Diesel Power Engine Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Diesel Power Engine Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global diesel power engine market is expected to grow approximately at a CAGR of more than 3.5% during the forecast period. Factors such as demand for reliable electricity, which is growing across the world on account of industrial expansion and development of commercial infrastructure are driving the diesel power engine market. Moreover, the increasing issues of power deficit and lack of access to power, along with growing demand for uninterrupted power is driving the demand for diesel power engines for providing emergency power supply. However, the abundance of natural gas, coupled with its environmental soundness, has led to increasing shift towards natural gas engines as an alternative to diesel engines in various end-use industries, and is expected to restraint the growth of diesel engines market.

Key Highlights

• The industrial segment, by end-user, is expected to be the largest diesel engine power market owing to the demand for power which is further increasing with the growing number of industries, business expansions, and a developing service sector.
• Rising electrification projects in Africa, such as Western Africa Regional Off-Grid Electrification Project, presents opportunity for the diesel power engine market players.
• Asia-Pacific is the largest market and is expected to be the fastest growing market, with major countries such as China and India.

Key Market TrendsIndustrial Segment to Dominate the Market

• The industrial sector accounted for the largest share in the global diesel power engine market and is expected to continue its dominance during the forecast period. Industrial operations are mainly dependent on electricity generated from generators during power outages (to avoid production risks) and in regions where grid access is limited, leading to increased use of diesel power engine.
• 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 power engines.
• Middle-East and Africa are expected to witness robust industrial growth in the coming years on account of the sharp increase in manufacturing sectors, which is expected to drive the demand in the industrial sector.
• Another upcoming sector that is expected to emerge as a huge potential market for diesel generator is the oil & gas industry which is underdeveloped in East Africa. It is estimated to have more than 10 trillion cubic feet (tcf) of proven gas reserves and roughly 11 barrels of oil per day (bopd) of proven oil reserves. Although it may take several years for the fields to develop, it still poses as an opportunity for the diesel generators in the long term.
• Furthermore, government initiatives to expand the industrial sector, especially in China and India, are expected to continue driving the demand for diesel power engine over the forecast period.

Asia-Pacific to Dominate the Market

• The increasing infrastructural developments and electricity demand in Asia-Pacific, with huge increase in average energy consumption rate and GDP growth rate, is expected to promulgate the diesel power engine market.
• The massive increase in power consumption in developing countries, such as China and India, with inadequate power infrastructure, is likely to make steady power supply a serious challenge. Thus, the demand for steady power boosts the sales of generator in several sectors, especially the industrial and commercial segments in the region.
• With increasing infrastructure projects, widening power demand-supply gap, expansion of manufacturing facilities across the nation, and rising commercial office spaces, China is leading the diesel power engine market.
• The Indian government is focusing on improving the economy through increased infrastructure spending, mainly on roads, railways and metro rail. With a new metro rail policy on the anvil and every large city in India looking to construct a metro rail network, diesel power engines have immense growth opportunities in metro rail projects.
• Moreover, the growing energy demands of the burgeoning manufacturing industry are expected to provide huge impetus to generators business in the Asia-Pacific region. As a result, Asia-Pacific is expected to witness the fastest growth in the global diesel power engine market during the forecast period.

Competitive Landscape

The diesel power engine market is fragmented. Some of the key players in this market are, Caterpillar Inc., Cummins Inc., Kohler Co., Volvo AB and Mitsubishi Heavy Industries Ltd.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Caterpillar Inc.
Cummins Inc.
Kohler Co.
Volvo AB
Mitsubishi Heavy Industries Ltd
Wartsila Oyj Abp
Hyundai Heavy Industries Co Ltd
Man SE
Rolls
Royce Holding PLC
Doosan Corp

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