Diesel generators have long been a reliable source of backup power for residential, commercial, and industrial sectors. But have you ever wondered how many diesel generators are there in the world? According to industry reports, the total number of medium- and large-sized diesel generators worldwide can be estimated at 5 million units. This number is expected to grow significantly in the coming years as the demand for emergency power supply increases.
The global diesel generator market overview reveals that the market size was valued at USD 16.89 billion in 2021 and is projected to grow to USD 26.09 billion by 2029. The market is expected to grow at a CAGR of 5.5% during the period 2022-2029. The increasing demand for energy globally far outstrips the supply, making diesel generators a popular choice for backup power supply. The market is expected to witness significant growth in the residential sector, especially in developing countries where power outages are common.
Key Takeaways
- The global diesel generator market is expected to grow significantly in the coming years due to the increasing demand for emergency power supply.
- The market size was valued at USD 16.89 billion in 2021 and is projected to grow to USD 26.09 billion by 2029.
- Diesel generators are a popular choice for backup power supply, especially in the residential sector in developing countries where power outages are common.
Global Diesel Generator Market Overview
The global diesel generator market has been experiencing steady growth in recent years. According to industry reports, the market size was valued at USD 16.89 billion in 2021 and is projected to reach USD 26.09 billion by 2029, growing at a CAGR of 5.5% in the 2022-2029 period.
In 2017, the diesel generator sets industry in North America held the largest market share, followed by Asia Pacific and Europe. However, by 2021, Asia Pacific had overtaken North America to become the largest market for diesel generators, with China and India being the key contributors to the growth.
The increasing demand for energy globally has far outstripped the supply, leading to a rise in the demand for diesel generators. The market is also being driven by factors such as the growth of the construction industry, the need for backup power solutions, and the rise in mobile and off-grid power applications.
The market is expected to continue growing at a CAGR of 9.4% from 2023 to 2030, with the market size projected to reach USD 15.16 billion in 2022 and USD 37.1 billion by 2027. The growth is being fueled by advancements in technology, such as the development of more fuel-efficient and environmentally friendly diesel generators.
Regional Market Insights
Diesel generators are widely used across the globe for various applications, including residential, commercial, and industrial purposes. Here are some regional insights on the diesel generator market:
North America
North America is a significant market for diesel generators, accounting for almost 20% of the worldwide market in 2017. The United States is the largest market in the region, with the diesel generator market expected to register a CAGR of more than 4% during the forecast period. The market was negatively impacted by COVID-19 in 2020, but it has since reached pre-pandemic levels. Factors like increasing growth in mining, manufacturing, agriculture, and construction are expected to drive the market’s growth in the long term.
China
China is the largest market for diesel generators globally, with a market share of around 30% in 2022. The country’s demand for diesel generators is primarily driven by the rapidly growing manufacturing and construction industries. The government’s push towards renewable energy sources may pose a challenge to the diesel generator market in the long term.
Germany
Germany is a significant market for diesel generators in Europe, with a market share of around 10% in 2022. The country’s demand for diesel generators is primarily driven by the manufacturing and construction industries. The government’s push towards renewable energy sources may pose a challenge to the diesel generator market in the long term.
South Korea
South Korea is a growing market for diesel generators in the Asia-Pacific region, with a market share of around 5% in 2022. The country’s demand for diesel generators is primarily driven by the manufacturing and construction industries. The government’s push towards renewable energy sources may pose a challenge to the diesel generator market in the long term.
Developing Countries
Developing countries are significant markets for diesel generators, with a market share of around 40% in 2022. These countries’ demand for diesel generators is primarily driven by the lack of reliable power infrastructure. The ongoing work-from-home trend has stimulated the demand for economical, small, and uninterrupted power supply options, resulting in the growing adoption of lower-capacity diesel generators for residential uses.
Diesel Generators in Key Industries
Diesel generators play a crucial role in many industries, providing backup power during outages and ensuring uninterrupted operations. Here are some key industries where diesel generators are widely used:
Industrial Sector
Industrial facilities and infrastructure require a reliable source of power to keep operations running smoothly. Diesel generators are commonly used as backup power sources in industrial settings, providing power during outages or when the main power source is unavailable. Industrial generator sets are designed to withstand heavy usage and are often used in conjunction with other power sources, such as solar or wind power.
