Report Overview

An increasing demand for uninterrupted power supply driven by rapid industrialization and urbanization is expected to boost the growth of Taiwan Diesel Generator Market during the forecast period between 2024 and 2030.

Taiwan Diesel Generator Market - Industry Trends & Forecast Report, 2030

Taiwan Diesel Generator Market size was estimated to be worth USD 90.06 million in 2023. During the forecast period between 2024 and 2030, Taiwan Diesel Generator Market size is projected to grow at a CAGR of 7.20%, reaching a value of USD 144.72 million by 2030. Major growth factors for Taiwan Diesel Generator Market include a shortage of power supply and growing demand for uninterrupted power supply from the residential sector and major industries, such as healthcare, which need continuous power supply. Furthermore, technological advancements, including smart monitoring systems, are anticipated to drive Taiwan 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.

Taiwan Diesel Generator Market

Growth Drivers

Power Outage and Increasing Energy Demands

According to the Atlantic Council’s Global Energy Center, Taiwan is facing a significant shortage of energy and electricity mainly due to high dependence on energy imports, which leads to energy supply disruption in the country. Taiwan has had many minor interruptions over the last year in addition to three significant outages in the previous seven years, as reported by CNBC. Many reports are also emerging stating the poor state of power supply in Taiwan province, and the power system of the country is said to be on the verge of collapse. As a result, people as well as businesses are investing in backup power sources, which is anticipated to boost the demand for the diesel generator market during the forecast period.

Challenges

Growing Shift towards Greener Technologies

The government's promotion of green technology adoption in Taiwan is emerging as a barrier to the diesel generator market in the country. Concerns about carbon footprints and climate change are growing, which is why companies and the government are promoting sustainability and lowering their reliance on fossil fuels. This may lead to a change in backup power sources toward renewable energy sources like solar panels and fuel cells. In order to lower their energy expenses and safeguard their companies against price fluctuations, energy-intensive industries like the automobile industry are also moving toward sustainable energy solutions, which may limit the demand for diesel generators during the forecast period.

Impact of Escalating Geopolitical Tensions on Taiwan Diesel Generator Market

Intensifying and further spreading of geopolitical tensions among countries across major regions could adversely affect the growth of Taiwan Diesel Generator Market in many ways. Geopolitical tensions, such as the Russia-Ukraine war or escalating tensions in Israel and its neighboring countries across the Middle East, disrupt the global supply chain for diesel generators and their components. The high dependence on international trade to source components to manufacture diesel generators and disruption in the supply chain lead to shortages and surges in prices. However, the demand for diesel generators may witness a potential rise due to the increased focus on enhancing energy security to ensure operational continuity amid heightened geopolitical risks.

Taiwan Diesel Generator Market

Segmental Coverage

Taiwan Diesel Generator Market – By Power Rating

Based on power rating, Taiwan Diesel Generator Market is segmented into low-power generators, medium-power generators, and high-power generators. The high-power generator segment holds the largest share of Taiwan Diesel Generator Market, due to the rising deployment of high-power generators in the manufacturing sector. The rapid industrialization and presence of leading sectors, including manufacturing, petrochemicals, steel and other metals, and military, directly propel the demand for high-power generators. However, the increased demand for portable generators in the household and small business sectors is also driving the market for medium-power generators.

Taiwan Diesel Generator Market – By Portability

By portability, Taiwan Diesel Generator Market is segmented into stationary and portable. The stationary segment accounts for a larger share of Taiwan Diesel Generator Market by portability. Stationary diesel generators are in high demand in Taiwan owing to the country's robust manufacturing sector. Stationary diesel generators are considered the most efficient power-producing equipment because of their turbocharger, which further absorbs energy from the exhaust stream's gases and partially compresses the intake air before the piston's compression stroke. As a result, the market for these diesel generators is expanding since they are used in large industries and companies.

Taiwan Diesel Generator Market – By Application

On the basis of application, Taiwan Diesel Generator Market is segmented into industrial, commercial, and residential. The commercial segment dominates Taiwan Diesel Generator Market owing to its growing demand from a wide range of industries, including healthcare, agriculture, government, telecom, hospitality, and others. These sectors deploy diesel generators to ensure uninterrupted power supply and prevent unwanted financial losses. However, the industrial segment is also growing at a substantial rate owing to the expanding manufacturing sector. Taiwan is one of the leading exporters of electronic products owing to high-tech production and global value chains. The growing production operations of electronic products in the country are fueling the demand for diesel generators.

Competitive Landscape

Major companies in the highly competitive Taiwan Diesel Generator Market include Genset Taiwan, Powermax, Prime Power, Shihlin Electric, Yanmar, Cummins, Caterpillar, Perkins, and Mitsubishi 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 Power Generator

• Medium Power Generator

• High Power Generator

By Portability

• Stationary

• Portable

By Application

• Industrial

• Commercial

• Residential