Diesel Generator Market Analysis Worldwide - 2027

A diesel generator is a type of electrical generator that uses a diesel engine to convert mechanical energy into electrical energy. It is commonly used in various applications to provide backup power or as a primary source of electricity in areas where a stable grid connection is not available or reliable. Diesel generators are widely used in residential, commercial, industrial, and construction settings due to their durability, efficiency, and long-running capabilities.

The diesel generator market size was valued at $20.8 billion in 2019, and is projected to reach $37.1 billion by 2027, growing at a CAGR of 9.8% from 2020 to 2027.

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Asia-Pacific region is expected to grow at the fastest rate, registering a CAGR of 10.0%, throughout the forecast period.

Diesel Engine: The generator is powered by a diesel engine, which is an internal combustion engine that burns diesel fuel to produce mechanical energy. The engine operates based on the principles of the diesel cycle.

Fuel Supply: Diesel generators use diesel fuel, which is less flammable than gasoline, making them safer for certain applications. The diesel fuel is stored in a fuel tank and is supplied to the engine through a fuel injection system.

Combustion: When the engine starts, air is drawn into the engine's combustion chamber, and the fuel is injected into the compressed air. The heat generated by compressing the air causes the diesel fuel to ignite, resulting in combustion. This creates a high-pressure gas that forces the piston down the cylinder, converting the chemical energy of diesel fuel into mechanical energy.

The key players operating and profiled in the report include Caterpillar, Inc., Cummins, Inc., Rolls Royce Plc., Kohler Co., Generac Power Systems, Inc., Southwest Products, Atlas Copco AB, FG Wilson, Denyo Co., Ltd., and Kirloskar Electric Company.

Other players operating in the value chain of the global diesel generator industry are Mitsubishi Heavy Industries, Volvo Penta, Wacker Neusan, Wuxi Kipor Power, Yanmar Co. Ltd., Wartsila Corporation, and APR Energy, LLC.

In 2019, Asia-Pacific dominated the diesel generator market with more than 35.0% of the share, in terms of revenue.

Industrial is the fastest-growing end user segment in the Asia-Pacific diesel generator market, expected to grow at a CAGR of 10.5% during 2020-2027.

In 2019, large diesel generator segment accounted for majority of the share of the global diesel generator market, and is expected to maintain its lead throughout the forecast period.

In 2019, the stationary diesel generator segment accounted for about 73.8% of the share in the global diesel generator market, and is expected to maintain its dominance till the end of the forecast period.

In 2019, the air cooled diesel generator segment is accounted for 61.32% market share in the year 2019, and is anticipated to grow at a rate of 9.9% in terms of revenue, increasing global diesel generator market share.

Diesel generator is the equipment used to generate electricity from the mechanical energy, which is obtained from combustion of diesel or biodiesel.

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Diesel generators are known for their reliability, robustness, and ability to provide high power outputs. They are often used as backup power sources in critical facilities such as hospitals, data centers, and telecommunications stations to ensure uninterrupted power supply during grid outages. However, they require regular maintenance and have higher emissions compared to other generator types, such as natural gas generators or renewable energy systems.

Mechanical Energy: The mechanical energy produced by the movement of the pistons in the engine is transmitted to a crankshaft, which converts the linear motion of the pistons into rotational motion.

Alternator: The rotating crankshaft is connected to an alternator, also known as a generator head. The alternator consists of a stator and a rotor. As the rotor spins, it creates a rotating magnetic field, inducing an electrical current in the stator windings.

Electrical Output: The electrical current generated in the stator windings is then collected and distributed through electrical wires to power electrical devices, appliances, and systems connected to the generator.

Diesel generator is equipped with an internal combustion engine, electric generator, mechanical coupling, voltage regulator, and speed regulator. This generator finds its application across various end-use industries such as in building & public infrastructure, data centers, transportation & logistic, and commercial infrastructures.

Significant development of the end-use industries such as oil & gas, telecom, mining, and healthcare is fueling the diesel generator market growth.

Increase in demand for diesel generator as a source of backup power from developing economies is driving the growth of the market, globally.

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Implementation of stringent government regulations toward environmental pollution from diesel generators and rapid development of the renewable energy sector are the key factors hampering the growth of the global market in the upcoming years.

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