Diesel Generator Market Size, Share & Trends Analysis Report By Product (Low Power, Medium Power, High Power), By End Use (Residential, Commercial, Industrial), By Region, And Segment Forecasts, 2013 - 2022

Industry Insights

The global diesel generator market size was valued at USD 12.65 billion in 2014 and is projected to exhibit a CAGR of 6.8% during the forecast period. Surging demand from residential, commercial, and industrial sectors is expected to drive the market. In addition, rising demand from various emerging economies is expected to propel demand over the forecast period.

The current demand for electricity globally far outstrips the supply. Factors such as continuous population growth, infrastructure development and rapid industrialization in emerging economies are pacing demand for power. Diesel gensets have numerous advantages such as low operating costs and better fuel efficiency.

Diesel generators are appliances that supply electrical power during a power failure and prevent discontinuity of daily business operations. Diesel generators are available in different configurations to be used in different applications. These engines use compression-ignition for igniting fuel. Fuel is injected into the engine at different stages using an injector. Generally, air compression ratio in a diesel engine ranges from 14:1 up to 25:1. Diesel engines used nowadays are more reliable and have low-cost maintenance as compared to the gas generators.

Solution providers in the diesel generator market are responsible for design, installation, and maintenance of the power supply. Large companies who own an array of generators or the companies that rely on gensets need an in-house engineer to continuously monitor their gensets. Small companies, residences, and commercial places that use generators for backup power can establish maintenance contracts with generator dealers or electrical contractors.

End-use Insights

Commercial segment accounted for 39.8% of the diesel gensets market share in 2014. Hospitality, which includes hotels and resorts, is another major contributor toward the growth of commercial segment of diesel gensets market. Coastal regions with high risks of natural disasters like hurricanes require constant power backup. This factor is projected to boost the commercial segment in near future.

However, the segment may lose its share to the residential and industrial sectors on account of rapid urbanization across various emerging regions.Emerging economies in the Asia Pacific and MEA regions have witnessed a strong growth in commercial sectors. Telecom, IT, and retail are some of the major sectors, which are growing rapidly in these regions, resulting in an increased demand for diesel gensets market.

Product Insights

Low power accounted for 49.0% of the global diesel generator market in 2014. Gensets with an output power of 0-350 kVA are considered as low-power gensets. Low-power diesel gensets make use of an internal combustion engines for distributed power production. As a source of emergency, these gensets are commonly used in various applications, however, they are facing increasing competition from natural gas generators in certain markets. They are mostly used in residential and commercial applications.

High-power gensets are anticipated to witness the fastest growth during the forecast period. They are mostly used in the manufacturing sector. These generators also find application in some remote areas such as marine, where a continuous power supply is required, as direct grid power is not possible in most of the cases. Generally, high power gensets have capability of providing 1,000 kVA and above. Diesel-fueled high power gensets are cheaper than natural gas-fueled gensets, in terms of operating costs. Standby diesel gensets are used in industries such as agriculture and forestry.

Regional Insights

Asia Pacific is considered as the largest regional market. Increasing per capita income of the emerging economies like India and China is boosting the region’s growth. Moreover, rapidly expanding manufacturing sector due to growing consumer demand is also anticipated to drive the regional market growth over the coming years. Japan, South Korea, China, and India are the major manufacturing hubs for the consumer electronics industry and are likely to expand further during the forecast period.

In Asia Pacific, diesel generator sets are predominantly used for back-up as the region has a moderately developed power infrastructure that supplies low-cost electricity from the utility grid. The demand pattern for diesel generator sets depends on different factors such as the country’s power infrastructure, emission norms, and purchasing power of customers.

Diesel Generator Market Share Insights

Owing to stringent environmental regulations, companies in this market are continuously launching new products that are compliant with the guidelines set by different regulatory bodies. Thus, a switch toward environment-friendly gensets is expected in the near future.

In December 2013, Cummins India launched its new power generation product line, which is compliant with the new CPCB II norms. Key companies in this market include Mitsubishi Heavy Industries, Ltd., Atlas Copco AB, Wacker Neuson SE, Burtonwood Generator & Switchgear Services Ltd., APR Energy PLC, and Wartsila Corporation.

Report Scope 

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2013 to 2022. For the purpose of this study, Grand View Research has segmented the global diesel generator market report on the basis of product, end-use, and region

• Product Outlook (Revenue, USD Million, 2013 - 2022)

  • Low Power

  • Medium Power

  • High Power

• End-use Outlook (Revenue, USD Million, 2013 - 2022)

  • Residential

  • Commercial

  • Industrial

• Regional Outlook (Revenue, USD Million, 2013 - 2022)

  • North America

    • U.S.

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia