APAC Diesel Generator Industry

Asia Pacific Diesel Generator Market Analysis

The Asia-Pacific Diesel Generator Market is expected to register a CAGR of greater than 5.37% during the forecast period.

COVID-19 negatively impacted the market in 2020. Presently the market is likely to reach pre-pandemic levels.

• Over the long term, the targets of the governments of various countries to achieve significant improvement in the rural electrification rate, increase in power outages in the urban areas, and the more extended timeframe required to set up the transmission and distribution infrastructure are some of the driving factors for the diesel generator market.
• On the flip side, the increasing availability of natural gas and the rapidly expanding natural gas generator technology, increasing deployment of renewables as an alternative power source, and the maintenance challenges for diesel generators are the restraining factors for the market studied.
• The commercial and industrial sectors of emerging economies, the residential sector of developed economies, and the increasing need for power in defense operations are expected to create significant opportunities for market participants shortly.
• China accounted for the largest market share in 2021, with most of the demand coming from across the nation and rising commercial office spaces and small-scale vendor markets.

Asia Pacific Diesel Generator Market Trends

Industrial Sector to Dominate the Market

• In 2021, the industrial sector is estimated to account for the largest share of the diesel generator market. Industrial operations mainly depend on electricity generated from diesel generators during power outages (to avoid production risks) and in regions with limited grid access.
• The industrial sector, which includes mining, manufacturing, agriculture, and construction, accounts for the largest share of energy consumption of any end-use sector. Therefore, the increasing demand for continuous and reliable power supply from these industries, especially from healthcare facilities, pharmaceutical industries, and manufacturing facilities, is expected to escalate the demand for diesel generators.
• Moreover, in 2021, the value added in the industry in Singapore grew by 13.4 percent from the previous year. In comparison, Myanmar recorded a decrease of approximately 21 percent from the previous year in value added in the industry in 2021. The growing industrial growth will, in turn, supports the growth of the diesel generator market.
• Also, China and India are expected to witness robust industrial growth in the coming years because of the sharp increase in manufacturing sectors, which is expected to drive the demand for diesel generators in the industrial sector.
• Moreover, in August 2022, Caterpillar announced that it had added new standby diesel gen-sets, namely three 60 Hz power nodes from 20 to 30 kW in the Asian market. These units are suited to a range of applications, including small healthcare, retail and commercial enterprises.
• Furthermore, government initiatives to expand the industrial sector, especially in China and India, are expected to propel the demand for diesel generators over the forecast period.

China to Dominate the Market

• China is the leading diesel generator market in the Asia-Pacific region owing to increasing infrastructure projects, widening power demand-supply gap, expansion of manufacturing facilities across the nation, and rising commercial office spaces.
• The country benefits from the cost and effectiveness of diesel generators, with improved living standards increasing the demand for power back-up devices.
• Factors such as the expansion of existing manufacturing units across the country and the dedicated 'Made in China' initiative launched by the Chinese central government are expected to drive the diesel generator market in the country.
• In addition, the rapid growth in various end-use sectors, such as infrastructure, telecommunication, and information technology (IT) & IT-enabled services is expected to further spur the demand for diesel generators in China.
• China has inadequate gas pipeline network, which creates a major hurdle for most industries with gas requirement. Although the government is investing heavily to ramp up this capacity, this is expected to restrain the growth of the gas generator market, creating an opportunity for diesel generators.
• In 2021, the growth of real gross domestic product (GDP) in China amounted to approximately 8.1 percent. Due to pandemic the country witnessed declination of growth rate in the year 2020 to 2.24%. However, according to the International Monetary Forum the country is estimated tol witness around 4.63% of GDP by 2027. The growth in GDP will affects the goods and services within the country and supports the growth of industries, that requires diesel generators.
• Moreover, in March 2022, Mitsubishi Heavy Industries Engine & Turbocharger, Ltd. (MHIET), a part of the Mitsubishi Heavy Industries (MHI) Group, launched a new MGS-R Series of diesel generator sets in Chinese market. The new series provides outputs ranging from 500 to 2,750 kVA for 50Hz, and 460 to 2,000 kVA for 60Hz for standby offerings.
• Owing to above points, China is expected to dominate the diesel generator market during the forecast period.

Asia Pacific Diesel Generator Industry Overview

The Asia-Pacific Diesel Generator Market is fragmented. Some of the key players in this market (in particular order) include Cummins Inc, Mitsubishi Heavy Industries Engine & Turbocharger, Ltd, and Yanmar Holdings co. Ltd, Caterpillar Inc., and Mahindra Powerol Ltd.

Asia Pacific Diesel Generator Market Leaders

Asia Pacific Diesel Generator Market News

• June 2022: Kirloskar Group, an Indian conglomerate, unveiled Kirloskar iGreen Version 2.0 for the power generation business. The gensets powered with the R550 series of engines offer compactness, fuel efficiency, and high-power quality.