A recent report by Allied Market Research highlights significant growth in the diesel generator market, which was valued at $20.8 billion in 2019 and is anticipated to reach $37.1 billion by 2027. This represents a compound annual growth rate (CAGR) of 9.8% from 2020 to 2027.
The report profiles key players in the industry, including 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 notable companies in the global diesel generator supply chain include Mitsubishi Heavy Industries, Volvo Penta, Wacker Neuson, Wuxi Kipor Power, Yanmar Co. Ltd., Wartsila Corporation, and APR Energy, LLC.
The Asia-Pacific region is expected to exhibit the fastest growth, with a projected CAGR of 10.0% during the forecast period. In 2019, this region held over 35.0% of the diesel generator market share in terms of revenue, indicating its dominance.
Within the Asia-Pacific market, the industrial segment is anticipated to be the fastest-growing end-user sector, with an expected CAGR of 10.5% from 2020 to 2027. The large diesel generator segment accounted for the majority of the global market share in 2019 and is expected to maintain this lead throughout the forecast period.
In terms of generator type, the stationary diesel generator segment held about 73.8% of the global market share in 2019 and is projected to continue its dominance until the end of the forecast period. Additionally, the air-cooled diesel generator segment accounted for 61.32% of the market share in 2019 and is expected to grow at a rate of 9.9%, contributing to the overall expansion of the diesel generator market.
Diesel generators, which convert mechanical energy obtained from diesel or biodiesel combustion into electricity, are equipped with an internal combustion engine, electric generator, mechanical coupling, voltage regulator, and speed regulator. They find applications across various sectors, including building and public infrastructure, data centers, transportation and logistics, and commercial infrastructures.
The growth of the diesel generator market is fueled by significant developments in end-use industries such as oil and gas, telecommunications, mining, and healthcare. Additionally, rising demand for diesel generators as backup power sources in developing economies is further driving global market expansion.
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