Diesel Genset Market Analysis

Global Diesel Genset Market Overview

The diesel genset market is expected to grow at a CAGR of 6.5% over the forecast duration of 2024-2030. The diesel genset market was valued at USD 16.65 Billion in 2022 and is expected to reach USD 27.55 Billion by 2030. The Diesel Genset Market is driven by growing demand for continuous power supply. With increasing urbanization and rapid industrial growth and expansion the demand for power supply is expected to grow significantly leading to increasing demand for fuel-generated electricity, hence leading to increasing demand for diesel gensets, causing the global market to expand.

Another factor impacting the market positively is the increasing number of power outages. Power outages can be caused by a short fall in the overall electricity supply and at the same time due to natural hazards that can hinder supply. Diesel gensets acts as a largely portable and reliable source of emergency or backup power source, hence with rising power outages globally diesel generator demand is set to grow during the forecast period.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Diesel genset market Trends

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  Increasing Demand for Reliable Backup Power is driving the market growth for Diesel Genset Market

  
  

In today's increasingly connected and technology-driven world, the need for reliable backup power has become paramount. Industries ranging from data centers and healthcare facilities to manufacturing plants and telecommunications rely heavily on uninterrupted power supply to ensure continuous operations. This growing demand for reliable backup power has had a significant impact on the diesel genset market, making it a preferred choice for many businesses and organizations. One of the primary reasons for the increasing demand for diesel gensets as backup power sources is their high reliability. Diesel gensets are known for their robustness and ability to provide stable power output over extended periods. This reliability stems from the design and engineering of diesel engines, which have been refined over many decades to withstand rigorous use and operate under varying conditions. This reliability factor makes diesel gensets well-suited for critical applications where any interruption in power supply can lead to severe consequences, such as data loss, equipment damage, or compromised patient care.

Moreover, diesel gensets offer efficient and cost-effective backup power solutions. The efficiency of diesel engines, combined with advances in generator technology, allows for optimal fuel consumption, reducing operating costs compared to other backup power alternatives. Diesel fuel is widely available, and the infrastructure for fuel distribution and storage is well-established, making it a convenient option for backup power systems. This accessibility and cost-effectiveness contribute to the popularity of diesel gensets in various industries and sectors. Another driving force behind the increasing demand for diesel gensets is the scalability they offer. Diesel gensets come in a wide range of power capacities, from small portable units suitable for residential use to large industrial-grade generators capable of supplying power to entire buildings or facilities. This scalability makes diesel gensets adaptable to different power requirements, enabling businesses to choose the appropriate generator size based on their specific needs.

Furthermore, diesel gensets offer quick response times when compared to other backup power solutions. In the event of a power outage, diesel gensets can start and provide power within seconds. This rapid response time is crucial for applications where even a brief interruption in power can lead to significant financial losses or compromised safety. Industries such as healthcare, where life-saving medical equipment relies on uninterrupted power supply, greatly benefit from the quick response time of diesel gensets. The increasing demand for reliable backup power has also spurred technological advancements in the diesel genset market. Manufacturers are constantly investing in research and development to enhance the efficiency, performance, and environmental impact of diesel gensets. This has led to the development of advanced control systems, improved engine designs, and innovative exhaust after-treatment technologies to reduce emissions. Stricter emission regulations imposed by governments worldwide have further accelerated these advancements, pushing manufacturers to produce cleaner-burning diesel engines with lower emissions of pollutants such as nitrogen oxides (NOx), particulate matter (PM), and sulfur compounds.

In conclusion, the demand for reliable backup power has been a significant driving force in the diesel genset market. The high reliability, efficiency, scalability, and quick response time of diesel gensets make them an ideal choice for industries and sectors where uninterrupted power supply is critical. Technological advancements, including cleaner-burning engines, hybrid configurations, and remote monitoring capabilities, have further propelled the growth of the diesel genset market. As businesses and organizations continue to prioritize uninterrupted operations, the demand for reliable backup power solutions, including diesel gensets, is expected to persist and drive further innovations in the industry.

Diesel Genset Market Segment Insights

Diesel genset market by Type Insights

The Diesel Genset Market has been categorized Based on the Power Capacity into 5kVA-75kVA, 76kVA-375kVA, 376kVA-750kVA and 750kVA-1MW. In 2022, the 5kVA-75kVA segment drove the Diesel Genset Market by holding a substantial market share with a market value of USD 8,565.98 million. It is projected to register a CAGR of 6.40% during the projected timeframe. The 5 kVA–75 kVA segment includes generators that have output power in the range between 5 kVA to 75 kVA. These are the pairings of the engine and the electrical generator fixed together to produce a single piece of machinery that offers electrical power. These products' mechanical functionality generates electricity. These are the devices that convert mechanical energy obtained from an external source into created electrical energy. The movement of the electric charges that are still in the wire of their windings is powered by the mechanical energy that is supplied to these high-quality 75 KVA generator sets.

