Market Definition
A diesel generator produces electrical energy from the chemical energy contained in the diesel fuel. The prime components of diesel generators include a diesel engine, an AC alternator, fuel tank, control panel, & radiator. These generators are highly beneficial during power outages and can be used either as an emergency power backup system or a primary electricity source. Since they provide uninterrupted & a continuous flow of energy, their adoption is rising significantly across commercial, industrial, & residential sectors of Mexico for various applications due to increasing power outages & transmission failures across the country.
Market Insights
The Mexico Diesel Generator Market is projected to grow at a CAGR of around 4% during the forecast period, i.e., 2021-26. The growth of the market is driven primarily by the rapidly increasing demand for uninterrupted & reliable power supply in several end-user verticals like manufacturing, power generation, oil & gas, construction, telecommunication, residential, & healthcare, among others, i.e., soaring the production & sales of diesel generators in Mexico.
In addition, the swiftly escalating population is further boosting industrialization & infrastructure developments, thereby positively impacting the Mexico Diesel Generator Market. Besides, the growing adoption of heavy machinery is also boosting the demand for diesel generators to avoid sudden disruptions in their functioning or situations of power outages.
Moreover, diesel generators are increasingly used in the healthcare sector to ensure a continuous flow of energy to run healthcare equipment & machines like ventilators even during power cut situations, which is another crucial aspect projected to drive the market in the coming years.
Key Trends in the Mexico Diesel Generator Market
Since a majority of industries run their business operations from physical facilities, they tend to require a continuous flow of power. However, failures in distribution networks & transmission due to climate changes, cable defects, etc., can cause difficulties & massive financial loss to companies. Therefore, both private & public industries are swiftly adopting measures to integrate a standby source like diesel generators for an uninterrupted energy flow across these industries.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2016-19 |
| Base Year: 2020 | |
| Forecast Period: 2021-26 | |
| CAGR (2021-2026) | 4% |
| Key Companies Profiled | Caterpiller Inc., APR Energy, Cummins Inc., Kohler Co., Agreeko PLC., Generac México, S.A. de C.V., Atlas Copco AB |
| Unit Denominations | USD Million/Billion |
Impact of Covid-19 on the Mexico Diesel Generator Market
The Covid-19 pandemic in 2020 had a decelerating effect on most industries across Mexico, where the Diesel Generator Market was no exception. The Mexican government imposed stringent movement restrictions & lockdowns to curb the spread of this dreadful disease. As a result, most businesses witnessed a significant downfall in their growth, and the need for diesel generators also fell drastically.
In addition, owing to this downfall, most industries cut short their production and even shut their manufacturing facilities. Besides, ongoing construction projects underwent a temporary halt and negatively influenced the growth of the diesel generator market.
However, with the gradual betterment in the situation & ease of norms, the government allowed the recommencement of business operations. Hence, the market is likely to revive & regain its usual pace in the coming years. Furthermore, the Mexican government is also seeking constructive regulations to bring the economy back on track. As a result, numerous leading players in the market shall witness a plethora of remunerative growth opportunities in the years to come.
