Why Is Genset Market Growth Owed to Developing Countries?


Posted December 3, 2020 by ManishBaghel

Asia-Pacific (APAC) generated the highest revenue in the genset market during the historical period (2014–2019), as its manufacturing sector is prospering owing to government support, which is leading to the construction of factories.
 
From 7.7 billion in 2019, the worldwide population will reach 10.9 billion by 2100, as per the United Nations World Population Prospects 2019 report. This is leading to the rising demand for all kinds of infrastructure, which, in turn, is resulting in the surging requirement for electricity. Sadly, most of the developing countries and even a few developed ones are not equipped to provide the adequate amount of power for the booming population via the grid.



The increasing number of people on this planet and the inability of national grids to cater to them have been cited by P&S Intelligence as the key reasons for the genset market growth. In 2019, providers of such power generation systems made a combined $17,592.6 million, which is expected to increase at a 5.8% CAGR between 2020 and 2030 (forecast period), to reach $27,863.0 million in 2030. In the absence or unreliability of grid connectivity, generators have for long been the ideal solution to producing electricity.



The internal combustion engines (ICE) of generator sets are majorly fueled by gasoline (known as petrol in Commonwealth countries), natural gas, and diesel. Among these, diesel has been the choice of fuel for gensets, as it is easily available around the world. Though gas-fueled generators, especially those rated for lower power, are more cost-effective than low-power diesel variants, natural gas isn’t that easily available, which has discouraged customers to purchase natural gas generator sets.



Under the power rating segment, the genset market is categorized into 5 kilovolt-Ampere (kVA)–75 kVA, 76 kVA–375 kVA, 376 kVA–750 kVA, and above 750 kVA. Among these, the 76 kVA–375 kVA category held the largest value share in 2019 on account of the high installation rate of these gensets at offices, small factories, hotels, and telecom towers. Till 2030, the 375 kVA–750 kVA category will grow the fastest due to the rising requirement for high-power-rating systems at superstores, large office complexes, and residential complexes in urban areas.


Get the sample copy of the report at: https://www.psmarketresearch.com/market-analysis/genset-market/report-sample



Around the world, the number of data centers is increasing with the growing adoption of cloud computing and smartphones. Data centers allow companies to store their applications and data on somebody else’s servers, thus leading to reduced operational costs for companies. The systems used at data centers, including servers, backup controls, security systems, and heating, ventilation, and air conditioning (HVAC) systems, cannot tolerate power cuts and voltage spikes, which is why gensets are important for a consistent electricity supply.



Another factor driving the installation of gensets is the expanding construction industry. Residential, commercial, and industrial infrastructure development is picking up to cater to the booming population. Construction sites are mostly not connected to the grid, but require electricity to power machinery and tools, which requires generators. Similarly, after the commercial complexes, housing units, factories, and other infrastructure is commissioned, generators are important to keep them functional in the event of power outages.



Asia-Pacific (APAC) generated the highest revenue in the genset market during the historical period (2014–2019), as its manufacturing sector is prospering owing to government support, which is leading to the construction of factories. Similarly, the government of China, India, and Japan are adding telecommunication towers for smoother and wider connectivity; telecom towers are an important end user of generators. The highest CAGR during the forecast period will be witnessed in the Middle East and Africa, due to the swift industrialization and urbanization in Saudi Arabia, the U.A.E., Turkey, and Egypt.



Therefore, as the increasing population propels the demand for electricity, which is not being adequately provided by the grid in numerous countries, the installation rate of generator sets will continue to surge.
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Issued By Manish Kumar
Business Address Noida
Country India
Categories Energy
Tags genset market , genset market demand , genset market future , genset market growth , genset market scope , genset market share , genset market size , genset market trends
Last Updated December 3, 2020