Low Voltage (LV) Diesel Generators Market Analysis APAC, Europe, North America, Middle East and Africa, South America - US, China, India, Germany, UK - Size and Forecast 2024-2028

Low Voltage (LV) Diesel Generators Market 2024-2028

The low voltage (LV) diesel generators market size is forecast to increase by USD 3.65 billion, at a CAGR of 7.72% between 2023 and 2028. The growth rate of the market depends on several factors, such as the higher demand for electricity and unreliable grid infrastructure in emerging economies, the rising urban population worldwide, and the high demand for LVDGs due to low crude oil price.

The report offers extensive research analysis on the market, with a categorization based on End-user, including commercial, residential, and industrial. It further segments the market by Type, encompassing portable and stationary. Additionally, the report provides Region segmentation, covering APAC, Europe, North America, Middle East and Africa, and South America. Market size, historical data (2018-2022), and future projections are presented in terms of value (in USD billion) for all the mentioned segments.

Market Forecasting and Size

Market  Forecast 2024-2028

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Market Dynamics

Our researchers studied the market research and growth data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the market growth during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges of market growth and forecasting will help companies refine marketing strategies to gain a competitive advantage.    

Driver - Rising urban population worldwide

The migration of people toward urban areas has accelerated in the last few decades. In addition, the shift is higher in emerging economies, where there are more employment opportunities in urban areas compared to rural areas. Furthermore, at a global level, the percentage of the urban population is rising steadily.

For example, as per The World Bank Group, the urban population accounted for 57% of the total population globally in 2022, compared with 56% in 2020. This increasing urban population is a driver for the market as it will lead to the growth of business and construction activities, including residential and commercial complexes in urban areas. Hence, such factors are driving the market growth during the forecast period. The demand for essential automotive components like automotive alternators, crucial for powering vehicle electronics and charging batteries, will also rise with the increasing urbanization and vehicle ownership in these expanding urban centers.

Trends - Growing popularity of smart grid technology

The smart grid technology refers to an electricity network that supplies electricity to customers through digital technology. In addition, smart grids are gaining popularity across the world for providing a reliable and uninterrupted power supply to end-users. Low-voltage diesel generators are often used for backup power in remote areas, while solid oxide fuel cells are emerging as a cleaner, more efficient alternative for continuous power generation. Furthermore, with the growing need for utilities to maximize reliability, resiliency, and power efficiency, the adoption of smart grid technology is increasing to analyze system performance.

Moreover, smart grid technology increases the quality of power supply and raises energy efficiency, which is crucial for meeting the high energy demand in major emerging economies such as China and India. In addition, smart grid technology integrates new energy sources, such as solar and wind, with traditional sources. Therefore, smart grid technology helps regulators in driving the adoption of distributed renewable energy. Hence, such factors are driving the market growth during the forecast period. The adoption of smart grid technology also supports the integration of Low and Medium Capacity (LMC) gas generators, which play a significant role in enhancing grid stability and providing reliable backup power. As energy networks evolve to accommodate diverse energy sources and improve efficiency, LMC gas generators contribute to meeting the increasing demand for reliable electricity supply in urban and rural areas alike.

Challenge - Growth of decentralized renewable energy

Regulators across the globe are promoting the use of renewable power sources to minimize emissions and offer reliable and secure energy supply to remote areas. In addition, renewable technologies are best suited for distributed applications as an alternative to power grid infrastructure. Furthermore, the availability and affordability of renewable technologies have increased in recent years due to technological advances and price reductions.

Moreover, this is increasing the adoption of decentralized renewable energy across the world. Therefore, this will be a challenge for the growth of the global LVDGs market as decentralized applications will reduce power outages across the world, which will lead to a low dependence on generators. Hence, such factors are hindering the market growth during the forecast period.

Market Segmentation by End-user, Type and Geography

End-user Segment Analysis:

The commercial segment is estimated to witness significant growth during the forecast period. The commercial segment comprises the adoption of LVDGs in restaurants, resorts, hotels, shopping malls, grocery stores, movie theatres, hospitals, business parks, commercial offices, government buildings, educational institutions, public spaces such as airports, and financial institutions such as banks. In addition, the adoption of LVDGs is high in the commercial segment as these establishments require continuous electricity supply for the efficient functioning of their business activities.

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The commercial segment was the largest segment and was valued at USD 2.66 billion in 2018 in the Italian Diesel Gensets market. Moreover, uninterrupted power supply is crucial for the business activities of customers in the commercial segment as several vital equipment and operations require continuous electric power. In addition, LVDGs are economical to operate and run when compared to medium- and high-voltage diesel generators, which is increasing their adoption in the commercial segment within the Italian Diesel Gensets market. Furthermore, LVDGs have become a dependable backup source for customers in the commercial segment. Hence, such factors are fueling the growth of this segment, which in turn drives the market growth during the forecast period.

Type Segment Analysis:

Based on the type, the market has been segmented into portable and stationary. The portable segment will account for the largest share of this segment. Portablesegment has emerged as a distinct market segment within the global market, catering to a broad range of applications and end-users. In addition, portable LV diesel generators are one of the most popular types of LV diesel generators due to their mobility. Moreover, portable LV diesel generators are easy to transport and can be used in a variety of locations. Therefore, this makes them an ideal choice for construction sites and outdoor events, as well as for emergency situations where you need a dependable power source but can't afford a fixed installation.  Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.

Regional Analysis

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APAC is estimated to contribute 46% to the growth by 2027. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. Some of the major countries contributing to the market growth in APAC include  China, India, and Japan. In addition, these countries are leading the residential and commercial infrastructure development, which is contributing to the demand for LVDGs. Moreover, APAC consists of some of the fastest-growing economies in the world, including China, India, Thailand, and Indonesia, among others. In addition, APAC is witnessing a rise in the rate of urbanization, with increasing employment opportunities in urban areas. Therefore, the population in the region is shifting toward urban areas, which is creating a significant demand for consumer goods and commercial and residential complexes. Hence, such factors are driving the market growth in APAC during the forecast period.

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

ABB Ltd: The company offers low-voltage diesel generators for engines that generate power up to 5MVA.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:

Aksa Power Generation Inc., Atlas Copco AB, Briggs and Stratton LLC, Caterpillar Inc., Cooper Corp. Pvt. Ltd., Cummins Inc., FG wilson, Generac Holdings Inc., Honda Motor Co. Ltd., Kirloskar Oil Engines Ltd., KOHLER Co., Mitsubishi Heavy Industries Ltd., PR INDUSTRIAL Srl, Rolls Royce Holdings Plc, Siemens AG, Wartsila Corp., and Yanmar Holdings Co. Ltd.

Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Segment Overview

The market analysis and report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

•  End-user Outlook 
  • Commercial
  • Residential
  • Industrial
• Type Outlook
  • Portable|
  • Stationary
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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What are the Key Data Covered in this Low Voltage (LV) Diesel Generators Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the size of the market growth and trends and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Market growth and forecasting across APAC, Europe, North America, Middle East and Africa, and South America
• A thorough market growth analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive market report analysis of factors that will challenge the growth of market  companies

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