The Europe diesel generator market is expected to grow at a CAGR of more than 2.07% over the period of 2020-2025. The targets of the governments of various countries to achieve significant improvement in the rural electrification rate, increase in power outages in the urban areas, and the longer timeframe required to set up the transmission and distribution infrastructure are some of the driving factors for the diesel generator market in Europe. On the flip side, the increasing availability of natural gas and the rapidly expanding natural gas generator technology, increasing deployment of renewables as an alternative power source, and the maintenance challenges for diesel generators are the restraining factors for the market studied.

  • The industrial sector has accounted for the largest share of the revenue from the sale of diesel generators in 2019 owing to the increasing demand for continuous and reliable power supply from the industrial sector.
  • With the increasing shift towards renewable energy sources, consumers across the Europe are looking for efficient and environmentally safe options such as hybrid diesel gensets that incorporate renewable sources like solar. This, in turn, is expected to create a significant amount of opportunity for the players involved in the market in the near future.
  • The United Kingdom accounted for the largest share in the market in 2019, with the majority of the demand coming from across the nation and rising commercial office spaces and small scale vendor market.



Key Market Trends

Industrial Sector to Dominate the Market

  • In 2019, the industrial sector is accounted for the largest share in the diesel generator market. Industrial operations are mainly dependent on electricity generated from diesel generators during power outages (to avoid operation downtime) and in regions where grid access is limited.
  • The industrial sector, which includes mining, manufacturing, agriculture, and construction, accounts for the largest share of energy consumption of any end-use sector.
  • The United Kingdom and Russia are expected to witness the industrial growth in the coming years on account of the sharp increase in manufacturing sectors, which is expected to drive the demand for diesel generators in the industrial sector.
  • Furthermore, government initiatives to expand the industrial sector, especially in the United Kingdom and Turkey, are expected to continue propelling the demand for diesel generators over the forecast period.



The United Kingdom to Dominate the Market

  • The United Kingdom is the leading diesel generator market in the Europe region owing to increasing infrastructure projects, widening power demand-supply gap, expansion of manufacturing facilities across the nation, and rising commercial office spaces.
  • The country benefits from the cost and effectiveness of diesel generators, with improved living standards increasing the demand for power back-up devices segments.
  • United Kingdom’s agriculture sector is large and covers more than 60% of the country’s total land area. Although the country’s power grid is increasingly becoming dependent on renewable sources, the agriculture industry is more interested in the power back up system. It is becoming more dependent on diesel generator systems and driving the market.
  • Around 40 to 50% of the data centers in Europe are present in the United kingdom and consume a significant amount of power. Datacenter uses the diesel generator to meet electricity demand during a power cut.
  • The country is expected to witness more data centres in the coming years increasing the demand for the diesel generator.



Competitive Landscape

The Europe diesel generator market is moderately fragmented. Some of the key players in this market include Caterpillar Inc, Mitsubishi Heavy Industries Engine & Turbocharger, Ltd., FG Wilson Engineering (Dublin) Ltd, Cummins Inc, Yanmar Holdings co. Ltd.

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