Report Overview

South Korea Diesel Generator Market - Industry Trends & Forecast Report, 2030

South Korea Diesel Generator Market size was estimated to be worth USD 942.63 million in 2023. During the forecast period between 2024 and 2030, South Korea Diesel Generator Market size is projected to grow at a CAGR of 5.30%, reaching a value of USD 1,334.97 million by 2030. Major growth factors for South Korea Diesel Generator Market include increasing power demand and uninterrupted power supply, particularly in healthcare and banking sectors that need power stability. Furthermore, rapid urbanization and development in rural and remote areas are anticipated to provide lucrative growth opportunities to South Korea diesel generator market during the forecast period.

Diesel Generator – Overview

A diesel generator produces electricity using an electric generator and a diesel engine. Combining the efficiencies of the diesel engine and alternator, the diesel generator has an efficiency range of 30%–50%. Generators are practical devices that provide electricity during a power outage, preventing the interruption of daily activities or business operations. They have 50% higher energy efficiency than a gasoline generator operating at the same capacity because they burn fuel using compression heat rather than spark ignition.

South Korea Diesel Generator Market

Growth Drivers

Growing Power Outage Issues in Residential Sector

The growing frequency of power outages, particularly due to extreme weather events, leads to inconvenience among residents and fuels the demand for power backup solutions, including diesel generators. For instance, a massive power outage affected around 155,000 households in the southeastern industrial city of Ulsan in December 2023, due to a malfunctioning substation, and is said to be the country's largest power outage since 2017. In another instance, the southeastern cities of Changwon and Busan faced power outages due to heavy rain and landslides, affecting more than 1,800 households. Due to these factors, the demand for diesel generators is rising in South Korea at a high rate.

Challenges

Shift toward Sustainable Energy Solutions

The South Korean government has been significantly focusing and investing in boosting the adoption of green technologies in the country. The rising concerns surrounding climate change and carbon footprints are prompting both government and businesses to reduce their dependence on fossil fuels and promote sustainability. This can result in a shift towards renewable energy technologies for power backup, such as fuel cells, solar panels, and others. The energy intensive industries, such as automobile manufacturing, are also making their shift towards sustainable energy solutions to decrease their energy costs and protect their businesses from price fluctuations.

Impact of Escalating Geopolitical Tensions on South Korea Diesel Generator Market

Intensifying and further spreading of geopolitical tensions among major countries across the regions could adversely affect South Korea Diesel Generator Market. Geopolitical tensions directly lead to supply chain disruptions for South Korea and results in shortage of raw materials, which increases the cost for manufacturers and delays in production. The escalating tensions in different parts of the world also results in trade barriers in the form of sanctions, posing challenges to source necessary parts or finished goods of diesel generators into the country. However, heightened tensions may result in increased demand for energy security, prompting government as well as businesses to invest in power backup solutions, driving the demand for diesel generators across the country.

South Korea Diesel Generator Market

Segmental Coverage

South Korea Diesel Generator Market – By Power Rating

Based on power rating, South Korea Diesel Generator Market is segmented into low power generators, medium power generators, and high power generators. High power generators segment holds the largest share of South Korea Diesel Generator Market owing to their deployment in heavy industries. Diesel generators of this power rating have a strong demand in the industrial sector in case of emergencies during power outages and to keep the operations going. However, medium power generators are also gaining traction in the market owing to the growing demand for portable generators in the residential sector and small businesses.

South Korea Diesel Generator Market – By Portability

By portability, South Korea Diesel Generator Market is segmented into stationary and portable. The stationary segment accounts for a larger market share of South Korea Diesel Generator Market by portability. Stationary diesel generators are considered the most efficient power-producing devices because of their turbocharger, which partially compresses the intake air before the piston's compression stroke and further extracts energy from the gasses in the exhaust stream. Therefore, these diesel generators are deployed in large industries and commercial spaces, which drives its market growth.