Mining
Mining operations require a constant source of power, and diesel generators are often used to provide backup power in case of outages. These generators are designed to withstand harsh conditions and can operate for extended periods of time without maintenance.
Data Centers
Data centers require a constant and reliable source of power to keep servers and equipment running. Diesel generators are commonly used as backup power sources in data centers, providing power during outages or when the main power source is unavailable. These generators are often integrated into the facility’s power distribution system and can start up automatically in case of a power outage.
Agriculture
Agricultural operations often require power in remote locations where the grid is not available. Diesel generators are commonly used in agriculture to power irrigation systems, machinery, and other equipment.
Diesel Generators in Residential Sector
Diesel generators are commonly used in the residential sector as a backup power source during power outages. In the United States, the residential segment accounted for a significant share of the diesel generator market in 2020. The increasing frequency of natural disasters and power outages has led to a rise in demand for backup power solutions, including diesel generators.
According to a report by Mordor Intelligence, the residential segment is expected to witness significant growth in the diesel generator market in North America. The report states that the increasing need for reliable power supply and the availability of cost-effective diesel generators are driving the growth of the residential segment.
In households, diesel generators are often used to power essential appliances such as refrigerators, air conditioners, and lights during power outages. Diesel generators are preferred over gasoline generators due to their higher fuel efficiency, longer lifespan, and lower maintenance costs.
While diesel generators are a reliable backup power source, their use in residential areas has raised concerns about noise pollution and emissions. To address these concerns, manufacturers have developed quieter and more environmentally-friendly diesel generators. Additionally, regulations have been put in place to limit emissions from diesel generators in residential areas.
Role of Diesel Generators in Emergency Power Supply
Diesel generators play a critical role in providing emergency power supply during power outages or interruptions. Emergency power supply systems (EPSS) are designed to ensure that critical facilities and infrastructure, such as hospitals, data centers, and water treatment plants, can continue to operate during unexpected power failures.
Diesel generators are the most common type of generator used in emergency power supply systems due to their reliability, durability, and availability. These generators can provide power for extended periods, ranging from a few hours to several days, depending on the size and capacity of the generator and the fuel supply.
In addition to providing emergency power supply, diesel generators can also be used as a backup power source for uninterrupted power supply (UPS) systems. UPS systems are designed to provide temporary power during brief power outages or fluctuations, ensuring that critical equipment and systems remain operational.
Diesel generators are also used in remote locations where there is no access to the power grid. These generators can provide reliable and cost-effective power for off-grid operations, such as mining, oil and gas exploration, and construction sites.
Leading Companies in Diesel Generator Market
The diesel generator market is highly competitive, with several leading companies vying for market share. Some of the major players in the diesel generator market include:
- Cummins Inc.
- Caterpillar Inc.
- Kohler Co.
- Atlas Copco
- Mitsubishi Heavy Industries
- Generac Holdings
Cummins Inc. is a global power leader that designs, manufactures, sells, and services diesel and alternative fuel engines, as well as electrical power generation systems. The company’s diesel generator sets range from 2.5 to 3,500 kW and are used in various applications, including commercial, industrial, and residential.
Caterpillar Inc. is a leading manufacturer of diesel generator sets and engines. The company offers a wide range of diesel generator sets, ranging from 10 kW to 13,200 kW, which are used in various applications, including healthcare, data centers, and telecommunications.
Kohler Co. is a global leader in the manufacturing of power systems, including diesel generator sets. The company offers a range of diesel generator sets, ranging from 10 kW to 4 MW, which are used in various applications, including healthcare, data centers, and commercial buildings.
Atlas Copco is a leading manufacturer of diesel generator sets and power solutions. The company’s diesel generator sets range from 15 to 3,350 kVA and are used in various applications, including construction, mining, and oil and gas.
