Report: Mission-critical, commercial end users will lift diesel engine on-site power market 25 percent through 2025

Editor’s Note: The virtual POWERGEN+ series will present a session on “Protect your Power Source: Ensuring the Reliability of Diesel Fuel in Emergency Power Systems,” beginning 4:30 p.m. ET. The 45-minute, free session is sponsored and presented by Mongoose Power Solutions. Michelle Hilger, chief connector and on-site power advocate for Mongoose Power Solutions, will highlight the maintenance needs and best practices for diesel-fueled gen-sets in emergency power systems. Click here for more on POWERGEN+ and to register.

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(This story originally ran in July).

The novel coronavirus has impacted the standby, on-site power market, same as many other sectors, but the needs of critical services should help push diesel power engines and gensets upward in the coming years.

A new report by ResearchandMarkets indicates that the diesel power engine market will grow by about 25 percent, or $6.3 billion annually to $7.9 billion, over the next five years. Companies in this global space include Caterpillar, Cummins, Wärtsilä , Rolls-Royce, MAN, Volvo Penta and Doosan Infracore.

The COVID-19 Pandemic has negatively impacted most sectors in a dramatic way. The extended lockdowns and slowdowns depressed end-use demand, leading double-digit percent revenue declines for companies such as Caterpillar and Cummins.

Diesel power engines, however, are versatile, compression ignition and reciprocating engines considered reliable and efficient in comparison to other fossil fuel resources, according to many industry experts. The standby engines and gensets are situated at mission-critical facilities such as hospitals, data centers, industrial plants and oil and gas production operations, among others.

They also are often considered a crucial, if uncredited, component of microgrids used in the health, public safety and data sectors. The commercial segment, however, is considered the fastest growing base for the diesel power engine market, according to ResearchandMarkets.

See more stories on the diesel engine on-site power market here.

Some of the on-site power giants are branching out into other partnerships to research alternative fuels. In June, U.S-based Cummins announced it was forming a joint venture with NPROXX in developing hydrogen storage tanks, and one year earlier Cummins acquired Hydrogenics Corp. and also invested in development of solid oxide fuel cells.

German firm MAN Engine Solutions announced it had completed a 37-MW expansion of a power plant in the Faroe Islands. The company integrated four of its MAN 9L51/60 hybrid–which can run on diesel or natural gas­–at the Sund plant near the Faroese capital.

Britain’s Rolls-Royce Power Systems has deliver the dual-fuel MTU PowerPacks for the Irish rail system, the company announced last week.

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