South Korea Diesel Generator Market – By Application

On the basis of application, South Korea Diesel Generator Market is segmented into industrial, commercial, and residential. The commercial segment dominates South Korea Diesel Generator Market by application. The growth of the commercial segment is mainly attributed to the growing demand for diesel generators across major sectors, including government, healthcare, agriculture, educational institutions, and others. The inconvenience and high economic loss associated with power outages in these sectors prompt them to deploy diesel generators to ensure uninterrupted power supply, driving its market growth.

Competitive Landscape

South Korea Diesel Generator Market is intensely competitive, as a number of companies are competing to gain a significant market share. Key players in the market include Doosan Heavy Industries & Construction, Hyundai Heavy Industries, Samsung Heavy Industries, LG Electronics, Hanwha Techwin, SsangYong Motor, Kia Motors, and SK Heavy Industries. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Power Rating

• Low

• Medium

• High

By Portability

• Stationary

• Portable

By Application

• Industrial

• Commercial

• Residential

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. South Korea Diesel Generator Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Increasing Demand for Uninterrupted Power Supply
         2. Expanding Industrialization and Urbanization
         3. Increasing Emergency Power Systems
      2. Restraints
         1. High Cost of Diesel Fuel
         2. Noise Pollution
      3. Opportunities
         1. Rising Demand for Data Centers and Telecommunications Infrastructure
         2. Advancements in Technology
      4. Challenges
         1. Environmental Concerns
         2. Maintenance and Operating Costs
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. South Korea Diesel Generator Market: Marketing Strategies
5. South Korea Diesel Generator Market: Pricing Analysis
6. South Korea Diesel Generator Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Power Rating
         1. Low Power Generator
         2. Medium Power Generator
         3. High Power Generator
      2. By Portability
         1. Stationary
         2. Portable
      3. By Application
         1. Industrial
         2. Commercial
         3. Residential
7. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. South Korea Diesel Generator Company Market Share Analysis, 2023
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
8. Impact of Escalating Geopolitical Tensions on South Korea Diesel Generator Market
9. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
   1. Doosan Heavy Industries & Construction
   2. Hyundai Heavy Industries
   3. Samsung Heavy Industries
   4. LG Electronics
   5. Hanwha Techwin
   6. SsangYong Motor
   7. Kia Motors
   8. SK Heavy Industries
   9. Other Prominent Players
10. Key Strategic Recommendations
11. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3.  Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.  Breakdown of Primary Research Respondents, By Country
    5.  Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       South Korea Diesel Generator  Segmentation

Figure 2       South Korea Diesel Generator Market Value Chain Analysis        

Figure 3       Company Market Share Analysis, 2023

Figure 4       South Korea Diesel Generator Market Size, By Value (USD Million), 2019–2030         

Figure 5       South Korea Diesel Generator Market Share, By Power Rating , By Value, 2019–2030 

Figure 6       South Korea Diesel Generator Market Share, By Portability, By Value, 2019–2030         

Figure 7       South Korea Diesel Generator Market Share, By Application, By Value, 2019–2030         

List of Tables

Table 1        South Korea Diesel Generator Market Size, By Value (USD Million), 2019–2030

Table 2        South Korea Diesel Generator Market Size, By Power Rating , By Value, 2019–2030

Table 3        South Korea Diesel Generator Market Size, By Portability, By Value, 2019–2030

Table 4        South Korea Diesel Generator Market Size, By Application, By Value, 2019–2030

Table 5        Doosan Heavy Industries & Construction Company Overview

Table 6        Doosan Heavy Industries & Construction Financial Overview

Table 7        Hyundai Heavy Industries Company Overview

Table 8        Hyundai Heavy Industries Financial Overview

Table 9        Samsung Heavy Industries Company Overview

Table 10      Samsung Heavy Industries Financial Overview

Table 11      LG Electronics Company Overview

Table 12      LG Electronics Financial Overview

Table 13      Hanwha Techwin Company Overview

Table 14      Hanwha Techwin Financial Overview

Table 15      SsangYong Motor Company Overview

Table 16      SsangYong Motor Financial Overview

Table 17      Kia Motors Company Overview

Table 18      Kia Motors Financial Overview

Table 19      SK Heavy Industries  Company Overview

Table 20      SK Heavy Industries  Financial Overview