The generator sets market is negatively affected by the economic downturn, challenges in the oil & gas industry (oil price collapse) and other end-user markets, geopolitical risks, supply chain constraints, trade conflicts, economic uncertainties, among other factors.
With the outbreak of the COVID-19 pandemic, there is a sharp pullback in economic activity due to mandatory lockdowns and other containment measures. According to the IMF World Economic Outlook published in June 2020, the world economy is set to post a -4.9% GDP growth rate in 2020. That will be a downgrade of 8.2% from January 2020. The impact of COVID-19 pandemic on the energy, automobile, industries has already been profound.
A sharp drop in demand for generators was observed in Q2 2020 in the commercial and industrial segments. This drop is primarily due to a dramatic fall in oil prices that has led to drastic spending cuts in the oil and gas industry, a decline in non-residential construction activity, and deferral of capital spending by telecom and other companies.
Nevertheless, the market is expected to fare well in the short term compared to its alternatives (Solar PV, Batteries, etc.). This is due to advantages associated with generator sets (such as Cost, etc.)
The diesel generator sets market share is expected to slowly erode in the years forward due to the increasing adoption of gas and alternative fuel generator sets across the world. Despite the expected reduction in the share, diesel generators are likely to continue its leading position in the global generator sets market during the forecast period.
The market is highly consolidated and fiercely competitive. The major players in the market include - Caterpillar, Cummins, Generac, among others. Owing to the heavy competition, companies are increasing their marketing efforts and providing competitive and attractive pricing, leading to a decline in profitability.
This report provides insights into the current global and regional market demand scenario and its outlook. The study offers a detailed analysis of various factors instrumental in affecting the growth of the transformers market.
The report also addresses present and future market opportunities, market trends, developments, and the impact of COVID-19 on the generator sets market, important commercial developments, regions, and segments poised for the fastest-growth, competitive landscape. Further, the generator sets market size, and demand forecast, growth rates will also be provided in the report.