By the Electrical India content team
Digitisation refers to generating the demand for huge volumes of data that thereafter leads to increasing demand for data centres. According to Prescient and Strategic (P&S) Intelligence Market report, there is a spike in demand for data centres and digitisation. As a result, the global Genset market is predicted to reach USD 22,777.8 million during the year 2024 – from USD 17,592.6 million in 2019, at a 5.2 per cent CAGR during the forecast period (2020–2024).
The report said that the diesel division generated the highest revenue in the Genset market in the year 2019 as this fuel is available around the world. Even though gas Gensets of low power ratings are cost-effective as compared to diesel variants, natural gas is not easily available everywhere, which is why the uptake of gas Gensets is lower. Till the year 2024, the 76 kVA–375 kVA category will dominate the Genset market, on account of the high demand for these variants from small industrial complexes, commercial offices, telecom towers, and hotels. Further, with the increase in construction activities, heavy investments in the development of public infrastructure, and expanding manufacturing industry, the uptake of 76 kVA–375 kVA Gensets is projected to rise, the report added.
The Middle East and African (MEA) region are expected to grow the fastest during the Genset market during the forecast period, as the grid connectivity in many regional countries is poor. Additionally, nations including the UAE, Saudi Arabia, Egypt, and Turkey is witnessing rapid industrialisation and increasing commercial activities that also leads to a demand for power generation equipment. Infrastructure development for World Expo 2020 (Dubai) and 2022 FIFA World Cup (Qatar) under Saudi Vision 2030, as well as regional governments’ focus on reducing their dependence on oil and gas, are resulting in the expanding construction sector in the MEA.
Further, the P&S market report states that Genset market players are either raising the production capacity of their existing plants or setting up new ones, in order to meet the increasing demand for Gensets and stay ahead in the competition. For instance, in April 2017, a new gas and diesel Genset production line was added by Caterpillar at its Seguin plant in Texas. With 2.2–18 litre engines, the Gensets coming out of this line can produce up to 500 kW of power.
Similarly, in March 2017, Hipower Systems bought a manufacturing facility in Kansas for USD 24 million to serve as its new corporate headquarters. Here, designing, engineering, manufacturing, sales, and support operations are carried out, including those for its MTU Detroit portable generators, which comply with the Tier 4 Final emission standards. Cummins, Caterpillar, AB Volvo, Kohler Co, General Electric Company, Denyo Co Ltd., Escorts, Kirloskar Oil Engines Limited, Siemens AG, and Generac Holdings are the major companies in the global Genset market.