Mitsubishi Heavy Industries is a global leader in the manufacturing of power systems, including diesel generator sets. The company offers a range of diesel generator sets, ranging from 700 kW to 2,500 kW, which are used in various applications, including healthcare, data centers, and commercial buildings.
Generac Holdings is a leading manufacturer of diesel generator sets and power solutions. The company’s diesel generator sets range from 10 kW to 2 MW and are used in various applications, including healthcare, data centers, and telecommunications.
Diesel Generator Sets: Components and Maintenance
Diesel generator sets are a reliable and essential source of backup power in many industries. They consist of several components that work together to generate electricity. Here is a breakdown of the main components of a diesel generator set:
- Engine: The engine is the heart of the generator set. It converts diesel fuel into mechanical energy that drives the AC alternator.
- AC Alternator: The AC alternator is responsible for converting the mechanical energy generated by the engine into electrical energy.
- Control Panel: The control panel is the brain of the generator set. It monitors and controls the operation of the generator set, including starting and stopping the engine, regulating the voltage, and protecting the generator set from overload.
- Fuel Tank: The fuel tank stores the diesel fuel that powers the engine.
- Radiator: The radiator cools the engine by dissipating the heat generated during operation.
To ensure the reliable operation of diesel generator sets, regular maintenance is essential. Here are some key maintenance tasks that should be performed on a regular basis:
- General Inspection: Regular inspections should be performed to check for any mechanical problems that could create unsafe or hazardous conditions.
- Oil and Filter Changes: The engine oil and filters should be changed at regular intervals to ensure proper lubrication and prevent engine damage.
- Coolant Level and Condition: The coolant level and condition should be checked regularly to ensure proper engine cooling.
- Battery Maintenance: The battery should be checked regularly and replaced when necessary to ensure reliable engine starting.
- Fuel Quality: The quality of the diesel fuel should be monitored to ensure that it meets the manufacturer’s specifications.
By performing regular maintenance on diesel generator sets, operators can ensure that they are ready to provide reliable backup power when needed.
Impact of Covid-19 on Diesel Generator Market
The Covid-19 pandemic has had a significant impact on the diesel generator market. The pandemic has caused widespread disruptions in supply chains, manufacturing, and logistics, which have resulted in a decrease in demand for diesel generators. The lockdowns and restrictions imposed by governments worldwide have also led to a decline in construction and infrastructure projects, which are major users of diesel generators.
The diesel generator market was valued at USD 16.89 billion in 2021 and is projected to grow to USD 26.09 billion in 2029 at a CAGR of 5.5% during the 2022-2029 period. However, the market witnessed a decline in growth in 2020 due to the Covid-19 pandemic.
The pandemic has also led to a shift in focus towards renewable energy sources, which has affected the demand for diesel generators. Governments worldwide are promoting the use of renewable energy sources to reduce carbon emissions and combat climate change. This has resulted in a decrease in demand for diesel generators, which are known to be major contributors to air pollution.
Despite the decline in demand, the diesel generator market is expected to recover in the post-pandemic period. The market is expected to grow due to the increasing demand for backup power solutions in industries such as healthcare, data centers, and telecommunications, which require uninterrupted power supply.
Future Projections for Diesel Generator Market
The diesel generator market is expected to grow at a steady pace in the coming years. Several factors are driving this growth, including the increasing demand for uninterrupted power supply, the need for backup power in case of natural disasters or power outages, and the growing industrialization and urbanization in developing countries.
According to a report by Market Research Future (MRFR), the global diesel generator market is expected to reach USD 21.37 billion by 2023, growing at a CAGR of 5.2% during the forecast period. The report also suggests that the Asia-Pacific region will dominate the market, with China and India being the major contributors to the growth.
Another report by ResearchAndMarkets.com estimates that the diesel generator market will reach USD 20.52 billion by 2028, growing at a CAGR of 5.37% during the forecast period. The report highlights the increasing demand for diesel generators in the data center industry and the growing need for backup power in the healthcare sector.
