DIESEL GENERATORS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024- 2031)

Diesel Generators Market Size and Trends

The diesel generators market is estimated to be valued at USD 20.02 Bn in 2024 and is expected to reach USD 29.51 Bn by 2031, growing at a compound annual growth rate (CAGR) of 5.7% from 2024 to 2031.

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The diesel generators market is expected to witness positive growth over the forecast period. There has been increasing demand for uninterrupted and backup power supply from various industries such as healthcare, telecom, and data centers. Also, growth in the construction and infrastructure sectors along with rising industrialization in developing nations has augmented the product demand. However, stringent emission norms and rising deployment of renewable energy resources are the key factors anticipated to hamper the market expansion. Nonetheless, growing industrial & construction activities in off-grid locations coupled with benefits of diesel such as portability is likely to offer lucrative opportunities for diesel generator manufacturers during the forecast timespan.

Growing Infrastructure Development Projects

The global infrastructure development sector has witnessed significant growth over the past few years. For instance, India is focusing on expanding its national highway network, with about 13,800 km of highways construction planned in 2023-24 alone, amounting to Rs 2.81 lakh crore. Both developed and developing countries worldwide are ramping up investments to develop new roads, highways, bridges, airports, seaports, rail networks, power generation and transmission facilities, commercial buildings, and other infrastructure projects. These growing infrastructure development activities have proven to be a major driver for the diesel generators market. Most large infrastructure projects, especially during the construction phase, require reliable and uninterrupted power supply to run heavy machineries and equipment. Since centralized grid connectivity may not always be feasible or sufficient during construction in remote or rural locations, diesel generator sets serve as the most viable alternative to power various construction equipment, temporary site offices, labor camps, and other on-site electricity needs. Diesel gensets provide cost-effective, movable, and easily scalable power solutions at construction sites of roads, buildings, factories, power plants, and other commercial and industrial infrastructure ventures. They can be rapidly deployed without requiring permanent fixtures or invasive wiring at temporary deployment locations. This mobility and flexible on-site power provision has made diesel generators an indispensable part of the infrastructure building process. With more countries initiating ambitious infrastructure development plans, the demand for diesel generator rentals and sales is expected to further increase from the infrastructure sector. 

Remote and Off-Grid Electrification

A large population worldwide, especially in rural and far-flung areas of developing nations, still lacks access to centralized electricity grids and stable power supply. The challenges and costs associated with extending power transmission and distribution networks to remote, scarcely populated, and difficult terrains have meant that reliable grid electrification remains a challenge in many regions. It is in such off-grid remote locations that diesel generators play a crucial role in providing electricity for applications ranging from domestic household use and local community centers to telecom towers, agricultural activities, small enterprises, and infrastructure development projects underway in remote areas not yet connected to main power networks. Since most renewable energy options are also not economically or technically viable in all off-grid settings, diesel gensets are frequently the only viable option to electrify and energize unelectrified rural populations, villages, and townships located far from existing grid lines. As governments and international organizations step up efforts to achieve universal electrification goals, the dependence on diesel generators for decentralized distributed power generations is likely to continue playing an important role in remote area electrification in the foreseeable future.