The global diesel generators market registered a market value of $17.35bn in the year 2017. According to GlobalData’s latest report Diesel Generators Market, Update 2018 – Global Market Size, Competitive Landscape, Key Country Analysis, and Forecast to 2022, the Asia-Pacific region was the largest market for diesel generators during the year 2017, registering 26.8% of the global market share in terms of market value.
Europe was the second-largest market, representing 23.9%, followed by the Middle East and Africa (MEA) with 21.6%. The North America and the South and Central America regions shared 19.6% and 8.1%, respectively. Key drivers in the global diesel generators market include increasing power demand, low initial prices of diesel generators, inadequate gas transportation network, and lack of adequate grid infrastructure.
On the other hand, stringent emission norms, recent shale gas discoveries, and the rise of substitute power backup units are the challenges faced by the diesel generators market globally. Some of the top global diesel generators participants are Caterpillar, Cummins, Rolls-Royce Power Systems, SDMO, Generac and Briggs & Stratton, Deutz, Honda, Mitsubishi, Wärtsilä, MAN, Scania, Volvo Penta, and Wacker Neuson.
Image: diesel generator global market size in 2012, 2017 and 2021.
During the forecast period 2018–2022, the global diesel generators market is expected to register an aggregate market value of $115.1bn. High industrial growth, rapid increase in urbanization and per capita income, and the consequent increase in disposable income have helped improve living standards and increase the demand for power backup devices.
The global diesel generators market is projected to grow at a moderate growth rate accompanied by growing industrial, commercial, and residential activities. Power deficits, unreliable and uneconomical power supplies from the grid, low capital cost of diesel generators, mature technology, and ready fuel availability are the key factors driving the growth of the diesel generators market. Diesel generators are the most preferred power backup solution and accounted for more than 80% of the global generators market in 2017.
Energy demand in developing countries is growing in line with their infrastructural growth and economic development, whereas in developed countries it is increasing, although slowly, as a result of further improvement in people’s lifestyle. Utilities are not always in a place to accommodate this increasing power demand by investing in large power projects, as these projects require long construction times and huge capital investment.
Image: diesel generators – key countries’ market volume (GW) in 2017 and 2022.
According to the report, China was identified as the top country for the diesel generators market in terms of market volume, followed by the US and India. In 2017, in terms of market volume, China held an 18.2% share in the global market and is expected to hold 19.50% in 2022. China still lacks an extensive national grid; rural areas are not adequately connected. To support economic growth in these areas, the government is promoting distributed generation, which is expected to benefit the generators market.