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Sales Scenario of Global Diesel Gensets Market to Remain Positive Through 2025

Sales Scenario of Global Diesel Gensets Market to Remain

Diesel gensets supply electrical power to households and industries during power-cuts and power deficiency to prevent discontinuity in daily activities and business operations. Diesel gensets works on the principle of conversion of kinetic energy into electrical energy. Diesel gensets are made up of an internal combustion engine (IC engine) which is fuelled by diesel and alternators (electrical generation unit). Based on power production capacity or power rating, diesel gensets are broadly classified under four categories, namely low power rating (below 60 kilowatts), medium power rating (60 kilowatts – 300 kilowatts), high power rating (300 kilowatts – 1 megawatt), and very high power rating (1 megawatt and above).

Asia Pacific was the largest market for diesel gensets in 2013, followed by Europe and North America. North American and European markets are heading towards maturity while the emerging markets in Asia Pacific, Middle East and Latin America have high growth rate. Growth rate in rest of the world (Middle East, South America and Africa) is the highest to increasing power demand owing to infrastructural developments in the countries such as Brazil and South Africa.

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Based on product segment, low power rating diesel gensets hold majority of the market share mainly due to their wide acceptance in domestic, manufacturing, data centre, mining and petrochemical industries. Very high power rating gensets are expected to witness highest growth across the power rating categories in the coming years which are attributed to their increasing demands from manufacturing industries. However, the increasing government regulations against pollution caused by diesel gensets and evolution of emission standards are posing threat for the industry. The trend of eco-friendly power generators such as solar panels and batteries and rising petroleum prices are also restraining the growth of diesel gensets market. Gas gensets are one of the emerging power source and a substitute for diesel genets. However, they require related infrastructure for the gas pipelines which are absent in most of the regions in the developing countries.

The power requirement in developing countries is increasing due to rapid urbanization and industrialization. However, the deficit remains due to the demand and supply gap. Moreover, the ageing power infrastructure and non-reliable grid power supply in the developing countries have been creating further power deficit, which is expected to boost the demand for diesel gensets. The increasing demand for mobile diesel gensets and bio-fuel based diesel gensets is providing new opportunities for global diesel gensets market.

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The major companies operating in the diesel gensets market includes APR Energy Plc., Broadcrown Ltd., Caterpillar Inc., Cummins Inc., Dresser-Rand Group Inc., F.G. Wilson Inc., Kirloskar Oil Engines Ltd., MQ Power Corp., MTU Onsite Energy Corp., Mitsubishi Heavy Industries, Ltd., Wacker Neuson SE and Wuxi Kipor Power Co. Ltd.

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