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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 Forecast 2024-2028
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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.
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 when 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, when compared with 56% in 2020. In addition, the 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 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. 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.
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.
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. 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. Furthermore, LVDGs have become a dependable backup source for customers in the commercial segment. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
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.
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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.
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.
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.
Low Voltage (LV) Diesel Generators Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.72% |
Market Growth 2024-2028 |
USD 3.65 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.24 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 46% |
Key countries |
US, China, India, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., 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. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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