Production of Diesel Generator Sets
Trends in where units are produced
April 2024
One of the benefits of developing an industry database over a long period of time is clear visibility of trends in the data. With full year 2023 data now available, we look at where diesel generator sets are produced and how this has evolved over time. Â
The Genstat database from Parkinson Associates splits production and market opportunity for diesel generator sets into 12 power bands but for simplicity, in this analysis we'll group production into three bands.
7.5 - 250 kVA
The most striking feature in this data is the relative decline of production in Europe, to almost half of its 2008 share, and the corresponding increase in China, almost tripling its share of global production. Â
Today around a third of all diesel generator sets at this size are manufactured in China, either by global OEMs relocating production in the country or by local Chinese OEMs, most of them exporting a significant percentage of production.
Today the Middle East and Africa have a growing number of local OEMs producing diesel generator sets with well-established engine brands and this is reflected in the numbers: production facilities in the Middle East and Africa have more than doubled their share of world production and now account for more than 10%, only a few percentage points behind the whole of Europe. Â
India's share of global production in these power bands has dropped and the most likely factor is the telecoms sector for which demand peaked some time ago. Although there are some global OEMs producing in India, most of these units remain in the country. Â
Unit Production of Diesel Generator Sets by Region: 7.5 - 250 kVA
% indicates share of world unit production in that region for each year
Source:Â Genstat from Parkinson Associates
 251 - 1,500 kVA
In this mid-range power band, again the striking feature is the decline in units produced in Europe and corresponding increase in China. Â
In 2008, around half of the world's diesel generator sets at this size were produced in Europe: today it's less than 20% and units produced in China account for almost 40%. Â
Across other regions, particularly North America, there has been relatively little change. North America, the world's largest regional market for diesel generator sets, meets most of its demand with units produced in-region.
Unit Production of Diesel Generator Sets by Region: 251 - 1,500 kVA
% indicates share of world unit production in that region for each year
Source:Â Genstat from Parkinson Associates
Above 1,500 kVA
For diesel generator sets at these sizes, many customers have a marked preference for units made in North America or Europe: in 2008, almost 80% of units at this size were produced in these regions, while today the figure is around 70%. Â
Today above 1,500 kVA, units produced in North America account for almost 50% of world production. A major factor is the data center sector, which is particularly strong in North America. Â
Again, European production has declined in these power bands, from 45% of world production in 2008 to a less than 25% today, with this decline picked up by North America and China production. Today many European OEMs are producing generator sets in China at ratings above 2,000 kVA and China now accounts for almost 20% of the world's production of diesel generator sets above 1,500 kVA.
Unit Production of Diesel Generator Sets by Region: Above 1,500 kVA
% indicates share of world unit production in that region for each year
Source:Â Genstat from Parkinson Associates
The Production Big Picture
The changes which many in the industry have seen and experienced over the last 10 - 15 years are reflected in these numbers:
The decrease in European production as OEMs have shifted more production to China, not just of smaller units but of larger units of 2,000 kVA or more.Â
The increase in production in Middle East and Africa, particularly at lower power ratings.Â
The relatively stable picture in North America below 1,500 kVA and increase in production at higher power ratings.Â
As the industry moves further into its mature phase, manufacturing operating models will come under increasing scrutiny. Â
It's likely that the trends seen above will continue with more units produced in lower cost locations, often near manufacturers of major components. There's also a growing trend for units to be produced closer to the final customer: the days of shipping engines halfway round the world to be packaged into generator sets and then shipped halfway round the world back to a customer are long gone. Â
Insights on Opportunity for Producers of Diesel Generator Sets
To find out more about this study, contact us at at enquiries@parkinsonassociates.com
Parkinson Associates publish an opportunity database, Genstat, available quarterly and annually, for diesel generator sets, split by 12 power bands for every country. Click here to find out more.
To find out more about our research in the diesel generator set industry, click here Â
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Production History Apr 24.pdf