Report Overview

Increasing economic growth and industrial development, rising ongoing infrastructure projects including construction and expansion of urban areas, growing manufacturing and commercial activities, and expanding telecommunications sector across the country are expected to drive the Vietnam Diesel Generator Set Market during the forecast period between 2024 and 2030.

Vietnam Diesel Generator Set Market – Industry Trends & Forecast Report, 2030

Vietnam Diesel Generator Set Market size by value was estimated at USD 109.98 million in 2023. During the forecast period between 2024 and 2030, the Vietnam Diesel Generator Set Market size is projected to grow at a CAGR of 4.32% reaching a value of USD 158.33 million by 2030. Prominent drivers of the market are the increasing establishment of Special Economic Zones (SEZs), the rising development of smart cities, growing expansion of state and national roadways, and the growing network of metro systems, and the escalating demand for electricity. A reliable electricity supply is crucial for a nation's economic progress; however, Vietnam faces challenges due to an inadequate grid infrastructure, leading to a shortage of power. This shortfall adversely affects the functionality of both residential and commercial areas, prompting an anticipated growth in the Vietnam diesel generator set market over the forecast period.

By volume, the Vietnam Diesel Generator Set Market size was estimated at 25.7 Thousand Units in 2023. During the forecast period between 2024 and 2030, the Vietnam Diesel Generator Set Market size is projected to grow at a CAGR of 4.91% reaching the volume of 48.2 Thousand Units by 2030. Presently, Vietnam is the primary global importer of diesel generators, with the majority of its imports originating from Japan, China, and South Korea. In accordance with NhanDan and the Ministry of Construction's plan, the Vietnamese government aims to augment the average housing space per person to 27 square meters by 2025 and 30 square meters by 2030. The government places a priority on the development of intelligent and environmentally sustainable structures, emphasizing the renovation of aging apartment buildings throughout this decade. Therefore, such aspects are expected to boost the expansion of the Vietnam Diesel Generator Set Market during the forecast period.

Diesel Generator Set – Overview

A diesel generator set, commonly known as a genset, refers to a compact and integrated power generation unit that utilizes a diesel engine to convert fuel into electrical energy. This set typically includes components such as the diesel engine, an alternator for electricity generation, a fuel system, a control panel, and other essential accessories. Diesel generator sets are widely employed for various applications, providing a reliable source of electrical power in areas where a consistent grid supply may be unavailable or during emergencies.

Vietnam Diesel Generator Set Market

Growth Drivers

Economic Growth and Industrial Development in Vietnam

Vietnam's robust economy is fueled by the remarkable expansion of its manufacturing sector, which accounted for over 25% of the country's GDP in 2021. The nation's extensive infrastructure, encompassing railheads, airports, seaports, and highways, positions it favorably to attract international industrial enterprises. As the industrial sector experiences significant growth, there is a concurrent surge in the demand for power. Consequently, there is a rising nationwide need for diesel generator sets to meet the increasing demand for electricity, particularly during grid outages.

Challenges

High Initial Investment and Maintenance Costs

The Vietnam diesel generation set market faces challenges due to high initial investment and maintenance costs, acting as significant barriers to market growth. These financial constraints limit the widespread adoption of diesel generators, hindering their market penetration despite the growing demand for reliable power solutions in the country.

Impact of Escalating Geopolitical Tensions on Vietnam Diesel Generator Set Market

Geopolitical tensions can have a multifaceted impact on the Vietnam Diesel Generator Set Market. Uncertainties stemming from geopolitical challenges impact market stability, affecting investor confidence and economic activities. The diesel generator sector faces potential disruptions in the supply chain, fluctuations in fuel prices, and regulatory uncertainties. As geopolitical tensions heighten, businesses and industries, cognizant of the need for uninterrupted power, may intensify reliance on diesel generator sets as a strategic backup. This evolving landscape requires agile responses from market players to navigate uncertainties and maintain resilience in the face of geopolitical complexities.

Vietnam Diesel Generator Set Market

Segmental Coverage

 Vietnam Diesel Generator Set Market – By Power Rating

By power rating, the Vietnam Diesel Generator Set Market is divided into 5–75kVA, 76–375 kVA, 376–750 kVA, and Above 750 kVA segments. The 5–75kVA segment holds the highest share in the Vietnam Diesel Generator Set Market by power rating. It can be attributed to the rising apprehensions regarding power fluctuations at residences resulting from natural disasters, these generators find extensive utilization in the residential sector.

Vietnam Diesel Generator Set Market – By Application

On the basis of application, the Vietnam Diesel Generator Set Market is divided into Prime Power, Backup Power, and Peak Shaving segments. The backup power segment holds the highest share in the Vietnam Diesel Generator Set Market by application. It is primarily due to the critical role it plays in ensuring uninterrupted power supply during grid outages or disruptions. Given the country's susceptibility to occasional power instability and the need for reliable energy sources, businesses and households heavily rely on diesel generators for backup power solutions. This heightened dependence on backup power applications elevates the significance of the segment within the market, driving its dominant position.

Vietnam Diesel Generator Set Market – By End User

Based on end user, the Vietnam Diesel Generator Set Market is divided into Mining, Oil & Gas, Construction, Marine, Residential, and Commercial segments. The residential segment holds the largest share in the Vietnam Diesel Generator Set Market by end user. It is primarily due to increasing concerns about power reliability in homes. Vietnam's susceptibility to power outages, often triggered by natural disasters, prompts households to invest in diesel generators for a dependable backup power source. The residential sector places a premium on uninterrupted electricity, making diesel generator sets a popular choice, thus contributing to the segment's significant market share.

