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South America Diesel Generator Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 100 Pages
  • January 2022
  • Mordor Intelligence
  • ID: 5529821

Diesel generators provide prime, standby and continuous power output to residential, commercial & industrial sector, and is also a reliable source of power generation in an emergency situation and at a remote location. The South America diesel generator market is expected to grow at a CAGR of more than 2.5% during the forecast period. Factors such as growing urbanization, rise in power outages, the high average price of power produced through conventional power plants, and poor grid infrastructure have resulted in the demand for excess and uninterrupted electricity supply are expected to drive the demand for diesel generators during the forecast period. Diesel generators provide reliable and continuous power supply according to consumer needs with safe operations and high efficiency. All these major factors are driving the demand for diesel generators in South America. However, the shift towards cleaner resources and advancement in battery technologies are likely to restrain the diesel generator market during the forecast period.

Key Highlights

  • The industrial sector is expected to dominate in the market owing to the increasing demand for continuous and reliable power supply from the industrial sector.
  • The emerging use of the portable diesel generators in home and event applications, which produce energy for lighting, sump pumps, refrigerators, air conditioners, and medical equipment are anticipated to create ample opportunities for diesel generators in near future.
  • Amongst all the South American countries, Argentina is anticipated to have a significant growth in the market during the forecast period.

Key Market Trends

Industrial Sector to Dominate the Market

  • South America region has countries that are in their developing stage or are under-developed. These countries are highly reliable on standby power generation or non-conventional methods of power generation. The industrial operations are mainly dependent on electricity generated from diesel generators during power outages and in regions where grid access is limited.
  • The increase in the demand for diesel generators in the region is mainly attributed to the growth in numerous end-use industries including mining, oil & gas exploration, power generation, and construction that demand heavy-duty generators for continuous and reliable power supply for operation.
  • Based on capacity, more than 375 kVA segment is expected to have substantial growth in the segment owing to the wide range of power output, these power rating generators are widely used in the large-scale industrial sector in South America, as they provide uninterrupted power supply and reduced industry downtime, which results in capital gain.
  • Brazil is the dominant market for diesel generators in the region owing to the large agricultural and construction industries.

Argentina is Expected to Witness a Significant Growth in the Market

  • Argentina is expected to witness faster growth over the coming years on the back of surging demand for diesel generators in improving the power industry and increasing investment to develop oil & gas activities, airports, and other transportation hubs.
  • In Argentina, the diesel generator market is predicted to grow over the forecast period on the back of an increasing number of infrastructure projects in transportation, oil & gas, and the commercial sector. Further, upcoming projects in the residential and hospitality sectors, in the areas such as Buenos Aires and Cordoba cities funded by foreign and private investors are likely to support the increase in demand for diesel generators in the country.
  • The construction of new residential units, hotels, hospitals, etc., is one of the major factors for the growth of the diesel generator market in Argentina. Moreover, the commercial sector dominates the overall Argentina diesel generator market to provide efficient power support to the growing number of construction projects.
  • In addition, the country’s shale has tremendous potential for companies to expand, businesses to start-up, and for investors to prosper. This is expected to provide diesel generators to aid companies in tapping the shale resource scattered throughout Argentina’s basins.
  • Therefore, the surging power outage and rise in oil & gas explorations and production in the country is projected to contribute to the growth of the South America diesel generator market.

Competitive Landscape

The South America diesel generator market is moderately fragmented. Some of the major key players in the market include Caterpillar Inc., Cummins Inc., Generac Holdings Inc., MTU Onsite Energy Corp, and Kohler Co.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

Table of Contents

1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, till 2025
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 Porter's Five Force Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitute Products and Services
4.7.5 Intensity of Competitive Rivalry
5.1 Capacity
5.1.1 Less than 75 kVA
5.1.2 Between 75-375 kVA
5.1.3 More than 375 kVA
5.2 End-User
5.2.1 Residential
5.2.2 Commercial
5.2.3 Industrial
5.3 Geography
5.3.1 Brazil
5.3.2 Argentina
5.3.3 Rest of South America
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Caterpillar Inc.
6.3.2 Cummins Inc.
6.3.3 Generac Holdings Inc.
6.3.4 MTU Onsite Energy Corp
6.3.5 Kohler Co.
6.3.6 Atlas Copco AB
6.3.7 J C Bamford Excavators Ltd.