The Global Diesel Generator Market was valued at USD 20.28 billion in 2022 and is projected to reach USD 41.21 billion by 2031, with a CAGR of 8.2 % during the forecast period 2023–2031.
A diesel generator is an equipment used to generate electricity from mechanical energy obtained from the combustion of diesel or biodiesel. This mechanical energy or force is further converted into electrical energy. It possesses properties such as quick startup time, easy availability of diesel generators across the globe, prolonged durability, fast ramp-up, and enhanced reliability.
The diesel generator market's growth is driven by an increase in continuous and stable energy demands from developing economies such as China, India, Japan, and Brazil. This is due to the fact that diesel generators are used as backup power sources when main grid power is unavailable, allowing industries to continue manufacturing and other processing operations without interruption. Furthermore, due to properties such as quick startup time, high efficiency, and reliability of diesel generators, demand has increased in sectors such as oil & gas, manufacturing, building & construction, and processing. This factor is expected to significantly contribute to the global market's growth during the forecast period.
Emerging economies such as China, India, and Brazil are investing in electrifying remote and rural areas. Increased population and urbanization are the primary factors driving the need for electrification in these countries, fueling demand for diesel generators. Asia-Pacific countries such as Bhutan, Afghanistan, India, Nepal, and Cambodia have experienced the highest electrification growth rates in the last five years, thanks to on-grid and off-grid solutions. Taking all of the preceding factors into account, an increase in demand for diesel generators from emerging economies is expected to provide lucrative opportunities for market expansion during the forecast period.
On the basis of geography, Global Diesel Generator Market has been segmented into North America, Europe, Asia Pacific, and LAMEA.
The United States is North America's leading manufacturer and consumer of diesel generators. Canada and Mexico are two other countries in the region with significant potential for diesel generators. Diesel generators are in high demand in the building and construction industry, which is expanding at a rapid pace. The major factor expected to drive the growth of the diesel generator market during the forecast period is an increase in demand for diesel generators from various industrial sectors such as construction sites, residential, manufacturing & operations, mining, and hospitals.
Europe dominates the diesel generator market, with a strong presence in the construction and healthcare sectors. The region's major revenue contributors are Germany, France, the United Kingdom, Spain, and Italy. Europe is one of the largest automobile producers, accounting for 4% of its GDP. As a result, manufacturing, and processing require a continuous and stable power supply, which diesel generators provide.
In terms of revenue growth, Asia-Pacific leads the way in the diesel generator market. China, Japan, India, South Korea, and Australia are major contributors to this region's growth. Furthermore, the Asia-Pacific economy's rapid population growth and rise propel the growth of the building, construction, and healthcare industries. The rise in power outages and the increased demand for an uninterruptible and stable power supply are driving the growth of the Asia-Pacific diesel generator market.
Because of the rapid growth in oil and gas, building and construction, and other industries, LAMEA is one of the key regions with the highest share of the diesel generator market. Brazil, Saudi Arabia, and South Africa are the major economies in the diesel generator market in LAMEA.
Caterpillar, Inc., Cummins, Inc., Rolls Royce Plc., Kohler Co., Generac Power Systems, Inc., Southwest Products, Atlas Copco AB, FG Wilson, Denyo Co., Ltd., Kirloskar Electric Company
North America
Europe
Asia-Pacific
Central and South America and the Caribbean
The Middle East
Africa