Diesel Generators Market - Forecast(2021 - 2026)

The Diesel Generator Market is forecast to reach $21.27 billion by 2025, growing at a CAGR of 4.07% during the period 2019-2025. The growth of the Diesel Generator Market can be attributed to increasing applications in telecommunication and data center segments. The low cost and high power density of diesel generator are the key factors for its adoption in telecommunication and data center, as this establishment needs uninterrupted power supply round the clock.  

Telecom sector is one of the growing industries using diesel generator towers for an inexpensive and environment-friendly manner of providing power-failure safety. Every year, 120,000 new base stations are deployed to provide service for 400 million new mobile subscribers around the world. These base stations requires electrical power to work and provide service which will impact the DG market further. Similarly, diesel generators are experiencing growing demand from data centers owing to growing investment in data center market. The Tier4 Datacenter CtrlS is going to invest approx $300m to set up world's largest tier-4 datacentre footprint by 2020, this company also plans to set up a 150-megawatt hyperscale data center in India. These data centers will increase significant demand for diesel power generators to provide efficient uptime, which will augment the DG market revenue.

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Diesel Generator Market Report Coverage

The report: “Diesel Generator Market – Forecast (2019-2025)”, by IndustryARC covers an in-depth analysis of the following segments of the Diesel Generator Market. 

By Power: 0-100 kVA, 100-350 kVA, 350-700 kVA, 700- 1000 kVA, 1000 - 2000 kVA, 2000- 4000 kW & Above.

By Portability: Stationary Generators, Portable Generators,

By Power Type: Standby Power, Peak Sharing, Prime or Continuous Power, Black Start.

By End Use: Industry, Construction, Residential, Commercial, Public Infrastructure, Data Center, Government, Healthcare, Hospitality, Telecommunication, Water Treatment, Mining, Oil & Gas, Others.

Key Takeaways

• Key players including Caterpillar Inc., Cummins Inc., MTU Onsite Energy GmbH, Kohler Co, Generac Power Systems, Inc., and Southwest Products accounted to around 40.6% of the total market share in 2018 with the key strategy as contracts and partnerships.
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• The major driving factor in Diesel Generator Market is the increased power outages in developing countries during the forecast period 2019-2025. In this case, the diesel generator are being deployed in the rural areas to provide sufficient electricity as per the need. Moreover, developing countries like India quickly scale up their production and launch diverse products for diesel generators for building power supply and construction industry. It is estimated that the construction of approx 9 crore houses needed to be built in India and the estimated investment is of $ 2 trillion by 2022. These investments are likely to set the growth of DG market.
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• The stationary generators are majorly being deployed for telecommunication, housing, huge infrastructure such as mall, offices or corporate buildings, and condo residents to provide sufficient energy as a backup and as primary solution of electricity as well. The stationary generators hold the largest market share of around 72% in the portability segment. 
• APAC is the largest market for Diesel Generator calculating around 37% of the global market share owing to increased demand for power supply in rural areas in developing countries. Other growing factor of diesel generator in APAC region include ongoing construction, telecommunication development, and growth in data center. 
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Diesel Generator Market Segment Analysis - By Technology (By Portability)

Stationary Generators hold a majority of market share in diesel generator market globally, owing to its benefit of handling large power capacity. As commercial and industrial establishment consume large amount of power, most of the adoption of stationary generators are witnessed from these applications. According to the data provided by International Energy Agency (IEA), Industrial establishment alone consumes 35%-40% of total energy consumption globally in 2018. However, with the advancement of technology, new generation portable generator can now handle large power requirement. This will slow down the growth rate of stationary diesel generator during the forecast period, as the cost of portable generator is lesser as compared to stationary generators.

Diesel Generator Market Segment Analysis - By End-User 

Telecommunication application is one of the biggest growth factors for the diesel generators market and holds a major market share globally. The Telecommunication diesel generator market is poised to grow at a CAGR of 5.36% in the forecast period. Telecommunication, radios, and even television signals rely on telecom towers for functionality. The importance of telecom towers for everyday uses has increased the demand for standby generators. Countries like India are installing telecom towers to take care of the growing data and voice requirements for the customer base of approx 1.15 Billion. Moreover, based on the data of GSM Association, by 2020, estimates show that around 390,000 off-grid telecom towers and 790,000 off-grid places will be deployed by the worldwide telecom sector, which will simultaneously increase the demand for diesel generators which are used for power supply to these towers and ensure a continuous uptime in the remote areas. This growth in the telecom industry is likely to show a positive growth to the Diesel Generator Market. 

Diesel Generator Market Segment Analysis - By Geography 

APAC region is one of the biggest markets for diesel generator and it can be attributed to increasing number of investment in the telecom industry in this region. Telecom industry in APAC is witnessing significant investment owing to development of its 5G technology. For instance, China has invested $1.2billion in 2019 to build its 5G ecosystem. Likewise, in 2019, South Korea Government has announced plans to invest approximately $26 billion towards developing 5G infrastructure in next 4 years. Diesel generator being the cost effective solution for telecom network are likely to get benefited from these new investment. 

Other than that, the construction of railway building projects in China has gained 5.9% growth during 2019, which is set to grow the demand for diesel generators for construction purpose. Construction industry in APAC are facing stringent regulatory norm to reduce the emission. In India, the emission standards for construction industry is regularly getting updated. Recently, Government are forcing construction companies to use BS-III or above standards for diesel machinery to control the emission. This leads to growing sale of diesel generators that are certified by these standards. 

Data Center is another major end user industry for diesel generators. The growing data center investment in APAC is likely to bring new opportunity for diesel generator in this region. In 2018, few giant companies such as Google, Alibaba and Amazon proposed to pour nearly $1 billion to improve the data center infrastructure and its capacity in Indonesia. Similarly, in 2019, Oracle and Equinix proposed their plan to invest in data centers in South Korea.

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