U.S. Diesel Genset Market Size, Share, Industry Demand, Growth, and Forecast to 2030

The growth of the construction sector is being driven by the huge investments being made in construction activities and infrastructural development projects in the country. For example, the second round of the Infrastructure for Rebuilding America (INFRA) discretionary grants program was announced by the U.S. Department of Transportation in December 2018. Under this program, the agency would invest nearly $900 million in various infrastructure development, improvement, and renovation projects in the country.

Apart from the aforementioned factors, the rising number of data centers in the country is also positively impacting the sales of diesel gensets. This is because the data centers need a regular supply of power, which is only possible with the usage of power backup systems such as diesel gensets. The rapid incorporation of advanced technologies such as IoT, 5G connectivity, and edge computing is augmenting the requirement for proper data storage space.

The growing demand for data storage facilities is fueling the development of data centers all over the country. As a result, many companies are making huge investments in the development of data centers and data storage facilities in the country. For example, in 2018, Alphabet Inc. made an investment worth $9 billion in office and data center construction in the U.S. The organization further invested $13 billion in data center development in 2019.

Hence, because of the above-mentioned factors, the power requirements are shooting-up in the U.S., which is, in turn, driving the demand for diesel gensets in the country. As a result, the revenue of the U.S. diesel genset market is predicted to grow from $2,187.4 million to $3,797.6 million from 2019 to 2030. Furthermore, the market will progress at a CAGR of 7.2% from 2020 to 2030. Depending on power requirement, the market is divided into backup power and prime power.

Between the two categories, the backup power division recorded higher growth, both in terms of revenue and volume, in the U.S. diesel genset market in 2019. This category is predicted to dominate the market in the future years as well, because of the rising need for backup power in the country, for continuing business operations in commercial and industrial facilities such as manufacturing plants, retail outlets, hospitals, and commercial complexes without any hindrances. 

When application is taken into consideration, the U.S. diesel genset market is classified into commercial, industrial, and residential categories. Out of these, the commercial category recorded the highest growth in 2019 and this trend will continue in the forthcoming years as well, as per the estimates of the market research firm, P&S Intelligence. This would be because of the rising demand for continuous power, especially at telecom facilities, construction sites, manufacturing units, commercial complexes, and offices in the country.

Hence, it can be said without any hesitation that the sales of diesel gensets will rise enormously in the U.S. in the upcoming years, mainly because of the growing incidence of power outages and the rising need for a continuous power supply in commercial, industrial, and residential settings in the country.

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