readily available parts, and optional enclosures