High power deficits, coupled with significant economic growth potential, are expected to be the strongest drivers behind these markets’ expansion. “As a result, China will see its revenues jump from $2. 7 billion in 2013 to approximately $5 billion by 2020, representing a Compound Annual Growth Rate (CAGR) of 9. 6%.
Despite heavy industry being an important end-user for China’s genset market, as this sector consumes the majority of electricity nationally, GlobalData states that industrial output is expected to rise at a slower pace until 2015.
Siddhartha Raina, Senior Analyst for GlobalData, says: “China and India each face a considerable gap between their power supply and demand, creating attractive markets for diesel genset manufacturers.
Major investments in the smart grid over the next five years are expected to make electricity supplies in China more reliable, which will in turn have an adverse effect on the diesel genset space during the forecast period.
The company’s latest report states that while the US, China and India are currently the top diesel generator set (genset) players, only China and India’s market shares will improve by the end of the forecast period.
However, a number of barriers will hinder any further development in China’s diesel genset market by 2020, including the slow anticipated growth in the country’s industrial sector.
China is set to overtake the US as the global diesel generator set market leader, increasing its share from 26% in 2013 to 33% by 2020, says research and consulting firm GlobalData.
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