Competitive Landscape

Major players operating in Vietnam Diesel Generator Set Market include YANMAR HOLDINGS CO., LTD, Huu Toan Group Co., Ltd, KIM BINH INDUSTRIAL CORPORATION, Atlas Copco, Cummins Inc, VICO LTD, MHI ENGINE SYSTEM VIETNAM CO LTD, DZI AN MECHANOELECTRIC JSC, and Weichai Vietnam. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In August 2023 - Mitsubishi Heavy Industries Engine & Turbocharger, Ltd (MHIET) introduced the MGS3100R, the latest addition to the MGS-R series, offering a robust 3,000 kVA class generator set. With a focus on space efficiency, easy installation, and stringent quality approvals, this model boasts a newly developed high-power engine with advanced fuel injection.

Scope of the Report

Attributes	Details
Years Considered	Historical Data – 2019–2030
	Base Year – 2023
	Estimated Year – 2024
	Forecast Period – 2024–2030
Facts Covered	By Value - Revenue in USD Million
	By Volume - Thousand Units
Market Coverage	Vietnam
Product/ Service Segmentation	Power Rating, Application, End User
Key Players	YANMAR HOLDINGS CO., LTD, Huu Toan Group Co., Ltd, KIM BINH INDUSTRIAL CORPORATION, Atlas Copco, Cummins Inc, VICO LTD, MHI ENGINE SYSTEM VIETNAM CO., LTD, DZI AN MECHANOELECTRIC JSC, Weichai Vietnam

 

By Power Rating

• 5–75kVA

• 76–375 kVA

• 376–750 kVA

• Above 750 kVA

By Application

• Prime Power

• Backup Power

• Peak Shaving

By End User

• Mining

• Oil & Gas

• Construction

• Marine

• Residential

• Commercial

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Vietnam Diesel Generator Set Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Economic growth and industrial development in Vietnam
         2. Ongoing infrastructure projects, including construction and expansion of urban areas
         3. Growing manufacturing and commercial activities in Vietnam
         4. Expanding telecommunications sector
      2. Restraints
         1. High initial investment and maintenance costs
         2. Increasing emphasis on sustainable and renewable energy sources
         3. Environmental regulations and growing awareness about environmental sustainability
      3. Opportunities
         1. Growth of various industries in Vietnam, including manufacturing and services
         2. Increasing establishment of commercial enterprises
         3. Continuous advancements in generator set technologies
      4. Challenges
         1. Fuel price volatility
         2. Rapid advancements in alternative power technologies, such as battery storage and solar power
   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. Vietnam Diesel Generator Set Market: Marketing Strategies
5. Vietnam Diesel Generator Set Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Power Rating
         1. 5–75kVA
         2. 76–375 kVA
         3. 376–750 kVA
         4. Above 750 kVA
      2. By Application
         1. Prime Power
         2. Backup Power
         3. Peak Shaving
      3. By End User
         1. Mining
         2. Oil & Gas
         3. Construction
         4. Marine
         5. Residential
         6. Commercial
         7. Others
6. Competitive Landscape
   1. List of Key Players and Their Products
   2. Vietnam Diesel Generator Set Company Market Share Analysis, 2023
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
7. Vietnam Diesel Generator Set Market: Import & Export
8. Impact of Escalating Geopolitical Tensions on Vietnam Diesel Generator Set Market
9. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
   1. YANMAR HOLDINGS CO., LTD
   2. Huu Toan Group Co., Ltd
   3. KIM BINH INDUSTRIAL CORPORATION
   4. Atlas Copco
   5. Cummins Inc
   6. VICO LTD
   7. MHI ENGINE SYSTEM VIETNAM CO., LTD
   8. DZI AN MECHANOELECTRIC JSC
   9. Weichai Vietnam
   10. 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 End User
    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       Vietnam Diesel Generator Set Segmentation

Figure 2       Vietnam Diesel Generator Set Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2023

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

Figure 5       Vietnam Diesel Generator Set Market Share, By Power Rating, By Value, 2019–2030

Figure 6       Vietnam Diesel Generator Set Market Share, By Application, By Value, 2019–2030

Figure 7       Vietnam Diesel Generator Set Market Share, By End User, By Value, 2019–2030

 

List of Tables

 

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

Table 2        Vietnam Diesel Generator Set Market Size, By Power Rating, By Value, 2019–2030

Table 3        Vietnam Diesel Generator Set Market Size, By Application, By Value, 2019–2030

Table 4        Vietnam Diesel Generator Set Market Size, By End User, By Value, 2019–2030

Table 5        YANMAR HOLDINGS CO., LTD Company Overview

Table 6        YANMAR HOLDINGS CO., LTD Financial Overview

Table 7        Huu Toan Group Co., Ltd Company Overview

Table 8        Huu Toan Group Co., Ltd Financial Overview

Table 9        KIM BINH INDUSTRIAL CORPORATION Company Overview

Table 10      KIM BINH INDUSTRIAL CORPORATION Financial Overview

Table 11      Atlas Copco Company Overview

Table 12      Atlas Copco Financial Overview

Table 13      Cummins Inc Company Overview

Table 14      Cummins Inc Financial Overview

Table 15      VICO LTD Company Overview

Table 16      VICO LTD Financial Overview

Table 17      MHI ENGINE SYSTEM VIETNAM CO., LTD Company Overview

Table 18      MHI ENGINE SYSTEM VIETNAM CO., LTD Financial Overview

Table 19      DZI AN MECHANOELECTRIC JSC Company Overview

Table 20      DZI AN MECHANOELECTRIC JSC Financial Overview

Table 21      Weichai Vietnam Company Overview

Table 22      Weichai Vietnam Financial Overview