How Does Rising Infrastructure Development Boost Thailand DG Set Market?

In 2021, the Thailand DG set market was valued at $158.3 million; it is expected to reach $236.9 million by 2030, advancing with a rate of 4.6% from 2021 to 2030. It is attributed to the growing demand for backup and standalone power sources in offices, hospitals, hotels and residential buildings. Thailand is a popular tourist attraction around the globe. The Thailand tourism industry contributes significantly to the GDP of the country. The hospitality sector is expected to grow, attributed to the numerous business opportunities generated by the rise in tourism activities in-country.

The infrastructure development projects such as the construction or renovation of hotels and resorts are driving the demand for diesel generators leading to Thailand DG set market expansion. Moreover, the surge in demand for power generation systems on islands that do not have grid connectivity or managing with unreliable connections drives the market. For example, there is no central source of electricity in Phaluai island. Therefore, the natives are dependent on small-diesel-fueled generators.

The DG sets with a capacity above 750 kVA captured the largest share of the Thailand DG set market over the last few years, and their sales value is expected to grow at a rate of 4% from 2021 to 2030. It is attributed to high power requirements in the industrial sector for operations. The manufacturing companies in Thailand are massively producing high-tech goods such as automobiles and electronics. There are numerous start-ups in the country focusing on expanding their production facilities, driving the demand for gensets.

The significant Thailand DG market share is captured by the commercial sector under the application segment, amounting to 40%. The surge in leisure facilities such as shopping complexes, hotels and restaurants leads to the expansion of the commercial sector. The rise in Thailand’s tourism is also a key reason for the flourished commercial sector. The governments and real estate companies are making investments in the residential sector. It will further complement the growth of the commercial sector as well, driving the need for urban and semi-urban accommodations, resulting in a surge of residential DG sets demand.

The public and public-private partnerships led investments in the infrastructure development projects in the country to drive the Thailand DG set market. The government has invested around $116 billion in the last 10 years for infrastructure development projects. According to World Bank, the PPP investments in infrastructure in the previous 20 years amounted to $28 billion as per the database of private participation in infrastructure. The housing sector captured a significant share of the investment.

The Thailand DG set market is expected to boom due to the rising competition among providers in the country. The new companies in the market are partnering with other companies, resulting in tough competition. The DG sets manufacturing companies focusing on implementing technological advancements in the products to advance their position in the market. For instance, Caterpillar Inc. launched 31 new CAT GC DG sets’ models for the global electric contractor market. 

Thus, the rise in infrastructure development activities and expansion of the hospitality sector due to surge in the tourism activities leads to increased demand for DG sets. 

Read More

Why Will 150–199 kVA Category Potentially Grow in the U.S. Diesel Genset Market?

By 2030, the United States diesel genset market will reach $3,132.4 million, from $2,175.6 million in 2021. The market is projected to grow at a 4.1% CAGR during 2021–2030, owing to the increasing instance of power outages and the rising need for reliable and uninterrupted power supply. Moreover, there is a surging need for power backup sources, ascribed to the skyrocketing development of residential homes, hotels, and corporate offices, which is boosting the demand for gensets.

The frequency of power outages in the country is increasing, owing to factors including overloading and aging power grids, and natural calamities. Prominent places that require a consistent and smooth power supply, include fire stations, data centers, telecom towers, nuclear power plants, and healthcare centers. The equipment and devices in these facilities can be affected by a power failure, which will lead to misfunctioning because of the lack of ability to handle load surges. Hence, the development in these application areas will drive the requirement for diesel gensets.

Within the power requirement segment, the U.S. diesel genset market is bifurcated into backup power and prime power. In 2021, the backup power category accounted for higher revenue, of $1.9 billion. This is ascribed to the surging use of DGs in manufacturing facilities, retail establishments, hospitality units, healthcare facilities, commercial buildings, hotels, shops, and houses, as a backup power solution. Further, people in the country are continually installing powered generators to curb power outages because of natural calamities and old electricity grid infrastructure.

The use of data in the U.S. diesel genset market is expanding as hyper-scale cloud providers and business organizations attempt to reap profits from local and worldwide data demand. With the gradual acceptance and swift expansion of technologies in the U.S., there is a dire need for extra storage space. This is predicted to create a snowballing demand for data centers in the future. Additionally, data centers create a high requirement for reliable power sources and need a consistent power supply, which, in turn, drives the requirement for diesel gensets.

Hence, the surging demand for reliable and uninterrupted power supply and the increasing instances of power outages will provide lucrative opportunities for market players to gain a competitive edge.

Read More

How Will Housing Unit Demand Strengthen India Residential Diesel Generator Set Market?

The Indian residential diesel genset market will grow at a CAGR of 7.1% during 2020–2030, due to the increasing construction of residential units and the surging need for hybrid, inverter-based, and bi-fuel generators. In addition, the rising incidence of power cuts in the country will also attribute to the market growth in the coming years. According to P&S Intelligence, the industry was valued at $91.3 million in 2020, and it will generate $184.9 million revenue by 2030.

The increasing number of residential buildings, owing to the vast population and rapid urbanization, will drive the demand for residential diesel gensets in India.  For instance, according to the 2022 World Population Review, the number of people in India will grow from 1.4 billion in 2020 to 1.6 billion by 2050. Further, as per the World Bank, the urban population of the country grew from 471,031,529 in 2019 to 481,980,332 in 2020. The population surge and rapid urbanization have encouraged government and industrialists to encourage housing units, which deploy such generator systems in abundance.

In recent years, the rising preference for high-power-rating gensets over low-power-rating gensets, owing to the surging electricity demand, has become a prominent trend in the Indian residential diesel genset market. Airports, real estate spaces, and data centers of the country are the prominent users of high-power-rating generator set. The increasing need for electricity can be attributed to the vast population of the country.

Geographically, the Tamil Nadu residential diesel genset market is expected to register the fastest growth in the coming years in India. This can be primarily credited to the burgeoning demand for housing units in the state. The total population of Tamil Nadu will grow from 76,402,000 in 2021 to 77,546,000 by 2026 and 78,082,000 by 2031, as per the National Commission on Population Ministry of Health and Family Welfare. The number of men and women will surge from 38,165,000 in 2021 to 38,654,000 by 2026 and 38,237,000 in 2021 to 38,892,000 by 2026, respectively.

Thus, the increasing number of housing projects will propel the demand for residential diesel gensets in India.

Read More