Market conditions are presenting opportunities for growth for the global diesel generator market.

Power deficit caused by heightened demand means the market for temporary diesel generation is set to grow to $17.6bn in 2020, according to a report by GlobalData.

It amounts to a compounded annual growth rate (CAGR) of 4.5per cent from $14.7bn in 2016.
MTU diesel genset
The growth will be mainly driven by 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 per cent 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.

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.