Because of swift industrialization in emerging economies, such as Indonesia, China, and India, are resulting in the growth of the construction activities. In addition to this, increasing investments in commercial and residential infrastructure, recovery in oil prices, integration of technology in business practices, lowering of geopolitical uncertainties, and implementation of fiscal reforms by governments are also leading to the growth of the construction industry in Gulf Cooperation Council countries.
This expansion of the construction sectors is further driving the growth of the global genset market. A genset is an equipment that is used for converting heat capacity into mechanical energy for eventually turning it into electrical energy. In addition to the expanding construction industry, the demand for gensets is also increasing because of the rising number of data centers across the globe. Owing to digitalization, the volume of data that is being produced has risen considerably.
In order to support this surging amount of data creation and consumption, the need for infrastructure to support collation, data analysis, and access is increasing. Moreover, the increasing utilization of intelligent personal assistants, digital currencies, autonomous cars, accounting services, and IoT, the requirement for data centers is further predicted to rise in the coming years. This, in turn, will drive the demand for gensets will grow as well, since they serve as prime and auxiliary power needs for data centers.
The genset market is projected to attain a revenue of $27,863.0 million by 2030, increasing from $17,592.6 million in 2019, progressing at a 5.8% CAGR during 2020–2030. When fuel is taken into consideration, the market is divided into gasoline, diesel, and gas, among which, the diesel division is predicted to account for the largest share of the market by 2030. Diesel in available in abundance, and its availability is wider than that of gasoline and natural gas. Although the price of power gas gensets is lower than that of diesel ones, the poor supply of gas affects the uptake.
In terms of application, the market is categorized into residential, commercial, and industrial, out of which, the commercial category accounted for the major share of the market in 2019. The increasing construction of smart cities, expansion of the retail sector, rising funding for public infrastructure advancement, and increasing disposable are resulting in this category’s growth. The commercial category is further divided into hotels, retail establishments, telecom towers, commercial offices, and hospitals.
The Asia-Pacific region led the genset market during the historical period (2014–2019), majorly due to the growth of the manufacturing sector. The sector is being driven by different government initiatives, including Made in China 2025, Made in India, and Making Indonesia 4.0. Other than this, increasing investments for developing the telecommunications infrastructure and requirement for backup power in the region are also responsible for the growth of the market.
In conclusion, the demand for gensets is growing due to the rising construction activities and growing number of data centers across the globe.
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