Telecom Generator Market

Global Telecom Generator Market Size (2024-2029):

The Global Telecom Generator Market size is estimated at USD 1.58 billion in 2023 and is predicted to reach a value of USD 2.49 billion by 2029 from USD 1.71 billion in 2024 with a CAGR of 7.80% during the foreseen period 2024-2029.

Various types of generators, such as diesel, gas, or renewable energy generators, are employed in the telecommunications sector. The escalating demand for uninterrupted and reliable power in telecommunications infrastructure during power outages is predicted to boost market expansion prospects.

Market Drivers

The telecom generators market is supposed to grow at a substantial rate amid growing investments and countries in constant transition to renewable energy, as solar and wind power sources are intermittent. For example, while solar energy is abundantly available in tropical countries, it is virtually absent in colder countries.

Since telecommunications towers require reliable power to operate efficiently, generators provide the optimal solution, at least until renewable energy storage technologies gain ground. Telecommunication towers play an important role in daily and emergency communications. Many employees, including emergency services, police, and hospital personnel, depend on telecommunications towers for stable communication, vital to getting their jobs done. The need for radio and mobile wave communications has escalated dramatically around the world due to the advent of mobile telephony. This has escalated the call for a worldwide network of large-scale telecommunications towers, from cities to remote areas.

Market Restraints

The expansion of the telecom generator market is predicted to face the negative effects of the COVID-19 pandemic, as blockades and trade restrictions imposed by several countries have led to disruptions in supply chains and tower construction activities in the telecommunications sector. According to the World Bank's International Finance Corporation (IFC), a lack of supplies of materials and equipment, especially from China, has forced several mobile network operators to suspend their construction activities and, therefore, face financial difficulties. Additionally, the IFC notes that quarantine measures and staged closures have affected the movement of sellers and distributors, hampering the business development prospects of many telecommunications companies.

Market Opportunities

However, despite these challenges, the IFC anticipates a moderate coronavirus hit to the telecommunications sector. Telecommunications infrastructure has been deemed critical by governments around the world, creating a reasonably favourable environment for the expansion of the telecom generator market.

Market Challenges

Growing concerns about reducing noise and air pollution have diverted investment towards the adoption of renewable technologies, such as fuel cells, which will likely restrict the adoption of diesel generators in the telecommunications sector during the years of the forecast.

Impact of COVID-19 on the Telecom Generator Market

Worldwide, the telecommunications industry is considered a basic and essential infrastructure service for national economies, as data infrastructure becomes highly critical in a highly connected world. During the coronavirus-induced crashes, data usage around the world has grown exponentially due to working from home, the adoption of e-learning systems, and rising unemployment. Governments around the world have viewed telecommunications as an essential service amid the ongoing pandemic, so operations in the telecommunications industry are unlikely to be affected. However, the expansion of the telecommunications generator market has suffered notable setbacks due to the pandemic. These have mainly resulted in obstacles to the deployment of 5G services, as well as obstacles encountered when launching new telecommunications projects due to lack of availability of necessary capital, inaccessibility of raw materials, and lack of operational personnel. For example, the German telecommunications company United Internet said that the construction of its subsidiary's 5G 1 & 1 Drillisch network has been delayed due to measures taken in the country to prevent the spread of the COVID-19 pandemic in Germany.

TELECOM GENERATOR MARKET REPORT COVERAGE:

Market Segmentation

Global Telecom Generator Market Analysis By Fuel Type

• Diesel
• Gas
• Others

Based on the type of fuel, the telecom generator market will be dominated by the diesel segment in 2021. There are several reasons for the dominance of this segment. For example, diesel generators do not require plugs or cables, reducing your overall maintenance costs. Furthermore, their service life is also longer than that of other types of generators.

Global Telecom Generator Market Analysis By Power Rating

• Below 75 kVA
• 75-375 kVA
• 375-750 kVA
• Above 750 kVA

The less than 75 kVA segment had a dominant market share in 2020. In the telecommunications sector, the majority of installed generators are from 10 kVA to 50 kVA due to the increase in call for reliable and uninterrupted electricity from telecommunications towers during power outages.

Global Telecom Generator Market Analysis By Application

• Continuous
• Peak Load
• Standby

The standby segment had a dominant share of the worldwide telecom generator market in 2020. Lately, most countries have invested significantly in the development of renewable energy. An increase in the adoption of renewables is likely to lead to disruptions in the supply of electricity, as renewables are an intermittent source of energy. DC generators are employed as the main power source, not just backup or backup power. These generators can provide power in situations where there is no power source available.

Market Regional Analysis:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Asia-Pacific is poised to dominate the telecom generator market during the foreseen period due to the exponential expansion of mobile phone and Internet users in the region, especially in India and India. China. Currently, there are 1.9 billion mobile Internet users in the Asia Pacific, creating huge opportunities for players in this market. In 2019, the size of the Asia-Pacific market was $ 500 million. In Europe, the regular deployment of 5G infrastructures should be the main expansion engine of the telecom generator market. By the end of 2020, next-generation wireless connectivity is predicted to be delivered across the continent from 80 operational networks. The 5G installations in Latin America, especially Brazil, will provide the necessary boost for the expansion of this market in the region. The Middle East, Africa, and Latin America are predicted to see significant expansion in the telecom generator market during the conjecture period due to escalated investments in 5G facilities.

Market Key Players:

1. Aggreko (The U.K)
2. Caterpillar Inc. (The U.S.)
3. Cummins Inc. (The U.S.)
4. Himoinsa (Spain)
5. John Deere (The U.S.)
6. Kohler-SDMO (France)
7. Wärtsilä (Finland) 
8. Kirloskar Electric Co. Ltd. (India)
9. Generac Power Systems (The U.S.)
10. FG Wilson (The U.K)
11. The Generator King (South Africa)
12. AKSA Power Generation (Turkey)
13. Ultimate Power Solutions (The UAE)

Market Recent Developments:

• The Ministry of Oil wants to convert the diesel generators (DG) employed by telecommunications towers to run on natural gas. This will reduce the economy's carbon footprint by reducing diesel consumption and escalating the share of clean fuel in India's primary energy basket.
• Mahindra Powerol, a $ 19 billion Mahindra Group business unit, announced the expansion of its line of higher kVA Diesel Generators (DG) with the launch of the Perkins® 2000 series with DG 400/500/625 kVA engine.