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Diesel Generators Market


Energy & Power
Power Generation

The diesel generators market is expected to grow from an estimated USD 13.06 Billion in 2015 to USD 16.96 Billion by 2020, at a CAGR of 5.4% from 2015 to 2020. Lack of grid infrastructure in remote locations and increasing industrialization in developing countries are driving the diesel generator market globally.

Diesel generators are widely used across different industries such as utilities, oil & gas, marine, mining, healthcare, and telecom among others. They provide continuous power supply during power outages as well as at locations where grid infrastructure is not available.

The report segments the diesel generator market on the basis of application, power rating, end-user, and region. The end-user segment has been further segmented into industrial, commercial, and residential. The industrial segment accounted for the largest market share in 2014, and is expected to dominate the market during the forecast period. Utilities/power generation and oil & gas industries are the largest users of diesel generators in the industrial segment. Growing industrialization and rising demand for continuous power supply by these industries are expected to drive the diesel generator market from 2015 to 2020.

The diesel generator market has also been classified on the basis of power rating into 0-100 kVA, 100-350 kVA, 350-1000 kVA, and above 1000 kVA. The demand for diesel generators with a power rating between 350-1000 kVA is expected to increase during the forecast period, due to their usage in a wide range of applications in the oil & gas, telecom, datacenter, and healthcare industries.

Asia-Pacific is the leading market owing to chronic power outages and need for continuous power by the growing industrial and commercial sectors. Poor grid infrastructure and rising power demand in countries such as India and China are driving the diesel generator market in the region. The Middle East & Africa market is expected to grow at the second highest CAGR during the forecast period. The European and North American markets are expected to have slow growth rates during the forecast period due to economic slowdown.

Diesel Generators Market

In order to reduce carbon emissions, most countries are promoting the use of cleaner backup power sources in case of power outages. Governments are providing subsidies on installing solar plant. This is one of the major constraints for the growth of the diesel generator market.

Some of the leading players in the diesel generators market include Caterpillar Inc. (U.S.), Cummins Inc. (U.S.), Generac Holdings Inc. (U.S.), Kohler Co. (U.S.), MTU Onsite Energy (Germany), and Mitsubishi Heavy Industries Ltd. (Japan). New product launch was the most commonly used strategy by top players in the market. It was followed by contracts & agreements and expansion.

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