Diesel generators are the primary sources of energy for many end-user sectors like Residential, Mining, Oil & Gas, Industrial & Construction, Telecom, etc., at times of power outages, grid failures, or emergency power supply requirements. These generators are gaining swift traction across China and are witnessing increasing deployment in multiple applications.
The China Diesel Generator Market is projected to grow at a CAGR of around 9% during the forecast period, i.e., 2022-27. The growth of the market is likely to be driven primarily by the burgeoning requirements of the swiftly expanding industrial sector of China for an uninterrupted power supply. In addition, the increasing construction projects for infrastructural developments is another prominent aspect surging the demand for a stable electricity flow and augmenting the demand for diesel generators in the country.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Region Covered||North, North West, North East, South, South West, East, Central|
|Key Companies Profiled||Caterpillar Inc., Cummins, AB Volvo Penta, Perkins, MTU Aero Engines, Doosan Corporation, Generac Holding Inc., Mitsubishi Corporation, Scania, FG Wilson, Others|
|Unit Denominations||USD Million|
Besides, favorable policies by the government are instigating the leading players to bring technological innovations in diesel generators and expand their scalability both locally & internationally, which, in turn, would propel the overall market growth through 2027.
Moreover, since the ownership of diesel generators can be expensive for contractors, several leading players in the market are offering rental services for these gensets and gaining swift momentum across the country. It, in turn, is displaying significant cost-effectiveness for the consumers, along with profitable prospects for the rental service providers. As these services are becoming an emerging trend in China, the overall market is likely to witness substantial growth over the forecast years.
Impact of Covid-19 on the China Diesel Generator Market
China, the epicenter of the Covid-19 pandemic that emerged in 2020, catastrophically impacted most industries, and the Diesel Generator Market was no exception. Owing to the severity of the pandemic, the government imposed stringent movement restrictions & lockdowns to curb the spread of this dreadful disease. As a result, the market witnessed several unprecedented challenges associated with the production & distribution of gensets across the country amidst the crisis.
The leading players in the market faced massive financial losses due to supply chain disruptions, unavailability of raw materials & labor, and reduced demand due to the shutdown of industries, construction projects, & commercial sectors, among others. However, on the other hand, the demand for gensets witnessed a temporary hike due to the continued requirement across the healthcare sector, which enabled Diesel Genset manufacturers to sustain the market.
Since the healthcare sector was under immense pressure owing to the exponentially rising number of Covid patients, the need to run several machines and equipment surged the demand for an uninterrupted energy flow and, in turn, fueled the demand for diesel generators. In addition to this, as people adopted work from home policies, the need for diesel generators escalated across the residential sectors as a primary source of power backup during grid failures & power outages to run home appliances.
Consequently, the market displayed an upswing and generated growth opportunities for the leading players to enhance their production & distribution capacities to meet the burgeoning consumer demand. Hence, with the gradual improvement in the pandemic, the government of China uplifted the restrictions & allowed the recommencement of business operations, which, in turn, stimulated the overall market growth and projected its usual growth pace in the coming years.
Based on End-Users:
Of all end-users, the Industrial & Construction sector dominated the China Diesel Generator Market with the largest share in previous years, and the same trend is expected during the forecast period, i.e., 2022-27. It owes principally to the immense support from the government of China through massive investments, favorable policies, and encouragement for expanding different end-user verticals like healthcare, manufacturing, food & beverage, and electronics industries, among others.
This expansion of different industries portrays a growing need for diesel generators to deliver a continuous flow of energy during power outages, grid failures, & emergencies to efficiently run various machinery & equipment, which, as a result, would drive the market through 2027.
Moreover, the mounting government focus on infrastructural developments is demonstrating a burgeoning need for diesel generators in the country, owing prominently to the increasing number of construction projects associated with airports, malls, residential complexes, & corporate spaces, which, in turn, projects lucrative growth opportunities for the diesel generator market in China during 2022-27.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The China Diesel Generator Market is expecting around 9% CAGR during 2022-27.
A. Swift expansion of industries like healthcare, manufacturing, food & beverages, among others, i.e., surging the demand for uninterrupted power supply, is the most prominent aspect projected to drive the China Diesel Generator Market through 2027.
A. The increasing inclination of contractors toward acquiring diesel generators on a rental basis is an emerging trend in China & is anticipated to boost the China Diesel Generator Market during 2022-27.
A. The Industrial & Construction sector is anticipated to emerge as an area of remunerative opportunities for the leading players in the China Diesel Generator Market over the forecast years.