Genset Market Share

Genset Market Share Analysis

According to the Global Energy Outlook 2022 by the International Energy Agency (IEA), a substantial portion of the global population, around 660 million people, is projected to lack access to electricity by 2030. A staggering 85% of this population is expected to be concentrated in Sub-Saharan Africa. The regions currently grappling with significant electricity deficits include the Middle East, Africa, Asia-Pacific, and South America. Key countries, such as Kenya, Ethiopia, Chad, India, Indonesia, and Bangladesh, within these areas face persistent challenges in providing consistent electricity to their citizens. Rural electrification proves financially unviable in many nations due to severely limited network frameworks, lack of substations, and extensive transmission and distribution lines.

Despite these challenges, the past decade has witnessed a notable reduction in the number of people without electricity, largely attributed to the increased adoption of off-grid electrical solutions. Off-grid approaches play a crucial role in enhancing electrification indices, especially in reaching remote populations. To achieve global energy access by 2040, 60% of the new capacity must be provided through off-grid solutions, employing rural individual, small, and microgrid systems.

Diesel generators or generator sets continue to be fundamental components of off-grid electricity systems. Their versatility allows for easy installation, either as standalone frameworks or as part of hybrid systems, often combined with renewable sources like solar power. Projections indicate that diesel generator sets will contribute approximately one-third of the solutions up to 2040, with renewable energy technologies making up the remaining two-thirds.

China stands out as a nation benefitting from the cost-effectiveness and efficiency of diesel generator sets, meeting the rising demand for power backup equipment as living standards improve. Many developing countries face challenges in establishing suitable grid infrastructure for power transmission, coupled with a lack of abundant natural gas deposits. In regions such as Asia and Africa, where around 3.5 billion people lack reliable energy access, a robust and subsidized diesel generator industry has emerged due to insufficient centralized electrical networks. As the economies of these regions grow, so does the demand for power. Governments in these areas are increasingly focusing on providing electricity to their populations, indicating a probable rise in the use of diesel gensets for baseload electricity generation in the foreseeable future. Hence, the electrification of underserved regions in emerging economies presents a significant growth opportunity for participants in the global diesel genset market.