by Diesel generators are combustion engines that burn diesel fuel to generate electricity. They find applications in construction sites, mining operations, oil and gas drilling sites, and remote locations where grid connectivity is difficult. Diesel generators provide reliable backup power during power outages and are easy to transport, install, and maintain. They are economical for long-term power requirements in off-grid locations compared to grid connection. Their advantages over gasoline and gas generators include higher fuel efficiency, lower maintenance costs, and ease of fuel storage and transportation. The Global diesel generators market is driven by increasing power demand, growth of the construction and mining industries, and expansion of oil and gas exploration activities in remote areas.
The global diesel generators market is estimated to be valued at US$ 20.02 Bn in 2024 and is expected to exhibit a CAGR of 5.7% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the diesel generators market are AKSA Power Generation Company, Atlas Copco AB, Caterpillar, Cummins Inc., Doosan Portable Power, Generac Power System Inc., Honda India Power Products Ltd., Kohler Co., Rolls-Royce plc, Wartsila Corporation, Honda India Power Products Ltd., Yamaha Motor Co Ltd., Mitsubishi Heavy Industries Ltd., Mahindra Mahindra Ltd., and Kirloskar Oil Engines Ltd.
The growing construction and mining industries across developing nations are fueling the demand for reliable and affordable backup power solutions like diesel generators. The market is witnessing increased sales of advanced generators with low maintenance and improved fuel efficiency.
Various players in the market are expanding their global footprint by strengthening distribution networks across Asia Pacific, Middle East, and Africa to tap the opportunities in remote power markets.
Market key trends
The diesel generators market is witnessing increased adoption of smart generator technologies integrated with IoT and telematics. Smart diesel generators enable remote monitoring of performance parameters and preventive maintenance. They offer improved fuel management and optimized load allocation. Manufacturers are focusing on introducing emission control systems like SCR and EGR in diesel generators to comply with stringent emission norms. Lightweight and portable diesel generators with higher fuel efficiency are gaining traction for temporary power applications in commercial and residential sectors.
Porter’s Analysis
Threat of new entrants: The diesel generators market has high barrier for new entrants due to high capital requirements for production capacity and presence of large established players dominating the market.
Bargaining power of buyers: Buyers have moderate bargaining power as there are many established players in the market offering substitute products.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power as raw materials used in manufacturing diesel generators are standard and available from multiple sources globally.
Threat of new substitutes: Threat of substitution is moderate as renewable energy and natural gas generators can replace diesel generators for certain applications.
Competitive rivalry: The market competition is high due to presence of many global and regional players offering similar products.
Geographical Regions
North America accounts for the largest share of the diesel generators market in terms of value due to high adoption across industrial and commercial sectors for backup power needs.
The Asia Pacific region is expected to grow at the fastest rate during the forecast period driven by increasing demand from the developing economies like India and China for reliable backup power from diesel generators.
Geographical Regions
North America accounts for the largest share of the diesel generators market in terms of value due to high adoption across industrial and commercial sectors for backup power needs. The Asia Pacific region is expected to grow at the fastest rate during the forecast period driven by increasing demand from the developing economies like India and China for reliable backup power from diesel generators.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
