In 2021, the Japanese diesel generator set market had a total size of around USD 1,120 million, and it is projected to hit approximately USD 1,816 million by 2030, progressing at a rate of 5.5% from 2021 to 2030, according to a research report by a market research company P&S Intelligence.

This growth can be ascribed to the surge in the city populace and the high occurrence of power outages faced by a vast portion of the population of the country, because of natural disasters. 

Japan is one of the most densely populated countries throughout the globe. Among its 47 states, only seven have less than 1 million populaces. As per the World Bank, the city populace of the nation amplified from 90.8% of the total in 2010 to 91.8% in 2020.

Based on power rating, the above 750 kVA category had the largest share in the market and is estimated to develop at a CAGR, of 4.6%, in the coming years. The requirement for such generators mainly rises for applications in the commercial and industrial sector, which consumes about 70%, of electricity in Japan.

the commercial category generated the largest revenue share in the Japanese diesel generator set market and is projected to grow at a CAGR of 5.7% in the coming years. In the past decade, corporate establishments in the country have been determinedly concentrated on the future, as they settled their industries for long-term vision. In comparison to 2020, both the hotel and retail market are increasing, because of the local company divestitures meant to boost the industry.

Key players in the Japanese diesel generator set market are concentrating on modernizing the mechanism and energy system of diesel generators so that they can fulfill the exact needs of individuals existing in Japan. For example, in January 2022, Cummins Inc. introduced the C550D5 (50 Hz) and C500D6 (60 Hz) series diesel generator sets for main and reserve applications, worldwide.

This series is made to provide a higher energy density in comparison to 15- and 16-liter versions with a displacement of 42 kVA per liter.

Furthermore, companies are merging and collaborating with each other to modernize diesel generators, utilizing each other’s skills. For example, in February 2021, Cummins Inc. signed a partnership agreement with Isuzu Motors Limited for an advanced manufacturing partnership to provide a mid-range diesel powertrain.

This creates a further step ahead in the Isuzu Cummins Powertrain Partnership (ICPP). Through this partnership, the two administrations have been intricate in estimating and carrying out opportunities to create new diesel and different powertrains.

Hence, the surge in the city populace and the high occurrence of power outages faced by a vast portion of the population of the country, because of natural disasters, are the major reasons behind the growth of the Japanese diesel generator set industry.