Diesel Generator Market

Diesel Generator Market - Snapshot

A diesel generator refers to an equipment that combines the functionalities of a diesel engine with an electric generator for the purpose of generation of electrical energy. Diesel generators are tasked with the conversion of fuel energy, biodiesel or diesel, into mechanical energy with the help of an internal combustion engine. Then, it is converted into an electric energy with the help of an electric generator. The global diesel generator market is likely to gain momentum due to increased demand across many sectors.

A rise in the demand from industrial, commercial, and residential sectors is likely to propel the growth of the global diesel generator market in the years to come. Demand from the developing countries is likely to leave a greater influence on the market in the years to come

Increased Government initiative to Improve Village Electrification to Boost Demand                                                                     

It is during the electrical power failure, supply of electrical power and prevents any kind of disruptions in day-to-day business operations. Diesel generators come in various configurations and are utilized in various applications. These engines make use of compression-ignition for the purpose of firing up fuel. Fuel is inserted inside engine utilizing an injector at various stages. Benefits of a diesel generator are mentioned as below

• Diesel engines are more fuel efficient than petrol engines
• Diesel fuel come cheaper than petrol
• These engines need less maintenance as compared to petrol engines
• A diesel engine is much more durable and lasts longer
• Diesel engines are safer with less risk of ignition

Governments of various countries are trying hard to improve power outages in the urban areas and rate of rural electrification. In addition, longer time period is needed to install the distribution and transmission infrastructure, which is likely to play an important role in the development of the global diesel generator market in the years to come.

On the other hand, growing availability of natural gas together with the rapid expansion of the technology of natural gas generator is likely to limit the growth of the global diesel generator market over the tenure of assessment.

Hybrid Generators to Establish Fuel-efficient and Environment-friendly Power Supply Infrastructure

Growing concerns about operational expenditures (OPEX) and fluctuating fossil fuel prices have led to the demand for hybrid generators. Since conventional diesel generators lead to increased environmental footprint, companies in the diesel generator market in telecom industry are tapping opportunities through hybrid generators that are built in combination with renewable energy sources. The added responsibility on stakeholders in the telecom sector to contribute toward a circular economy has triggered the demand for hybrid gensets. This is evident since the global revenue of the diesel generator market in telecom industry is estimated to reach ~US$ 1.2 Bn by the end of 2027.

Hybrid generators are acquiring popularity for reducing fuel bills and noise levels. Hence, companies in the diesel generator market in telecom industry are increasing R&D to combine traditional diesel generators with controllable electric source to establish a fuel-efficient and environment-friendly power supply ecosystem.

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ORC Generators Work in Tandem with Diesel Generators for Power Supply

The diesel generator market in telecom industry is fragmented with emerging players accounting to ~76% of the market stake. However, emerging players face tough competition from leading players, since the latter are introducing alternative generator solutions that are replacing conventional diesel generators. For instance, in March 2019, GenCell-a provider of innovative ammonia & hydrogen fuel cell energy solutions, has announced the launch of GenCell A5 Off-Grid Power Solution, an ammonia-based fuel cells solution with high potential of replacing traditional diesel generators. Hence, emerging technologies that convert waste heat of diesel generators into power supply are catching the attention of companies in the diesel generator market in telecom industry.

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The organic Rankine cycle (ORC) technology is gaining momentum in the market landscape. ORC generators are being highly publicized for their fuel- and emission-free attributes, which help to convert low-grade waste heat of diesel generators into useful power, especially in economically backward countries that still reply on traditional diesel generators.

Adoption of Mini Grids Fuels Demand for Diesel Generators in Nigeria’s Telecom Sector

Companies in the diesel generator market in telecom industry are leveraging untapped opportunities in Africa and the Middle East to generate new revenue streams. As such, unreliable grid power supply in Nigeria has compelled telecom operators to heavily rely on diesel generators as their primary power source. This is evident since the global diesel generator market in telecom industry is expected to reach an output of ~300,700 units by the end of 2027. Thus, changing industry trends and regulatory uncertainties are some of the key drivers that are fueling the demand for diesel generators.

Nigeria’s telecommunications industry is witnessing a change with increased awareness about modernizing their existing product offerings and a general understanding about maximizing into diverse areas of business sectors. However, unreliable power supply has become a roadblock for deploying innovations in the telecom sector. Thus, growing emergence of mini grids poses as a promising solution at restoring uninterrupted power supply in Nigeria’s telecom sector. For instance, at the recent Power and Telecommunications Synergy Conference sponsored by IHS Nigeria-a Nigeria-based telecom infrastructure service provider company suggested the adoption of mini grids to bolster the industry’s slowing progress.

Off-grid Telecommunications Base Stations Use Robust Batteries in Remote Locations

Manufacturers are increasing their production capabilities to develop innovative batteries that help during the transition from the grid to diesel generators whilst power outages. Thus, emergence of robust batteries are contributing toward the growth of the diesel generator market in telecom industry. As such, there is a growing demand for reliable batteries in off-grid telecommunications base stations located in remote areas of developing economies. This is evident since the diesel generator market in telecom industry in Asia Pacific is projected for exponential growth during the forecast period.

Proliferation of hybrid diesel generators in off-grid telecommunications base stations is becoming increasingly mainstream in the market for diesel generator in telecom industry. Companies are increasing the availability of hybrid diesel generators for wireless tower facilities in remote locations.

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Analysts’ Viewpoint

The diesel generator market in telecom industry is expected to expand at a CAGR of ~4% during the forecast period. Companies are broadening their revenue streams with the help of novel ORC generators that convert waste heat from diesel generators into power, especially in countries that are heavily dependent on diesel generators.

One of the most prominent challenges that manufacturers face is the emission- and fuel-intensive nature of diesel generators. Hence, manufacturers should tap opportunities in hybrid diesel generators to give a tough competition to alternate power solutions such as ammonia-based fuel cells solutions. On the other hand, hybrid and conventional diesel generators are gaining importance during long-hour outages in disaster recovery scenarios.