U.S. Diesel Genset Market Research Report: By Power Requirement, Mobility, Power Rating, Application - Industry Analysis and Demand Forecast to 2030

U.S. Diesel Genset Market Research Report: By Power Requirement, Mobility, Power Rating, Application - Industry Analysis and Demand Forecast to 2030

  • August 2020 •
  • 266 pages •
  • Report ID: 5982514 •
  • Format: PDF
U.S. Diesel Genset Market Research Report: By Power Requirement (Prime Power, Backup Power), Mobility (Stationary, Portable), Power Rating (7-14 kVA, 15-24 kVA, 25-44 kVA, 45-69 kVA, 70-99 kVA, 100-149 kVA, 150-199 kVA, 200-299 kVA, 300-399 kVA, 400-499 kVA, Above 500 kVA), Application (Commercial, Industrial, Residential) - Industry Analysis and Demand Forecast to 2030

The U.S. diesel genset market is expected to witness a CAGR of 7.1% between 2020 and 2030, owing to the increase in the number of data centers. At this rate, the revenue generated from the sale of diesel generator (DG) sets would rise from $2,187.4 million in 2019 to $3,797.6 million by 2030. In the country, the volume of the digital data being created, stored, and used is increasing, which is leading to a high need for efficient storage spaces, in the form of data centers.

This is positively impacting the U.S. diesel genset market, as data centers are part of critical infrastructure, which have complex and expensive servers, routers, network gateways, and other information technology (IT) components. Owing to their sensitive nature, they are not able to withstand power cuts, which makes the continuous supply of electricity necessary. Therefore, the rising number of data centers, especially in Chicago, Atlanta, New York Tri-State, Dallas, Phoenix, Virginia, and Silicon Valley, is raising the installation rate of DG sets.

The COVID-19 pandemic is hampering the growth of the U.S. diesel genset market, as several manufacturers in the country depend on China for raw materials and components. With the supply chain of these products taking a hit, the production of diesel generators has slowed. In addition, numerous industrial and commercial end users of such equipment have also shut down operations, which has further led to a reduced demand for generators in the country.

The backup power bifurcation, on the basis of power requirement, dominated the U.S. diesel genset market during 2014–2019, owing to the high requirement for a backup-power generation source in retail stores, residential units, healthcare facilities, large commercial buildings, hotels and restaurants, and manufacturing plants. Due to the easy availability and cost-effectiveness of such systems, they are being rapidly installed to deal with power cuts.

In the coming years, the stationary bifurcation, based on mobility, would witness higher CAGR in the U.S. diesel genset market, of 7.2%, in terms of value. This is attributed to the increasing installation of stationary DG variants in the commercial, residential, manufacturing, data center, warehousing & logistics, oil & gas, transportation, power, and hospitality sectors.

The 5–75 kilovolt-Ampere (kVA) division, under segmentation by power rating, is projected to continue holding the largest sales volume share in the U.S. diesel genset market during this decade. This is because gensets with this power rating are being quickly installed at residential apartments, as well as small offices, telecom towers, retail outlets, and other commercial spaces. For instance, the country had more than 104.0 thousand telecom towers in 2019, which are expected to increase in number, with the deployment of the 5G technology, thereby creating a high demand for 5–75 kVA diesel gensets.

In 2019, the highest revenue in the U.S. diesel genset market was generated by the commercial classification, under the application segment, because of a high requirement for prime and backup power at commercial areas, including retail establishments, construction sites, and offices. During the execution as well as commissioning of engineering, procurement, and construction (EPC) projects a large number of DG sets are installed.