The COVID-19 pandemic has also impacted the diesel generator market, with a temporary slowdown in demand due to the economic uncertainties. However, the market is expected to recover and grow in the coming years, driven by the increasing need for reliable power supply in various sectors.
Alternative Energy Sources and Their Impact
As the world moves towards a more sustainable future, alternative energy sources are gaining ground over diesel generators. The impact of these alternative energy sources is significant, not just in terms of reducing greenhouse gas emissions but also in terms of cost-effectiveness and energy efficiency.
Solar Energy
Solar energy is one of the most popular alternative energy sources. It is a renewable source of energy that is abundant and readily available. Solar panels can be installed on rooftops or in open spaces to generate electricity. The cost of solar panels has decreased significantly over the years, making it an affordable option for many households and businesses.
Must Read: How Long Can a Diesel Generator Run Continuously?
Natural Gas
Natural gas is another alternative energy source that is gaining popularity. It is a cleaner-burning fossil fuel that produces fewer emissions than diesel. It can be used to generate electricity or as a fuel for vehicles. Natural gas is also abundant and readily available, making it a reliable source of energy.
Water
Hydroelectric power is a renewable energy source that uses the power of water to generate electricity. It is a clean and reliable source of energy that does not produce any emissions. However, it is limited by the availability of water resources and the impact of dams on the environment.
Fossil Fuels
Fossil fuels are still the primary source of energy for many countries around the world. However, they are not sustainable and produce significant greenhouse gas emissions. The use of fossil fuels is gradually declining as alternative energy sources become more cost-effective and widely available.
Impact of Alternative Energy Sources
The impact of alternative energy sources on the environment is significant. They produce fewer emissions than diesel generators and are a cleaner source of energy. They are also more cost-effective and energy-efficient, making them a viable option for many households and businesses.
Statistics and Data Sources
When it comes to the number of diesel generators in the world, there are many statistics and data sources available. In this section, we will take a look at some of the most reliable sources of information on this topic.
One of the most reputable sources of global market data is Statista. With a Statista account, users have unlimited access to a wide range of statistics, including those related to diesel generators. According to Statista, in 2021, the global diesel generator market size was valued at around $26 billion, and it is projected to continue growing at a CAGR of 5.5% through 2029.
Another useful source of information is industry reports. For example, a recent report from ResearchAndMarkets.com estimated that the global diesel generator market will grow at a CAGR of 7.4% from 2021 to 2028. This report also provides a detailed analysis of the market by region, application, and power rating.
In addition to these sources, there are also many other data sources available, including government reports, academic studies, and trade publications. These sources can provide valuable insights into the number of diesel generators in specific regions or industries.
Frequently Asked Questions
What is the current size of the global diesel generator market?
According to industry reports, the global diesel generator market was valued at USD 16.89 billion in 2021 and is projected to grow to USD 26.09 billion by 2029, with a compound annual growth rate (CAGR) of 5.5% in the period of 2022-2029.
What is the fuel type breakdown for generator sales worldwide?
Diesel generators account for the largest portion of the global generator market, with reports suggesting that they make up around 70% of generator sales worldwide. Gas generators and other types of generators make up the remaining 30%.
How many diesel generators are typically used in industrial settings?
The number of diesel generators used in industrial settings can vary greatly depending on the size of the facility and its power needs. However, it is common for industrial settings to use multiple diesel generators in parallel to provide the necessary power.
What is the largest diesel generator currently in production?
As of the time of writing, the largest diesel generator currently in production is the Wärtsilä 31SG, which has a maximum output of 12 MW.
How do diesel generators compare to other types of generators in terms of efficiency?
Diesel generators are generally less efficient than gas generators or other types of generators, as they require more fuel to produce the same amount of power. However, diesel generators are often preferred in situations where reliability and durability are more important than efficiency.
What factors contribute to the cost of diesel generators compared to other types of generators?
The cost of diesel generators can vary depending on a number of factors, including the size and power output of the generator, the quality of its components, and the level of customization required. Generally speaking, diesel generators tend to be more expensive than gas generators or other types of generators due to the higher cost of diesel fuel and the more complex technology required to produce and maintain them.
