The growth will be mainly driven by the unreliable and uneconomical power supplies, followed by the lower cost of diesel generators, mature technology and easier availability of fuel, according to the report titled, ‘Diesel Generator Market, Update 2016 – Market Size, Competitive Landscape, Key Country Analysis and Forecasts to 2020‘.
During the last five years, the market grew at a CAGR of 3.7% from $11.6bn in 2010 to $14bn in 2015, with China and the US leading the charts.
In developing countries, energy demand is rising with infrastructure growth and economic development, while in developed countries it is growing at a slower pace to meet the demand of improvement in lifestyle.
Energy deficit is met by diesel generators as utilities fail to meet the demand through large power projects, which require huge capital investment and longer time to complete.
Growth in industrialization, urbanization, construction activity, data centers and critical facilities like hospital require reliable power supply, without which it could lead to huge revenue losses.
In order to provide uninterrupted power supply to critical installations, power back solutions like diesel generators have become a preferred option, the report added.
Diesel generators can also help mega events like Olympics, common wealth games, FIFA world cup to survive a sudden spike in power demand for shorter periods.
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