The global diesel generators market is expected to grow by 19.7% in the next five years, representing a compounded annual growth rate (CAGR) of approximately 4.5%, according to a GlobalData report.
The industry has grown at a CAGR of 3.7% in the last five years, and is anticipated to witness a marginal increase in growth thanks to nagging global issues such as power deficits and unreliable grid power supply conditions.
The report, titled ‘Diesel Generator Market, Update 2016 – Market Size, Competitive Landscape, Key Country Analysis and Forecasts to 2020′, estimates that the global market for diesel generators will reach $17.6bn by 2020.
It has also listed a number of reasons propelling this growth, such as frequent power outages due to inadequate transmission and distribution network, big events such as Olympics, increasing number of data centres. This requires reliable power supply, and demand from emerging markets such as renewable hybrid systems. In all these cases, diesel generators continue to be a preferred power back-up solution, according to the report.
The diesel generator industry will continue to be benefitted due to factors such as mature technology, low initial cost and easy availability of diesel. The same reasons have already helped the sector command an 80% share of the global generator market, notes the report.
In addition, the report has estimated the market size for diesel generators classifying them into four segments based on capacity. Low capacity diesel generators of 75kVA or lesser rating command the highest share, according to GlobalData analysis.