The diesel power engine market is expected to grow from USD 6.3 billion in 2020 to USD 7.9 billion by 2025, at a CAGR of 4.6%. Leading players in the diesel power engine market are Caterpillar (US), Cummins (US), Wartsila (Finland), Rolls-Royce Holdings (UK), MAN SE (Germany), Volvo Penta (Sweden), and Doosan Infracore (South Korea).
Increased industrialization, growing demand for reliable backup power supply, and datacenter investments are set to drive the diesel power engine market
The market has a promising growth potential due to several factors, including increasing industrialization, growing demand for reliable backup power solutions, and datacenter investments especially in Europe and North America.
Diesel power engines are compression ignition, reciprocating engines and are considered one of the most reliable and capable fossil fuel-based power generation technologies. These engines are coupled with an alternator to generate power as and when demanded. They are utilized for continuous and emergency standby power supply across end-users such as oil & gas, mining, petrochemical, data centers, hospital, and commercial buildings. The market growth for diesel power engines can be attributed to the increased demand for reliable backup power, especially from industrial and commercial end-users to supply critical loads.
The recent COVID-19 pandemic is expected to impact the global diesel power engine market. The COVID-19 outbreak led to large scale shutdown of operations across sectors, and disruption of projects and investments across end-use industries. Due to extended lockdown and disruption of operations, the end-use demand was low, and this was reflected in the 2020 first-quarter revenues of both Caterpillar, and Cummins who registered 21%, and 19% decline in revenues respectively.
Standby: The largest segment of the diesel power engine market, by operation
Standby segment is the largest segment of the diesel power engine market, by operation. Standby diesel engines are used by end-users for emergency power supply. Fast-start diesel engines, which can immediately come online and start supplying loads, are preferred in most cases. The demand for these standby diesel engines is more among the end-users. Industrial consumers, such as manufacturing and processing plants, rely on these standby diesel engines to maintain higher productivity in case of grid power failures.
Sectors with critical loads, such as hospitals, telecom infrastructure, and data centers, require a continuous power supply. With the increased industrialization especially in the Asia Pacific, the largest market for diesel power engines. These factors are expected to drive the market for diesel power engines globally.
Commercial: The fastest-growing segment of the diesel power engines market, by end-user
Commercial segment is the fastest-growing segment of the diesel power engine market, by end-user. The commercial sector's demand for diesel engine-powered gensets arises out of the need for reliable backup power for sectors with critical loads, such as hospitals, data centers, telecom infrastructure, and airports. Other commercial establishments such as malls, shopping complexes, offices, hotels, and warehouses also rely on diesel generator sets for emergency backup power supply.
In cases of outages, they always require efficient and reliable power backup. The growth in datacenter and critical facilities investments, coupled is expected to create huge demand for diesel power engines. The need for reliable and quick backup is expected to propel the demand for diesel power engines in the commercial sector.
Europe: The fastest-growing region in the diesel power engine market.
The market growth in this region can be attributed to the growing data center investments especially in countries such as Germany, the UK, and other Nordic Countries. New regulations such as General Data Protection Regulation (GDPR) are expected to contribute to the growth of data centers and thereby create demand for diesel power engines for backup power solutions.
The report segments the diesel power engine market and forecasts its size, by volume and value, based on region (Asia Pacific, North America, Europe, Middle East & Africa, and South America), operation (standby, prime, and Peak shaving), end-user (industrial, commercial, and residential), power rating (Below 0.5 MW, 0.5-1 MW, 1.0-2 MW, 2.0-5 MW, and Above 5 MW), speed (below 720 rpm, 720-1000 rpm, above 1000 rpm).
The report also provides a comprehensive review of market drivers, restraints, opportunities, and challenges in the diesel power engine market. The report also covers qualitative aspects in addition to the quantitative aspects of these markets.
Key Topics Covered
2 Research Methodology
3 Executive Summary
4 Premium Insights 4.1 Attractive Market Opportunities during the Forecast Period 4.2 Diesel Power Engine Market, by Region 4.3 Diesel Power Engine Market, by Operation 4.4 Diesel Power Engine Market, by End-user 4.5 Diesel Power Engine Market, by Power Rating 4.6 Diesel Power Engine Market, by Speed
5 Market Overview 5.1 Introduction 5.2 YC Shift Analysis 5.3 COVID-19 Health Assessment 5.4 COVID-19: Economic Assessment 5.5 Market Dynamics 5.5.1 Drivers 22.214.171.124 Rising Demand for Reliable and Uninterrupted Power 126.96.36.199 Growing Commercial Sector Investments 188.8.131.52 Increasing Urbanization and Industrialization 5.5.2 Restraints 184.108.40.206 High Fuel and Operation & Maintenance Costs 220.127.116.11 Competition from Alternative Energy Sources 5.5.3 Opportunities 18.104.22.168 Growth in Hybrid Power Generation in Rural and Remote Locations 5.5.4 Challenges 22.214.171.124 Stringent Environmental and Governmental Regulations 126.96.36.199 Rising Demand for Natural Gas in Power Generation Applications 5.6 COVID-19 Impact on Diesel Power Engine Market 5.6.1 Drivers 188.8.131.52 Increased Demand for Reliable Power from Healthcare Sector 5.6.2 Challenges 184.108.40.206 Supply Chain Disruption due to COVID-19 5.7 Value Chain Analysis 5.7.1 Raw Material 5.7.2 Manufacturing 5.7.3 Distribution & Post-Sales Services 5.8 Case Study Analysis 5.8.1 Diesel-Powered Electricity Generation for Emergency Power Supply 220.127.116.11 Summa Health 18.104.22.168 AVK
7 Diesel Power Engine Market, by Operation 7.1 Introduction 7.2 Standby 7.3 Prime/Continuous 7.4 Peak Shaving
8 Diesel Power Engine Market, by End-user 8.1 Introduction 8.2 Industrial 8.3 Commercial 8.4 Residential
9 Diesel Power Engine Market, by Power Rating 9.1 Introduction 9.2 Below 0.5 MW 9.3 0.5-1 MW 9.4 1.0-2 MW 9.5 2.0-5 MW 9.6 Above 5 MW
10 Diesel Power Engine Market, by Speed 10.1 Introduction 10.2 Below 720 Rpm 10.3 720-1000 Rpm 10.4 Above 1000 Rpm
11 Diesel Power Engine Market, by Region 11.1 Introduction 11.2 Impact of COVID-19 on Global Diesel Power Engine Market 11.3 Diesel Power Engine Average Selling Price 11.4 Asia-Pacific 11.5 North America 11.6 Europe 11.7 Middle East & Africa 11.8 South America