INDUSTRY DATA: DIESEL GENERATOR INDUSTRY

The European market on the rise

The diesel generator set market grew by 18% in the first three quarters of 2022, continuing its post-Covid growth that began in 2021 (+33%). This growth was supported by the energy crisis affecting the European continent and the still strong growth of data centers, but also the energy situation in Ukraine. Indeed, growth in Eastern Europe jumped 43% in 2022 vs. 2021.

Increase of generators below 750 kVA

Growth was particularly strong for generators <750 kVA in 2022 (+25%), following a previous very strong postCovid increase in 2021 (+33%). The shorter leadtimes of this category of products, as well as the Ukraine situation explain some of this growth, but the market growth should slow down in 2023 since the construction market should slow down as well.

The boom of Chinese & Turkish exports

European imports from China continued their strong growth in 2022 (+60%), following a year in 2021 when they had already increased by more than 45%. This growth is achieved in all kinds of power units, thanks to the exports of international brands with production units in China. The current relative weakness of the Chinese domestic market is boosting exports, and the ongoing drop in maritime transport prices support this growth.

On top of that, the Turkish exports to Europe have also boomed by more than 60% in 2022, following 30% growth in 2021. This growth is particularly significant in Eastern Europe which represents most of these exports.

Zoom on the UK market

Although the diesel generator market in the UK had a record year in 2022 (+2.5%), the market is below most other European countries. Despite strong investments still present in Data Centers, the economic slowdown and the construction sector have moderated this growth.

This is similar from the point of view of exports and assembly of generators in the UK. Exports stagnated in 2022, marked by a drop in generators below 375 kVA, and an increase in generators above 750 kVA.