The South America large generator market is expected to grow from US$ 360.51 million in 2022 to US$ 617.12 million by 2028. It is estimated to grow at a CAGR of 9.4% from 2022 to 2028.
Increasing Adoption for Distributed Power Generation in South America Large Generator Market
The rising demand for power is turning it into various forms of distributed generation. Although solar PV and other renewable technologies are receiving most of the coverage, but they represent only a small portion of the distributed market. Thus, to cater to the growing power demand, diesel generators have been used for distributed generation. However, due to the factors, such as cheap natural gas and increasingly stringent environmental regulations, there is a rise in the demand for distributed natural gas generation (DNGG) technologies. Also, the rising demand for compact, resilient, dispatchable power the demand for DNGG is rising in the market. Various businesses are using technology to provide continuous power to their facilities. Thus, the growing demand for DNGG, as it is a reliable power source its demand is increasing, further bolstering the growth of the large generator market. Furthermore, distributed power generation through diesel generators is increasingly used in various industries. It is used not only at manufacturing sites where the electricity supply from power utilities can be unreliable, but its demand at remote mining sites and even at other utilities that need to supplement their centralized generation assets is also increasing. Moreover, distributed power generation using diesel generators can cater to the power demand from commercial and industrial sectors during power cuts. Such growing demand for distributed power generation for a regular supply of electricity will further boost the growth of South America large generator market during the forecast period.
South America Large Generator Market Overview
Economies in South America have progressed at a faster rate on average than the economies of developed countries in the last 15 years. However, they still lag in terms of technological advancements. Also, the lack of skilled labor, decreasing productivity, and a high dependency on exports are among the major constraints faced by the economies in South America. However, factors such as supportive government policies and increasing efforts to meet the growing power demand are expected to drive the market over the projected period. South America is experiencing a rapid increase in energy demand and industrial operations, which is contributing to the rise in requirement for large generators in the region. For instance, according to Enerdata, primary energy consumption in South America amounted to 28.5 exajoules in 2021, an increase of nearly 7% compared to 2020. Such factors are anticipated to boost the large generator market growth in the region.
South America Large Generator market Revenue and Forecast to 2028 (US$ Million)
South America Large Generator market Segmentation
The South America large generator market is segmented on the basis of fuel type, industry, and country. On the basis of fuel type, the South America large generator market is segmented into diesel, natural gas, hydrogen, and dual. The diesel segment registered a larger market share in 2022.
Based on industry, the South America large generator market is further segmented into oil & gas, IT & telecom, power & utility, and others. The IT & telecom segment registered a larger market share in 2022.
Based on country, the South America large generator market is segmented into Brazil, Argentina, and the Rest of SAM. Brazil dominated the market share in 2022.
ABB Ltd, Atlas Copco AB, Caterpillar Inc, Cummins Inc, INNIO Jenbacher GmbH & Co OG, Kohler Co, Mitsubishi Heavy Industries Ltd, Siemens AG, and Yanmar Holdings Co Ltd are the leading companies operating in the South America large generator market.