Machinery Equipment-Construction

Diesel Generator Market is Projected to Reach USD 22.63 Billion by 2030

Mar 2024

Machinery Equipment-Construction

As per the report published by Kings Research, the global Diesel Generator Market was valued at USD 12.03 billion in 2022 and is projected to reach USD 22.63 billion by 2030, growing at a CAGR of 8.39% from 2023 to 2030.

The global diesel generator market is characterized by a mix of drivers and opportunities that make it a robust and evolving industry. One key driver boosting this growth is the increasing demand for reliable backup power solutions across various sectors such as healthcare, data centers, manufacturing, and construction. Diesel generators offer a dependable source of power during grid failures and are crucial for maintaining continuous operations. Moreover, the growing frequency of extreme weather events due to climate change is bolstering the demand for diesel generators as a backup power source.

In addition, the market is witnessing potential opportunities in the development of hybrid power systems that combine diesel generators with renewable energy sources such as solar and wind, reducing both operating costs and environmental impact. Furthermore, the increasing focus on remote and off-grid locations for industrial activities and disaster relief operations presents opportunities for the diesel generator market to provide essential power solutions. Overall, the diesel generator market is poised to observe substantial growth due to the rising demand for reliable power sources, infrastructure development, and technological advancements.

Key Insights

  • Based on power rating, the 0-100 kVA segment is anticipated to exhibit the highest CAGR of 10.28% over the forecast period
  • Based on application, the standby load segment generated the highest revenue of USD 5.20 billion in 2022
  • Based on end user, the industrial segment accounted for the highest revenue of USD 5.16 billion in 2022
  • On the basis of region, Middle East & Africa is expected to witness the highest CAGR of 11.06% through the projected period

Sterling Generators Inks Strategic Partnership With Moteurs Baudouin for the Development of Genset

June 2023: Sterling Generators entered into a strategic partnership with Moteurs Baudouin, a renowned French power generation manufacturer specializing in gas and diesel engines. This partnership aimed to leverage Baudouin's expertise in producing top-notch engines and Sterling Generators' innovative and eco-friendly auxiliary power solutions that comply with the latest emissions regulations.

Increasing Demand for Reliable Power Backup Solutions to Propel Market Growth

A significant driver supporting the diesel generator market growth is the increasing demand for reliable power backup solutions. As businesses and industries become increasingly dependent on uninterrupted power supply, diesel generators offer a dependable source of backup power during grid failures and outages. This demand is particularly pronounced in sectors such as healthcare, data centers, and manufacturing, where any power interruption can result in significant financial losses or even endanger lives. The ability of diesel generators to provide continuous power in critical situations positions them as indispensable assets for various applications. As a result, manufacturers are continually innovating to enhance the efficiency, reliability, and environmental sustainability of diesel generators, ensuring that they remain a preferred choice for businesses and industries seeking robust backup power solutions.

Development of Hybrid Power Systems to Create New Opportunites for Market Expansion

A prominent growth opportunity for the diesel generator market lies in the development of hybrid power systems. By combining diesel generators with renewable energy sources such as solar and wind, companies can reduce operating costs and environmental impact. These hybrid systems offer the potential for greater energy efficiency and sustainability, aligning with the global shift toward cleaner energy solutions. As environmental concerns continue to grow and emissions regulations become stricter, the adoption of hybrid diesel generators is poised to increase, presenting a promising opportunity for market growth. These systems not only provide backup power but also contribute to reducing the carbon footprint of industries and infrastructure, making them an attractive option for businesses looking to balance reliability with environmental responsibility.

Middle East & Africa Emerges as the Fastest-Growing Region, Depticting a CAGR of 11.06% Owing to Increased Industrialization And Urbanization

The diesel generator market in the Middle East & Africa has experienced strong growth in demand due to multiple factors, including the easy availability of fossil fuels, suboptimal governmental policies restricting transmission capabilities, and an expanding population contributing to rising electricity needs. These factors have compelled consumers to generate their own electricity using small backup generators, thus propelling market growth. Furthermore, the aim is to increase its annual per capita electricity consumption by more than six times in the coming years from 151 kWh in 2015 to 982 kWh per capita by 2025. This increase is expected to positively impact the market. Consequently, Nigeria is projected to dominate the market owing to its large population base and constrained transmission capabilities, thereby boosting the demand for diesel generators in the country.

Surging Focus of Market Players on Product Innovation to Drive Market Development

The global diesel generator market is fragmented with key players such as Caterpillar, Aggreko, Cummins Inc., Wärtsilä, Kohler, Kirloskar Electric Company, Generac Power Systems, Inc., Atlas Copco, Briggs & Straton, Yamaha Motor Co., Ltd., PowerLink Group, and HIMOINSA. Companies in the sector are employing a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.

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