Genset Market

Market Overview

The global genset market was valued at USD 18.03 billion in 2018 and is expected to reach a value of USD 28.85 billion by 2026.  

A genset is a device that transforms mechanical energy into electrical energy for various purposes. It comprises an engine and an alternator, which are coupled and embedded on a base with other components. The other components of a genset include batteries, fuel tank, control board, and programmed transfer switch. Gensets are cost-effective equipment with high efficiency and reliability in operation. Gensets can be operate through different remotely programmed such as SCADA systems, which is used to monitor and control equipment in industrial process. Gensets are extensively used in the commercial sphere, such as in the construction of roads, metro rails, and railways. In the railway sector, gensets are installed to power air conditioners.  

The primary drivers of the global genset market include the growing demand for uninterrupted and reliable power supply and the burgeoning demand for hybrid diesel gensets. Diesel generators are extensively employed in the oil and gas industry. For instance, oil and gas fields in Nigeria have the highest number of diesel gensets. According to industry experts, the demand for electricity in Nigeria was over 40,000 MW whereas the energy produced oscillated near the 7,000 MW–8,000 MW mark.

Segmental Analysis

The global genset market is segmented by power ratings, fuel type, application, and end-use.

Up to 100 kVA, 100–350 kVA, 350–1000 kVA, and above 1000 kVA are the power rating segments studied in the report. 350–1000 kVA power rating segment is leading in the market, owing to its heavy usage in data centers, government projects, among others. These types of gensets are designed to automatically start and stop generating. This module also provides excellent engine monitoring, protection features, and has the ability to monitor under speed , over speed, emergency stop, among others.

The gensets players are focusing to supply more gensets to data centers as it requires much electricity as a small town. These data center require multiple 750kVA and above gensets. According to Internet and Mobile Association of India, the Indian datacenter market displays promising growth over the forecast period owing to increased usage of data through smartphones, e-commerce platforms, social networking platforms, and government projects. It is expected that India will holds second-largest market for datacenters in the Asia Pacific region by 2020, with an investment reaching to USD 7 billion, which is 4.5% of global investments.

Regional Analysis

Asia-Pacific is gaining substantial attention in the market due to the increasing instances of power outage and the prompt need for uninterrupted power supply in industrial and commercial sectors. Governments of emerging nations in the region are taking the lead to facilitate clean energy and develop infrastructure for gas pipelines. According to the International Renewable Energy Agency, Asia-Pacific generates 85% of its energy from fossil fuels.

North America is witnessing massive demand for generators, owing to the increasing vulnerability and declining resilience of regional grid infrastructure against weather-related disasters. The strong presence of key players such as Caterpillar, Wartsila, Siemens, General Electric, ABB Ltd, and PARAMAC, among others creates ample opportunities for the genset market.

Middle Eastern countries have a rich source of power for building modern infrastructures, which will unquestionably satiate the operational needs of events such as Qatar FIFA World Cup 2022 and Dubai World Expo 2020. Diesel gensets have become the primary source for power in the region’s modern infrastructure. Diesel gensets with a power capacity of up to 100 kVA are gaining significant momentum due to the high demand from construction, road infrastructure, retail, and telecom sectors. Ongoing industrial development and petrochemical zones in Sino-Oman Industrial City and Al Naayem Industrial Zone in Kuwait and Oman are expected to drive the genset market in the region. According to Kuwait’s Public Authority for Industry (PAI), Kuwait announced an investment of USD 6.6 billion to set up a multipurpose industrial city, Al-Naayem Industrial City.

Genset Market Segmentation

By Power Rating

• Up to 100 kVA
• 100–350 kVA
• 350–1000 kVA
• Above 1000 kVA

By Fuel Type

• Diesel
• Natural Gas
• Propane

By Application

• Standby Power
• Peak Shaving
• Prime/Continuous Power

By End User

• Industrial
• Commercial
• Residential

By Region

North America

• U.S.
• Canada
• Mexico

Europe

• U.K.
• Germany
• France
• Italy
• Spain
• Rest of Europe

Asia-Pacific

• China
• India
• Japan
• South Korea
• Australia
• Rest of Asia-Pacific

Latin America

• Brazil
• Argentina
• Colombia
• Rest of Latin America

MEA

• Saudi Arabia
• South Africa
• UAE
• Rest of MEA