Posted On: 2021-09-16
Above 1000 kVA diesel gensets acquired the largest revenue share in the diesel genset market of Australia in recent years – 6Wresearch.
Australia diesel genset market has witnessed growth during 2017-2019 due to growth in the mining sector on account of rising demand for metals, especially for iron ore. However, revenue declined in 2020 on account of the Covid-19 pandemic, which caused a disruption in the supply chain and a halt in economic activity. However, steady growth is anticipated in the forecast period on account of government investments such as $338 million for the construction of the Coburn mineral sand project in Western Australia and the announcement of $225 million for "Exploring for the Future Program" in the greenfield exploration by Geoscience Australia on May 21, among others
According to 6Wresearch, Australia Diesel Genset Market size is projected to grow at a CAGR of 3.2% during 2021E-2027F. The Australia diesel genset market is primarily driven by the increasing construction and mining activities. In May 2021, the government announced to invest $100 million by 2025 to extend Junior Minerals Exploration Incentive (JMEI), which would attract new investors for minerals exploration in years to come. Further, most mining sites are in the country's remote locations where no grid connectivity is present. Thus, diesel genset acts as a prime solution for power generation to provide continuous power at those remotely located mining sites. These factors would boost the demand for diesel genset in the country in the upcoming years.
According to Navneet Aggarwal, Assistant Manager, 6Wresearch, above 1000 KVA garnered maximum revenue size in 2020. The same trend is expected in the coming years due to the rising focus of Australian government on high-end industries and the mining, energy & utility sector development. Further, construction projects often fail or get delayed due to power outages or a lack of power supply at construction sites, increasing the cost of operation and budget. Hence, diesel genset provides much-needed electricity to enable work to proceed 24 hours.
"Moreover, based on regions, the Queensland region holds the maximum market size due to increasing mining sector outlook in the region. Additionally, a media report released on Feb 21 revealed that the Queensland resources industry grew by 77% in 2018-20 and this trend is likely to follow up in the forecast period. Navneet further added.
According to Ramit Behl, Research Analyst, 6Wresearch, the Mining sector accounted for maximum revenue size in 2020, and the same trend is expected in the upcoming years as well; as according to "Department of Industry, Innovation, and Science," the export value of mining output is expected to increase by 2020-21 with major projects coming in from coal and natural gas industry which is likely to complement the diesel genset demand in the country.
"Additionally, the manufacturing sector contributes around $100 billion to the country's GDP annually, thereby leading to rising in demand for a large volume of diesel gensets in the manufacturing vertical as well to provide constant power supply," Ramit further added.
Australia Diesel Genset Market (2021-2027) provides an in-depth analysis with 21 figures and 8 tables covered in 76 pages. The report estimates and forecasts the overall Australia diesel genset market by KVA ratings, verticals, and regions. The report provides an unbiased and detailed analysis of the Australia diesel genset market on-going trends, outlook, opportunities/high growth areas, and market drivers, which would help the stakeholders devise and align their market strategies according to the current and future market dynamics.