Uninterrupted and reliable power supply refers to the continuous supply of electricity required to run a predefined set of electrical equipment. The supply of electricity has to be maintained continuously at all times and is the minimum amount of electricity an end user’s facility will need to operate various equipment and systems installed at the location sites. Many end user facilities generate their baseload power supply through diesel gensets due to multiple factors, such as the inaccessible grid electricity and the intermittent nature of grid-connected electricity. For instance, end users who use diesel gensets located in remote areas prefer to generate their baseload electricity using diesel gensets.
According to the BP Statistical Review of World Energy 2019, in 2018, the global oil and gas production grew by 2.40% and 5.17%, respectively, compared to 2017. The growth in the production of oil and gas can be attributed to the improving global economic conditions and the simultaneous increase in the need for meeting the energy demand. The oil and gas exploration and production sites are generally located in remote areas, making them dependent on diesel gensets to provide uninterrupted and continuous power supply for powering critical equipment, such as motors, pumps, well control equipment, and lighting systems, at the drilling site. Moreover, as per the statistical data of the Worldwide Rig Count, published by Baker Hughes, a GE company, in 2018, the number of rig counts grew by 8.93%, compared to 2017. The rapid growth in the global operational rig count is expected to increase the demand for diesel gensets globally. Moreover, mining is a critical industry, as it provides raw materials to several end-use industries, such as construction, manufacturing, and electronics. However, most of the mining sites are remotely located and do not have proper access to grid electricity.
Hence, diesel gensets are essential for the mining industry, as they provide electricity for operating the critical equipment used in the mines, including drills, continuous miners, rock dusters, longwall miners, and shuttle cars. In the past century, the global mining industry has been dependent on easily accessible mining areas. However, the resources in these sites are depleting, and mining companies are gradually venturing into remotely located areas, where the extraction and processing of mineral resources were not economically viable earlier. For instance, Liontown Resources Limited (Australia) is currently developing the Kathleen Valley Lithium Project for the production of lithium. The project feasibility is being undertaken at the moment. However, once operational, the project is expected to install a number of diesel gensets to power operations at the site. Thus, the growing number of mining activities in remote locations is expected to drive the growth of diesel gensets during the forecast period. Similarly, various end users such as the construction industry, power generation facilities, data centers, and event organizers are dependent on diesel gensets for continuous power supply, as grid-based electricity may be inaccessible or intermittent, which can have drastic impacts on the operations of the end users.
Thus, the growing demand for uninterrupted and reliable power supply is expected to drive the growth of the global diesel genset market during the forecast period.