Diesel genset market by Application Insights

The Diesel Genset Market has been categorized based on application into commercial, residential, and industrial. In 2022, the Industrial segment drove the Diesel Genset Market by holding a substantial market share with a market value of USD 11,696.66 million. It is projected to register a CAGR of 6.29% during the projected timeframe. The industrial segment includes major industries that are dependent on diesel generators for base-load electricity. The industrial segment is further segmented as oil & gas, construction, mining, power generation, and others. The segment is estimated to grow at the fastest rate during the forecast period, due to the increasing demand for diesel generators from end users in industries. Construction is highly dependent on the continuous power supply for uninterrupted operations. Construction sites do not have access to grid electricity and hence install diesel generators to power the critical operations. As the residential, commercial, and industrial infrastructure grows, the demand for diesel generators in the construction segment is expected to witness rapid growth during the forecast period.

Diesel genset market Regional Insights

Based on region, the Diesel Genset Market has been segmented into North America, Latin America, Europe, Asia-Pacific, and the Middle East & Africa. The Asia-Pacific region is anticipated to drive the Diesel Genset Market throughout the forecast period. The target region is anticipated to offer a total incremental opportunity of USD 9,398.51 million by the end of 2030.

Diesel genset industry in the region is likely to make the Asia-Pacific region the largest expanding market for diesel genset globally. The market for diesel genset is also anticipated to grow throughout the forecast period because of the demand of continuous power supply in developing nations like China and India. The technological advancements in diesel-powered generators are expected to steer the market in India to a considerable extent, and they have been the main reason behind the growth of DG sets sales in India. Diesel generators are the most popular and occupy the highest share among other fuel-based generators due to continuous technological innovations. In February 2021, Kirloskar Oil Engines Limited, an India-based company, launched new high-horsepower DG sets for the Indian market. Now the company's offered product range covers diesel generator sets of 2kVA to 1010kVA power in the country.

Diesel Genset Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the Diesel genset market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Diesel genset market industry must offer cost-effective products to expand and survive in an increasingly competitive and rising market environment.

Some of the key players operating in the Diesel genset market are Cummins Inc. (US), Aggreko Ltd (UK), SDMO (France), PRAMAC (Italy), Generac Holdings Inc. (US), HIMOINSA (Spain), Caterpillar (US), Atlas Copco (Sweden), Doosan Corp (South Korea) and AB Volvo (Sweden). To increase their global reach and client base, key firms are concentrating on acquisitions and product innovation.

Cummins Inc. designs, manufactures, distributes, and offers maintenance services for diesel and natural gas engines and engine-related component products, including filtration, after-treatment, turbochargers, fuel systems, controls systems, air handling systems, transmissions, and electric power generation systems worldwide. It operates through five segments: engine, distribution, components, power systems, and electrified power. The company offers a wide range of diesel generators under the power systems segment to customers worldwide.

Cummins Inc. serves its customers through a network of 500 company-owned and independent distributor facilities and approximately 8,000 dealer locations in more than 190 countries and territories. Consolidated Diesel of North Carolina Inc. (US), Beijing Foton Cummins Engine Co., Ltd. (China), and Cummins Westport, Inc. (Canada) are some of its subsidiaries. Kohler Co. (US), Generac Power Systems, Inc. (US), and Mitsubishi Heavy Industries Ltd. (Japan) are some of the company’s competitors.

Aggreko Ltd is a provider of power generation and industrial heating and cooling solutions. It produces power, installs, and operates modular and mobile power plants, and develops and rents electric solutions and equipment. The company offers a range of diesel and gas power generators, transformers; load banks; distribution boards, and other accessories for hire. Aggreko also provides cooling equipment such as modular cooling towers, air-cooled chillers and air conditioners, and industrial process cooling solutions for events, exhibitions, commercial complexes, hospitals, hotels, and malls. It serves utilities, oil and gas, services, contracting, shipping, mining, events, construction, manufacturing, military, petrochemical, and refining sectors. It operates in Europe, South America, North America, the Middle East, and Asia-Pacific.

