South America Diesel Generator Market Size (2024 - 2029)

The South America diesel generator market is projected to experience growth, driven by the region's inadequate grid infrastructure that demands power supply in off-grid areas. Despite the initial negative impact of the Covid-19 pandemic on power demand, the market has shown recovery and is expected to return to pre-pandemic levels. The increasing adoption of portable diesel generators for home and event applications presents significant opportunities. However, the market's expansion may be constrained by the transition to cleaner energy sources and advancements in battery technology.

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Market Size of South America Diesel Generator Industry

South America Diesel Generator Market Summary
Study Period 2021 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2021 - 2022
CAGR 2.50 %
Market Concentration Medium

Major Players

South America Diesel Generator Market Major Players

*Disclaimer: Major Players sorted in no particular order

South America Diesel Generator Market Analysis

The South America diesel generator market is expected to grow at a CAGR of more than 2.5% during the forecast period (2022-2027). 

The market was negatively impacted by the Covid-19 pandemic, as power demand from majore end-user segments fell signficantly. However, the market has since rebounded, and is expected to reach pre-pandemic levels during the forecast period.

  • Over the long term, the region's poor grid infrastructure necessitating power supply in off-grid locations is expected to drive the demand for diesel generators during the forecast period. 
  • On the flip side, the shift towards cleaner resources and advancement in battery technologies are likely to restrain the diesel generator market during the forecast period.
  • The emerging use of the portable diesel generators in home and event applications, which produce energy for lighting, sump pumps, refrigerators, air conditioners, and medical equipment are anticipated to create ample opportunities for diesel generators in near future.

South America Diesel Generator Industry Segmentation

Diesel generators provide prime, standby and continuous power output to residential, commercial & industrial sector, and is also a reliable source of power generation in an emergency situation and at a remote location. The South America diesel generator market is segmented by Capacity, End-user and Geography. By Capacity, the market is segmented into Less than 75 kVA, Between 75 to 375 kVA and More than 375 kVA. By End-user the market is segmented into Residential, Commercial, and Industrial. By Geography, the market is segmented into Brazil, Argentina, and Rest of South America.

Capacity
Less than 75 kVA
Between 75-375 kVA
More than 375 kVA
End-User
Residential
Commercial
Industrial
Geography
Brazil
Argentina
Rest of South America
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South America Diesel Generator Market Size Summary

The South America diesel generator market is poised for growth, driven by the region's inadequate grid infrastructure and the increasing demand for reliable power supply in off-grid locations. Despite the initial setback due to the Covid-19 pandemic, the market has shown resilience and is expected to recover to pre-pandemic levels. The demand for diesel generators is further bolstered by the burgeoning industrial sectors such as mining, oil and gas exploration, power generation, and construction, which require heavy-duty generators for uninterrupted operations. The oil and gas sector, in particular, plays a significant role in this demand, with countries like Guyana and Brazil investing heavily in exploration and production activities, thereby enhancing the need for diesel generators in both upstream and midstream industries.

In Argentina, the diesel generator market is anticipated to experience rapid growth due to increased infrastructure projects and investments in the oil and gas sector. The country's focus on unconventional exploration and production, especially in the Vaca Muerta Formation, is expected to create new opportunities for diesel generators. Additionally, the mining sector's expansion, driven by investments in lithium and other minerals, further supports the market's growth. The commercial sector, alongside residential and hospitality projects, also contributes to the rising demand for diesel generators. Despite the shift towards cleaner energy sources and advancements in battery technology, the reliance on diesel generators for standby power and their emerging use in portable applications continue to offer substantial market opportunities in South America.

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South America Diesel Generator Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Market Size and Demand Forecast in USD billion, till 2027

    3. 1.3 Recent Trends and Developments

    4. 1.4 Government Policies and Regulations

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

      2. 1.5.2 Restraints

    6. 1.6 Supply Chain Analysis

    7. 1.7 Porter's Five Force Analysis

      1. 1.7.1 Bargaining Power of Suppliers

      2. 1.7.2 Bargaining Power of Consumers

      3. 1.7.3 Threat of New Entrants

      4. 1.7.4 Threat of Substitute Products and Services

      5. 1.7.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Capacity

      1. 2.1.1 Less than 75 kVA

      2. 2.1.2 Between 75-375 kVA

      3. 2.1.3 More than 375 kVA

    2. 2.2 End-User

      1. 2.2.1 Residential

      2. 2.2.2 Commercial

      3. 2.2.3 Industrial

    3. 2.3 Geography

      1. 2.3.1 Brazil

      2. 2.3.2 Argentina

      3. 2.3.3 Rest of South America

South America Diesel Generator Market Size FAQs

The South America Diesel Generator Market is projected to register a CAGR of greater than 2.5% during the forecast period (2024-2029)

Caterpillar Inc. , Cummins Inc. , Generac Holdings Inc. , Kohler Co. and MTU Onsite Energy Corp are the major companies operating in the South America Diesel Generator Market.

South America Diesel Generator Market Report Snapshots

South America Diesel Generator Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)