The United States diesel generator market is expected to rise at a CAGR of approximately 3.7% during 2020 - 2025. Factors such as increasing energy demand for several operations in remote areas such as construction and healthcare. Moreover, factors such as lack of reliable grid infrastructure and the need for emergency back-up power solutions are likely to drive the United States diesel generator market. However, increasing the installation of renewable energy sources to provide power is expected to restrain the United States diesel generator market.
- Due to the increasing growth in mining, manufacturing, agriculture, and construction, the industrial segment is expected to be the largest segment and is likely to dominate the United States diesel generator market during the forecast period.
- A hybrid diesel generator can use batteries, renewable energy, or grid power as its primary source of energy. Hybrid diesel generators offer savings in fuel consumption, service intervals, and running hours, with consequently longer generator lives and lower operating expenses. This is likely to create several opportunities for the United States diesel generator market in the future.
- Due to its largest population, the United States is witnessing an increase in energy demand, which is expected to drive the United States diesel generator market.
Key Market Trends
Industrial Segment Expected to Dominate the Market
- Diesel generators use diesel as a fuel to power the engine. Diesel generators are the least expensive equipment for power generation in the world. These generators can serve as a primary power source, a reliable secondary power source, and also as a back-up or standby power source for industrial customers across the country.
- Moreover, diesel generators used nowadays are much-improved versions of the earlier model. They produce much less noise and needed less cost of maintenance than other generators, thus driving the market during the forecast period.
- In 2019, the country's oil consumption was 36.99 Exajoules, which was much higher than the consumption of 2015, 35.66Exajoules. Among several other factors for an increase in the crude, such as an increase in automobiles on the road, one is likely to increase diesel usage for the generators.
- New tax reforms in the United States have reduced taxation on businesses, particularly the manufacturing sector. The reduced taxation is expected to drive the industrial sector and commercial sector in the country, which is expected to drive the demand for diesel generators for the industrial sector during the forecast period.
- Hence, owing to the above points, the industrial segment is likely going to dominate the United States diesel generator market during the forecast period.
Increasing Energy Demand Expected to Dominate the Market
- The constant increase in energy demand and an increasing number of commercial and industrial operations in the country will likely drive the United States diesel generator market during the forecast period. The continually growing demand for uninterrupted power supply in the country is also expected to drive the country's diesel generator market.
- Several states in the United States get struck by weather-related disasters, after which there is a significant requirement of energy in the county or state. For this purpose, the United States relies mostly on diesel generators as back-up power systems in the country to deal with these kinds of situations.
- In 2019, the country's total electricity generation was 4401.3 terawatt-hours (TWh), which was higher than what the country produced in 2015, 4348.7 TWh. The rising electricity generation in the country exhibits the country's growing commercial and industrial sectors, which require diesel generators for back-up power.
- Moreover, in 2020, several numbers of people got affected by COVID-19. Due to such a sharp rise in the number of people that require intensive care, the government of the country set camps/shelters at several open grounds or areas for the treatment of the affected ones. These camps were using diesel generators as a primary energy source or as a back-up power source for 24 hours of energy supply.
- Hence, owing to the above points, the increasing energy demand is expected to drive the United States diesel generator market during the forecast period.
The United States diesel generator market is fragmented. Some of the key players in this market include Kohler Co., Caterpillar Inc., Cummins Inc., Atlas Copco AB, and Generac Holdings Inc.
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