Diesel Powered Real Estate Generator Market Trends

Growth Drivers

• Solutions to unstable grid supply: Diesel-powered real estate generators are effective solutions in regions suffering from unreliable grids or frequent power cuts. For instance, in April 2024, South Africa suffered an entire month of energy crisis, which led to an increase in the use of diesel generators in real estate. Unstable grids and frequent power cuts correlate with the growth in the usage of diesel powered generators. The energy crisis in Nigeria also saw a rise in the usage of generators in real estate to maintain operations and mitigate disruptions in day-to-day life. Additionally, the release of fuel-efficient generators is poised to increase the usage of gensets as a backup in real estate projects. For instance, in December 2021, Cummins high horsepower diesel generator sets were approved for use with hydrotreated vegetable oil fuel.
• Commercial and industrial expansion: The rapid rise in commercial and industrial real estate projects are raising demands for backup diesel generators that can handle high loads and ensure continuous power supply. Properties such as shopping malls, industrial parks, and office towers require large volumes of electricity to power HVAC systems, elevators, and lighting. Additionally, industries seek backup power solutions that can supply power to selected loads necessitating the use of diesel powered generators. Gensets can also serve as a backup to microgrids in real estate complexes. The rapid increase in urbanization boosts an increase in commercial space leading to a sustained demand for diesel powered real estate generators that is set to continue in the next decade.
• Rise of smart diesel generators: The growth in smart diesel generators integrated with Internet of Things (IoT) sensors has ushered in the future of the generators market in the real estate sector. For instance, in May 2024, Jakson Group launched the next generation CPCB IV+ compliant gensets for reduced environmental impact through optimized fuel efficiency. Smart diesel generators are poised to answer the demands for sustainable solutions by minimizing environmental impacts and increasing adoption in real estate projects. Additionally, another benefit of smart diesel generators is the remote monitoring capabilities that improve power management in large real estate projects and shopping complexes. The trend to prioritize energy efficiency is positioned to boost the diesel powered real estate generator market’s growth.

Challenges

• Environmental concerns on emissions: The environmental impact of diesel emissions is a major challenge for the diesel powered real estate generator market. Governments globally are pushing to reduce carbon footprints which can cause traditional diesel generators to be obsolete unless manufacturers develop cleaner, low-emission models. For instance, stage V regulations set by the European Union reduce emissions to very small, i.e., <19 kW, and very big engines, i.e., >560 kW.
• Competition from renewable energy solutions: Diesel-powered generators face stiff competition from generators using renewable energy as primary fuel, i.e.,  solar-powered. The growing adoption of cleaner fuels for generators in real estate puts diesel-powered generators at a disadvantage and can stymy the market’s growth. Manufacturers have answered the challenge by integrating fuel efficient diesel generator solutions and integrating bio diesel as fuel sources.