Factors such as the burgeoning demand for data centers and the flourishing construction sector are expected to accelerate the genset market at a CAGR of 5.8% during the forecast period (2020–2030). According to P&S Intelligence, the market was valued at $17,592.6 million in 2019, and it is projected to generate $27,863.0 million revenue by 2030. Moreover, the low power production and rising grid uncertainty in various countries will contribute to the market growth globally.
The demand for gensets is driven by the burgeoning number of data centers across the world. The increasing usage of autonomous cars, intelligent personal assistants, accounting services, digital currencies, and the internet of things (IoT) is encouraging the construction of data centers owing to the large volume of data generated by such advanced technologies. Data centers deploy generators to meet their prime and auxiliary power requirements. The critical appliances of data centers, such as backup controls, security systems, servers, and heating, ventilation, and air conditioning (HVAC) systems, require a continuous power supply for efficient operations.
The application segment of the genset market is classified into residential, industrial, and commercial. In 2019, the commercial category accounted for the largest market share due to the surging public infrastructure funding, increasing number of smart cities, and flourishing retail industry owing to the mounting customer expenditure. This category is further categorized into hotels, retail establishments, hospitals, commercial offices, telecom towers, and others, such as amusement parks, party halls, public transport agencies, petrol pumps, and cold storage facilities.
Whereas, the Middle East and African genset market is expected to demonstrate the fastest growth throughout the forecast period because of the poor grid connectivity in several regional countries. Moreover, the growing commercial activities and escalating urbanization rate in the U.A.E., Turkey, Egypt, and Saudi Arabia will drive the demand for gensets in the region. Additionally, the expanding construction industry owing to the ambitious infrastructure projects, such as Saudi Vision 2030, and extensive government focus on diversifying their economies will catalyze the market growth in the MEA.
Therefore, the rising number of data centers and booming construction sector are the key contributors to the market advance.
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