Commercial Diesel Gensets Market Forecasts to 2030 – Global Analysis By Power Rating (Below 100 kW, 100 kW - 500 kW, 500 kW - 1000 kW and Above 1000 kW), Application, End User and By Geography

Commercial Diesel Gensets Market Forecasts to 2030 – Global Analysis By Power Rating (Below 100 kW, 100 kW - 500 kW, 500 kW - 1000 kW and Above 1000 kW), Application, End User and By Geography

According to Stratistics MRC, the Global Commercial Diesel Gensets Market is growing at a CAGR of 7.8% during the forecast period. Commercial diesel gensets are power generation units fueled by diesel, commonly used in various industries, businesses, and institutions to provide backup electricity during outages or as primary power sources in remote locations. These gensets consist of a diesel engine coupled with an alternator to generate electricity. They are designed for durability, reliability, and efficiency, capable of running for extended periods with regular maintenance, catering to diverse power requirements.

Market Dynamics:

Driver:

Emerging markets and urbanization

In emerging economies, rapid urbanization and industrialization lead to the establishment of new commercial complexes, manufacturing facilities, and infrastructure projects. These developments create a heightened demand for a reliable and continuous power supply. Moreover, the expansion of urban centers and the development of new commercial hubs have propelled this market.

Restraint:

Rising fuel costs

Diesel fuel is the primary energy source for diesel gensets, and fluctuations in fuel prices directly impact the operational expenses of genset owners and users. Businesses and organizations may face budgetary constraints and operational challenges as fuel costs escalate. Additionally, rising fuel costs may prompt businesses to seek alternative power solutions, negatively impacting the growth prospects of the commercial diesel gensets market.

Opportunity:

Growing demand for energy

As global urbanization, industrialization, and economic development continue, the need for reliable and continuous electricity supply escalates across various sectors and regions. They provide a dependable backup power solution for commercial establishments, industries, and critical facilities, ensuring uninterrupted operations during grid outages or disruptions. Moreover, diesel gensets are versatile and can be deployed in diverse applications, which is boosting market growth.

Threat:

Environmental impacts

Diesel gensets emit pollutants such as nitrogen oxides (NOx), particulate matter (PM), carbon monoxide (CO), and sulfur dioxide (SO2) during combustion, contributing to air pollution and adverse health effects, particularly in densely populated areas. However, their operation and exhaust emissions can have significant environmental implications, which are hampering this market expansion.

Covid-19 Impact

The COVID-19 pandemic has had several negative impacts on the commercial diesel generator market. Many businesses have postponed expansion plans or scaled back operations, resulting in decreased demand for backup power solutions. Disruptions in global supply chains have affected the availability of components and spare parts for diesel generators, leading to delays in manufacturing and project implementation. This has hampered the delivery schedules of genset manufacturers and added to project costs.

The peak shaving segment is expected to be the largest during the forecast period

The peak shaving segment is estimated to hold the largest share due to the strategic use of diesel generators to supplement the grid power supply during times of high energy demand, thereby reducing strain on the utility grid and avoiding costly peak demand charges. This helps lower overall electricity costs and ensures an uninterrupted power supply. Furthermore, deploying commercial diesel generators can offset electricity consumption from the grid during peak periods, either partially or entirely, which is boosting this segment’s expansion.

The commercial complexes segment is expected to have the highest CAGR during the forecast period

The commercial complexes segment is anticipated to have highest CAGR during the forecast period due to these complexes have high electricity demand for power lighting, HVAC systems, elevators, electronic equipment, and other essential operations. These serve as vital backup power sources in such scenarios, providing a dependable supply of electricity to keep essential systems and equipment running smoothly. Moreover, commercial diesel generators can be seamlessly integrated into the complex's electrical infrastructure, thereby driving this segment.

Region with largest share:

Asia Pacific commanded the largest market share during the extrapolated period owing to diverse economies with varying levels of industrialization, infrastructure development, and energy demands. In many countries across Asia Pacific, particularly in emerging markets such as India, China, and Southeast Asian nations, there is rapid urbanization and industrial growth. Moreover, the region's energy landscape is evolving, with a growing emphasis on energy security, reliability, and sustainability, which are propelling this region’s growth.

Region with highest CAGR:

North America is expected to witness highest CAGR over the projection period, owing to its crucial role in providing emergency power to essential services and facilities, including hospitals, emergency response centers, and telecommunications networks. Furthermore, the region's growing focus on disaster preparedness and resilience amplifies the demand for commercial diesel generators, making them increasingly attractive for a wide range of applications and boosting its size.

Key players in the market

Some of the key players in the Commercial Diesel Gensets Market include Atlas Copco, Kohler Co., Aggreko, Kirloskar, Caterpillar, Rolls-Royce plc, Americas Generators Inc. , J C Bamford Excavators Ltd., Cummins Inc., Powerica Limited, Deere & Company, Mitsubishi Heavy Industries, Ltd. and Powerica Limited.

Key Developments:

In February 2024, John Deere announced major product launch at commodity classic in the company’s 187-year history.

In November 2023, Atlas Copco Group has acquired Hamamcıoğlu Makina (HAMAK), a Turkish company mainly focused on sales and service of air compressor solutions, providing compressors, parts, and service to the Turkish market.

In October 2023, Atlas Copco has agreed to acquire Presys Co., Ltd. The company provides vacuum valves for the semiconductor market.

Power Ratings Covered:
• Below 100 kW
• 100 kW - 500 kW
• 500 kW - 1000 kW
• Above 1000 kW

Applications Covered:
• Standby Power
• Peak Shaving
• Continuous Power
• Prime Power
• Other Applications

End Users Covered:
• Commercial Complexes
• Manufacturing
• Telecom
• Mining
• Utilities
• Healthcare
• Construction
• Data Centers
• Oil & Gas
• Marine
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements