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.

Telecom Industry  infographic

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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.

Telecom Industry Segmentation

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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.

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

Diesel Generator Market in Telecom Industry – Scope of the Report

A latest study collated and published by Transparency Market Research (TMR) analyzes the historical and present-day scenario of the global diesel generator market in telecom industry, to accurately gauge its future growth potential. The study presents detailed information about important growth factors, restraints, and key trends that are creating the landscape for future growth of the global diesel generator market in telecom industry in order to identify opportunities for stakeholders. The report also provides insightful information about how the global diesel generator market in telecom industry would expand during the forecast period i.e. 2019–2027.

The report offers intricate dynamics about different aspects of the global diesel generator market in telecom industry, which aids companies operating in the market in making strategic decisions. TMR’s study also elaborates on the significant changes that are anticipated to configure growth of the global diesel generator market in telecom industry during the forecast period. It also includes key indicator assessment that highlights growth prospects for the global diesel generator market in telecom industry and estimates statistics related to the market in terms of value (US$ Mn) and volume (units).

This study covers detailed segmentation of the global diesel generator market in telecom industry along with key information and a competition outlook. The report mentions company profiles of players that are currently dominating the global diesel generator market in telecom industry, wherein various development, expansions, and winning strategies practiced by these players have been presented in detail.

Key Questions Answered in TMR’s Report on Diesel Generator Market in Telecom Industry

The report provides detailed information about the global diesel generator market in telecom industry on the basis of comprehensive research on various factors that are playing a key role in accelerating growth of the market. Information mentioned in the report answers path-breaking questions for companies that are currently operating in the global market and are looking for innovative methods to create a unique benchmark in the global market so as to help them design successful strategies and make target-driven decisions.

  • Which type segment of the global diesel generator market in telecom industry would emerge as a revenue generator for the market during the forecast period?
  • How are key market players successfully earning revenues in the global diesel generator market in telecom industry?
  • What would be the Y-o-Y growth trend of the global diesel generator market in telecom industry between 2019 and 2027?
  • What are the winning imperatives of leading players operating in the global diesel generator market in telecom industry?

Research Methodology – Diesel Generator Market in Telecom Industry

The research methodology adopted by analysts for compiling the report on the global diesel generator market in telecom industry is based on detailed primary as well as secondary research. With the help of in-depth insights of the market-affiliated information obtained and legitimated by market-admissible resources, analysts have offered riveting observations and authentic forecasts of the global diesel generator market in telecom industry.

During the primary research phase, analysts have interviewed market stakeholders, investors, brand managers, vice presidents, and sales and marketing managers. On the basis of the data obtained through interviews of genuine resources, analysts have emphasized the changing scenario of the global diesel generator market in telecom industry.

For secondary research, analysts have scrutinized numerous annual report publications, white papers, market association publications, and company websites to obtain the necessary understanding of the global diesel generator market in telecom industry.

Diesel Generator Market in Telecom Industry - Segmentation

TMR’s research study assesses the global diesel generator market in telecom industry based on power rating, type, application, and region. The report presents extensive market dynamics and progressive trends associated with different segments and how they are influencing growth prospects for the global diesel generator market in telecom industry.

Power Rating

  • Below 100 kVA
  • 100 kVA – 500 kVA

Type

  • Stationary Generator
  • Portable Generator

Application

  • Prime & Continuous
  • Standby
  • Peak Shaving

Region

  • North America
  • Europe
  • Latin America
  • Asia Pacific
  • Middle East
  • Africa

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Diesel Generator Market In Telecom Industry

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