Key Companies in the Diesel Genset market includes

• Cummins Inc. (US)


• Aggreko Ltd (UK)


• SDMO (France)


• PRAMAC (Italy)


• Generac Holdings Inc. (US)


• HIMOINSA (Spain)


• Caterpillar (US)


• Atlas Copco (Sweden)


• Doosan Corp (South Korea)


• AB Volvo (Sweden

Diesel Genset Industry Developments

In June 2023, Sterling Generators allied with Moteurs Baudouin, a French company that manufactures both gas and diesel generators. They will capitalize on Baudouin's legacy of engineering and manufacturing high-quality petrol engines and diesel engines as well as Sterling Generators' sensible engineered auxiliary power solutions, which are fuel efficient and fulfill the latest exhaust emission standards.

Cummins Inc. launched the marine diesel Cummins turbo (MDCT) genset in May 2023. This reliable genset can be fitted with either a low or high kW Cummins B4.5 auxiliary engine, resulting in genset ratings of 40 kWe - 80 kWe and 80 kWe - 110 kWe respectively. An MDCT generator set has been made for sale and is expected to start shipping by the end of this year.

In July 2022, Octopus Hydrogen and GeoPura partnered to develop green hydrogen for a game-changing cleaner technology that would replace dirty diesel generators. This partnership is expected to help decarbonize numerous industries by providing fossil fuel substitutes in the context in which they are being used.

The Indian government sweeps its focus towards improving the economy through increased infrastructure spending, mainly on roads, railways and metro rail, among others; there are huge growth opportunities for Diesel Generators in Metro Rail projects with the new metro rail policy being contemplated currently by every big city across India.

On the other hand, in February 2022, A subcommittee of the government's air quality council removed the ban on diesel generator sets in Delhi-NCR today, effective immediately. The panel reported that air quality has improved recently and is anticipated to improve further in the coming days.

The industrial sector, which includes mining, manufacturing, agriculture and construction, accounts for the highest energy consumption among any end user. Therefore, this is likely to increase demand for diesel gensets due to the increasing need for uninterrupted power supply from these sectors, particularly institutions in health care delivery, pharmaceuticals industry and factories.

July 2022 Cummins Inc. launched a new 1MW twinpack rental generator, the C1000D6RE, which offers a competitive rental power solution for a diverse range of applications throughout North America. The C1000D6RE is a twinpack that combines two 500kW, 15L Cummins generators into a 40ft power unit with aftertreatment. As a result, the C1000D6RE can deliver dependable, high output performance and still comply with Tier 4 final emissions regulation. The generator is capable of masterless load demand and can be used in parallel with other rental power solutions.

March 2022 Mitsubishi Heavy Industries launched a new MGS-R Series of diesel generator sets. The new series, which was created to meet the expanding demands of the digital economy and is primarily aimed at data centers in Asian and Middle Eastern markets, also provides a dependable backup power solution for commercial facilities like office buildings and shopping centers.

October 2021 Generac, a leading manufacturer of mobile light towers, generators, heaters, pumps, and dust suppression solutions, launched two large new diesel units – the MDE330 and MDE570 diesel mobile generators, which are aimed at providing ease of operation and maintenance. The rental-ready machines feature wide-opening removable doors to maximize serviceability by allowing the technician to reach all service points more easily. The rugged steel design and construction allow for operation for a variety of applications, regardless of weather conditions.

October 2020 Aggreko launched its Tier 4 Final-compliant generators, a lower-emission fleet of solutions ranging from 25 kW to 1200 kW. Tier 4 Final generators are intended to meet the Environmental Protection Agency's stricter emissions regulations in the United States and Canada. To remove harmful pollutants, all units in the fleet use a variety of advanced exhaust treatment processes. These systems achieve a 98% reduction in particulate volume and a 96% reduction in NOx emissions when compared to traditional generators.

Diesel genset market Segmentation

Diesel Genset Power Capacity Outlook

• 5kVA-75kVA


• 76kVA-375kVA


• 376kVA-750kVA


• 750kVA-1MW

Diesel Genset Application Type Outlook

• Standby Power


• Peak Shaving


• Prime or Continuous Power

Diesel Genset End-user Type Outlook

• Mining


• Oil & Gas


• Construction


• Marine


• Residential


• Commercial

Diesel Genset Regional Outlook

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  North America

  
  
  
  
  • US
  
  
  • Canada
  
  
  
  


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  Europe

  
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


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  Asia-Pacific

  
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


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  Middle East & Africa

  
  
  
  
  • Saudi Arabia
  
  
  • UAE
  
  
  • South Africa
  
  
  • Rest of Middle East & Africa
  
  
  
  


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  South America

  
  
  
  
  • Brazil
  
  
  • Argentina
  
  
  • Rest of South America