Diesel Generator Market

Diesel Generator Market in Telecom Industry: Overview

• A diesel generator is a combination of a diesel engine with an electric generator employed to produce electricity. This study covers the generators that are used in the telecom industry only.
• The global telecommunications industry is growing at a rapid pace, owing to rising population and digitization across the world. This, in turn, is likely to fuel the global market for diesel generator in telecom industry during the forecast period.
• In the telecom industry, diesel generators are employed for prime and continuous, standby, and peak shaving applications to avoid power outages and achieve uninterrupted service 
• Diesel generators are widely used in the telecom industry, as they are reliable, safe, economical, and efficient. Owing to these features, the demand for diesel generators is high in the telecom industry.

Expansion of Telecommunication Networks in Remote Areas to Drive Diesel Generator Market in Telecom Industry

• Demand for radio communication and mobile air waves has increased significantly across the world over the last few years, due to the advent of mobile telephony. This has fueled the demand for large-scale network of telecom towers from cities to remote areas. For instance, as per the Government of India, approximately 5.54 lakh villages were covered with mobile services as of 2018. Furthermore, in the same year, telecom service providers also announced their plans to install 57,559 new towers for mobile services in rural areas in India in FY 2019–20.
• Rise in tele-density and expansion of the subscriber base, especially in rural areas, is a major factor that attracts investments in the global diesel generator market in telecom industry. According to the Department for Promotion of Industry & Internal Trade, India attracted FDI (foreign direct investment) inflows worth US$ 37.05 Bn toward the telecom sector in the country between April 2000 and June 2019.
• The electricity grid-connected access to remote areas is extremely low or limited. These areas are dependent on secondary sources of power such as generator sets. Thus, lack of availability of grid connections to telecom tower sites is anticipated to boost the global market for diesel generator in telecom industry during the forecast period.

Stringent Environment-related Norms for Control of Emissions and Noise to Hamper Diesel Generator Market in Telecom Industry

• Diesel generators are widely used in the telecom industry, as they are reliable and safe. The installation cost of diesel generators is also low. Furthermore, fuel for these generators is available easily.
• Several environmental organizations, such as the U.S. EPA (Environmental Protection Agency), have imposed stringent regulations on diesel power generators. On the other hand, natural gas-based generators also produce greenhouse gases (GHGs), but only to a certain level. Furthermore, they are the cleanest of all generator types.
• Noise produced by diesel generators is much higher than other types of generators. Hence, several government authorities have formulated laws and regulations regarding noise control.
• Thus, rise in concerns to reduce noise and air pollution have diverted investments by telecom operators toward adoption of renewable technologies such as fuel cells. This is likely to restrain the global diesel generator market in telecom industry from 2019 to 2027.

Rise in Adoption of Renewable Energy Worldwide to Provide Opportunities to Diesel Generator Market in Telecom Industry

• Currently, the demand for renewable energy in the global power generation mix has been gaining momentum as a result of increased focus on impact of the climate change and maintenance of fossil fuel sustainability. The share of renewable energy sources (including hydropower) in the global power generation mix rose by 26% in 2018 over that in 2000.
• Europe leads the world in terms of adoption of renewable energy. Renewable energy accounted for 36% share of power generation mix in the region in 2018. Countries in Europe have managed to shift from combustible fuels toward eco-friendly and clean power generation methods such as wind, solar, geothermal, and hydro energy. Certain member countries of the European Union have already exceeded their 2020 target of the share of energy from renewable sources.
• Similarly, several countries in the world such as China, India, Japan, Brazil, the U.S., and Canada have also increased their share of consumption of renewable energy. However, sources of renewable energy are intermittent sources of power, as they are dependent on several natural factors. For instance, solar energy can be produced only during daytime, while wind energy can be produced only when the wind is blowing with a certain force. Hence, backup power sources for these resources are required. Diesel generator is one of these backup power sources and hence, the demand for diesel generators in telecom industry is rising.
• Thus, increase in the adoption of renewable energy across the globe is expected to provide new opportunities to the global diesel generator market in telecom industry during the forecast period

Recent Developments, Expansions, Acquisitions, and New Contracts in Diesel Generator Market in Telecom Industry

• On September 9, 2019, Cummins Inc. completed the acquisition of Hydrogenics Corporation. Hydrogenics Corporation is one of the leading providers of hydrogen generation technologies and fuel cells.
• On September 4, 2019, Caterpillar assigned a new team of energy system engineers to develop complex and customized power solutions for customers in North America. The team has decades of experience in the design, specification, installation, commissioning, and maintenance of a wide range of power technologies.

Asia Pacific to be a Highly Lucrative Region of Diesel Generator Market in Telecom Industry

• Asia Pacific is anticipated to be a highly attractive region of the global diesel generator market in telecom industry during the forecast period. The market in Asia Pacific is estimated to expand at a significant pace between 2019 and 2027, owing to increase in the number of mobile subscribers in the region. Furthermore, growth in globalization and urbanization is likely to propel the market for diesel generator in telecom industry in Asia Pacific during the forecast period.
• Telecom operators in Asia Pacific are focusing on 5G and next-generation fixed broadband technologies, which is likely to augment the demand for new telecom towers in the region. This, in turn, is projected to fuel the diesel generator market in telecom industry in the region during the forecast period.
• North America held a key share of the global diesel generator market in telecom industry in 2018. The U.S. and Canada are key countries of the market in the region. The U.S. accounted for a major share of the diesel generator market in telecom industry in North America in 2018.

Diesel Generator Market in Telecom Industry is Highly Competitive

• The global diesel generator market in telecom industry is highly fragmented. Various international as well local players hold a significant share of the global diesel generator market in telecom industry.
• Major players operating in the global diesel generator market in telecom industry are
• Cummins Inc.
• Caterpillar Inc.
• Generac Holdings Inc.
• HIMOINSA
• KOEL Green
• AKSA Power Generation
• Aggreko PLC
• MAHINDRA POWEROL
• Jakson
• AGCO Corporation
• Kohler Co.
• Multiquip Inc.
• Greaves Cotton Limited