Diesel Genset Market to Reach $17,821.3 Million by 2024

The demand for diesel fueled gensets is primarily driven by the growing requirement for standalone power and backup power in construction sites, industries, residential buildings, retail stores, office spaces, hospitals, and hotels, according to P&S Intelligence.

The global diesel genset market is projected to reach USD 17,821.3 million by 2024, registering a CAGR of 5.8 per cent during the forecast period. Globally, the demand for diesel fueled gensets is primarily driven by the growing requirement for standalone power and backup power in construction sites, industries, residential buildings, retail stores, office spaces, hospitals, and hotels, according to P&S Intelligence.

The demand for diesel fueled gensets is growing with the aging grid infrastructure in countries like the US and insufficient grid infrastructure in countries including Nigeria, Algeria, Ghana, and several other African and Latin American countries. In order to withstand the growing demand for standalone and backup power requirements, several diesel genset market players have been investing a huge amount for developing their product lines. For instance, players including Kirloskar Oil Engines, Cummins, and Kohler have resorted to partnerships with other companies to reduce capex, develop and localise production lines, and offer customised solutions.

Insights into market segments

The diesel genset market is segmented on the basis of power rating and application. Based on power rating, the market is categorised into 5 kVA–75 kVA, 76 kVA–375 kVA, 376 kVA–750 kVA, and above 750 kVA diesel gensets. Among these, 5 kVA–75 kVA gensets accounted for the largest market share in terms of sales volume during the historical period, owing to the high demand for these gensets in application areas with low-power requirements. The demand is majorly generating by rising power outages and absence of proper power infrastructure in developing countries, driving the demand for 5 kVA–75 kVA diesel gensets in the market.

Further, on the basis of application, the diesel genset market is classified into commercial, industrial, and residential applications. Of these, the commercial sector held the largest share in the market, with more than 50 per cent share in 2018. This can be ascribed to the heavy demand for high-power gensets in commercial buildings and data centers for both backup and prime power supply. Growing urbanisation in developing countries, which are coming up with smart city projects, and increasing data center installations in both developed and developing countries are expected to help the market for these gensets in commercial sector to grow with a promising rate during the forecast period.

Commercial offices to generate a high demand for diesel gensets

In 2018, commercial offices accounted for over 25 per cent sales value in the commercial application of diesel fueled gensets. Globally, commercial office applications majorly include commercial buildings and data centers. In these commercial offices, data centers have a significant revenue contribution, owing to their requirement of high-capacity gensets.

The advent of new technologies, such as edge computing, internet of things (IoT), cloud computing, and artificial intelligence, is driving the development of hyperscale data centers, which are equipped with thousands of servers and therefore, require uninterrupted electricity supply for smooth operations. This need for reliable electricity supply in data centers is expected to drive the diesel genset sales, further boosting the diesel genset market growth during the forecast period.